Arixa Capital interviews Martin Ensbury, President of The Ensbury Group. A firm that provides real estate brokerage services to buyers and sellers of residential, multi-family and commercial properties as well as landlords and tenants of commercial properties.
Learn more about The Ensbury Group: http://theensburygroup.com/
What does The Ensbury Group do?
I see an amazing about of deal flow. We sell 50 to 60 apartment buildings a year. So that’s a lot of rent rolls to look at and a lot of underwriting to do.
It’s called rental income property for a reason. It’s all about the rents. We consider ourselves experts on the rents and many many owners don’t want to do what you need to do take the rents from $750 a month to $1500 for a one bedroom. So those opportunities are out there all the time.
Right now my focus is on buying B and C class apartment buildings. Mostly the South Bay and Mid-Cities being Bell Gardens, Cudahy, Huntington Park. And the South Bay of course Inglewood, Hawthorne, Gardena, and Torrance.
What’s the one thing you would like investors to know?
They should feel comfortable knowing that I’ve done it many many times. Our property management company averages 25 rehabs a month and it’s all about doing the quality rehab job without overspending. Making sure it gets done on time, so you can get the units turned and get them re-rented at the rents you need to get it done.
So most of the stuff we’re buying, the buildings are in terrible conditions the rents are half of what they’re used to be. And we’re going in and fixing the units, the exterior of the buildings and doing the rehab and getting them where they should be and putting a long-term debt on them and cash flowing.
What matters to you most in a lender?
What I like in particular is getting it done and knowing it’s going to get done quickly. The way to get the best deal as a buyer is to remove all loan contingencies, no loan contingency. So if I’m going hard on money and I don’t have my loan in hand, that’s a risky position to be in. So I want to know that I’m going to get that loan and that my lender is going to deliver exactly what they say they’re going to do; on the amount of dollars, rate, and terms.