All Forum Posts by: Victor Ong

@Matthew Porcaro yes, unfortunately there are less lender willing to originate 203K. Hard money and banks are more willing to lend since spread is higher. However, COVID19 changes everything.

@Paul Welden yes, mini split is the way to go for studios and 3B apartments. Central air replacement is costly compared to ductless AC.

@Jeremy Pelle yes, i like the areas

You can get a duplex in 90033, 90023, 90031, and 90011 for less than 550k.

is this in Los Angeles City?

@David Featherstone it was never fun working with HOA. First, you have to submit your plan to the board for review. They will scrutinize your material, layout, and contractors. 2nd, if any layout deviates from the original plan, you have to find a structural engineer to prove to them the change won't compromise the structural integrity of the building. 3rd, your finished materials especially flooring must meet their sound proof standards. The HOA could ask you to redo your flooring if it doesnt pass the sound test. 4th, you have to cover up the common area with plastic wraps during the construction hour.

Investment Info:

Small multi-family (2-4 units) other investment.

Work In Progress: Ground up development in Ktown. 4 Unit townhome.

What made you interested in investing in this type of deal?

Walking distance to 4 corner strip malls

How did you find this deal and how did you negotiate it?

Redfin

How did you finance this deal?

Raised capital

How did you add value to the deal?

Ground up

What was the outcome?

WIP

@Pat L. Thanks, here are some of the finished photos from instagram

https://www.instagram.com/p/Bj-hiOsA_DP/?igshid=18w2ncck4vgdl

https://www.instagram.com/p/Bj-huwfA07c/?igshid=1ldrg2wyticzz

https://www.instagram.com/p/Bj-iKRyAOQ_/?igshid=1pnnvzfvsv9sr

@Paul Welden yes, we use FHA203 for the 4plex rehab and then apply our own fund for the extra unit. We didnt expect the rent to appreciate that much but the area took off and the rest is just history. It’s not hard to find quality tenants in LA. For above the market rent, there are plenty of high income earners with above average credit quality. For affordable housing, we can always go with section 8 for guaranteed payment. Both would pass our underwriting standards.

@Jeffrey Tufenkian we have a total 32 ensuite in the community with a common courtyard that connects the buildings. We’ll let the operators manage the communal events as we only provide a platform. The property is about 3min to Art District in downtown LA.