All Forum Posts by: Scott R.

Our affordable housing clients have recently turned their attention to retail in Los Angeles. They intend to mitigate rent inflation by buying retail properties and *not* jacking up the rent. What a concept.

Only a few organizations are currently doing this, thanks to a new loan program. The lender is only willing to finance up to $245/sf though, so that is a hard limit on the price our clients will pay.

If you have a retail property in LA you'd like to sell that doesn't exceed $245/sf in value, or if you'd like help with a valuation, shoot me an email to [email protected] or give me a call at 949-306-4867.

Scott Reiley

KW Commercial DTLA

Affordable Division

BRE#01964506

Our clients are affordable housing developers looking for multifamily and motels in Los Angeles county, as well as development land.

They received funding from the city of LA recently and now they need to place the money. Some of the developers are willing to pay the commission, their motivation is so strong.

If you have something for us, shoot me an email to [email protected] or give me a call at 949-306-4867.

No brokers or wholesalers please, principals only.

Scott Reiley

KW Commercial DTLA

Affordable Division

BRE#01964506

Two adjacent parcels for sale in Bakersfield, California. Potential for an assemblage. Ideal for a large campus project such as a school, rehab center or assisted living facility. Asking price for both properties: $5,000,000

1st parcel has two industrial buildings, one is 14,700 SF the other 3,305 (total 18,005 SF). Secure - fully fenced. 100% leased, though tenant is open to early termination. Asking price by itself: $2,800,000.

2nd parcel has 7 multifamily units (7980 SF) and is entitled for an additional 28 (35 total). Lot is 53,218 SF. Permits are paid. High upside potential, nearby units renting between 1500-1800. Asking Price by itself: $2,200,000.

For more info reach out to me at (949) 306-4867 or [email protected] and I will send you the offering memorandum.

Have your buyers sign a non-disclosure/non-circumvention agreement before giving them the property info. This is a common practice in commercial real estate when agents have pocket listings they don't have under contract.

This house has already generated a lot of interest prior to listing. It has been well maintained. The owner took a reverse mortgage against a year ago, and the lender was satisfied with the inspection report at the time. As always, buyer is recommended to order their own inspection, seller makes no warranties as to the condition of the house. House is being sold AS IS.

The house has a basement that runs along the length of the house, it has 3 rooms. The walls of the basement entry room have been adorned with boxes of high end spirits from the owner's alcohol wholesaling business. It would make for a perfect wine cellar. The bonus room in the basement has been converted into a bedroom, with a bed suspended from the ceiling via chains. The bedroom conversion is unpermitted, buyer to consult with the city about permitting the house as a 3 bedroom. The living room has a fireplace, but the chimney has been removed.

If you'd like to schedule an appointment, you can call/text me at (949)306-4867. Sight unseen offers are welcome as well.

That's not really what I was getting at. Sorry for the confusion I should have been more clear. If you were to apply that strategy to notes it would be more accurate to call it Buy/Mod/Hypothecate if you wanted to be literal. Not nearly as catchty.

Though if a workout isn't possible, foreclosing, rehabbing, renting it out and refinancing would be an obvious backup strategy.

I have seen some posts on BP before about recapturing the initial investment by selling partials.

Anyone ever apply the Buy/Rehab/Refi strategy to notes?

Aristotle is right, the cap rates out here are low compared to most of the country, because most of the country doesn't have the potential for appreciation that LA and OC do. We also have rock bottom vacancy rates.

I'm talking to a few apartment owners out here who are on the fence about selling. I'll reach out to you if any of them decide to pull the trigger.

I just heard their ad today and looked into it a little bit. Supposedly they give up to 15% LTV in exchange for 50% of future appreciation. They take out an insurance policy on the borrower. If the borrower dies, they use the policy to buy the house (at a discount of course). Supposedly the borrower's heirs have right of first refusal if they don't want to sell the house.

That is just what I gathered from the press on this company. I'm not sure how they handle situations where there is no appreciation, or where the appreciation does not pay back the loan. It's probably in the fine print somewhere. There is another company that does something similar called Real Estate Equity Exchange.

I can't tell if this kind of loan is a rip off or not from what I know. Anyone have any more input on this matter?

The art gallery idea might actually work pretty well if you combine it with the residential conversion. Artists love live/work spaces. But that would only be a good idea if there is already a thriving artist community in the area.

You could also turn part of it into a music studio that you can rent out by the hour, but that is a business in itself. And once again, without a stable music scene in the area, you'd have a tough time renting it out.