Newsom announces deal to Cap Rising Rent Prices (Martinez: to rent, condos)

[CaliRestoration]

Originally Posted by Tulemutt

Well actually the point is you ignored my point.

No, you just lack understanding of how supply and demand are related.

[CaliRestoration]

Originally Posted by bad debt

Neither you or CaliRestoration are multifamily investors or owners nor have been in the past. End of story. Ciao.

That's actually incorrect. I owned a 16 unit, and a 10 unit in California. I still technically own a 4 unit in California that I've basically given to my sister.

Regardless, good luck.

[bad debt]

Originally Posted by CaliRestoration

Well okay, won't argue that since I share similar views.



Done with the real estate as an investment. But good luck to you.

See now that's not so hard was it? It helps to actually ask what someone's opinions are instead of assuming.

Are you done permanently or for good? Why have you chosen not to invest any more?

[Tulemutt]

Originally Posted by CaliRestoration

No, you just lack understanding of how supply and demand are related.

No, you are simply ignoring my point.

[Electrician4you]

Originally Posted by bad debt

What made you choose to sell your rentals?

Also, I think you should be talking to a real estate attorney or at least some other professional to help you understand the impacts of the new legislation if you think any of this law applies to you. Previously you told me you only own single family homes. If that is the case your properties should be exempt from this law (unless you are a multi million dollar corporation, which it doesn't sound like).

Unfortunately I had no choice on those particular rentals. Well I did but the people wanted a stupid amount. S9 I listed it for a ridiculous price. So I’m hoping to get crap offers so I can say I’m buying you out at this price as it’s all it’s worth. Since they’re pushing the sale I’m also giving them the bulk of the costs to cover. Oh I’m being a complete dik on this sale. This is one property that is owned by two other people besides uswho are listening to the wrong advisors. It’s one of those I’m tired of hearing them whine and complain. This is a legacy holdover from when we had a parteners in some of the ventures. As we have controlling interest if the price offered isn’t what I want I may just pull it and buy everyone else out. We are exempt from this law I already went to a seminar to see what I can and can’t do.
But I’m not selling any of our other rentals, but I may just take the very significant amount I’m gonna make on this sale and buy another rental. Now we will be completely by ourselves as I sold all the out of state investments back in 2006/2007

[NewbieHere]

Thanks to rent cap, my sister finally agreed to raise rent. And she will keep on raising the 5% plus inflation. The tenants got to thank Newsom.

[bad debt]

Originally Posted by Electrician4you

Unfortunately I had no choice on those particular rentals. Well I did but the people wanted a stupid amount. S9 I listed it for a ridiculous price. So I’m hoping to get crap offers so I can say I’m buying you out at this price as it’s all it’s worth. Since they’re pushing the sale I’m also giving them the bulk of the costs to cover. Oh I’m being a complete dik on this sale. This is one property that is owned by two other people besides uswho are listening to the wrong advisors. It’s one of those I’m tired of hearing them whine and complain. This is a legacy holdover from when we had a parteners in some of the ventures. As we have controlling interest if the price offered isn’t what I want I may just pull it and buy everyone else out. We are exempt from this law I already went to a seminar to see what I can and can’t do.
But I’m not selling any of our other rentals, but I may just take the very significant amount I’m gonna make on this sale and buy another rental. Now we will be completely by ourselves as I sold all the out of state investments back in 2006/2007

Got it. That definitely makes sense! Thanks for responding as I was quite interested to hear what your reasoning was and was actually surprised you were looking to exit based on how much success you've had.

You definitely touched on the problem with doing business deals with partners and managing potential disputes. Everything always looks great and it's exciting when signing up the deal, but sometimes things don't go as planned and that's when things get hairy and the terms in the legal docs really actually matter.

Have you looked into the capability of doing a 1031 exchange if you do end up selling the jointly owned property? The issue is that since you own it as a partnership you obviously won't be trading the entire entity into the upleg. I have used a Partnership Installment Note structure to get around this, but it does involve significant preparation as well as additional legal/accounting fees and agreement from all the members. It might not be worth it if your capital gains aren't out of control and you have hostile membership. Let me know if you're interested and I can send you some info on it.

[Electrician4you]

Originally Posted by bad debt

Got it. That definitely makes sense! Thanks for responding as I was quite interested to hear what your reasoning was and was actually surprised you were looking to exit based on how much success you've had.

You definitely touched on the problem with doing business deals with partners and managing potential disputes. Everything always looks great and it's exciting when signing up the deal, but sometimes things don't go as planned and that's when things get hairy and the terms in the legal docs really actually matter.

Have you looked into the capability of doing a 1031 exchange if you do end up selling the jointly owned property? The issue is that since you own it as a partnership you obviously won't be trading the entire entity into the upleg. I have used a Partnership Installment Note structure to get around this, but it does involve significant preparation as well as additional legal/accounting fees and agreement from all the members. It might not be worth it if your capital gains aren't out of control and you have hostile membership. Let me know if you're interested and I can send you some info on it.

Lol. Yeah I should of done a 1031 and let them deal with a different partner. Christ I would never hear the end of it. I had partnerships before in other ventures and this by far was the hardest one to deal with. They are absentee and I was managing fir basically $100 a month. Which I never bothered drawing. So when they said the magic S word (sale not the other one) I talked to my wife and said let’s see where it goes. If it doesn’t sell at the price they picked price we can lowball them on the offer since they want out and I can be a complete pric to deal with if you jerk my chain too much. If it sells for crazy price we’re walking away with 850k+ in our pocket and I just shed 300 pounds of dead weight and migraines. If not I may get it for a steal. So it’s a win win for me.

The crappiest thing about this is I lose really great tenants who paid on time and took care of the place. I’m actually more upset about that than I am about selling. When I gave them notices...that was one of the hardest ones for me to give. I know a lot of times people think landlords are heartless and only look at money but that’s not true. I was “losing” about $700 a month by not raising rents on these people. But I didn’t need to bleed them dry. I don’t bleed any of my tenants dry. I make plenty of money from investments and work. At a certain point it’s just a number. It really won’t

I can be very direct and rude a lot of times but it was very emotional for me. I was actually upset for losing them. Most of the time when I gave notices in the past was because some of the tenants were bad. Most gave notice because they were moving away married etc. but 95% of my tenants we parted amicably and I would take them back no problem. Currently most of my tenants have been with me for 5+ years

If this thing sells and I get out before the bottom falls out I may get some smoking deals. And then I can always wait till there is a good correction

Here is what I see happening
What I can tell you is that from every LL I know that I talked to who is sticking with it the and are stuck under what’s basically rent control the basic consensus is tenants are going to get a minimum of 5% and as high as 10% rent raise a year. Which in itself will force people out because most aren’t getting 5/10% raises.
Not to mention the LLs who are not restricted by this rent control I’ll raise rents also. Some will sell out and depending who they sell to that will impact the availability of rentals.
The LLs who are under rent control will diversify in privately need homes and will capture more rentals in that manner as they aren’t restricted by the rent control rules.

Basically if you’re a renter in California you’re about to take it from both ends. This rent control bill will do absolutely nothing to stop rents from going higher and possibly will shrink the availability of private rental. The apartment buildings and homes that are built are most likely rented.

[RMESMH]

Originally Posted by Finper

Newsome doesn't care about any stinking voters or election results. Look at what he did to the death penalty. Put your seat belts on citizens he's just getting started

He wants to pat himself on the back and, eventually, be POTUS.

[aslowdodge]

Originally Posted by bad debt

Dang. Someone got triggered indeed. I've lived out of state longer than the 5 years you have lived in Atl so I'm quite well aware of what's going on in the boonies flyover country. Thanks though.

I never said you don't know what you're doing with regards to single family flips. Good for you! Keep it up! Let me know when you need some pointers when you move on to commercial deals as you outgrow your loan capacity.

However, that has literally z-e-r-o to do with the discussion and/or analysis of rent control/stabilization in the most recent legislation on multifamily property in California which is what the thread topic is about. Neither you or CaliRestoration are multifamily investors or owners nor have been in the past. End of story. Ciao. Move back to your Alabama forum and the rest of us Californians can discuss our own policies.

I don’t worry about a loan capacity, I own as much as I’ll ever need. I also don’t flip properties, I buy and hold after rehabbing them. I set goals on what I wanted in life and set up monetary goals to reach them . Passed those goals in five years while you still work to pay the higher price in California.

Long before you came along I owned multi family in rent controlled areas in California so I am aware of what you say I know nothing about. So your ignorance on what others know makes you look like a bigger fool. You said calirestoration never owned multi family, but he corrected you on another silly assumption you made.
I still associate with other investors that do commercial, their numbers are not as good as mine. I know more than you think I do. The difference is while I am set for life I will still try to learn from them rather than take the attitude you have that you know best.

I would never involve investment with you. I know others that have done it longer than you, don’t think they they are above others, and are successful. I can invest with them but my real estate outperforms their multi family so why bother. Your vision has too many limits and blinders that you know the best and only way when in fact this is a case of you don’t know what you don’t know.

Your reading skills are also pretty bad since I don’t live in Alabama, but then again you probably don’t know much else outside of California. I think I’ll stay in the California forum since it bothers you so much. Posters like you simply don’t like it when someone calls out the king has no clothes.