All Forum Posts by: Allan Glass

Hi @Shayne Fee  thanks for the feedback.  To answer your questions, my initial thoughts are:

1) Who is the ideal tenant - any real estate related start up or small shop, including - architects, independent brokers, appraisers, lenders, equity investors, contractors, developers, investors, designers, escrow officers, etc.  The concept is to refine the shared workspace model into an industry specific shared workspace and networking environment.  They key would be to find like minded professionals that have an interest in being part of an ecosystem and would approach business in the same way.  

2) How do I attract individuals / companies - Initially it would be like this, reaching out to my network (I've been doing this in LA for almost 25 years)  and to networking sites, like Bigger Pockets to find small shops and independent entrepreneurs who would benefit from a social network in their field and have small space requirements.  Similar to WeWork, the concept would be to deliver more upscale space in smaller packages for smaller firms.  As the roster of partners grows, it would require a curating new partners to ensure they are a fit with our existing group.  

3) It can't be a feeding frenzy - You're right; it should be a fun social environment where like minded companies network, but it should be a team of partners that understands networking etiquette and can appreciate that there is a time to network and a time to leave your partners to their work.  I think we accomplish this with a clear set of social rules among the group and by providing a consistent flow of networking opportunities at the space.

I'd really appreciate any and all comments/questions all of you may have regarding this concept.  My initial thoughts are to find a space of about 20,000-25,000 sf and deliver the space to partners either by open desk, dedicated offices, or team offices.

Cheers,

A

Hi Everyone, 

I run an investment brokerage and development firm in Los Angeles and have lately been focusing on a few projects I have in LA county that would target entrepreneurial start ups in various commercial manufacturing sectors.  They would be "incubators" for small/start up companies in similar industries.  

The idea is to take the We Work shared office idea and modify it to specifically target companies working in the same arena.

I'm seeking feedback from real estate entrepreneurs in LA and Orange County so see if there would be any interest in this type of space for real estate professionals?  

An example I can offer directed towards marketing firms is in El Segundo called: El Camp

The idea would be to collect like minded entrepreneurs working as real estate agents, investors, developers, contractors, title reps, lenders, equity investors, wholesalers, appraisers, you get the picture...

I look forward to any and all feedback!

Cheers

A

Hi @Robert Y. pointed out, you should really evaluate whether or not your need more cash flow.  At a point in time when most are planning for retirement and touring the world, do you really want to trade wealth building (appreciating markets) and stable cash flow for markets where appreciation would be less likely ?

I've never been a fan for trading solidly performing assets with good cash flow for risky second tier markets.  Alternatively, if your lender does agree with your valuations you can refinance, pull the some proceeds out of your LA asset and move some of that "risk capital" into less expensive markets for more cash flow.  If it works out you'll increase your cash on cash returns, if it doesn't you can soften the blow of losses by offsetting some of your taxable income from the LA asset that is likely to have greater appreciation upside. 

This market is my backyard.  If you'd like to chat I'd be happy to go into more detail.

Best of luck,

Allan

three things / my two cents...

1) If you must buy one of the "buy this program from me for $1,000.00 and you'll learn everything" programs, buy it from someone who failed using the system, at a discount, from Craigslist or Ebay.  This will be your first lesson in spotting opportunity where others failed and at buying assets at a discount.  Both essential traits of successful real estate investors...

2) Write this on a post it note and put it on your bathroom mirror and read it every day.  "It's never too late to start!"

3) stop asking how young others were when they started, it will only give you reason to ignore #2.

Best of luck!

Allan

We're actively buying in LA and Orange County. Been doing so in good and bad markets since the early 1990's. 

Best of luck to everyone looking for deals.

@Aaron Mazzrillo no offense taken, I I agree with most of your points; regardless I appreciate your vote of confidence and the kind words.  

Best of luck,

A

@David Hodge as was pointed out you manufacture deals and opportunities by rolling up your sleeves and looking where no one else is searching.  The Southern California market is a mature market with very experienced and deep pocketed investors.  Beginners will find difficulty following the standard guru methods in their most basic forms.

Although there's quite a bit of hyperbole in @Aaron Mazzrillo's comments his point is well stated - you won't find deals searching the MLS, relying upon unseasoned brokers/agents, or combing through Zillow, Trulia, etc. etc.

You may get lucky with one or two deals, but if you're trying to build a business in Southern California you won't be successful by waiting for deals to fall in your lap or by looking where everyone else is looking.

I've been investing and have owned and run a brokerage company in Los Angeles for over 20 years and have consistently found cash flowing deals for myself and my clients regardless of the market conditions. Aaron spells out many of the reasons these opportunities arise with sellers - the answer to how you find them is hitting the streets, finding the types of sellers who are likely to find themselves in the situations Aaron mentioned, and finding the successful investment brokers who know how to find these deals - there are a select few of us still around...

Best of luck

A

Growth/development controls or low rents.

Seems you may have one or the other, but not both....

CEQA on notice in California.

Hi @Dan L.

LA is a "wealth" investor market right now, few opportunities for cash flow investors, unless you're willing to rehab and flip, which is what many are doing now.   Many acquisitions are driven by 1031 exchange investors who have sold for profits and are parking with little leverage into safe assets.  

There are some opportunities to pick up new construction duplexes in South Los Angeles that will throw off yields around 6-8%, however most are off market.  Give me a shout if you'd like to discuss.

Good luck everyone!

A

Hi @Myles Allen

Try the Downtown Center BID website, they'll have the most relevant data

https://www.downtownla.com/2_01_StatsDemoData.asp

Best of luck,

A