All Forum Posts by: Clarence Johnson

Sales price was $430k and I negotiated the sellers leave $17,500 in escrow to relocate the remaining tenants.  The duplex was delivered half vacant and existing tenants were voluntary vacated so sis and her new husband can house hack until they can afford a sfr for their family.   

San Pedro is booming, sold my sister a duplex there for less than duplexes are selling in Watts.  Recent open houses have had upwards of 10 buyers at any given time, most of whom were obviously investors.  They break ground on the waterfront project this month, and I'm positioning my clients and possibly myself to capitalize.

Very good points @Jacqua Le Fleur, however be careful of the listing agent theory, they have a fiduciary duty to their sellers, you are secondary.  Ultimately, they will not negotiate against there self.  There is no way would I ask my seller to give up $17,500 to a buyer, but I ask listing agents to do this and more for my buyers all the time (usually after offer is accepted and we are in escrow).  It is a very good strategy to obtain a property, but not so good to get the best deal.

Sounds like a good plan and reasonable numbers for rehab.  Choose tenants wisely, and consider all expenses when doing AIR BNB numbers (you pay all utilities, including cable).  I think AIR BNB would be a good idea in the near future, but without the stadium being in place you may be better off looking for long term tenant.  Reach out if you need any further advice, I'm local.

I have had luck negotiating sellers to pay a portion of or all of cash for keys cost for my buyers. In rent control areas you must pay them to leave, non rent control areas just require a 60 day notice to vacate. The fee schedule is on the city of LA Rent Stabilization website, if you cannot find it feel free to send an email my way. We vacated three units in mid city last year, and I just did a cash for keys for my sisters newly acquired duplex in San Pedro. The San Pedro deal was unique due to our negotiating the sellers to leave $17,500 in escrow for the buyer to pay the tenants for relocation, needless to say they did not hesitate to leave, but instead of taking my advice and buying property they chose to lease in a higher rental market. The amount of money we gave the tenants was about the same as my sisters out of pocket with an FHA loan.

Sent you a DM

Will send you a DM with my preferred inspector, prices range $400-600.  Always ask the inspector to provide and example of their reports via email, this will give you a good idea of their quality of work.   His reports scare me and clients but I would rather know than not know.

@Joseph M. Both areas are getting a lot of spill over from Inglewoods high demand and becoming popular due to people wanting to be around the new Crenshaw line.  $700 is high for that duplex, it seems they are aligning their valuation with Inglewood rather than LA.

I'm far from where I want to be but I remember being you as a kid.  Stay motivated, read and research, and you will do well.  If you want a summer internship reach out to real estate agents in your area and let them know.  They can have you cold call clients which will get you accustomed to speaking to people and what to say.  You can also call the number on those "We Buy Houses" signs and tell them that you would like to help with their marketing.  I remember going to file paperwork for my broker before I got my license.  The experience of being in a RE environment,, hearing the language and seeing business done is priceless.  It also may help to have a parent on board to make sure you don't encounter any weirdos during your search.  

Pockets of 90047 in LA and all of Compton are non rent control.  Of course we prefer non rent control properties but if you find something renting at market rates in a good or upcoming area I would jump on it.  Most of the "cool" areas and upcoming "cool" are rent controlled.