Come to The Investor Workshop: "First-Time Home Buyer - Houses v. Multiple Unit Purchases"

The Investor Workshop: "First-Time Home Buyer - Houses v. Multiple Unit Purchases"
Presented by David Bramante
Guest Speaker Brian McKim
Saturday, July 11, 2009 from 12am to 1pm
Location TBA

How great would it be to have other people pay for your first property?

Very few first-time home buyers realize that buying a multiple-unit property is one of the greatest ways to start an investment portfolio. Plus there are many benefits and the best one is that you’ll have tenants paying your mortgage.

With low housing prices, low interest rates and large free government incentives, isn’t a great time to buy your first property?
Come learn about buying your first investment from the experts. It's a buyer's market and a great time to become a property owner. With low housing prices, low rates and large tax incentives, it's never been a better time to buy. Find out what neighborhoods are best, what to look for and find out what types of loans are available. There will be a discussion with David and Brian about these topics, and a Q & A session will follow.

Casual atmosphere. Refreshments will be provided. This buyer workshop is absolutely free and informational. You will not be asked to buy anything! Please RSVP because space is limited to ensure we cover the market, steps to buying and available loan options.

David Bramante is a real estate broker with Marcus & Millichap Los Angeles. He specializes in investment real estate and has owned homes in Silver Lake and Echo Park. Brian McKim is a mortgage broker with Bank of America. He specializes in 1st time home owner programs. If you've got a question about financing, he's got the answer.

For more information and to RSVP, call:
David Bramante
213-216-3754
TheInvestorWorkshop.com
DavidBramante.com

What it takes to buy an apartment building in this economy (Or a brief explanation why you shouldn't invest in gold bars)

What it takes to buy an apartment building in this economy
(Or a brief explanation why you shouldn’t invest in gold bars)
By David Bramante

Very few people will ever own an apartment building, but almost everyone will rent at one point in their life or another. Even with the many requirements fulfilled, securing a commercial loan can be especially tough in an economy like this one.

Though retail and office buildings sales have plummeted, with huge retail chains and businesses slamming their doors over night, tenants are still viewing and renting apartments, and investors are still buying and selling commercial real estate everyday. This will never change no matter what economy we’re in.

So what does it take to buy this hot type of commercial building (a commercial / apartment building is considered 5 units or more)? It takes a lot. So if you’re interested in building true wealth, you need to know what is expected and take the necessary steps.

The most obvious requirements are cash and credit. For a conventional commercial loan with an interest rate of 6 to 6.5 percent, you will need a minimum FICO score of 680 and have 30 to 35 percent of the purchase price for a down payment. This is not very different from conventional residential financing at about 5 to 6 percent, where you need a minimum FICO score of 640 and about 30 percent for a down payment. But that’s were the similarities end.

(Example: You will need $225,000 down to purchase a 10-unit apartment building for $750,000).

In Southern California, those aren’t very rigorous requirements because there’s an abundance of cash flowing throughout the region. But obviously, $225k is not chump change and for the large majority of people that live month-to-month on salary, this will never become a reality.

What do you need next? You must be liquid (aka have cash reserves) equal to 6 to 12 months worth of mortgage payments (interest and principal combined) and have a net worth that is equal to or greater than the purchase price of the property (networth equals your assets minus your liabilities).

So that’s what it takes to own an apartment building. It’s a blue print for becoming an apartment tycoon and creating true financial wealth, but these requirements are the reasons why there are so many renters and so few owners, and why investing in apartment buildings is better than investing in gold.

For those that can't buy an apartment building, the alternative is buying up to a 4-unit building, which is a hybrid: You can buy multiple units and collect rent, all the while utilizing a conventional residential loan to purchase the property.

Thanks for reading. Visit my website!

www.DavidBramante.com

I’m looking for a new car to buy, but I’m having doubts about the best route.

I’m looking for a new car to buy, but I’m having doubts about the best route.

I’m in search of a vehicle and I’m having a little trouble.

Cars aren’t vehicles to wealth and so this month while looking to buy a new car, I’m struggling with my goals in purchasing. Everything that I do is designed to buy real estate. So initially, it’s difficult for me to justify buying anything for more than a couple thousand. That’s why every car I have driven to date has been a used car and one I paid all cash for.

For me, a car is not a symbol of status or wealth but rather a symbol of financial intelligence. Everyone lives beyond their means, especially in big cities, and it’s most obvious when you see people in their cars. But the more I find myself dreaming about that beautiful and new BMW 3-series, the more I find my self analyzing why anyone would throw so much cash away and I end up almost talking myself right out of buying a new or few year old car, again.

There have been times that I’ve been disappointed with my wheels and lack of shiny rims, especially because the potential clients looking out their windows don’t see me and my vehicle as a symbol of frugality to the nth degree, but rather as a chump in cheap piece of crap. You are what you eat and you are what you drive.

But those moments of embarrassment are fleeting and the idea that I’m on to something bigger and better persists. I want to create real wealth and signing up to give my cash away every month to make the “man” wealthy just doesn’t make sense, unless that’s my goal.

But it’s not and my goal is also not to out shine people on the freeway or speed past them on the streets, but to create true financial wealth and I’ll do that by buying one building at a time. Until then, I’ll need to find the intersection where reliable and presentable and cheap and credit-establishing meet.

The Wilshire Union Center

I'm working on a website for the Wilshire Union Center in Downtown Los Angeles. Every day I receive phone calls from shoppers trying to find out the store hours for the different shops and I end up telling them, and giving them the phone numbers. This new website is easy and user friendly, and can be pulled up quickly on a mobile device or computer using Google or Google Maps.

The Wilshire Union Center is a massive commercial shopping center that redeveloped the Westlake neighborhood in Downtown LA. Sandwiched by several live-work loft projects, including City View Lofts, residents in the area are able to go to Home Depot, Starbuck's, McDonald's, Rite Aid, Food4Less and Warehouseshoe Sale.

The location is very busy and has entrances on both Wilshire and 6th Street. Check out the new, simple site at www.WilshireUnionCenter.com

Thanks!
David Bramante

Now Renting: City View Lofts - Downtown Los Angeles Loft - Loft 305

Joining Marcus and Millichap

Today marks the first day that I'm going to be teaming up with a new real estate firm, Marcus and Millichap. While still selling residential properties, I'll specialize in multi-unit residential buildings. So call me if you want to buy an apartment building! :)