All Forum Posts by: Eyal B.

@Mark Brogan  Thanks so much!

@Amit M. SF and LA face some similar challenges, but there are many differences. (Jealous of your land use abilities!)

- Condo conversion used to be popular in LA, but over the years steps have been taken to make it difficult. Granted its not a model I know well, but it is difficult to impossible to do in most parts of LA now. Just gotta build them as condos, then rent them for the option.

- Most of my deals have actually been on MLS. It's doable, just have to be smarter than the next guy. I'm always the FIRST person to call on the property, and I'm always the most motivating buyer to work with. I have my strategies to maximize my buying value before escrow and in it.

- I'll be cold calling smaller banks and credit unions to find a motivated lender who should like my numbers, and try to create a long term relationship there to maximize my borrowing power.

- This building took a year to realize full value. The first few months were to allow the old tenants to vacate. The remodel was slated to take 3 months, but it took 5. It took about a month to fill the 4 units. Currently I'm slow on the acquisitions side as there aren't as many deals. I wait to focus my limited capital on a fantastic deal. I work full time, so for now I can afford to be patient. In 2013 I acquired 3 properties, in 2014 I only acquired 1... I'll probably continue to acquire 1-3 a year until the next market crash where I hope to go on a shopping spree.

@Hank Buck  and @Account Closed I was able to get one unit vacant at the close of escrow. The other 3 were month to month and left willingly without trouble once noticed since I allowed a month longer than the minimum notice period, offered a small amount to help with relocation expenses, and returned 100% of security deposits. Sean, I financed it via a standard conventional mortgage.

 @Jeremy Billauer Thanks! I focus on and know between West Hollywood to the east of Silver Lake, with Hollywood in the middle. I watch and know other markets, but not as well. Culver is interesting. I work there, but I haven't heavily pursued it. Something by the Metro would be great. I don't know the Westchester market at all. I know a little about Inglewood, but I have a good friend seeing great cash-flow and appreciation out there. I've been fortunate enough to ride the appreciation wave over the past 2-3 years so I've stuck to value adds in more established areas that are still improving. I'll definitely continue to watch all the Eastside craziness as there is still tons to be made out there. I'm not married to the markets I operate in by any means. A good deal is a good deal.

If I were to be more speculative, and I may, I'd put money on Mid-City, especially between La Cienega and Crenshaw and between Olympic and Washington. As close to Pico as possible.  

@Shane W. You are looking to partner with someone and deploy capital? I've self funded my deals so far but I'm getting to a point where bringing on investors will help scale my operation. I wouldn't mind setting up drinks to see if there is a fit.

@Moses Kagan We had MULTIPLE foundation inspections and engineers come out in escrow. The settling was not terrible but there were recommended repairs, which were completed. I remember seeing you at the buyers open. FYI, I've been sending renters over to Adaptive that come to viewings and decide against the units for reasons like bedroom sizes, etc. Lets keep those comps up!

@Daniel Sanchez  Sure, reach out to me for drinks sometime!

I recently finished work on my 4-unit building remodel in Silver Lake, an area that has become fairly desirable in Los Angeles.

I seek out under-performing buildings with deferred maintenance and under market tenants. I fix and remodel the building as a high end offering then bring in top market quality tenants, offering beautiful new homes and great service to those that sign leases with me. I end up with forced appreciation in an already strong appreciation market as well as strong cash-flow. Momentum is gaining and this model is proving successful for me. I thought I'd show one of my recent deals as I near completion.

This is what the building looked like when I purchased it a year ago:

And after:

A couple before and after interior photos, 2 bed layout:

After:

A couple before and after interior photos, 3 bed layout:

After:

If you want to see all my before and after photos, they are available here:

Before: https://www.dropbox.com/sh/rsry5kjok097j8b/AAAGjIl...

After: https://www.dropbox.com/sh/spee31mdpa6vtdv/AAB3f4B...

The building was grossing $3,770 when I picked it up. I listed all 4 units about 3 weeks ago. I have 3 signed leases, and filling the last 3 bed unit now. The building is scheduled to gross $11,680 per month.

Basic numbers:

Purchased: $1,114,700

Remodel: $250,000

Unit 1 - 3 Bed/2 Bath - Vacant - For lease, $3,295/m
Unit 2 - 2 Bed/2 Bath - Leased - $2,495/m
Unit 3 - 3 Bed/2 Bath - Leased - $3,345/m
Unit 4 - 2 Bed/2 Bath - Leased - $2,545/m

Non rent-controlled, 1990 construction building. Lots of upside as Silver Lake rental values continue to grow.

Building value at a 5 CAP is about $2,000,000.

Thanks, I'll check both of these out tomorrow!

I am remodeling a 4 unit building in Los Angeles and could use some recommendations for ready to assemble/assembled kitchen cabinets on an investors budget.

I'm doing all 4 units at once. 

Thanks!

Agreed. Seems like an inadequate fraud investigation. That said, I'm light on details as Section 8 will not discuss the case with me, so I am limited to what the tenant tells me.

I'm looking to help protect my tenant.

Section 8 sent a notice that they'll be pulling the tenants voucher and permanently terminating her section 8 eligibility effective 7-31-14. The allegations are suspicion of sub-leasing back in 2006/2007. The investigation methods were to knock on her door and establish that nobody was home on more than one occasion. She often spends time in the hospital, and this could be a result of that. She has been a tenant in the unit since 2004. I have owned it since 2013. She is adamant that she has always lived there and this is a false case. I believe her.

She may have signed an agreement to pay back the rent during this period of time (around $3,800) during hearings in 2008. Her mother was dying of cancer in the hospital during these hearings, and claims that this was under duress as she would have signed anything to get back to her mother's side.

The tenant is a sweet elderly lady with multiple health issues, limited mobility, and no income or ability to work; this would be devastating for her.

Is this a sunk case? Has anybody been successful in fighting a similar situation during a section 8 hearing? Looking for advice or resources.

I work in the world of web and tech start-ups. I hear and have ideas daily. Ideas are nothing more than a thought, and thats what they are worth. Success is about implementation. The ideas that turn into successful businesses take blood sweat and tears.

The concept that if you tell someone your idea they'll steal it is kind of funny. It's going to take tons of hours of work, expenditure, and plenty of risk. It just doesn't really happen that you tell someone the idea, they will suddenly decide to drop everything and invest all this into your idea. Few people are willing to, or know how.

Validating an idea by talking through it with people, or even potential customers should be considered, even if its family or trusted acquaintances. There is no better way to expand your thinking beyond the assumptions you've created in your vacuum.

To answer your question directly, unless you have a track record of building successful start-ups/companies, the idea is worth nothing. Even patented its statistically worth little to nothing. You'll need to add the value and "equity" to the idea by investing the time and effort into building it, pounding the pavement to get it out there, and proving the concept.