All Forum Posts by: Allen Resha

@Micah Harris This seller is wanting CASH and to be done with her dealings with managing/owning apartments.  She is doing other things in life and my opinion is she is going to sell her other 14 properties over the next few years.  She inherited them from her family.

@Greg Scott I am looking into that, but at the moment I was very lucky and found a mentor who is doing deals here in LA.  I am letting him teach me what he is doing here in California and then will explore other options later on.  If I can do real estate in a market like LA and be successful/build trust with investors (to get cash for deals), then doing real estate in any other market will be really easy!  

I am from Tennessee and know a lot of people in my home town that will help me with off market/foreclosure/pre-foreclosure deals in the future, but I am utilizing this time to learn and build relationships.

To everybody else following this post I learned a big lesson from viewing this property and working with the investor that I found that agreed to mentor me and showed interest in the property.  I wanted to share some of that with you.  

1.  Information About the Property and Comparable Properties in the Area are VITAL!

2. Sellers Do Not Always tell the truth about financials or they give you padded numbers.

3. YOU MUST understand ROI, Comps, Rent Control, Occupancy History, and many other factors that go into making an educated decision.

I could list many more, but I want to see how this deal plays out with the investor that I am working with at the moment.  I will create a post later on and link to it here on what happened and what I learned.  I will also provide very in depth details on why the deal happened/didn't happen, what went into the decision, etc.  

@Adam Phebus Let me message you privately.

@Adam Phebus

https://files.acrobat.com/a/preview/af01cc7b-16c6-...

This has all the info that I have.  I met the seller and this is not rent controlled.  The rents/rent increases show this.  Let me know your thoughts.  I am learning a lot and appreciate your feedback.

https://files.acrobat.com/a/preview/bb4a9bac-5fe5-...

This link should work.  Have a look.  I will reply soon to the other posts, but felt it prudent to have more info posted.

Ok, so I have some more information.  I am lacking some important facts to include:

Montly Expenses, Accurate Tax Info, Condition of the plumbing/electrical, etc.

===> Property Analysis

(If the link doesn't work please let me know)

I used the calculator from Bigger Pockets and gave all of the information that was available.  She said she would provide more info IF an offer was on the table.  Overall the place looked in good shape.  I will reply to individual posts/send PM's to those requesting them tomorrow.  I think this is a deal.  There are 3 story units nearby, so it can easily be expanded to a larger complex.  There is also the option of doing the minimum to tidy up the complex and holding until the value goes up.  Rents are increasing in West LA yearly and as soon as tenants vacate/leases expire.  1b/1b are going for $1800-2000 and 2b/2b are going for $2000-$3000.  

If anybody has access to Tax info, please message me.  I know the taxes are not correct because they are based off of the 1 unit that was listed for sale as Condo.  Only 2 negatives about the building is NO gas and NO Air Conditioning.  Also if anybody has a good way to estimate monthly expenses based on the area that would be a big help.

The owner inherited the properties from family and is just looking to make money.  She owns multiple other units.  She will bargain, but I am sure she won't go much lower than her asking price because she has knowledge of rental investments in LA.

Thank you everybody for all your support and advice.  I am extremely grateful and very confident in my upgrade to Pro!!!

Sorry for the double reply.  I was trying to correct some mistakes, but couldn't delete my previous reply.

Wow! Thanks so much for the helpful questions to consider/post @Azeez K..  I got way more than what I expected in your response. I was scheduled to view the apartment complex today, but had to postpone till tomorrow. I will post as much information as I can tomorrow by 9pm PST, so check back in then to see updated info.

Thanks for the words of encouragement @Brent Coombs. 

@Jay Dewberry The apartment is in Los Angeles, more specifically West LA, so a 1 bedroom in that neighborhood can rent for $2000+. The unit has a mixture of floor plans. The land alone in this specific neighborhood is very valuable. Most small complexes like this one can be remodeled and units added (providing the permits can be obtained). I live in a 1 bedroom and rent is $1450 and that is cheap for my neighborhood. The rental market is changing because of a gentrification of most areas in LA.

Wow!  Thanks so much for the helpful questions to consider/post @Azeez K..  I got way more than what I expected in your response.  I was scheduled to view the apartment complex today, but had to postpone till tomorrow.  I will post as much information as I can tomorrow by 9pm PST, so check back in then to see updated info.   

Thanks for the words of encouragement @Jay Dewberry.  The apartment is in Los Angeles, more specifically West LA, so a 1 bedroom in that neighborhood can rent for $2000+.  The unit has a mixture of floor plans.  The land alone in this specific neighborhood is very valuable.  Most small complexes like this one can be remodeled and units added (providing the permits can be obtained).  I live in a 1 bedroom and rent is $1450 and that is cheap for my neighborhood.  The rental market is changing because of a gentrification of most areas in LA.

Thank you @Jill DeWit.  Sorry for the delay in reply.

@Eric Dowling I will begin there.  Again, thanks for the advice and for following up with my question on a good starting point.

I have recently came across what appears to be my first big step into real estate, BUT I have 2 problems.  I need a cash investor to get the deal done and I need a very experienced person to help me analyze the deal.  I believe this is beyond a calculator/running comps because of the location.  If you are willing to help with cash or advice please let me know ASAP.  I am looking at the complex tomorrow and I refuse to fail.  I am willing to do 80/20 split.  You get 80 and I take 20 or even a finder's fee for help.  I want to buy and hold.  Asking price is $3.75million and I am 99% sure it isn't worth that and the owner needs to get rid of it ASAP.  I realize that I probably won't find an investor that will take 100% risk, but I am determined to make this happen IF it's the right deal.  So deal or no deal?