Multifamily real estate in Los Angeles: plenty more opportunity for distress buys.

mulwiFor those of us looking to place money in the money in the multifamily market, rest assured that we have not missed the boat.  In yesterday, there is a nice, QUICK, break down of the state of the apartment market in Los Angeles.

“LOS ANGELES-The multifamily real estate industry is in the fourth or fifth inning of the distress cycle. That was the general consensus among experts that participated in the session, “Distress Chess Match: Whose Move?” part of yesterday’s RealShare Apartments 2010 conference in Downtown L.A.”

“There hasn’t been much movement in terms of distress transactions taking place. One reason is the difficulty in finding financing. Gary Tenzer, senior director, principal and co-founder at George Smith Partners, shared that Fannie Mae and Freddie Mac won’t touch such deals, and banks rarely lend to distressed situations. D. Scott Lee, senior managing director of LTVentures, added that mezzanine debt isn’t penciling out in most cases, either. Private, bridge or hard money lenders are willing to lend to distressed situations, but as Stephan Kachani, vice president of Lone Oak Fund, pointed out, they tend to prefer class C properties in tier-A locations.” By Sule Aygoren Carranza Full Article

And when you do close the perfect investment property deal, make sure you have the right property manager in place to protect, care for and improve it.

Trevor Henson