Who buys multifamilies in Los Angeles (Santa Monica, etc)?

[Amy Wunderlich]

Hi all!

I live in Santa Monica, a city where cap rates are typically under 5%, so my strategy is to invest out-of-state. However, I recently got my RE license and want to start working with LA investors but WHO are buying these low cap rates? Certainly someone is but what is their profile? Seeking appreciation?

Thanks for the insight everyone!
Amy

[Connor Wingfield]

Hi Amy, 

I work as an architect in Santa Monica. We get a number of investors looking to add value to properties on the west side of LA.  Generally we see people who are developing and can afford to wait for permitting and or variances to zoning (split lots, extra sqftage etc). However, I've only been on the design and planning side. I have been looking for good success stories that explain the numbers in more detail, if you find some please share!