Updated: Mar 10

Southern California and Los Angeles are constantly changing. Neighborhoods transition, retail, and multifamily development evolves main streets, large corporations and employers move into an area and drive further speculation, demographics shift, and more. The same way that tenant profiles change over time, so do ownership profiles. Smaller, under 50 unit buildings used to be primarily owned in Los Angeles by individuals and families who held assets long term and valued low vacancy and low debt. The demographic and investment goals of the average apartment Buyer today look much different than they did 15 years ago. There has also been a rise in a new type of ownership group. This shift towards investing with OPM (Other People's Money) - coupled with aging housing stock that has been minimally maintained due to rent control, has necessitated a more aggressive Buyer style (depending on the type of Building and location). This has been beneficial for many Sellers who have been able to sell their buildings based on future value rather than current rents. Different types of Buyers aspire to purchase different types of buildings. I have relationships with all types of Buyers and know how to find the Buyer that will pay the most for your property.



REAL ESTATE INVESTMENT FUNDS

Investment funds have become popular in recent years, as they pool investments (usually $100K+) from individuals and purchase mostly "value add" buildings which they reposition, often promising a return of 10%+. This usually involves vacating the building by relocating all tenants, fully rehabbing inside and out, then renting to extremely high paying tenants. Because these groups must have extensive financials and accountability to investors, they do detailed due diligence and obtain multiple inspection reports. Often they ask to negotiate tenant buy-outs during escrow. They have the ability to close all cash but may prefer to finance. They have at least 1-3+ people on full-time staff, so their business plan requires them to purchase 6-24 buildings per year. Hold time varies from 12 months - 5+ years.

(Photo is 1306 Waterloo St, Los Angeles, CA 90026. Sold in March 2020 by Dana Coronado)



FAMILY & INFORMAL INVESTMENT PARTNERS

Often own 2-15 buildings in their portfolio, sometimes they invest within their immediate family, other times they pool money between friends and extended family. They make decisions based on their experience, intuition, and rely less on projections and financial models. Often they like to concentrate their buildings in a geographic area to facilitate easier management and economies of scale. Probably self manage and can pay cash or may finance if costs are low. Plan to build generational wealth and hold long term. Purchases all property types.

(Photo is 1167 Bellevue Ave, Los Angeles, CA 90012. Sold in June 2017 by Dana Coronado)



INDIVIDUALS

Similar to family partners. May own 1-10+ properties. Could be buying cash or may need a loan. Level of sophistication as a Buyer will depend on the number of properties owned, other types of investments owned, net worth, source of capital, etc. Can be a "mom & pop" or starting to build a real estate portfolio using cash from non-real estate sources. Purchases all property types.


Have questions? Not sure where your building falls or what type of property is right for your next acquisition? I'd love to chat with you in-depth about it. Give me a call at 310-562-9630.


WHOS BUYING MULTIFAMILY RE IN LA RIGHT N
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Hi, I'm Dana Coronado of Income Properties Los Angeles and Keller Williams Commercial.


This video walks you through a typical first meeting between me and a multifamily owner. I look forward to meeting you next! I've been selling multifamily & commercial real estate for 15 years and personally closed over 150 transactions. I am knowledgeable, tenacious, an expert negotiator, and a straight shooter. I am also passionate about helping property owners.


I offer the following services FREE, NO OBLIGATION:

BUYER CONSULTATION

SELLER CONSULTATION

PORTFOLIO ANALYSIS

BROKER PRICE OPINION

SALES COMPARABLES

INCOME & EXPENSE ANALYSIS

LEASING ASSISTANCE INCLUDING RENT SURVEY, MARKETING TOOLS, SITE VISIT & RENOVATION SUGGESTIONS

EMAIL LIST FOR MY OFF MARKET LISTINGS ACCESS TO MLS SEARCHES & LISTINGS

REFERRALS FOR ATTORNEY, MANAGEMENT, CPA, LENDER, VENDORS, 1031, AND MORE


Call me at 310-562-9630 to schedule an appointment. I can't wait to meet you!

Updated: Mar 10

Below are common categories used to distinguish multifamily buildings. Buyers are often looking to purchase a specific type of property, and care more about the type of deal than the location or price. Understanding what type of building you own allows us to anticipate the probable Buyer profile, know where to focus marketing efforts, and how to structure the sale. The saying "one man's trash is another man's treasure" reminds us of the power of strategic marketing - one of my strengths.


I know how to effectively market all types of buildings in a way that speaks to the likely Buyer profile and conveys why they can't afford to pass up buying your building. My tailored marketing plans create competition among top Buyers and generate multiple offers when priced correctly. This positions my Sellers to command a higher price and more favorable terms. It pays to hire me to sell your property!



"PRIDE OF OWNERSHIP"

Property is extensively remodeled or new construction and appears pristine. Rents are at or near market. Location is highly desirable. Usually easy to finance.

Probable Buyers: 1031 Buyers, first time investors, Buyers (often retirees or those that work full time) looking for an "easy" property, and high net worth families hedging against inflation.

(Photo is 1306 Waterloo St, Los Angeles, CA 90026. Sold in March 2020 by Dana Coronado)



"TURNKEY"

Property is in above average condition, fully leased, no tenant or management issues, no significant deferred maintenance. Usually easy to finance.

Probable Buyers: Same as pride of ownership, plus nearby owners building their portfolio.

(Photo is 1167 Bellevue Ave, Los Angeles, CA 90012. Sold in June 2017 by Dana Coronado)



"VALUE ADD"

Property usually has low rents and/or deferred maintenance. Usually owned 20+ years and loosely managed. Often missing leases, P&L, etc. Might have higher than average vacancy, and tenants don't always pay on time. Cash and bridge loans are common.

Probable Buyers: Young, aggressive and well capitalized individuals, families and funds, 1031 Buyers, nearby owners.

(Photo is 2135 Bellevue Ave, Los Angeles, CA 90026. Sold in May 2019 by Dana Coronado)



"HEAVY FIXER"

Property requires a full rehab (down to the studs) and may have significant issues such as foundation, structural, non-conforming units, REAP, hostile tenants, legal or title issues. Cannot be financed with a traditional loan, so cash and bridge loans are common.

Probable Buyers: Experienced rehabbers, 1031 Buyers, well capitalized individuals, families, and funds.

(Photo is 370 Patton St, Los Angeles, CA 90026. Sold in April 2020 by Dana Coronado)



Have questions? Not sure where your building falls or what type of property is right for your next acquisition? I'd love to chat with you in depth about it. Give me a call at 310-562-9630.

UNDERSTANDING HOW BLDGS ARE CATEGORIZED_
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