3 Minutes with Jerry Wise, Brad Management

Arixa Capital interviews Jerry Wise, President of BRAD Management. A firm that seeks to add value to every property under management, working closely with ownership to reach for each property’s full potential.

Learn more about BRAD Management: http://www.bradmanagement.com/

What does Brad Management do?

We mostly buy value-add multifamily properties on the West Coast. There are always deals that come from somewhere and it’s all about relationships with brokers that understand that you’ll execute and hope to at least get that first look.

A lot of times you get into a deal that other people don’t want because they think there’s a problem that they can’t solve, like an environmental problem, or a rent control issue, or they just simply run the property forever and can’t figure out how to move it from point A to point B and that’s where we come in and sometimes make it happen.

We buy multifamily from $3 to $20 million, again, along the West Coast that are value-add deals. Mostly buildings that have been held by their owners for the last 20 to 30 years and need a spruce up.

What kind of returns are you looking for your investors?

We find that most investors who put money with us are not looking for their money back, they’re just looking for the return to keep coming. Instead of buying a project and selling it and pay the taxes, we usually exchange our properties into other properties and continue on that path of value add and it becomes a good long-term equity.

Our general target is an 8% current yield with a 15% overall annualized return to our investors.

What matters to you most in a lender?

There are plenty of lenders that will give you all you need upfront but they don’t execute on the backend so you have to make sure your lender is on the same page as you, and when you need something they can work with you and are flexible and that’s important.

3 Minutes with Martin Ensbury, The Ensbury Group

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.

Arixa Capital 2018 Spring Newsletter

Arixa Capital 2018 Spring Newsletter

We’re pleased to announce the publication of our Spring 2018 Newsletter. Inside you’ll find our annual portfolio managers’ letter about what we’re seeing in the market and how we’re preparing for the next phase of the market cycle, as well as lots of other news about Arixa’s activities, publications and events.

Top 15 Hard Money Loan Funds for 2017-2018 (And Honors)

Top 15 Hard Money Loan Funds for 2017-2018 (And Honors)

Hard money loan funds have numerous advantages over most of the platforms, including more conservative LTV's, higher volume, instant diversification, better transparency, easier management and early liquidation. However, finding a good fund has been very difficult for many investors. Ian Ippolito, investor and serial entrepreneur has written his top 15 hard money loan funds for 2017-2018.

Greg Hebner, Managing Director at Arixa Capital Quoted in Los Angeles Business Journal

Greg Hebner, Managing Director at Arixa Capital Quoted in Los Angeles Business Journal

Commercial development is booming in Inglewood, and residential real estate is anticipated to follow. LABJ asked Greg Hebner, Managing Director at Arixa Capital what he thinks about the residential real estate in Inglewood.

Important Concepts to Understand Before Investing in Credit, Alternative Income Funds

Important Concepts to Understand Before Investing in Credit, Alternative Income Funds

Jan Brzeski, Managing Director and CIO of Arixa Capital contributes an article for Western Real Estate Business that discusses the potential for increased yields that can seem attractive to many of today's investors. However, a certain amount of 'buyer beware' exists, which makes it incumbent upon the prospective investor to do their homework.

Addressing California’s Greatest Real Estate Need

Addressing California’s Greatest Real Estate Need

For those who invest in real estate in the Golden State, it makes sense to ask where the greatest need for investment lies. But the most pressing need is likely for additional housing close to jobs, which therefore represents the most interesting opportunity for investors. Jan Brzeski, Managing Director and Chief Investment Officer of Arixa Capital shares his insight to the growing opportunities in California.

Big News about L.A.’s Small Lot Ordinance

Big News about L.A.’s Small Lot Ordinance

Arixa Capital is looking forward to an exciting evening of networking and lively discussion on the Small Lot Ordinance on Thursday, July 20th at the W Hotel in Westwood.  Simon Pastucha, retired Los Angeles City Planner and Alan Scales of KTGY Architecture & Planning will discuss the design guidelines, site organization and urban form, setbacks and building transitions, building design and materials, and much more.

Arixa Capital Featured in CRE Finance World Summer 2017

Arixa Capital Featured in CRE Finance World Summer 2017

The decade since the financial crisis has been challenging for our nation overall, but it has been a fertile period for non-bank real estate lenders. The great majority of Americans were angered by what they saw as reckless and sometimes cynical behavior by both commercial and investment banks
who profited immensely from lax lending practices, and then needed taxpayer bailouts to avoid bankruptcy.