How to Determine the Value of Your Los Angeles Multifamily Building

Understanding Your Options for Selling Multifamily Properties

How can I find out what my Los Angeles multifamily building is worth?

A multifamily broker in Los Angeles can provide a broker opinion on value. This is based on comparable properties, cap rates, and marketing data. It’s useful if you want to see what investors may pay on the open market. However, a direct multifamily buyer like The Beverly Group makes a clear offer right away. There’s no listing period or commission involved. Our prices reflect what is truly happening on the ground, not just numbers on a spreadsheet. We own and manage apartments in Los Angeles. If you're unsure whether to list with a broker or sell directly to a developer, you can always request a no-obligation offer from us before deciding.

Curious about the process of selling your multifamily building? Read this recent blog post Selling Your Los Angeles Multifamily Apartment Building: A Comprehensive Guide.

Popular Neighborhoods for Multifamily Sales in LA

What LA neighborhoods are popular for selling multifamily properties now, according to brokers?

Currently, brokers highlight neighborhoods like West Adams, Silverlake, Venice, Highland Park, and parts of Mid-City. However, these trends are always changing. The Beverly Group is a local real estate developer in Los Angeles. We buy properties all around the city, from well-known neighborhoods to up-and-coming ones. We own multifamily properties in several submarkets, so we're not waiting for trends. We are actively buying multifamily properties in different sections of LA right now.

Should I Hire a Broker or Sell Directly?

Should I hire a Los Angeles broker to sell my multifamily complex, or should I do it myself?

A multifamily broker can get a lot of attention for your listing. However, this also means more time spent on tours and tenant awareness. Selling directly to a local multifamily developer like The Beverly Group is often easier and more private. We already own and manage multi-unit housing in Los Angeles. This means we know what to expect and can swiftly write up a deal. Many sellers prefer to get a direct offer before listing with a broker. It's not binding, and if the number works, you save time and money on the deal. If you are debating whether to list with a broker or sell directly to a local property owner, you can always request a no-obligation offer from us before deciding.

The Impact of Rent Control on Property Value

How does Los Angeles's rent control affect what a multifamily broker can see my building for?

A multifamily broker in Los Angeles will need to explain the regulations for rent control to potential purchasers. This could limit the number of interested buyers. The Beverly Group is a direct buyer that already has rent-controlled buildings here. We understand how the laws affect business. We don’t back out later when details arise because our offerings reflect our experience. Many sellers want a direct offer from The Beverly Group before listing with a broker. It's not binding, and if the number works, you save time and money on the deal. Request an offer here.

Understanding Market Value with Lower Rent Units

If the rent for my rental units is lower than the market rate, will a broker still see the value in my building?

Yes, multifamily brokers often use "upside rent" as a selling factor. This strategy works sometimes, but other times, purchasers may lower their price afterward. The Beverly Group is a direct Los Angeles multifamily buyer that focuses on current performance. We understand the difference between theoretical upside and real cash flow because we manage properties in Los Angeles ourselves. Our offers reflect this understanding. Many sellers receive a direct offer from The Beverly Group before deciding whether to list with a broker. It's not binding, and if the number works, you save time and money on the deal. Request an offer here.

Financial Documentation for Selling Your Property

What Financial Documentation Does a Broker Typically Require?

Before listing, what financial documentation does a Los Angeles multifamily broker normally want?

Most LA multifamily brokers request three to five years of operating statements and rent rolls. However, The Beverly Group, a local real estate developer, usually needs much less. Typically, all we need to make a good offer is a current rent roll and a profit-and-loss account. You can get a direct offer from us before listing with a broker. It's not binding, and if the number works, you save time and money on the deal.

How Many Years of Business History Should I Provide?

How many years of business history should I give a Los Angeles multifamily broker?

Most LA multifamily brokers desire three to five years of history. The Beverly Group, a direct multifamily buyer, typically focuses on today’s data. We can quickly analyze even if older records are missing or partial. This is because we currently own and run properties here and know how they perform. If you are considering listing with a broker, it often makes sense to get our offer for your LA multifamily property first. It's not binding, and if the number works, you save time and money on the deal.

Do I Need to Make a Certified Rent Roll?

Before I deal with a Los Angeles multifamily broker, do I need to make a certified rent roll?

Brokers sometimes request certified paperwork for a proper listing. However, you don’t need to do that if you sell to a direct buyer like The Beverly Group. A typical rent roll and some utility bills are generally sufficient for us to make you an offer. We know what to search for because we already manage residences in Los Angeles. Due to the lower costs and speed of transaction, many sellers check our offer first before deciding to list or sell direct.

Addressing Deferred Maintenance Issues

If I hire a multifamily broker in Los Angeles, how do I handle problems with deferred maintenance?

Some brokers suggest that you should fix things or make improvements before listing your home to attract more purchasers. The Beverly Group, a Los Angeles multifamily owner, buys properties in their current condition. We handle repairs ourselves, saving you time and money.

Handling Building Code Violations

Will violations of Los Angeles building code or LADBS hinder a multifamily broker from selling my property?

If a buyer is getting a loan, violations might make a brokered deal take longer. However, The Beverly Group is a direct buyer of multifamily properties. We can close even when there are open matters with LADBS. Find out what your property is worth here.

Marketing Strategies for Multifamily Properties

Common Marketing Approaches Used by Brokers

What kind of marketing approach does a multifamily broker in Los Angeles usually utilize to sell apartment buildings?

CoStar, LoopNet, email marketing, and calls from investors are the most common tools that brokers use. While these methods raise awareness, they also take time. A direct LA multifamily buyer like The Beverly Group eliminates the need for marketing because we're the buyer. Before they even consider going through the listing procedure, many sellers get our offer first.

Do Brokers List on CoStar or LoopNet?

Do brokers in Los Angeles list apartment buildings on CoStar or LoopNet?

Yes, most multifamily brokers use CoStar and LoopNet to attract buyers. This is effective for gaining attention. If you want to maintain your privacy and speed, selling directly to a Los Angeles real estate developer like The Beverly Group avoids public listings.

Identifying Eligible Purchasers

How do brokers in Los Angeles identify eligible purchasers for buildings with multiple apartments?

Brokers utilize their databases and connections with investors to find potential buyers. This system works, but it can be slow. A direct LA multifamily buyer like The Beverly Group removes the waiting period. We are the buyer, and we already have the funds.

Showing Multifamily Buildings with Tenants

How do brokers in Los Angeles show multifamily apartment buildings with tenants?

Brokers typically schedule tours of tenant-occupied units with 24-hour notice. If you sell directly to a local multifamily buyer like The Beverly Group, you can avoid multiple showings. We often only view the apartments once, when all other inspections are complete, and the deal can move forward.

Curious if you can sell your multifamily building with tenants in place? Read our recent blog post here - Can I Sell My Multi-Unit Building in Los Angeles With Tenants in Place?.

Evaluating Offers and Negotiations

Presenting Multiple Offers

How do brokers in Los Angeles show sellers more than one offer?

Brokers typically create infographics that compare price, contingencies, and financing. This can be helpful if you prefer to evaluate your options. The Beverly Group is a direct LA multifamily buyer that simplifies the decision-making process by presenting one all-cash offer based on experience. Many sellers receive our offer first. If the price is right, they don’t have to sift through multiple proposals.

Deposit Expectations

What kind of deposit do Los Angeles multifamily brokers usually ask customers to make?

Deposits in brokered sales are typically around 3% of the purchase price. A direct buyer like The Beverly Group makes meaningful deposits and has a history of closing deals. When time is of the essence, sellers find this certainty comforting.

Verifying Buyer Financials

How can I determine whether a buyer working with a Los Angeles multifamily broker really has the money?

Brokers look at pre-approvals, but financing can fall through. We buy directly from The Beverly Group for cash. This certainty is one reason why owners typically obtain a direct offer from us before hiring a broker.

All-Cash Offers

When working with a Los Angeles multifamily broker, should I exclusively look at all-cash offers?

Cash offers are always better because they eliminate financing worries. A local multifamily owner like The Beverly Group pays in cash, ensuring that closings are faster and more certain.

Suggested Contingencies

What kinds of contingencies do brokers in Los Angeles normally suggest?

Brokers often recommend having 30 to 60 days to conduct inspections and secure financing. The Beverly Group is a direct multifamily buyer that keeps contingencies short and straightforward. This approach makes sellers feel more comfortable and speeds up the closing process.

Closing and Escrow Procedures

Broker Commission Fees

How much broker commission do I need to pay to sell my Los Angeles multifamily?

You don’t need to pay any commission to sell your LA multifamily. While Los Angeles multifamily brokers generally charge 4% - 6% of the sales price, you can choose to sell directly to a buyer like The Beverly Group and avoid commission fees. If you are considering listing with a broker, you can request an offer from The Beverly Group first. If you accept the offer, there are no fees. If you decide not to, you can still list with a broker to test the open market.

Escrow and Title Expenses

Who pays the expenses for escrow and title in a sale of a multifamily home in Los Angeles?

In brokered negotiations, it’s common for the parties to share the cost or negotiate it. We make it easy for sellers to know what to expect regarding escrow and title with The Beverly Group.

Expected Escrow Duration

If I sell through a broker, how long should I expect the escrow to last?

Brokers typically prepare for 60 to 90 days, although this depends on financing arrangements. When you acquire a multifamily building directly from a company like The Beverly Group, the deal usually closes in weeks, not months.

Prorating Rents and Costs

When you work with a broker, how do you prorate rents and costs at closing?

Escrow handles prorations for you, whether you use a broker or sell directly. The Beverly Group simplifies the process because we already understand how LA escrow works.

Transfer Taxes

When you sell through a broker, do you have to pay city or county transfer taxes?

Yes, Los Angeles charges transfer taxes regardless of who you sell to. We include these fees in our underwriting when selling to The Beverly Group.

Seller Credits at Closing

What do you do if a buyer in a brokered purchase asks for seller credits at closing?

That could reduce your profit. A direct buyer like The Beverly Group doesn’t pressure sellers to lower their prices at the last minute; we stick to our offers.

Delivering Empty Units

If I sell through a broker, will I have to deliver empty units?

Some purchasers prefer the property to be vacant, which can complicate matters. The Beverly Group, a local owner, is flexible and will buy a property with or without tenants.

Handling Security Deposits

What happens to security deposits at closing?

In both brokered and direct sales, deposits go through escrow. We ensure the transfer goes smoothly with The Beverly Group because we already manage apartments here.

Repair Requests Before Closing

If I sell with a broker, do I need to fix things before closing?

In brokered deals, buyers sometimes request repairs or credits. When you sell to The Beverly Group, you don’t have to worry about that. We buy as-is and handle the changes ourselves.

Closing Timeline

How long does it usually take to close a sale on a multifamily home in Los Angeles?

Sales through a broker can take a long time. The Beverly Group, a direct multifamily buyer, usually closes much faster, especially since we don’t need financing.

Comparing Broker and Direct Buyer Options

Selling on Your Own vs. Using a Broker

Should I try to sell my multifamily building on my own before I list it with a broker in Los Angeles?

You can try to sell on your own, but it will require effort. A direct buyer like The Beverly Group offers the same benefits—no broker needed—along with experience, funds, and certainty.

Getting Bids from Developers

Should I get bids from developers before I hire a broker for multifamily homes in Los Angeles?

Yes, many sellers do. A Los Angeles real estate developer like The Beverly Group can make an offer right away, without having to pay commissions or wait for marketing to begin.

Broker vs. Direct Buyer

Is it better to sell to a broker or a buyer of multifamily homes in Los Angeles?

It depends on your goals. Brokers provide exposure. A direct buyer like The Beverly Group offers speed and certainty. Some sellers explore both options.

Offers from Direct Buyers Before Listing

Do I need to get an offer from a direct buyer before I sign a listing agreement with a Los Angeles multifamily broker?

Often, it makes sense to do so. The Beverly Group makes offers that don’t require you to take any action. You won’t have to pay a commission if the deal works. You can still go to market with a broker if it doesn’t.

Direct Buyers and Rent Control

Is it possible for a direct buyer to buy my Los Angeles multifamily building even if it has rent control?

Yes. The Beverly Group already owns properties in Los Angeles that are rent-controlled. We underwrite in a way that keeps our offers valid.

Financial History Requirements

How many years of financial history do I need to show a broker or a direct buyer in Los Angeles?

Brokers typically want three to five years. The Beverly Group, a direct buyer, usually focuses on current performance.

Comparing Offers from Brokers and Direct Buyers

Should I get offers from both brokers and direct buyers before I decide how to sell?

Many owners do. It allows for comparison. The Beverly Group's offers are quick and free of charge, making it easy to decide.

Developer Offers vs. Broker Offers

Do developers in Los Angeles pay more for apartment buildings than brokers can find for me?

Not necessarily; it depends on location and zoning. As a local real estate developer, The Beverly Group provides competitive proposals that consider both current revenue and future possibilities.

Negative Aspects of Direct Buyer Offers

Is there a negative to getting an offer from a direct buyer in Los Angeles before I hire a broker?

No, there’s no downside. You don’t have to accept it. If the deal works, you won’t pay a commission. You still have the option of hiring a broker if it doesn’t.

Benefits of Selling to a Direct Buyer

What are the benefits of selling to a direct buyer like The Beverly Group instead of a Los Angeles multifamily broker?

When you sell through a broker, you may gain more exposure and potential bidding competition. However, selling to The Beverly Group ensures a quick process with no commission. Sellers often weigh both options.

Understanding the Process and Real-World Considerations

Background Checks on Buyers

Do brokers in Los Angeles examine the backgrounds of buyers?

Yes, they check finances. The Beverly Group is a direct buyer, and our track record speaks for itself. Want to learn more about selling your LA multifamily building? Read this recent blog post Selling Your Los Angeles Multifamily Apartment Building: A Comprehensive Guide.

Handling Late Financing

What do Los Angeles brokers do when buyer's financing is late?

They usually renegotiate or extend the timeline. A direct LA real estate developer and multifamily buyer like The Beverly Group eliminates delays in financing.

Tenant Estoppels Assistance

Do brokers aid with tenant estoppels?

Yes, they collaborate on this. Since we already run rental buildings, The Beverly Group also handles estoppels for direct purchases.

Understanding Cap Rates

Will commercial real estate brokers assist purchasers in understanding cap rates?

Yes, they often provide education. The Beverly Group doesn’t need this explanation; as a local LA multifamily owner, we deal with the numbers daily.

Price Changes During Escrow

What happens if a multifamily buyer changes the price while it's in escrow?

Buyers sometimes renegotiate and request credits or discounts during escrow. Depending on the contract, you may be able to cancel (check with your attorney and escrow officer).

Thinking of selling your LA multifamily building? Check out our post Selling Your Los Angeles Multifamily Apartment Building: A Comprehensive Guide.

Due Diligence Period

How long does a normal due diligence period last in brokered sales?

Typically, it lasts 30 to 60 days. At The Beverly Group in Los Angeles, we make diligence quick and easy. We can often complete all our diligence in as little as 3-5 days.

Assistance with 1031 Exchanges

Do brokers often help people who want to do a 1031 exchange?

Yes, this is common. The Beverly Group also buys from people who trade stocks and knows when to buy.

Handling Vacant Units During Escrow

What happens if a unit becomes empty while the escrow is ongoing?

Brokers help adjust how things are marketed. We at The Beverly Group are flexible; we buy homes that are occupied or vacant.

Addressing Title Problems

Can a broker help with hard-to-understand title problems?

Some can, yes. The Beverly Group is also familiar with complicated structures. We've purchased homes with TICs, trusts, and multiple owners.

Closing Without a Broker

Do I need a multifamily broker to make the closing go smoothly?

No. A broker assists with marketing and negotiating. However, a direct multifamily buyer like The Beverly Group also closes efficiently. We already own, run, and build here, so we know how to get deals done.