The Roman Report
With interest rates increasing, it has forced us to remodel some of our investments to get a more accurate depiction of expected returns. In most cases, we have strong interest rates, but may need to wait longer than anticipated until we secure a refinance. We have very strong relationships with lenders and are always receiving quotes in order to ultimately maximize profit for our investors. We are also very much in tune and aware of how both local and national politics affect our business.
For example, the results of the midterm elections and our newly elected mayor, Karen Bass, might have an impact on investing in Los Angeles. Furthermore, Measure ULA, coined the “mansion tax”, increases the tax when selling a property and will create another fund to address affordable housing in Los Angeles. We are also now legally allowed to pursue evictions of tenants that are refusing to pay rent without just cause. Understand that we do not take eviction lightly, and do everything we can to avoid this, but in some cases, people take advantage of the system and it forces our property management team to take action.
Of course, with every shift in the market and new rules introduced, closes some doors, but also opens up new opportunities for investment. Although we will continue to be looking for investment in Los Angeles, we will increase our efforts in other Southern California counties, including San Diego, Riverside and Orange County.
1846 N Wilton Place
Our team was able to secure a refinance with Civic Financial with a 6.5%, 5-year fixed interest only loan. With the cash out received, we were able to pay off certain loans to the LLC and bring down our equity partners’ balances as well.
346 Vermont Ave
We have set up a DropBox link with updated pictures of the renovations. Our website was created by our marketing team to assist in leasing efforts.
1608 S Wilton Place
We were able to secure a refinance in Q3 from EH Private Bank at a good rate at 4.25%. With the cash out we were able to pay off the pref earned for the year and reduce the capital account balances.
1214 Lake St
We are currently building an ADU that is nearly complete despite some hurdles throughout the construction process. ADU’s (Accessory Dwelling Unit) are one way in which Roman Group adds value to an existing property. Although the costs can be high, in the end, the increased rent and additional units dramatically increases the value of the asset.
The Roman team dressed up for Halloween in the office and enjoyed the day with a catered lunch. We will be doing something similar for the upcoming holidays and will encourage the staff to take off time to enjoy with friends and family.
As Housing Costs Soar, Co-Living Makes a Comeback
The living arrangements, known as “dorms for adults,” are on the upswing after declining in the pandemic, and developers are adapting to the renewed interest.
Can LA’s ‘Mansion Tax’ Unlock Affordable Housing Across California?
Los Angeles voters appear likely to pass Measure ULA, which could generate $900 million a year for housing subsidies and tenant protections.