All Forum Posts by: Danny Cerecedes

Hi BP!!! Looking to network with local developers and rehabbers in the Los Angeles area. I’m a Real Estate Agent, Firefighter and Investor and looking to learn, build relationships and maybe work together on some deals. Thanks and hope to meet some like minded people in the area.

Lexi thanks for your response....I wrote this post late last night and meant to say valuable not invaluable. Thank you for your reply. My property management has been great especially that my rentals are out of state.

The biggest thing I want to bring as a manager is consistent communication with both owners and tenants and to make sure that all expectations are being met by our company. 

I’m not just considering opening a property ma’a company because we can acquire 60+ units out of the gate but I feel there is space for function as a Mgt company and build a reputable name and hopefully acquire more units.

I’m currently paying 10% of the monthly gross rent for my management company. What is the standard rate for multiple family management as well as commercial?

Thank you! 

Hi BP!

I need some input on an opportunity that has presented itself. A little bit about me. I come from a real estate family and have been an active real estate agent in Southern California for the past 10 years or so. I also have a rental portfolio. So I have experience in real estate but the opportunity now is in property management. A potential business partner has asked me to join forces and start our own management company. I have a good idea of what property management companies do and I understand the landlord/tenant side of things but I’d like to get some advice from hopefully a few property management owners.

My potential partner is a plumbing contractor who works closely with many management companies in the Greater LA area so he has a very good understanding of the maintenance side of the management business. A few building owners who own over 60 plus units have told him that if he starts his own property management company they would move their buildings over to him/I to manage which is a good jumpstart. I will still maintain my real estate business but having another stream of income is enticing. 

Just looking for some advice from experience owners of property management companies as to what to expect and if this is a good opportunity to jump on.

I know having dealt with property management companies on my own properties they are so invaluable. The first one I had were horrible communicators and I was very disappointed in their service but I’m very happy with the management team I have now. I have a good idea of how I see our management company looking and functioning for our clients and tenants but would love any feedback from BP.

Thanks in advance!!

Hi Shilou long time no talk! First off sorry for the delayed response. Bummer to see you and the family heading back to AZ....good thing for you would be no more commuting.

My thoughts on your questions:

1. HVAC- I’m in agreement with Will...Central Heat and Air is a must in SoCal!  Wall units work but definitely not like a new system. I know when I’m showing my clients properties aside from the big ticket items (kitchen, bathroom, pool etc) HVAC is high on the list. As far as a dollar for dollar return on an appraisal probably not but from an offer standpoint I think you would easily recoup your investment.

2. Seller Financing- not to sure about this. I think you need to way your options between financing at the $920K at the 6.25% rate or just selling at a higher price than the $920K. Not sure where exactly you’re at in Burbank but depending on the comps and the fact that the property has rental income makes it a super desirable property. I can email you comps if you like to get an idea? Hope that helps!!

I remember you talking about your HVAC way back. I think I mentioned to you that my neighbor is a HVAC guy and he put in my system. Not sure how many estimates you got but I can share his info.

Let’s try and grab lunch again?

Congratulations Anthony love your story!! I’m in SoCal as well!

Thanks Eric!! Is it often a waste of time from an investor standpoint or is there value sometimes?

Hey BP,

Looking for some feedback and any help at buying properties at Auction. Maybe in a nutshell the typical process, chances of actually winning a bid? I have never done one or have been to one but looking at Auction.com there are some really good properties in the area my business partner and I are looking to acquire a fix and flip. The starting bid looks great but I know that’s just a starting point. If we were to win a bid is there any contingency period to check title to make sure we are not taking in any crazy liens. 

I’ve heard that we need to have a cashiers check ready....what is the usually amount we have to have in hand at the auction. Most of the purchase will be through private money but we have the ability to have decent cash ready to go at the auction.

Thank you in advance.

Welcome Roland!! Congrats on your flip and always good to see a fellow Bay Area person. I grew up in the Bay but relocated to SoCal about 10 years ago. Trying to build my fix and flip company as well. Love to help in any way I can!!