All Forum Posts by: Ramon Wilson

I have heard that if tenants in a los angeles rent control building are evicted in order for an owner or owner's family members to live in the property, those evicted tenants may have a right to move back into the units if the units are placed back on the rental market with-in 2 years. If this is true, does that tenant re-rental right survive a sale? meaning if the owner who evicted tenants to move into the unit then sells the building, can the new owner rent the units without having the obligation to re-rent the units to the tenants evicted by the prior owner? Any information on this would be helpful. Thanks in advance.

I am considering buying a property in Los Angeles in which several of the tenants are seriously delinquent on the rent (6 to 9 months). I want to be able to evict the tenants based on the delinquency with the seller. What is the best way to accomplish this? Can the sellers assign the delinquent rent to me or does that delinquent rent get wiped out upon a sale of the property? If the sellers can assign the delinquent rent to me, how should that be structured (eg, do they write me a letter stating that the rent is delinquent or some other way)? Any help/ thoughts would be greatly appreciated.

Richard C. Thanks for the reply. What is the secret? It's clearly not cash flow. And at today's prices betting on appreciation over the next 5-7 years is also very risky. What in your view is the secret benefit to investing in los angeles real estate?

Anthony Angotti Thanks for the post. Yes I agree, one year is a bit too short. 18-24 months is the sweet spot. I'm averaging in that range. I've actually i've moved to 15 month leases which helps make that happen.

I'm looking to invest in a supply constrained, rent controlled area with good market rent growth (ie, market rent growth significantly exceeds the rent control increase limits). I know in many non-rent controlled (or over-supplied) markets investors typically prefer longer-term tenancies, but that seems like a disadvantage in this situation. Given the rent control rules, the only way to take advantage of the strong market rent growth is to turn units ever year or two. Even factoring in the cost to turn units, it is still better regularly increase rents to market. So, given that, why would it make sense to buy units with more than 1 bedroom in this type of area as studios and 1 bedrooms typically turn much faster than bigger units?

Antoine Martel That is definitely true that the investors here have a lot of cash and its tough to beat them. The question is what are they thinking? How do they make money on those investments?

Derek Robinson Thanks for the reply. I will check out Visio. Harjeet Bhatti Thanks for the reply. Yes I would love a referral to your commercial dept if they will lend to 1-4 unit properties based on the properties' income. Thanks again.

Harjeet Bhatti Thanks for the reply. My rental income is currently not sufficient to cover all of my expenses. That is why the traditional residential financing is not available. I am looking for a lender who will use commercial lending standards (ie, underwrite the income generated by the property) as opposed to residential lending standards (ie, underwrite the income generated by the borrower) to finance residential income properties. Please lmk if you know of any lenders that do this. Thanks again.

Daniel Dietz Thanks for that info. That is exactly the kind of lender I'm looking for. Do they lend in other states? Would you mind sending me their information?

I'm looking to invest in residential duplexes, tri's and quads. I left my W2 job a bit ago and can't find any lenders who will lend based on the cash flow of a property (they all lend based on the borrower's income). I can get loans all day long for commercial multi-family properties which is great. But i would prefer not to be completely shut out of attractive financing for 2-4 unit properties. I have found some guys who will do expensive short-term bridge loans (9-10%, 12-24 month term), but i am looking for longer term less expensive financing. Any thoughts or solutions are welcome. Thx.