Selling interest in an apartment building located at 240 Robinson Street, Los Angeles, CA 90026. The property is currently valued around $2.5M on Zillow and has a loan of $900K, so there is about $1.6M equity in the building. If we stick with a simple fix and flip model, then the renovated rental units will rent for around $2,500 each, giving the building a new value of $4M.
The eight-unit apartment building consists of very large one-bedroom / one-bathroom units (almost 1,000 SF each), and they are located a few blocks south of prime Silver Lake, which is one of the most desirable and valuable neighborhoods in Los Angeles County.
This project has been in the works for years, and is finally launching in a few months. The current tenants are paying extremely low rents for the area, so there is a lot of upside potential. Plans to convert the building had to be put on hold when the pandemic hit and LA city put eviction moratoriums in place, but now those restrictions will be lifted in January 2023.
Investors will receive their investment back plus profit at the time of sale, which is estimated to be in 1-2 years. For a $25K investment, you will own 1.0% in the apartment building. There is no other investment in Los Angeles where you can invest so little and receive actual ownership in a valuable real estate investment.
Here’s a link to my website with more information:
We purchased these two adjacent investment properties, a fourplex and a duplex, for $1.075M in 2015. I raised $1.5M all cash to purchase the property, and fund the relocation and renovation costs for redeveloping the property.
We merged the properties, on the two adjacent lots, into 6 units and coined them The Montana Bungalows of Echo Park. The property is in a phenomenal location, just north of Sunset Blvd and near Glendale and Alvarado.
Within one year, we secured cash-for-key deals to relocate all the tenants, renovated the interiors and exterior, released the newly vacate and renovated apartments for market rate rents, and then re-listed and sold the property for $3.050M in 2016.
This was an incredible investment for our small investor group of family and friends. Within less 18 months our investors received nearly a 45% return on their investment.
David was the broker for the purchase in 2015, project manager, property manager, main leasing agent, and the listing agent for disposing of the property in 2016.
Did you see that I just sold this house for only $875,000?
The reason it sold for such a low price, when all the other comparable houses are selling for $1.1M+ in the area, is because it was a probate sale, needed to be purchased as-is and all-cash, and the seller picked the wrong listing agents.
To be fair, most real estate agents work part-time and do not have the experience to handle the shifting market we’re experiencing. However, these particular listing agents didn’t communicate properly, answer their phones, return voicemails, respond to emails in a timely fashion, or conduct enough private showings…
Worse though, they didn’t properly educate potential buyers about the probate process, how court-confirmation works in probate, or properly describe the huge potential upside in this house. If they had, then this would be a different story.
I know because I recently sold 26118 Kenrose Circle around the corner from Ruthwood for $1.3M in only 8 days. That house was slightly larger, but didn’t have a pool. Either way, I walked my buyers through the process A-Z and they got a great deal on 5560 Ruthwood. They’re planning on flipping it in a few months.
If you’re looking to buy or sell in the neighborhood, then please contact me. I have been a licensed California Realtor for 17 years, and I’m very familiar with the neighborhood (I actually used to live in Malibu Canyon Apartments). And since the market is shifting so rapidly on everyone, it’s critical you work with the right agent to help you.