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Old 04-14-2016, 12:50 PM
 
Location: Los Angeles (Native)
24,191 posts, read 13,695,061 times
Reputation: 11379

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Quote:
Originally Posted by tijlover View Post
L.A.'s antiquated zoning factors into this as well, as 72% of L.A. is still zoned for single family homes, and then there's the selfish, anti-density, power-hungry, screaming, crying Nimby's.

To get a new high rise up in Santa Monica would take nothing less than an Act of Congress! Or a high rise or mid rise along the coast anywhere from Oxnard to Laguna. Even Hollywood, what a struggle for a developer to put some density into that city, without the Hollywood Kings and Queens screaming: No way! It's going to block my view of the valley smog!"

It totally stuns me, when I light rail it around L.A. these days to see single family homes at rail stops like Compton, Watts and along the rail stops on the Expo line.
There's a real estate investor..who claims to own hundreds of millions in real estate ...who is also a motivational guru type guy named Grant Cardone.
He says he loves to invest in liberal areas because of this reason..it keeps supply down and rents up.
From a transcript of an interview he did for the real estate Podcast bigger pockets.

" Grant: ​The more liberals, the better. Josh: ​Interesting, why is that? Grant: ​Because they donít like to build. Josh: ​Ah, makes sense. Grant: ​They want to restrict everything. They get their panties in a wad over everything. They want to protect everything and everything the way it is and that makes it very expensive. Look at cities like New York. Josh: ​Youíre talking about rent controls and stuff like that as well, though. Grant: ​Like San Francisco, Los Angeles, all these very heavy Ė Iím not talking about politics here, Iím talking business Ė where thereís heavy concentration of liberals, youíre going to see extremely high rents"

There is definately a lot of truth to this in L.A No doubt restricted supply is keeping rents high.
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Old 04-14-2016, 12:52 PM
 
234 posts, read 134,928 times
Reputation: 124
Quote:
Originally Posted by jm1982 View Post
There's a real estate investor..who claims to own hundreds of millions in real estate ...who is also a motivational guru type guy named Grant Cardone.
He says he loves to invest in liberal areas because of this reason..it keeps supply down and rents up.
From a transcript of an interview he did for the real estate Podcast bigger pockets.

" Grant: ​The more liberals, the better. Josh: ​Interesting, why is that? Grant: ​Because they don’t like to build. Josh: ​Ah, makes sense. Grant: ​They want to restrict everything. They get their panties in a wad over everything. They want to protect everything and everything the way it is and that makes it very expensive. Look at cities like New York. Josh: ​You’re talking about rent controls and stuff like that as well, though. Grant: ​Like San Francisco, Los Angeles, all these very heavy – I’m not talking about politics here, I’m talking business – where there’s heavy concentration of liberals, you’re going to see extremely high rents"

There is definately a lot of truth to this in L.A No doubt restricted supply is keeping rents high.
OC is quite conservative and has higher rents than LA.
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Old 04-14-2016, 03:51 PM
 
Location: West Hollywood, CA
1,367 posts, read 1,629,569 times
Reputation: 1784
Quote:
Originally Posted by NOIGUY View Post
If you think he can make 900/mo cf on a single unit condo deal I have plenty of bridges to sell you.

I actually have a pretty good idea what he paid for his condo, what rate he got, and where it's located.

~550k, 3.5%, West Hollywood.

Secondly any conservative underwriting would look something like this


Edit: debt yield should actually be ~5.5% but I don't feel like doing this over.
You're off by a LARGE amount on the purchase price as well as rate & HOA. Also, if I were to ever rent it out, I would never use a management company.

I'm paying less than 3k/mo.
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Old 04-14-2016, 04:38 PM
 
234 posts, read 134,928 times
Reputation: 124
Quote:
Originally Posted by YoungTraveler2011 View Post
You're off by a LARGE amount on the purchase price as well as rate & HOA. Also, if I were to ever rent it out, I would never use a management company.

I'm paying less than 3k/mo.
LOL @ your $550/mo HOA.

It doesn't matter if you use a management company. You still expense a management fee if you have any brains.

Also gl getting $3200/mo for some 650 sf closet. I just checked comps and that's not even close.

https://losangeles.craigslist.org/la...536181021.html

https://losangeles.craigslist.org/la...517684445.html

But please, go ahead and show me the pro forma that shows you "milking" your condo like a complete boss.

Last edited by NOIGUY; 04-14-2016 at 04:47 PM..
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Old 04-14-2016, 04:39 PM
 
1,592 posts, read 825,078 times
Reputation: 1152
Imagine people with 8 roommates in a 1 bedroom? Bunk bed sales through the roof!
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Old 04-14-2016, 05:19 PM
 
Location: Silver Lake
4 posts, read 2,354 times
Reputation: 15
Default It might just be...

Quote:
Originally Posted by Inter441 View Post
Your thoughts .. Is this the effect of $15.00 minimum wage ?


Sky-high apartment rents in Southern California are expected to climb further in coming years, as construction fails to keep up with population and job growth, according to a forecast released Tuesday.
The average rent in Los Angeles County is expected to hit $1,416 a month in 2018, an 8.3% jump from last year, while in Orange County, average rents are likely to rise 9.4% to an average of $1,736, the USC Casden Multifamily Forecast said.




[url=http://www.latimes.com/business/realestate/la-fi-casden-forecast-20160412-story.html]Southern California apartment rents are expected to continue rising through 2018 - LA Times[/url]
"It might just be the reason why, sense minimum wage has gone up, prices are inflated everywhere.
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Old 04-14-2016, 05:21 PM
 
Location: Silver Lake
4 posts, read 2,354 times
Reputation: 15
Quote:
Originally Posted by svendrell View Post
Imagine people with 8 roommates in a 1 bedroom? Bunk bed sales through the roof!
hahah...love this response.
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Old 04-14-2016, 05:51 PM
 
Location: West Hollywood, CA
1,367 posts, read 1,629,569 times
Reputation: 1784
Quote:
Originally Posted by NOIGUY View Post
LOL @ your $550/mo HOA.

It doesn't matter if you use a management company. You still expense a management fee if you have any brains.

Also gl getting $3200/mo for some 650 sf closet. I just checked comps and that's not even close.

https://losangeles.craigslist.org/la...536181021.html

https://losangeles.craigslist.org/la...517684445.html

But please, go ahead and show me the pro forma that shows you "milking" your condo like a complete boss.
Did you know that there are slightly bigger 1 bedroom apts in my building renting for close to 5k/mo?

But no need to rent, there are 1 & 2 bed apts in my building worth over a million.

Also, LMAO @ the places you posted. They are not even in WeHo. They are in chit-tier hollywood proper. GTFO with your limited knowledge.
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Old 04-14-2016, 06:32 PM
 
Location: Los Angeles (Native)
24,191 posts, read 13,695,061 times
Reputation: 11379
Quote:
Originally Posted by svendrell View Post
Imagine people with 8 roommates in a 1 bedroom? Bunk bed sales through the roof!
Then we can be just like the workers at FoxConn in China..the manufacturer of the Apple Iphone.
Bunk beds aren't just for kids anymore.
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Old 04-14-2016, 06:56 PM
 
Location: West Hollywood
3,196 posts, read 2,354,003 times
Reputation: 5262
Quote:
Originally Posted by YoungTraveler2011 View Post
Did you know that there are slightly bigger 1 bedroom apts in my building renting for close to 5k/mo?
I highly doubt that. You're a serial exaggerator.
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