Just Sold - 8 unit Apartment Complex 👏

JUST SOLD! 😎

Just sold this incredible 8 unit apartment building on the west side of Los Angeles.  I was able to negotiate the price down $305k to get my client an incredible deal.  This building generates $380k in yearly rent and is situated on the West Side of Los Angeles.  With a growing job market, and high rental demand we knew this was going to be a great investment.   Did I mention it's a brand new build?!  Expenses on this will be low for years to come!

Buying a rental property doesn't need to be complicated!  We break it all down and make the process easy for you.   We highly recommend purchasing a multi-family property in Los Angeles.  It can generate passive income, appreciate over time and at a minimum offset taxes through depreciation.   There's no better hedge against inflation!  

Property Details

4820 S Slauson 🏡

$5,670,000 

8 units

7764 sq feet

$380k in gross rents each year

Advice For Buyer in this Market 😎

The housing market is shifting before our eyes.  National headlines say there's a housing market crash.  They are recession fears, the Fed keeps raising interest rates and the stock and cypto markets have lost a lot of value.  Well that's a lot to digest!  We all have to remember that real estate is highly localized and even here in LA we are experiencing wildly different markets.    

WATCH VIDEO

1 - Buyers need to rerun numbers as mortgage rates rise - with rates changing daily, and projected to go up, your purchasing power can change from one day to the next. Don't go falling in love with a home you couldn't afford in the first place.

2 - Inventory shortages will continue - Demand continues to outweigh the supply. I don't anticipate a wave of inventory or foreclosures to hit the market just a slight increase in inventory.

3 - Cancellations - We're seeing a high amount of cancellations which is bringing more properties back to market. This will give buyers a slight bump in choices and help flatten prices.

4 - Home prices will continue to remain high - With Low inventory and inflation, it's unlikely house prices will drop that much. I expect appreciation to flatten and for some areas of LA to decline in value. There will not be a HOUSING CRASH!

5 - Prepare for high prices on suburban homes - Buyers should realize suburban home prices have outpaced downtown/urban center home prices.

6 - Some buyers may want to consider a 5-year ARM - Adjustable Rate Mortgages have lower interest rates. A 5-year ARM is just 3.90% compared to an average rate of 5.54% for a 30-year fixed mortgage.

MEET JEREMIAH

LET'S CHAT!

Where to Find Deals 🏡

Where are the Deals?

1 - Properties that have fallen out of escrow 
2 - Stale Listings
3 - Properties that have had a price drop 
4 - Poorly marketed properties

My Take

I'm still seeing multiple offers on all of my listings just way less offers. Instead of 20 to 30 offers on a home, I'm seeing 5 to 10 offers. I could see this trend continue as interest rates continue to rise. I see this as a great opportunity for a buyer to get into a house as there is way less competition. Every market will react differently to this rise in rates. Here in Los Angeles, we still have a low amount of inventory. When it comes to good homes, there are still multiple offers and bidding wars happening. It's an interesting shift that is happening and I believe that deals are happening now due to lower competition. Houses aren't being bid up as high as expected which is good for buyers.

Inside 6101 Delphi St in Highland Park for $995k 🏡

Check out our newest listing in Highland Park! Welcome home to this charming 2 bed / 1 bath house with detached ADU. This lovely home sits mid-way up a gently sloping street that is surrounded by mature landscaping and views of the neighboring hills. This house has the perfect blend of original vintage details and modern amenities. The living room with coved ceiling and fireplace ties seamlessly together with the dining room and kitchen. The tastefully remodeled kitchen has soft close wood shaker cabinetry, quartz countertops and stainless steel appliances.

• 3 bed / 2 bath house 🏡

• 1237 sqft

• Detached ADU (guest house)

• $995k 💰

The two nicely sized bedrooms are located in the rear of the house and look out over the lush backyard that is encapsulated with mature hedges. In the rear of the property, you will find a detached and fully permitted ADU that is the perfect rental unit to create additional income.

Located in one of LA's hottest neighborhoods with easy access to the freeways, this property is conveniently located between Pasadena and DTLA. This house is close to all of the action on York and Figueroa Blvd yet feels like the perfect escape. Come make this home your own private oasis!

Inspecting a fixer

What are the three most important inspections when buying a home?

In this video we inspect a 1908 Craftsman Bungalow and we take you through the process of inspecting a fixer. To start, the most important inspections are the General, Sewer and Termite. From there we can add additional inspections if needed. As a buyer you have an inspection contingency which allows you to bring in as many inspectors and contractors as you want. This is the most important contingency because it allows you to cancel the deal if you don't like what you find or negotiate with the seller for a credit.

Buyers Agent: @jeremiahvancans

#vancansgroup #homeinspection #hgtv #homebuyer #fixer #firsttimehomebuyer #craftsman #bungalow #craftsmanbungalow #compass #compasscalifornia #inspectingafixer

We Love Fixers

Interested in flipping a property or maybe you just want to get your hands dirty to build some sweat equity. Well I come from a family of builders and we’ve helped many of our clients fix up their homes. We’ve curated a list of the best contractors in various trades and can walk you through the entire construction process. Here’s a taste of a few that caught our eye as great investment.

Whether you need help buying a fixer or need help fixing up your home, we have your back!

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The 17 offer home, $305k over list price

SOLD - Glassell Park - $1,300,000 - 17 offers - Buyer's Agent. This one went quick and we closed quick! We ended up $305k over the list price for this beauty that sits above the trees!

We had offers above us but our terms are what did it. Also, agent communication is super important. I can't stress this enough. If your agent just emails an offer over to the list side, don't expect good results. I can't tell you how important it is to be talking with the list side about your offer and terms. Being able to communicate the confidence we had in closing goes a long way!

So how did we come up with $305k over list price? Well running comps has a lot to do with this but it's not all about price per foot. I put together a comprehensive interactive analysis that paints a vivid picture. It gives my clients the data and confidence to bid this high. I always hear of people saying we lost but we were way above list price. Well I always ask where did you come up with that number. Did you pull it from thin air? The answer is you have to go over the data and know what aspects of a home really push up the value. There are so many factors that determine value and having a good agent can help you navigate all of this.

4317 Zaca Pl | 2 bed | 1.5 bath | 1105 sqft
List Price: $995,000
Sold Price: $1,300,000

The 27 offer home, $405k over list price

SOLD - Glassell Park - $1,330,000 - 27 offers - Buyer's Agent - I am beyond pleased to have landed this gem of a home for my client. We ended up $405k above list price.

My client reached out to me on a home that was already in escrow in Mount Washington. He needed to find something quick. I took in his creative vision and suggested we go see this property immediately. I knew the competition was going to be fierce. Let's face it, this house has it all, character, views and a flat lot in the hills. As soon as we saw this one you could see the untapped potential. First off, who needs a driveway this large? The plan is to bust up all that concrete and replace with a jungle of lush landscapes and meandering paths. Two a detached garage with a view like that is unheard of. The ADU potential on that is through the roof! You could potentially pay off your entire mortgage with that alone. Listed at $925k we ended up $405k over list price. That number was highly calculated and matched with very clean terms.

2453 Sundown - 2 beds / 1 bath - 1164 sq feet - 6424 sq foot lot

4 Reasons to Buy a Home during the Holidays!

When is the best time to buy a house? The holidays offer a great opportunity for buyers to buy a home. In this short video I review 4 reasons why it's a good time to buy a home during the holidays.

1-Less Competition - Less Buyers, Less bidding wars which ultimately means you can get properties for lower prices.

2-Old Inventory - Stale listings that have been sitting on the market. Look at homes that have been sitting on the market for at least 60 days.

3-Tax Reasons- Sellers may need to sell by the end of the year to post a gain or loss for this year.

4-Holidays - This time of year can motivate a seller to take a low offer, as a buyer you can leverage this in your favor.

Check out more of my Videos HERE

The CARES ACT and Where to Apply

As we're all dealing with the effects of COVID-19 on our lives, I want to review the main aspects of the Cares Act and where to apply.  As I'm sure you have heard, the government has approved the $2.2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act which will help millions of people in this critical time. Perhaps even you.

This sweeping legislation is unprecedented in the history of our nation and provides significant economic assistance to address the impact of COVID-19. The CARES Act is over 800 pages long, but here are some of the main economic provisions most relevant for you.

Stimulus

• Individuals who had up to $75,000 in adjusted gross income (AGI) will recieve $1,200

• Couples who had AGI up to $150,000 will recieve $2,400

• Parents w/ children under the age of 17 receive $500 per qualified child

• Individuals above thresholds will have payments reduced by $50 for every $1000 in income

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Unemployment Insurance

States will still continue to pay unemployment to people who qualify. This bill adds $600 per week from the federal government on top of whatever base amount a worker receives from the state. That boosted payment will last for four months. 

Pandemic Unemployment Assistance (PUA)

Typically, self-employed people, freelancers and contractors can't apply for unemployment. This bill creates a new, temporary Pandemic Unemployment Assistance program that provides unemployment coverage through the end of the year to freelancers and independent contractors and also provides an additional $600 per week for 4 months in addition to regular state benefits.

Please check to make sure PUA funds have been linked to EDD site before applying or your application may be delayed.

Check to see if PUA funds are available: HERE

Can self employed individuals apply: Yes

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SBA Loans

Paycheck Protection Program (PPP)

The Small Business Administration has rolled out the Paycheck Protection Program applications and guidelines. This program is a $350 billion program to provide loans of up to $10 million per business. Certain portions of that loan will be forgiven used to maintain payroll, keep workers on the books, or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June.

Meant for small businesses up to 500 employees, independent contractors and self employed individuals. Applications for small businesses started on April 3rd and April 10th for self employed/independent contractors.

Where you can Apply: You can apply through an SBA Lender or find one HERE.

What can you use the Loan For: Payroll costs, rent, mortgage interest, utilities over an eight week period. For sole self employed/independent contractors that means wages, commissions, income or earnings from self employment.

Do you have to pay the loan back: Maybe, maybe not.. If you use the money on payroll costs you should be okay. More info here.

How much can you borrow and what are the rates: Eligible companies can borrow up to $10 million which is calculated based on payroll records at a fixed interest rate of 1% for a two-year term.

Can self employed individuals apply: Yes

What if I don’t have a business checking account: Try applying through Kabbage HERE

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Economic Injury Disaster Loan (EIDL)

The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses and self employed individuals who qualify for the Economic Injury Disaster Loan to cover immediate operating costs.

Where you can Apply: You can apply through the SBA site HERE

Do you have to pay the loan back: Yes, but up to $10,000 may be forgivable.

How much can you borrow and what are the rates: Eligible applicants can borrow up to $2 million with rates up to 3.75%

Can self employed individuals apply: Yes