Holiday in the City

I think this is the best Holiday Card for this season.

Hopping you all had a nice holiday filled with family and love. Now as we look at the new year we turn to 20 12 with aspirations for a very profitable year.

I think the new year is going to be very good.

Enjoy...

Snow Globe Los Angeles from All Cut Up Films on Vimeo.

Nice! Right?

Keith

Los Angeles Multi-Family Property Owners defended in the Court

Very good news recently. Our properties are defended by the courts from the LA Housing Department.

http://www.fairhousingcoalition.com/?p=343

So the various inspections and many various citations and harassment are hopefully coming to a stop!

This will reduce the likelihood of the harsh REAP situation that costs the owner thousands and makes legal trouble for many. Some have even lost their property!

This is a bombshell ruling! Since that time tens of thousands of properties have been placed into REAP due to supposed building code infractions cited by non-authorized LAHD inspectors. Hundreds of Millions of Dollars have been confiscated from Landlords since December 1, 1999 because of matters relating to building code violations once again cited by non-authorized LAHD inspectors.

See the link for more information. And a Thank You to Superior Court Judge Jaffe for this ruling helping to protect Housing Providers from the LAHD in its heavy handedness.

Most small businessmen (and businesswomen) who have apartment buildings (multifamily dwellings of all sizes) have been terrorized by the next city or county inspector to knock on our door.

Excess fees and taxes and petty inspections loaded with fines are killing our bottom lines.

We must band together with groups like ACTION (in Santa Monica) and AAGLA (in Los Angeles) or other associations to protect ourselves from big government abuses. they are the few who can fight the fight with/for/together so we do not get overwhelmed.

Sincerely

Keith Lambert

How the 1031 Exchange Affects Income Property Investors

Section 1031 of the Internal Revenue Code has been called the single greatest wealth building tool available to real estate investors. If you are unaware how Section 1031 of the IRC can magnify your returns and help you create wealth, review this:

An investor who purchases $100K worth of Microsoft stock in 2000 sells the stock today for $200K. The investor yields a whopping 100% return, correct? Well yes, but don’t forget that when tax time comes around, our Microsoft investor will owe the IRS and State Taxing Authority about $30K. After taxes, the profits from the Microsoft investment plummets from $100K to $70K. Still not a bad return, but after taxes our Microsoft investor now has only a total of $170,000 to reinvest.

Now let’s contrast this with an investor who makes the same returns in the real estate market. A property purchased for $100K, appreciates to $200K. The investor earns the same $100% return. The major difference however, is the investor can elect a 1031 Exchange and defer the capital gains taxes. Doing so leaves the investor with a total of $200K to reinvest.

The effect taxes have over the long term are dramatic. I suggest having performing real estate in your portfolio.

If you want to invest in secure West Los Angeles multifamily or commercial property please consider using my services to aquire/manage/sell as needed.

Sincerely Keith Lambert
310-391-0821

2 bedroom for rent - Santa Monica

I have rented several of our places in the last few months. Most rather swiftly.

Then there is this one...
http://www.hotigloos.com/viewlisting.php?id=20325261
or http://www.postlets.com/rts/5192161 for the info on it.

This unit is lagging on the market for some reason. It is not the price that is turning people away. It is the same features that rented upstairs (two recently and for far more monthly rent).

Was it the barking dog next door that made so many take a pass on this really nice unit?

Does that mean the only potential resident will be one with a barking dog themselves?

Not very happy about this turn of events.

KL.

Pets and Apartment renting...

Pets are a new thing for many of the apartment buildings on the west side of Los Angeles. Allowing pets enables us to capture more tenants/clients that we used to be able to turn away. Now we need them to fill our vacancies.

Some points to ponder:
- Pet Deposits are often to low. (carpet - woodwork etc. cost big bucks)
- Staying up on the maintenance of the pet must be reinforced. (over time)
- Keeping the rest of the residents from assuming they all are now allowed to have a pet is the worst part. (they see it as favoritism. We see it as contract law.)

I've seen ... Snakes, Iguana, Birds, Dogs, Cats.

Snakes... Food is mice. What if some mice get out?
Iguana... food is crickets. They will be all over eventually. chirp chirp chirp in the neighbors kitchen etc.
Birds... Squawking (big) or pooping on the curtains (little).
Cats... Indoor is usually ok. Outdoor is not. (bring home mice to your building)
Dogs... Little ones yap. Very big ones frighten the other residents.

This can be a long list.


Just remembered the Ferret... Now that is a story. he he he

Keith
www.Lambertinc.com
Property management in Santa Monica, Los Angeles, Venice

lending... What makes the R.E. World go round.

You know the old song... "Money makes the world go 'Round"

Without lending the real estate world will not go around very much. It is possible to get loans. They do really put the lender through the ringer nowdays. If they fund at all.

So what rate do we put into the calculations as we evaluate the loan portion of the buy - don't buy evaluation. that oh so nebulous "Does it make Seance" that I hear all the buyers ask. Do i pencil it or work out detailed spreadsheets?

I'm a bit geeky so you know the answer to that. But the Loan rates...

This came in on my email today. Looks rather good. Market still getting really nice rates. But will they loan on your building. Lets find out.

Call me to review your criterion for buying an apartment building

Keith
310-391-0821