Tag: tenant in place

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Squatter in the SB Grand?

Distressed properties quietly return to Downtown Los Angeles

ASK COREY

Q: How do they expect to draw interest in this property without showing any pics of the interior. I would like to set up a time to view this unit. — Mike S.

A: Thank you for your request on the L.A. Loft Blog. We are told that the loft for sale may have an un-cooperative, non-paying renter tenant in place who comes with the unit. If true, it will probably require an eviction after escrow closes, thus may potentially be sold AS IS, perhaps with no inspection or limited inspections. Sadly, this has become more common recently in Los Angeles as the city and state have gone too far with virus hysteria, new counter-productive rent control laws and misguided socialist policies. Below are links to photos and videos of similar units.

Technically, a squatter is a person who unlawfully occupies an uninhabited property, but the term may sometimes be applied to a renter who stops paying rent for an extended period of time. Landlords who wish to avoid conflict sometimes prefer to sell a property for a very good price rather than battle an aggressive, non-paying tenant. For business minded investors, this can offer a profitable opportunity. A stylish historic industrial style loft with character and large square footage at a low price, this type of distressed property may present a special deal for the right buyer, particularly an investor and cash buyer:

Welcome to this lovely high ceiling loft located on 312 W 5th St #907 in the Historic Core of Los Angeles surrounded by Little Tokyo, Toy District and the Arts district, #10,#110, #101 Freeways. Walk into your LA Loft with High ceilings, open floorplan with AC inside. The building features a rooftop pool, spa, lounge, with an amazing 360-degrees panoramic view overlooking downtown L.A. 24/7 security and concierge, and gym. Easy walk over to the farmers market, Disney Concert Hall, Crypto arena/LA Live! This loft could make a great investment opportunity. | PROPERTY DETAILS

Here is a link to similar unit #707 with photos
https://www.themls.com/Share/YWFiaWpoZmpp

Here’s a link to video of similar unit # 307 (907 will have more natural light)
https://youtu.be/L3i7ITyjfCo

860 Sq Ft. Asking $373,000
312 W 5th Street 907, Los Angeles, CA 90013
Property Details at https://tinyurl.com/sbgrand

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Non-paying renters can present an expensive nightmare for landlords, yet lead to a great deal for investors.

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker CalDRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

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Downtown LA Investment Rentals – Buying or Selling Lofts and Condos with Tenants in Place

What to Do When a Home for Sale has Renters Living There

Some of the best deals in Los Angeles real estate are lofts, condos and houses already occupied with tenants in possession. #tenantinplace #investment

Overlooked properties often represent the best opportunities
Overlooked properties often represent the best opportunities

These can sometimes offer bargain prices similar to distressed properties or fixers because properties with renters living there can bring down the final sale amount.  More than 90% of home buyers are looking to move in soon, so renters in place may look too lived-in, and may not seem appealing to the majority of home buyers — But… Money-savvy buyers should remember that cluttered, unattractive properties in valuable neighborhoods generally present the best return on investment if they can be easily remedied. The right offer can be the instant remedy.  Investors, flippers and advanced real estate buyers know that good results are possible by negotiating and doing due diligence.  This article will explain how to make tenant-in-place work wonderfully for most any kind of home buyer.

When renters are living there, the prospective buyer usually needs to ask the seller a question about when the tenants will be gone.  If the tenants are on a lease agreement, then the buyer needs to know when that lease ends.  If the renters are on a month-to-month rental agreement, and they will still be in place at close of escrow, then the buyer must find out as much about the renters as possible.  How much rent are they paying; how much is it worth to rent; what are the terms; are they good tenants; do they pay rent on time?

An estoppel agreement is often required to make sure that the tenant and new owner are on the same page.  If the tenants will still be living there after close of escrow, then the buyer should send a questionnaire to the tenants asking ages of residents (when was the last rent increase, how much was the increase, what are vehicle license plate numbers?; is there any water filled furniture or pets? are there any new residents not on the original lease contract? Are all safety features still in place and functioning?  Has the tenant requested any repairs that have not been performed?.

If the buyer wants to move in soon, then the buyer must either determine if they can hold out for 1-5 months in order to terminate the rental. Or…

The smartest action that buyers and seller may overlook is for the buyer to place an offer contingent on the tenants being gone by close of escrow.  That offer encourages the existing owner to take care of the issue early so that the buyer may the right home for the right price, and move in quickly.

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A tenant-in-place may shave $10,000 to $30,000 off the final sale amount.
Unmade bed can be a boon for the buyer. A messy tenant-in-place may shave $10,000 to $30,000 off the final sale amount.

 

Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.