Development Project in Los Angeles

[Tommy Kim]

Investment Info:

Large multi-family (5+ units) commercial investment investment in Los Angeles.

Purchase price: $1,100,000
Cash invested: $200,000
Sale price: $1,799,000

Currently a Duplex Project in Los Angeles, CA. New plan has been submitted to Building Department for 25unit apartment project. Project will be sold RTI (Ready To Improve) as an apartment. Please shoot me an email for more details.
Thank You
~Tommy

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

I have been fix and flipping deals for over 10 years and started to develop apartments.

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

Got this deal from XOME.com ad a duplex and used the online bidding

How did you finance this deal?

Using a local bridge lender

How did you add value to the deal?

Ended up Cash for Key or Evicting existing tenants and put a plan to develop 25unit apartment project which has been submitted to city of Los Angeles.

What was the outcome?

We just listed the property this week and looking to sell it to developer investor

Lessons learned? Challenges?

Los Angeles has Rent control and there were multiple families living in the duplex. Housing department required us to pay every tenant occupying the building and that was a lot of money we did not expect.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Since I am a Real Estate Broker, I did work with other agents and brokers in my office.