It’s crucial to hire the right broker when it’s time to sell your apartment building. I created this report to introduce myself. I have accumulated a lot of specialized knowledge in my 33 years of real estate experience that my clients can tap in to.
Although I don’t focus on residential sales, my first 15 years in the business was residential sales. I still do a handful of residential sales, mainly probates and rental houses that my investors own. Yes I can sell your home.
I’ve focused exclusively on investment property sales for the last 20 years. Some of my specialized apartment sales knowledge includes:
Rent Control and Tenants
As I write this article in Nov 2019 California just passed statewide rent control. Now rent control is a fact of life for most all apartment owners. I understand the byzantine rent control rules that often burden landlords and how to work around them. I know how to deal with even the most difficult tenants while I market your property and during escrow.
I rarely have issues with tenants. I’m always polite, fair, but tough with tenants and have a knack for getting them to cooperate with me. I always follow the letter of the tenant and rent control law so you and I stay safe. This is crucial because difficult tenants can derail deals if things are not handled properly. It’s not unusual for tenants to think that they “own” your building because they have been there so long. With tenants attorneys and tenant’s rights organizations, tenants often think they can extract money and concessions when you sell. Not on my watch.
Analyzing Numbers and Data
Listing and selling investment property is all about numbers and data. Investors considering your building want pertinent and accurate numbers and analysis on how your building stacks up to the competition and why they should choose your building. When selling, you need to analyze the right data to determine where it should be priced. Things like Gross Rent Multiplier, average dollar per unit, average dollar per square foot, cap rate, cash on cash, and upside rent potential, are critical metrics to understand when you consider selling your building. Should you contact me to potentially sell I’ll prepare a very detailed spreadsheet to see how your building compares using these important metrics.
1031 Tax-Deferred Exchanges
A 1031 exchange is a vehicle to sell your property and purchase another property and defer any capital tax gains on the property you sold. There are a bunch of rules and res that you must follow. It’s important to have a good exchange accommodator and attorney to handle the paperwork and money while you are going through an exchange. I have guided many investors through this process and I work with some of the best attorneys and accommodators to successfully complete your exchange.
Deferring Capital Gains Strategies
Did you know there is something in the IRS tax code that permits a seller to defer capital taxes? It’s true. I am affiliated with a company that has a program that can help you sell your building and defer your capital tax gains for 30 years! This is a highly specialized program that the ultra-wealthy use to defer their taxes and now we can help the average landlord also do the same.
Dealing with The L.A. Housing Department
I am extremely well versed on how the housing department works in regards to the unconstitutional Systematic Code Enforcement Program (SCEP) Inspections. I have witnessed firsthand the damage the City of Los Angeles has done and continues to do to Los Angeles apartment owners. Most landlords take good care of their buildings and tenants but the city treats everyone like they are a slumlord. I have written many articles about this subject and have counseled many landlords on how to avoid these inspections. Make sure you click on over to the section of my website dealing with Rent Control and Housing Issues.
Understanding commercial finance is a crucial skill for an investment broker. I work closely with several top lenders and over the last couple of decades have come to really understand the commercial lending game. There are a lot of variables when it comes to financing a building and sometimes you have to be a little creative and know which lender to send the loan to.
One of the things I do upon taking a listing is to get a loan quote from my lender in order to let any potential buyer know the required down payment. This helps cut down on offers from unqualified buyers.
Probate and Trust Sales
Listing and selling probate and trust property is a niche that requires specialized knowledge and experience. You need a pro when you are tasked with selling an inherited home or building and distributing the proceeds to the heirs. I have a lot of inherited property experience and I am very familiar with the Los Angeles County Superior Court, how the probate courts operate, and how all the various arcane probate rules and regulations work. Baby boomers are inheriting billions of dollars of real estate from their “Greatest Generation” parents and those that choose to sell need an expert who knows how to handle inherited property.
If you are the executor or trustee or conservator and have inherited property to sell, call me and let’s talk. I’m sure I’ll have a lot of real world advice for you so that the process of selling goes smoothly.
The development world is another specialized niche market. For the last several years I have been working with landowners, architects, engineers, and builders analyzing potential development deals. Maybe you own a large parcel with the right zoning and want to know how much it is worth. Maybe you are in the entitlement process and want me to find a builder to purchase it and go vertical. Maybe you are a builder and you need me to find you a RTI project so that you can start building right away.
Give me a call and let’s talk. I’m sure I’ll have some great ideas about your potential project or how to find a good one for you if you are a builder.
Here’s my philosophy on marketing your building: My job is to expose your building to the entire universe of potential buyers and generate multiple offers that gets you the highest possible price.
I do that by a combination of traditional, high tech, and high touch methods. Traditional methods like the MLS, LoopNet, Costar, direct mail, and custom signage. High tech includes social media, customized websites, and direct email campaigns to my investor database. High touch means creating a compelling narrative about your property that evokes emotion in a potential buyer.
Senior Real Estate Specialist
I hold the Senior Real Estate Specialist (SRES) designation issued by the National Associations of Realtors. The majority of my clients are in the 60 plus age range and senior clients have special needs. Trusts, estate planning, working with adult children, coordinating with attorneys, CPAs, and financial planners, and helping seniors transition to new living arrangements are some of the many issues I help my senior clients deal with when it is time to sell.
I’m a Native Angeleno
I love my city. LA is the leader in so many ways and industries. People here are creative, dynamic, and driven to succeed. So many new things come out of our city and we set trends for the country and even the world.
I was born in LA and have lived in California my whole life. Does this matter? Some might say no, but I believe it does matter. I believe that my native knowledge of the “City of Angeles” absolutely makes me a better broker.
LA is huge. It takes years to learn all of the various areas. From the beaches to the Westside, to Downtown LA, to the valley, to the Eastside, to Silver Lake, to Hollywood, to the South Bay, to South LA, to Malibu, and Inglewood. I have experience in all of these areas of our great city.
Listing Your Property With Me
So what’s the next step? Here’s the process:
First, give me a call or shoot me an email and let’s have a conversation about your goals and what you want to accomplish. I want to fully understand your situation and make sure I can help you. I’ll need to know some basic information about your building like number of units, unit mix, current rents, parking, expenses, and the current condition of the building.
Once I have this information, I’ll start the research to determine a value range for your building. I’ll pull recent sales comps in your area and enter the info on a spreadsheet. I am looking to determine averages for certain data: Price Per Unit, Gross Rent Multiplier, and Cost Per Square Foot. Once I have averages for each data point I can compare those numbers with your building to come up with a high and low price range.
Once I have a value range determined, I’ll have my escrow officer prepare a seller’s net sheet for you to review. I want you to know exactly how much cash you will walk away with if you decide to sell.
At this point if you decide that I am the right broker to handle the sale of your building and we have discussed and agreed to a listing price, I will prepare the listing paperwork so I can get started with the marketing materials and getting the property on the market.
Here is what you need to supply me once we have signed the paperwork.
1) Rent Roll
2) Copies of all tenant rental agreements including notices of rent raises
3) Copies of any service contracts including trash and laundry
4) Names, phone numbers, and email addresses of all tenants
6) A year to date Profit and Loss Statement
7) Last two years Profit and Loss Statement
8) A list of appliances that you own
9) Keys to all units and security gates (I won’t keep them, just have them ready when we need them for access to the units if the tenants are at work for example).
Here what I will be doing to launch your building
1) Send a letter of introduction to the tenants
2) Arrange for interior unit inspections with the tenants
3) Arrange a termite inspection
4) Arrange a retrofit inspection (smoke detectors, gas shut valves, etc.)
5) Pull the building permits and Certificate of Occupancy.
6) Order a Preliminary Title Report
7) Shoot all videos and photos
8) Prepare a professional Income and Expense Sheet
9) Prepare a marketing brochure
10) Prepare the custom website
11) Prepare the tenant estoppels
12) Enter property in the Multiple Listing Service
13) Enter property in Loopnet.com and Costar Commercial MLS
14) Enter property on my website at DerrickRuiz.com
15) Email a marketing package to my investor database
16) Email a marketing package to my commercial broker database
17) Arrange a Commercial Mortgage Quote for prospective buyers
18) Order a For Sale sign
Upon the launch of your building, your property will be placed in the MLS, Loopnet.com, Social Media, and various real estate websites. All of the important data that an investor needs to evaluate your building will be readily accessible and downloadable: The rent roll, and income and expense sheet, the marketing brochure, leases, inspection reports, preliminary title reports, commercial mortgage quote, photos, and videos.
What I want to do is to make it easy for an investor or a broker to find your building online, see the photos and watch the video, and download and review all of the important data that an investor needs to make a decision.
At this point offers should start rolling in and we will be reviewing them to together. Success!
Thanks for visiting my website, I really appreciate it. Hopefully you’ll decide that I’m the right guy to sell your property. Call me anytime at 310-308-3174 and let’s have a conversation. Or send me an email at [email protected]. I’m here to help you. Thank you.