All Forum Posts by: Cody Charnell

That's great, hopefully one or both of your offers work out! 

The property that we purchased with 1031 proceeds is going great. I actually just posted about it, here is a link to that deal: https://www.biggerpockets.com/forums/850/topics/750245-first-1031-exchange-from-2018?page=1#p4411917

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Long Beach.

Purchase price: $680,000
Cash invested: $235,000

Purchased this property with proceeds from a 1031 exchange. Our intent is to hold the property while fixing up units and raising rents. The property is in a great location, so we want to hang on to it for the long term. Instead of doing a 1031 exchange we intend to refinance and pull out equity to purchase our next property.

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

Our goal is to continue to roll equity into more and more investment properties. This one was a perfect up-leg for our 1031 exchange.

How did you finance this deal?

We used a conventional residential investment loan and put 35% down.

How did you add value to the deal?

The property is in decent condition however finishes are a bit dated a rents are very low for the area. The property is also unique in that all units are spacious, all have their own laundry room, there are small backyards, and there is an abundance of garage space and parking (which is unique for the area). Our strategy is to rehab the units and do deluxe upgrades so we can charge a premium for rent. Given the amenities and location it seems like units with deluxe upgrades will be easy to rent.

What was the outcome?

So far so good. The property consists of of a 2bed/1bath unit and (2) 1bed/1bath units. The 2 bed unit was delivered vacant at the close of escrow. The previous tenant was paying $1450 and we were able to rent it for $2245 after doing a deluxe rehab.

Lessons learned? Challenges?

In the 2 bed unit we had to decide between refinishing the wood floors or putting down vinyl click flooring. The cost for the two options was about the same (I expected refinishing the wood to be much cheaper). We decided to go with the vinyl click because it is extremely durable and waterproof. Also, if the unit goes vacant we won't have to worry about refinishing the floor again.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Long Beach.

Purchase price: $420,000
Cash invested: $135,000
Sale price: $595,000

Purchased this property with a partner in 2016. Our intent was to hold the property for a couple years and fix up a couple units/raise rents along the way. The property was in rough shape when we purchased it. We fixed up 2 of the 3 units and did some exterior work before selling in 2018 and doing a 1031 exchange into another property.

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

The brokerage I work for specializes in helping people build wealth in multifamily real estate in the greater L.A. area. I started working for the company because I knew I wanted to invest. After a few years of helping clients and saving commissions I was able to purchase this as my first investment property.

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

I actually found this deal off market. I sent my proposal to the owner and apparently he liked it. I never spoke to the owner directly but worked through his PM. It took me so long to convince my partner to write an offer on the property that the owner took my analysis to a real estate broker that he had used in the past and listed the property at the price I had suggested. We competed with 18 offers and won b/c they remembered me and knew we were serious. We weren't the highest offer.

How did you finance this deal?

We used a 25% down residential investment loan. 30 year fixed rate. Pretty standard financing

How did you add value to the deal?

We added value by fixing up two of the units and raising rents. The property consisted of (2) 1bed/1bath units and (1) 2bed/1bath unit (2 bed unit is legally 2 beds however it operated more like an XL 1bed). Rents were $1000, $1000, and $1200 when we purchased the property. We fixed up one of the 1bed/1bath units and rented it for $1125, rehabbed the 2bed and rented it for $1375, and began charging $100/month for the 1car garage. We also repainted the exterior of the property.

What was the outcome?

The outcome was great. The property was cash flow positive the entire time we owned it and we were able to sell for a profit. We did a 1031 exchange and rolled our proceeds into another triplex. By the time we sold the property rents had gone up considerable, so the rents we were getting were actually on the low end. The person who purchased the property had room to add additional value.

Lessons learned? Challenges?

When we first purchased the property we had to deal with a guy living in his van in front of the property and breaking into our laundry room to store a bunch of personal items. Luckily we had professional management to help us deal with this. The neighborhood has improved a lot since we first purchased the property.

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

We used Borba investment Realty to manage the property and help us with the rehab. Management was extremely helpful.

Join us on Saturday, September 28th, as we do a deep dive in to multifamily analysis. We will discuss key metrics, how to calculate returns, red flags to look for when analyzing deals, and much more. This is an educational event, so please bring your questions and appetite to learn.

When: Saturday, August 10th, 9:30am
Where: 1641 E 4th St, Long Beach, CA 90802

Description:
California is facing one of the worst housing squeezes on record and a lot of state and local law makers are turning to rent control as a solution. As investors, we need to stay ahead of these changes to make sure we aren't negatively effects.

Join us on Saturday, August 10th, as we review new state and local rent control ordinances, analyze what happened in cities that have gone through rent control, and much more. We hope to see you there!

This is an educational event so please bring your questions and appetite to learn!

Please RSVP on Meetup.com so we get an accurate headcount.

Buckingham Investments is seeking a real estate salesperson to join the team at our Long Beach office. Our goal as a company is to help individual investors achieve financial independence through local multifamily real estate investments. We realize that the number one reason that people don’t invest is because they don’t understand how these investments work. Our agents are trained to build long-term trust based relationships with clients by guiding them through our exclusive education and planning program.

Agents should be very self-motivated and have great communication skills. No prior real estate experience is required but candidates must be willing to obtain a real estate license if they do not already have one.

We operate out of small offices that are designed to give salespeople an abundance of individual time with our brokers. We are looking for entrepreneurial people who work well in a small office team environment and are comfortable with the flexibility of working for themselves as part of a growing company.

Investing in real estate can be a profitable and worthwhile endeavor for building wealth and creating financial independence. However, it is important to note that you can achieve significant success sooner by avoiding common investor pitfalls.

Join us on Saturday June 22nd as Real Estate Attorney Anthony Burton shares the most common traps that he sees landlords fall into and how to avoid them. This topic is especially important in the changing legislative environment. Make sure you stay informed!

This is an educational event so please bring your questions and appetite to learn.

Please RSVP on Meetup.com so we get an accurate headcount.

More than one million lawsuits are filed each year in the state of California, according to California Citizens Against Lawsuit Abuse. With such a high number of cases, California is one of the most litigious states in the nation. As property owners, we need to utilize methods of asset protection to ensure that our finances and property are safeguarded throughout all of life’s legal challenges.

Join us on Saturday, May 18th as Brian Chou, esq. teaches us how to protect assets from creditors, predators, and judgements. Brian is an expert in estate planning, trust, and probate law. This is an event you won't want to miss!

This is an educational event so please bring your questions and appetite to learn!

Please RSVP on Meetup.com so we can get an accurate head count.

We hope to see you there!

Understanding real estate terminology and basic formulas is a key part of being able to identify great deals in real estate. Join us on Saturday April 27th as we review industry terminology, essential formulas, and how they apply to multifamily investing. This is an educational event so please bring your questions and appetite to learn. 

We hope to see you there! 

Please RSVP on meetup.com so we can get an accurate headcount.

Hi Susan, 

Yes, I am happy to help. Long Beach is still finalizing the details of the relocation assistance law. There is a lobbyist named Mike Murchison who is working on behalf of the housing providers in Long Beach. He emailed out a draft of the relocation assistance ordinance this morning. You can view the draft here: 

https://www.dropbox.com/s/wuu33kii2on8i4x/Tenant%20Assistance%20Motion%20Official%20doc.pdf?dl=0

Several housing provider groups are still pressing council members to edit the ordinance. You can help by emailing your council member or getting involved with one of several housing provider groups: Small Property Owners Alliance (SPOA), Better Housing for Long Beach, The Apartment Owners Association.