David Bailey

“And then I never sell. Agents call me all the time. And one of the things is that I'm not interested in selling. I'm always interested in buying if I see opportunity.”

“So when COVID hit in early 2020, prior to, just prior to it hitting, there was a building that came on the market in Los Feliz, and I was one of three people, I think, who had looked at it and walked some of the units. Anyway, we ended up in a multiple offer s…”

“When I'm looking at properties, what first thing I do is I say, what building is this similar to that I currently own? Because based on, you know, the year built, the flat pitched roof, blah, blah, blah. And I can generally find Two or three of my current port…”

“The last 10 years of appreciation as of today have been wiped out. We are back to prices that we haven't seen since 2015.”

“I don't think my leverage on my overall portfolio exceeds 17 or 20%.”

“I bought a Malibu beach house back in 21 for seven million. And I think I ended up with a cost seg right off of about a 1,000,007 because they use as a rental.”

“And I 10 31 into a small apartment building in West Hollywood, which I still own to this day. And I paid 510,000 dollars for that property. And today the property gross is 200,000 a year. And it has no mortgage.”

“One thing I've learned through the years, do not represent yourself. You will not get the deal, and you are cheating yourself of potentially getting a good investment. So of course, I let each of the agents represent me.”

“There's no such thing as a partial repipe. All you are doing is burning money. You do a full re-pipe, or you don't do a re-pipe.”

“That plumbing bill of a 123,000, I'm writing all of it off in year one.”

“I've already done a preliminary study, and the one building I'm buying for approximately 4.7 million, that one is gonna throw a write-off off of about 800,000 year one. The second building, which I'm doing the reverse, 10 31 tax free exchange, due to the fact …”

“Yeah, we just purchased an exotic car for a significant amount of dollars, and we're writing the entire thing off year one.”

“So as an example, on the two buildings I recently purchased I think those were 5.3 cumulative cap rates, and we had a loss to lease of approximately 30%. That means I have 30% upside, and going in I have a 5.3% Cash flow.”

“I do not use professional inspectors for professional inspectors. You know, the expression cover your ass. All you're going to get is a lengthy report. That's going to cite every deficiency because they're going to get paid 1500 dollars, and if they make any m…”

“If I were starting out and I was looking at my first acquisition, I would focus on a two to four unit property. That's because you're gonna get preferential financing, because up to four units is single family financing, and then look at a building where you c…”

“If you focus on cashflow, cashflow, cashflow. It doesn't matter if tomorrow your property drops, 10% of value. It doesn't matter because your cashflow is still your cashflow.”

“Because cost is so prohibitively expensive in this city for housing, the demand for rentals has never been greater. At the same time, it's virtually impossible to build.”