TrashIsCash

I sell Class C apartment buildings in Southern California. One of my `mom&pop' clients held an open house for a vacant apartment unit located in Long Beach, CA. They had several interested people who are moving from San Francisco tour the unit. The prospective tenants were WFM tech workers who wanted to live in a less expensive, lower density area. I have a family member who owns a few small apartment buildings in San Francisco. They have two vacant units, which are proving to be very tough to rent.

SRL, GIGM, FRD (microcap net nets)

Re: New homes sales, the salesperson said: -Low inventory -apartment rents keep rising, so home ownership looks more attractive. -low interest rates.

re: new home sales in Orange County (coastal Southern California), I stopped by several sales offices at the Great Park on Saturday, May 30th. Here are some notes: -May was a very busy and successful month for them. -One sales office was so busy that they had to hire a temp to assistant with walk-ins. -Homes in the $800,000 range are selling very well. -Buyers were looking to close escrow quickly (within 45 days), rather than waiting 90+ days for their home to be built. -Homebuilders were not offering concessions, other than some money for closing costs, etc. The Great Park is located in Irvine and is owned Five Point Holdings (FPH), which was spun off from Lennar in 2017. BTW, I own stock in FPH.

I have extensive expertise in researching pictures of women in bikinis on the internet. I also know the assets of Five Point Holdings, a land development company in Southern California. I'm a decent bird dog and have found a few off-market real estate opportunities. I have also found a few small cities with a good economic profile in the flyover states.

Thanks for posting this. I am a private individual and trade very infrequently. I do buy small and micro caps though, both in the US and domestically. I value simplicity and ease of use. What platform do you recommend? Thanks!

Has anyone else traveled for business post-Covid? Two weeks ago, I flew from Southern California to the Midwest to visit some properties I own there. The trip was extremely productive from a personal and business standpoint. I met with employees, vendors, tenants, scouted new properties to buy and put together some capex plans. I got waaaay more done in 48 hours of boots on the ground than a month of texts, emails, phone calls, etc. I would be curious to hear from others who have traveled recently as well.

I own a mobile home park in the Midwest. Many of the tenant work at a nearby Tyson Foods beef processing plant. I visited the property on Saturday and spoke to a ton of my tenants. The tenants are concerned about CV, but are definitely not panicking. The plant is operating at about 85% capacity, the workers are having their temperature taken before starting their shift and they are practicing social distancing, etc. Other than this, it was business as usual.

It looks like a homerun to me... If I understand you correctly, you’re buying $120,000 of NOI for $250,000. Self storage facilities are valued on Cap Rates and Price per Sq.Ft. If the facility is in a location that is at least decent, then it would trade for under a 10% cap rate. So, that additional $120,000 of income adds $1.2MM of value to the property.

I sell apartment buildings owned by mom & pop investors in Orange & LA County, CA. Rent collections so far in April are OK... Down by 5% or so. I will know more by next of next week. There are a few cases of slimey lawyers contacting tenants and telling them not to pay their rent, even if they can afford to do so. According to the attorney, there is no downside for the tenant.... Our state has an eviction moratorium and courts are closed for at least 6 weeks. Regarding apartment financing, JPMorgan Chase was one of the go-to lenders in our market. As of late March, they are completely out of the market. They miiiiight to do a loan for one of their best customers, but it will be 50% LTV. Fannie & Freddie are lending, but they are asking for 12 months of reserves for P&I, Taxes, Insurance, etc.

re: Midwestern Mobile Homes parks: 1) Most towns where I buy are economically stable. They were not hit too hard by GFC. 2) At the time, not a ton of competition from PE firms, wealthy private individuals, etc. It is now more competitive, but I was able to find a good opportunity. 3) Prior to CV-19, cap rates were 5.5% for institutional-quality, larger assets to 7% for lower quality stuff.

+Blue collar mobile home parks in the Midwest. If they are bought right and operated well, they are coupon clippers.

FPH (Five Points Holdings) +Spun out of LNR, prematurely, in 2017. +Owns three massive, but irreplaceable, tracts of land in: Irvine (Orange County) Valencia (N. LA County) Candlestick/ SF Shipyards (San Francisco) Valencia, FKA, Newhall Ranch, went through years of litigation, but just started selling finished lots three months ago. The ownership structure is confusing. They are well-capitalized. They will ride out the storm and be in great shape when things calm down. The CEO is highly-regarded and is a hero.... Last week, he was driving around Orange County, buying black market N95 masks with his own money to deliver to hospitals.