have the wisdom and credibility that is needed to guide apartment owners through the storm. If you want to know the value of your apartment building or want to find a buyer for it in today’s market, let me know. If you want to discuss the exciting opportunities that are available to you as alternative in-vestments once you sell, give me a call. I am just a phone call away. Call, click or visit me today. I am here to guide you through the storm!

James Joseph

In v es tment Property Updat eISSUE #0412.02THE ONE SOURCE FOR ALL OF YOUR INVESTMENT PROPERTY NEEDS

In This Issue

Disposal Statute 2Disabled Housing 2Selling 3Depreciation 3Listings 4Pool Safety 5Maintenance Men 6Directory 7

Summer Time is here! Is your pool facility safe and

up-to-code? Find out. See Page 5.

FeaturedArticle

Recovery in L.A.’s Apartment MarketBy George E Adams, III

UCCI INVESTMENT GROUP

Apartment rents in Los Angeles are projected to increase moderately in the next two years even as vacancies rise, according to a report released Wednesday by USC’s Lusk Center for Real Estate. The 2012 Casden Multifamily Forecast predicts average rents in the county will increase 7.9 percent to $2 a square foot in this year, and 9.6 percent to $2.04 a square foot by the end of next year. Vacancies are expected torise slightly, with increases continuing next year as rent growth slows. The annual Casden study, which analyzes apartment markets in Los Angeles, Orange, and San Diego counties and the Inland Empire, showed across-the-board increases in rents and vacancy rates in the region. The improvement was strongest in Los Angeles and San Diego.

The report notes that renters have been moving out of the so-called shadow market – rentals of single-family homes, townhouses, and condos – and into traditional apartment complexes. “A sharp drop in new construction, the dwindling supply of shadow-market units, and improvements in the macro-economy have strengthened fundamentals on both the supply and demand side,” forecast author Tracey Seslen said in a statement. “This is boosting asking rents, reducing or eliminating concessions, and filling units.” The number of new apartments coming on the market in Los Angeles decreased 53 percent to 2,483 units last year, and is expected to stay near that level this year. But the economy could put a damper on the multifamily market, the study warns. While 35,000 to 40,000 jobs are expected to be created this year, the county’s unemployment rate has remained at 11.8 percent inFebruary. In addition, falling home prices may prompt more creditworthy renters to buy homes. Best regards, George.

310.961.8488DrGeorge@DrLoan911.com

www.DrLoan911.com

Keat Foong, Executive Editor

Multi-Housing Newshttp://www.multihousingnews.com/

MHN: In many of the top U.S. markets, apartment

pricing appears to have returned to, or be close to, peak levels achieved in 2007. In certain cases, cap rates are once again sub-4 percent. Is there a possibility of a bubble developing in multifamily real estate driven by the low cost of capital, low yields in alternative investments, aggressive projections of apartment incomes in valuation and/or any other factors? Generally, I do not see a bubble in the for-rent apartment housing market at this time, but it is on the horizon with arrival dependent upon the relationships between supply and demand and interest and cap rates for each market. This is really nothing new; it is, after all, a cyclical business. The strong apartment market fundamentals over the past two years, when coupled with low interest and cap rates, have resulted in values improving substantially from the trough. While this has aided operators, investors and lenders in recouping most of their losses from the downturn, it has also stimulated interest in the asset class, resulting in prices being bid up for existing properties and making development more financially attractive. This is a good thing. However, this success over time

often results in excess supply financed with higher levels of low interest-rate debt so that when supply eventually exceeds demand and interest and cap rates inevitably rise, the value of the projects fall to as much as the debt or lower, potentially creating significant losses for the stakeholders if they have to sell or refinance a property. This outcome can be mitigated. In order to diminish this outcome, the stakeholders are banking on strong revenue growth, particularly in the early years of the holding period, and similar going-in and going-out cap rates. (We expect the U. S. apartment market to remain strong until 2014 when supply exceeds demand, slowing

decline; 3. Minimize the number of projects financed with interest-only loans; require loans to amortize, further reducing leverage; 4. Make loans with longer maturities at lower interest rates to ride out the trough; 5. Work with experienced and financially strong borrowers; 6. Calculate property values using going-out cap rates based upon reasonable estimates of the risk premium and forward 10-year bond yield; 7. Diversify loans by borrower, geography (markets and submarkets) and product to limit risk; 8. Base revenue growth upon forecasts taking into account that supply will eventually exceed demand, resulting in slower revenue growth and lower occupancy rates. Ronald G. Johnsey, President, AxioMetrics Inc. We do not currently see a bubble in apartment values. If our forecasts for apartment rent growth prove accurate—and we forecast positive, but decelerating rent growth over the next several years—apartment values look to be in proximity of fair value, maybe even a little cheap. Our main benchmark is the fixed income market. Unlevered IRR premiums to 10-year Treasuries, BAA corporates and high-yield bonds (a case can be made to compare return hurdles to any three of these indices) are all in-line or larger than historical averages. If we are in a bond bubble—and we don’t pretend to be smart enough to answer that question—then yes, apartment asset values may be inflated. However, if such proves to be the reality, a lot of other asset classes may also be inflated,

Is There an Apartment Market Bubble? not just apartments or commercial real estate in general. Ray Huang, Residential Sector Analyst, Green Street Advisors Inc., an independent real estate research firm. Apartment buildings, particularly those in core markets, are selling at high prices now. We are seeing deals consummated at capitalization rates in the low 4’s—a historic low. Have investors taken leaves of their senses? Perhaps. Jim Clayton has a nice paper (http://www.cornerstoneadvisers.com)_that shows that the average cap rate between 1990 and 2008 had a spread of 262 basis points over Treasury yields. The 10-year Treasury closed at 2.31 percent at the end of this week. If long-term spreads give us a sense of the risk premium for real estate, this suggests cap rates should be more like 5 percent instead of 4 percent—unless we can reasonably expect rents to rise faster than normal for a period of several years. I am not sure we can in fact expect that. To me, the principal driver of low cap rates is the attractive financing being provided by the GSEs. This allows for healthy cash flows, even in the presence of low cap rates. The problem will arise when GSE multifamily loans come due. If rates rise in the next five to 10 years and rent growth is disappointing, maturity defaults may come back to haunt us.Richard K. Green, Lusk Chair in Real Estate, Professor, Price School of Public Policy and Marshall School of Business, USC. Used with permission.

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Investment Property Update!

Lighthouse

near the shore the captains fix their sights on the lighthouse in order to be guided safely home. Despite the sophisticated equipment captains have access to, to help guide them towards their destination, captains still rely on a very important nautical navigational tool to guide

them to safety: the Lighthouse. So it is today. When one looks at the real estate and finance market since 2008 it really is a catastrophe. I don’t mean in the sense of the investment - that is solid. Rents are solid, properly values have declined by much less than com-mercial or single family. What has changed is the financial market and the real estate public. As far as it goes with agents and loan offices stillworking their trade. I was given the opportunity to speak in front of the Orange County Apart-ment Association last year and had to do some research for the talk. In that

preparation I came across figures that said that the number of apartment trans-

_By James Joseph_Apartment Specialist

How many movies have we seen where the storm rages and the ships at sea are tossing and turning some capsizing? As they

The few of us remaining in the business as realtors and

lenders have the wisdom and credibility that is

needed to guide apartment owners through the storm.

actions 5 units and up (not values) was down by a whopping 82% from the peak in about 2005. What that means is that there are a lot of apartment brokers and loan officers that are doing something else for a living. The few of us remaining in the business as realtors and lenders

Apartment buildings, particularly those in

core markets, are selling at high prices now.

down rent growth to 4.0 percent in 2014 and 3.0 percent in 2015 from a peak of 5.5 percent in 2012. ) I think a good part of the interest and cap rate risk can be constrained by borrowers and lenders if they do the following: 1. Limit mortgage loans to 75 percent to 80 percent loan-to-cost and/or loan-to-value ratios to create a cushion when the down turn occurs; 2. Require debt service coverage ratios of at least 1.20 to increase the borrower’s likelihood of making the mortgage payments when revenues

Issue # 0412.02 Contact James Joseph today for your investment property needs! Phone: 562.236.0088 Email: Lisa@josephapartments.com Issue # 0412.02 Contact James Joseph today for your investment property needs! Phone: 562.236.0088 Email: Lisa@josephapartments.com

recent years, including family and senior apart-ments, as well as for-sale housing in emerging urban neighborhoods. Since 2003, AMCAL has been awarded over $392 million in low-income housing tax credits.

A Community of Friends is a regional nonprofit affordable housing developer that specializes in affordable properties for people living with mental ill-ness. The Foundation for Affordable Housing specializes in afford-able housing and has developed 100 rental properties in four states.Used with permission.

2 News and Opinion Investment Property Update Investment Property Update Investment Tools 3

Selling Your Real Estate Because You Want To

You might especially want to consider hiring a property manager if any of the following things are true: You live further than a couple of blocks away ___from your rental property. You’re not a home maintenance specialist. You don’t have at least 10-12 hours per month ___to deal with property tasks. You don’t want to have to make yourself ___constantly available in case of emergency. You don’t have a good working knowledge of ___ever-changing landlord-tenant law. You’re fed up with dealing with di�cult or ___non-paying tenants.

Property Managers Quiz Brought to you by:

Why Use a Professional Property Manager?Professionals make it a hassle-free experience.

AMBASSADORPROPERTY

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Contact Candy Livesey at 562.236.0102 or at CLivesey@AmbassadorPropertyMgmt.com

There have been a wide vari-ety of new laws in Orange County, affecting the multi-housing in-dustry in individual cities, at the county level, and throughout the state. Two hot topics have been recycling and new laws for un-lawful parties, or loud and unruly gatherings. Below is information regarding both these issues.Fact & Fiction about New Waste Disposal Statute, AB 341: AAOC has recently spoken with many members who are con-cerned about AB 341, a new law that passed last year concerning recycling. Since it was signed into law, there has been a significant amount of movement within the waste hauling industry to address the new state requirements.

Certain trash haulers in the county have been sending out letters stating that owners must offer on-site sepa-ration by July 1, 2012 in order to be in compliance with the law. This is not true. Unfortunately, programs with the best intentions can often be mis-interpreted, twisted and leveraged. AB 341 has the potential of being such a program. AAOC has asked Procure America to review the statute and provide guid- ance regarding AB 341; particularly the new mandated requirements and their impact on California apartment owners. Procure America is a nationalexpense reduction firm with a divi-sion solely dedicated to waste and recycling cost reduction strategies. Their waste and recycling department is staffed with former executives from the waste industry and they provide an insider’s perspective on strategy, policies and programs initiated by the waste haulers. Here is what they have to say about AB 341: FACT: Mandatory commercial and multi-family dwelling recycling will go into effect July 1, 2012. If your city is currently taking your mixed waste to a Material Recovery Facil-ity (MRF), you are in compliance and do not need to subscribe to the city’s waste hauler’s recycling program. All

Orange County Legistlative Watch: New Waste Disposal Statute

By Emily OsterbergAAOC, Apartment News Managzine

trash haulers in every city in Orange County utilize the MRF system. FICTION: All multi-family dwell- ings must have a recycling program implemented by July 1, 2012. FACT: All Multi-family dwell-ings DO NOT have to implement recycling programs by July 1, 2012. The law reads “On and after July 1, 2012, a business that generates four cubic yards or more of com-mercial solid waste per week or is a multifamily residential dwelling of five units or more shall arrange for recycling services, consistent with state or local laws or require-ments, including a local ordinance or agreement.” The law also states that jurisdictions will need to im-plement a program that includes education, outreach, andmonitoring. This means until a lo-cal jurisdiction mandates on-site separa- tion for recyclable materi-als, you do not need to have a re-cycling bin on your property. As of now, there is no such ordinance in Orange County requiring this. There has also been no mandate on the size of container or a base-line percentage that must be recy-cled. Each business or multi-family dwelling will determine the level of service and items to be diverted.

The 75% diversion rate is a state-wide goal, not a local mandate on cities and counties. FICTION: You must use your franchise city’s waste hauler to pick up your recyclable materials. FACT: If you do decide to offer on-site separation at your prop-erty, the franchise waste hauler in most cities is not the only op-tion for servicing your recyclable product and it pays to identify options. Donating recyclable items or receiving revenue for recyclable items will keep you in compliance. The Waste and Recycling Divi-sion Administrator for Procure America is Sophia Vallozzi and she can be reached via email at S.Vallozzi@Procureamerica.org or by phone at (949) 272-4255. Procure America has agreed to assist our members with a free review of waste and recycling

programs, as it pertains to your AB 341 compliance. Further,

they will provide a full contin-gency based (shared savings)

strategic plan to the members. The key objectives are to assist in identifying additional ways

to lower cost within your waste

Depreciation: Does It Affect How Much Tax I annually Pay On My Investment Properties?

By Phil AtwanExchange Resources Inc., VP

depreciation over the useful life of the asset, known as the cost-recovery period. This can reduce an investor’s taxable income, by thousands of dollars each year. Here are some items which the IRS allows a depreciation schedule:

• Residential Rental Property (building) - 27.5 years • Commercial Rental Property (building) - 39 years • Refrigerators, ranges, dishwashers, carpeting, furniture - 5 years • Land improvements:(landscaping & shrubbery, fences, sidewalks, septic systems, water pipes) - 15 years

Tax depreciation on a residential or commercial investment property is a deduction against

assessable income allowing the owner to reduce the amount of taxation payable. In some situations investors who have owned their properties for more than 20 years have created new depreciation to help offset taxes by utilizing a §1031 Tax Deferred Exchange. The §1031 Tax Deferred Exchange is one of the last tax shelters

use in a trade or business. This basically includes any real estate held for investment, except your primary residence and second family home.

Questions? Give us a call.(213) 479-8800

PhilAtwan@EarthLink.Netwww.ExchangeResources.Net

One of the largest tax breaks for owners of investment property comes in the form of depreciation, or the loss in value of a property over time due to physical deterioration. In other words, it’s the decrease in value of property over time as the building structure begins to wear and tear with age. The IRS allows investment property owners to take a tax loss every year based on this

by Richard WarrenThe BiggerPockets Blog

When you’ve been investing real estate for a long time you may reach a point when you are ready to sell. Perhaps you’ve had enough of the headaches of be-ing a landlord, maybe you want to pursue other opportunities, or are ready for a lifestyle change. This is not to be confused with desper-ation to sell for financial reasons.If your back is against the wall fi-nancially you may be forced to ac-cept terms that are anything but attractive. But if you are looking to sell because you want to but don’t really have to, then you are in the driver’s seat. If time and money are not a factor in your desire to liquidate your real estate holdings then the process is much the same as it should have been when you entered the business. Savvy investors have a game plan when they jump in the real estate

waters, those that don’t plan usu-ally fail. You need to have a plan for liquidating as well. Taking Stock - The first step is to accurately assess where you are. As a real estate investor you should certainly know the value of your holdings, cash flow, status of leases, condition of your proper-ties, amount owed on mortgages, and any deferred maintenance or other issues that may be lurking. There is one aspect of your port-folio you may not pay much atten-tion to – potential tax liability. One of the benefits of owning rental properties is the ability take a tax deduction for depreciation even though you don’t experi-ence any real out-of-pocket loss. Unfortunately that depreciation is recaptured when you sell. This means that you could have a tax liability even if you don’t have a significant profit. The problem may be exacerbated if you have refinanced and taken cash out of your properties along the way as many investors have. There are strategies that can be employed if you are in this situation. That’s why you should consult your tax advisor before making any move to liquidate. Taking Action - The market in your area may dictate your next move, especially if sales are slow.

If you aren’t concerned about how long it takes your best action may be quiet networking. Let the people in your sphere of influence know that you may be interested in selling some of your properties. Often the best deals you make when acquiring investments hap-pen by word of mouth. Why would

ner will allow you to avoid being perceived as a desperate seller. Be sure to plan wisely, consult your tax pro, attorney, and any other advisers you are working with. You entered the business with an eye on making the best deals and greatest profits possible. Shouldn’t you leave the same way?

Call 714-245-9500 or Visit www.AAOC.com

Membership Makes a Di�erenceMembership in AAOC opens doors of opportunity

as you seek to broaden your knowledge of the industry and maximize your potential as an

industry professional. You will receive professional assistance that will help you acheive your

professional goals. You can own or manage a single unit or thousands of units – AAOC o�ers

something for everybody!

JOIN TODAY!Help Us...Help You! An Owner’s BEST resource.

FREE FORMS CD with EACH new Membership...a $50 VALUE!

Work Begins on Housing for the Disabled in Orange County _By Dees

Stribling Contributing

EditorMulti-Hous-

ing Newshttp://www.

multihousing-news.com/

Santa Ana, Calif.—Ground has been bro-ken for Vista Del Rio, a 41-unit affordable housing property in Santa Ana, Calif., a city in Orange County. The development is a col-laboration between AM-CAL Multi-Housing, the Foundation for Afford-able Housing and the Community of Friends.

The goal of the proj-ect is provide physically disabled adults with affordable housing that

includes on-site services and various amenities. As with all AMCAL develop-ments, the social services aspect of the property—which comes at no cost to the tenants—is designed to in-crease or maintain disabled tenants’

independence by providing inde-pendent/support living training and vocational services.

The property will include both one- and two-bedroom units. Vista Del Rio will also be built to exceed Title 24 en-

ergy standards and be LEED silver certified. To provide convenient living environment for tenants, all kitchens are handicap- acces-sible and have garbage disposals, dishwashers and other amenities.

The project has been about seven years in the works. Financing, mainly through low-income housing tax credits and loans from the city Santa Ana, has made for a slow process.

Based in Agoura Hills, Calif., AMCAL has developed housing throughout the state since 1978, focusing on the workforce-housing sector in

selling be any different? If you have tenant oc-cupied properties you may wish to look at your tenants as potential buyers. Of course, that means reliable and qual-ified tenants, not prob-lem renters. If you own the property free and clear or have substantial equity you may want to hold a note for the seller. These notes can always be resold if you wish. Other investors may be interested in acquiring your properties, though you shouldn’t expect the same price you could re-ceive from a retail buyer. The point here is to explore all possibilities rather than just blindly listing your properties. Liquidating in a slow and methodical man-

allowed by the Internal Revenue Service. It is a transaction in which a taxpayer exchanges investment property for like kind investment property, which defers the payment of capital gain taxes and the recapture of deprecation taxes. The IRS defines like-kind property as all real property held for investment purposes, or the productive

continued on page 6

Issue # 0412.02 Contact James Joseph today for your investment property needs! Phone: 562.236.0088 Email: Lisa@josephapartments.com Issue # 0412.02 Contact James Joseph today for your investment property needs! Phone: 562.236.0088 Email: Lisa@josephapartments.com

By Jacqueline MayEditor

The warm weather is already here, and summer itself is just around the corner. Apartment owners with a pool know hav-ing one can be a tre-mendous asset, but that it also presents a liability. This summer, owners across south-

24426 Eucalyptus Ave., Moreno Valley5 Units4 Bed/ 2 Bath$799,999

1275 W. Grand Ave., Pomona2 Units2 Bed/ 1 Bath$339,000

545-589 Weber St., Pomona12 Units1 Bed/ 1 Bath & Studios$1,149,990

604 N Eastwood Ave, Santa Ana5 Units1 Bed/ 1 Bath$724,999

13919 Coteau, Whittier20 Units2 - 3 Bed$2,300,000Long Term Tenants

FOR MORE INFORMATION ON ANY OF THESE

LISTINGS, PLEASE CALL LISA AT (562) 236-0088

OR VISIT JOSEPHAPARTMENTS.COM

ALHAMBRA 4 Units $735,0004 beautiful homes on 1 large lot. 2 Duplexes with a divid-ing wall. 4 bedroom, 2 bath, and 1 bedroom, 1 bath.

ALHAMBRA 7 Units $985,000Centrally located, 7 units of 1 bedroom, 1 bath. Updates include copper plumbing in 2009.

ALHAMBRA 5 Units $1,050,000Near San Marino, this property boasts full occupancy and well-maintained living space

ANAHEIM 4 Units $525,000Four-plex with 4 single car garages, 2 parking spaces and laundry.

ANAHEIM 12 Units $1,285,00012 units of 1 bedroom, 1 bath. Recent improvements. Units include walk-in closet.

ARCADIA 4 Units $1,125,000Meticulously well-maintained. Units include 2 bedroom, 1 bath. Laundry room and garage spaces are included.

BELLFLOWER 10 Units $1,125,00010 units in a great area of the city.

COSTA MESA 9 Units $1,799,0009 large 1 bedroom 1 bath. In an area of new development. Copper plumbing and large grass area.

DOWNEY 14 Units $1,990,000Majority 2 bedroom 2 bath. Patios and balconies. 2 to 1 parking ratio.

FULLERTON 6 Units $938,000Professional management in place. Close to 5 and 91 freeways. Long-term tenants.

LA HABRA 4 Units $415,0004 Studio apartments. 4 tuck under carports and 2 open spaces.

WHITTIER 8 Units $789,0008 Single apartments in a good area.

4 Listings Investment Property Update

Disclaimer: The information in this newsletter is believed reliable but is not war-ranted or guaranteed. Before any reliance or use, this

information should be independently verified.

Exclusive Listings

Investment Property Update, established in 1982, is an independent investment property newspaper published monthly with an audience of local apartment owners, property managers, and local real estate agents. Viewpoints expressed in the Investment Prop-

erty Update are those of the respective writers, and are not necessarily held by the publisher. The Investment Property Update accepts advertising from businesses desiring to reach the investment property readership. No endorsement by the publishers in

implied or should be inferred in any manner in regard to any specific advertiser. The publisher can not accept responsibility for the products or services offered through advertisements. The publisher reserves the right to refuse any advertisement. If your property is

currently listed, please disregard this notice as it is not our intention to solicit other broker’s listings.

If you would like to advertise with the IPU, Contact Lisa Weeber at (562) 236-0088

Financing for All Real Estate Investments

Multi-Family

Retail

Office

Industrial

Mixed Use

Mobile Home

Parks

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Residences

Joe Mercado(866) 405-6500 Toll Free(818) 606-5190 Direct

Continuing to Provide Financing That Best Meets Our Clients Investment Objectives and Individual Needs

the safety of the occu-pants. Here are some helpful tips to get you on the road to a safe pool this summer: 1) Check state and federal requirements. 2) Be aware of the federal law that took effect in 2008. It re-quires pools and spas

5) Ensure you have post-ed the proper signage and information regard-ing the pool. The Cali-fornia Public Swimming Code has important rules about informing guests of the absence of lifeguard supervision and more. 6) Pools, according the CA code, must have ground-fault electrical interrupters.7) Inform your occupants

to be safe by the water, by providing them with a pool safety pamphlet. A helpful list of safety rules for swimmers can be found here: http://www.burbankca.gov/index.aspx?page=728. More information on public pool law and safety requirements can be found online from the California Department of Public Health website.

Pool law and safety com-pliance is crucial to the proper running of such facilities. Owners must seek the professional advice of a legal advisor and a pool safety inspec-tor. Investment Property Update guidelines are in no way a substitute for proper legal advice.

Summertime: Pool Safety and Pool Law for Owners

You are eligible for a FREE Property Value Analysis. Please click on this image to be directed to complete a form to receive your analysis.

Investment Property Update Pool Safety 5

ern California need to be reminded to have insurance and safety measures up to date. A pool or spa in an apartment complex is labeled as a public pool or spa, and there are laws in place spe-cifically for such. Offi-cials recommend con-tacting the local health department to find a qualified pool and spa safety inspector to en-sure the safety of the water quality, equip-ment and the physical conditions. It is cru-cial that an apartment owner make the extra steps to have safe and up to date facilities, for

This summer, owners across southern California need to be

reminded to have insurance and safety measures up to

date.

to have suction outlet covers. If the pool has a single main drain or suction outlet, the operator must install a section anti-entrap-ment device. 3) Ensure your pool’s water quality is regu-larly monitored and adjusted. The CA code states the operators take a daily record of information regarding pool quality. 4) Have a certified pool safety inspector verify that the pool facility, pool surface, tiling, cement, walls, ladders and railings are all in working or-der.

Issue # 0412.02 Contact James Joseph today for your investment property needs! Phone: 562.236.0088 Email: Lisa@josephapartments.com Issue # 0412.02 Contact James Joseph today for your investment property needs! Phone: 562.236.0088 Email: Lisa@josephapartments.com

Appraisal Pacific AppraisalContact: Randy Chase619.337.1618pac_app1@pacbell.netPacificAppraisalService.com

Associations/ClubsApartment Association of OCContact: Valerie Teeter714.245.9500

AttorneyGeoffrey D. ChinAttorney at LawEstate Plan, Trusts, Wills, etc.626.229.9971GeoffreyChinLaw.com

Real Estate, Trusts,Tax AttorneyWilliam Turner951.371.2715

BanksFidelity Commercial FundingMultifamily & CommercialContact: Haley Giffordhgifford@fidelitycf.com

Carpet & FlooringDrakes Affordable FloorsContact: Bob562.696.0808drakesfloors@charterinternet.com

ElevatorsTRE Elevators818.509.0339TreElevator.com

Exchange CompaniesDownstream ExchangeContact: Anthony800.743.1031DownstreamExchange.com

JRW InvestmentsContact: Dwight Kay626.564.1031 x.119858.395.0932JRWInvestments.com

Pacific Financial ExchangeContact: Earl Salter562.863.1968PacificFinancialExchange.com

ExterminatingWestern Exterminator Company800.937.8398WesternExterminator.com

Financial ServicesFidelity National Title Company800.488.0320

Dominian WealthContact: Gary FlaterAdvisors: 949.483.8330

LRM InvestmentsContact: Leon McKittrick702.252.8801

Midpoint Financial ServicesContact: Chris Miller877.313.1868

FurniturePacific Sun Casual Furniture800.624.4385

Gates & DeckingIvan’s Gates & Decking Co.800.482.6334

Glass & MirrorNorth OC Glass & Mirror714.528.1403NorthOrangeCountyGlass.com

Handyman ServicesChristian ManagementConsultants, Inc.Jobs Under $500 Fixers/Repos714.535.2918 All SoCal

HaulingVic’s Hauling & Cleanup Serv.800.542.5546562.544.6606714.870.9944www.illhaul.com

LandscapingDeLeon Tree Service & LandscapeContact: Jose562.694.0290Deleonlandscape@aol.com

Laundry EquipmentExcel Laundry Equipment800.334.1824 x127FowlerCompanies.com

MaintenanceBuffalo Maintenance, Inc.714.956.8371BuffaloMaintenance.com

PaintingG & G Painting Co.714.636.4650

PlasteringMatthews Patch Plastering714.840.3236matthews.services.officelive.com

PlumbingNorwalk/La Mirada Plumbing, Heating & Air Conditioning800.238.5558LAPlumber.com

Pool ServiceMission Pool Service800.390.7040

Pool & ConstructionAlgorri Pools, Inc.Contact: Brian Algorri562.305.9788balgorri@msn.com

Property ManagementAmbassador Property ManagementContact: Candy Livesey562.236.0102

Real EstateColdwell Banker AmbassadorContact: James Joseph562.236.0088

ReglazingPacific ReglazingContact: Eric 800.557.2243www.pacificreglazing.com

RepipingPacific Coast Copper RepipeContact: Pat Anthony800.556.7473patanthony@sbcglobal.net

RoofingCalifornia Roofing800.339.4533CaliforniaRoofing.org

Solar HeatingSolar Services800.57SOLARSolar Hot Water/Solar Pool HeatingSolarGuy.com

SuppliesOrchard Supply Hardware888.746.7674Osh.com

Tax Strategy ServicesMCL FInancial Group, Inc.Contact: Gary Flater800.692.6064MCL1031.com

Midpoint Financial ServicesContact: Chris Miller877.313.1868

Tax PlanningContact: Bruce Jones800.300.4723www.taxwealth.combjones@taxwealth.com

Termite & Pest ControlBrothers Termite Company, Inc.Contact: Bob Cooper562.927.5541brotherstermite@yahoo.comBrothersTermite.com

Water HeaterAABCO Water Heaters800.577.6527Commercial-Residential-Tanks/TanklessSales-Service-Installations

Editor/Designer: Jacqueline May Publisher: James Joseph Director of Circulation: Cora Hicks Advertising Director: Lisa Weeber

6 Maintenance Investment Property Update Investment Property Update Directory 7

Main Office: 16201 Whittier Blvd., Whittier, CA 90603 Phone: 562.236.0088 Fax: 562.236.0139

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men:My property has 100-gallon gas fired water heating that serves four units. It is about 8 years old. The tenants are complaining of very little hot water. I have checked the tank and the thermostat is working, the water is hot. Are my residents making up stories? What am I missing? From, Thorne

Dear Thorne: The water heater may need a bit of maintenance. The first thing to do is clean out the sediment at the bottom of the tank. This will require a shutdown of the heater for a couple of hours and some hands and knees work. Most 100-gallon gas water heat-ers have a clean-out port at the front of the tank. The port is either round or oval. Be sure to get a new clean-out port gasket before starting this job. Once the water is drained and the port opened, remove all the sediment from the tank. You can expect to haul out one to two buckets of calcium buildup. (Sediment removal should be done once a year.) Removing the sediment will greatly improve the heating effi-ciency the water heater. Because of the age of the tank; while you have the port open, check the inlet dip tube and the anode rod inside the tank. If the anode rod is corroded, replace it by pulling it out from the top of the tank and inserting a new one. The anode rod is a sacrifi-cial zinc rod that helps keep the tank from corroding. The second item to check is the cold-water inlet dip tube. Cold water entering the heater is rout-ed to the bottom of the tank by the dip tube. If the tube is corroded, broken or missing, the tank will develop hot and cold areas, leading to complaints about short-term hot water. The dip tube is located inside the cold-water inlet pipe. Replacements for both the anode rod and dip tube can be found

at most plumbing supply houses.

Dear Maintenance Men: My plumber just informed me that my 10 unit building has “Type M” copper piping. He says Type M has thinner walls than the more robust “Type L” copper pipe. Could this be the reason I am having more water line pinholes leaks? From, Dave

Dear Dave: A number of things can cause copper water line pinhole leaks. Having the thinner Type M copper pipes may result in your property having pin hole leaks sooner than with the thicker Type L pipe. However, thin Type M pipe is often only a contributing factor when it comes to pinhole leaks. Typically, water chemistry, incoming water pressure, recirculation pumps and poor construction meth-ods are part of the contributing factors in pipe leaks. Check with your city or water distributor in your area to get in-formation on the water chemistry and hardness. Adding a water softener to the incoming water supply will help protect both the pipes and water heater. Reducing the water pressure with a pres-sure regulator will reduce stress on the pipes. If you have a recirculation pump for the water heater, it will help to install a timer to control the amount of time the pump is active. Moving water produces a lot of friction in the pipes. Set the tim-er to operate the pump only during high demand hours. Doing these easy fixes, may add life to your existing pipes. If poor construction methods are involved, re-piping may be your only solution in addition to the above solutions.

Dear Maintenance Men: My wife is busy creating a honey-do/spring cleaning fix-it list for around the house. She got me thinking I should do the same for the exterior of my apart-ment building. However, I don’t know where to start and I don’t want to ask my wife!! What do you suggest be

Dear Maintenance Men:

on my list as well as the priority? From, George

Dear George: Look at fire, flood and blood issues first. Check the roof and gutters for debris. Spring storms can damage roofing mate-rial and loosen gutters. For flat roof system check and clean all roof drains and scuppers. To keep your residents safe at night, reset the light times or install photocells to control the outside lights. Double check at night to make sure you have adequate coverage. For resident comfort, repair or replace dam-age or warn window screens and check for any cracked or bro-ken windows. Bugs

check for proper operation. This is great opportunity to inspect all the garages and carports. Check for accumulated junk in the ga-rages, which could lead to a fire safety issue. Once all these chores have been completed, you can add the lipstick! Color flowers for the garden, trim paint to brighten the look and a smile for your residents. Now you are ready to start your summer to do list.

To ask a question for the column or for an appointment for consul-

tation or management, contact Lisa Weeber. CA contractor lic: #797645, EPA Certified Reno-vation Company and DRE lic:

01460075 Please view our web-sites at

www.BuffaloMaintenance.com & www.ContactJLE.com

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and recycling programs (within your current supplier contracts), stay compliant on all local, state and federal regulations and raise the service level to you and your tenants. If you are interested or would like more information, please visit their website at: www.procureamerica.org.

Loud and Unruly Gatherings Ordinances: New party laws or “Loud and Un ruly Gatherings” ordinances, as they are often called, are be-coming more frequent in cities throughout Orange County. The cities of Orange, Newport Beach,

San Clemente, Irvine, and recently Westminster, have all passed laws that help abate the nuisance of an unruly party. AAOC is not opposed to these types of laws, but want to en-sure that owners are not held respon-sible for the actions of their tenants without a reasonable cause. As mentioned in a previous ar-ticle, last year AAOC worked with the City of Newport Beach on a Loud and Unruly Gatherings Ordinance and believed the amendments made would protect landlords who were not involved in the event causing the problem. However, we realized the enforcement of the new law was not

what we originally thought it would be when one of our members re-ceived a $500 invoice from the City with no notification that an unlaw-ful party had occurred. We want to ensure that this doesn’t happen to any other landlord in the City. We are currently working with the City to resolve this issue, but may be turning to members in Newport Beach for support. Recently Westminster passed an ordinance relating to loud parties as well. While original language would have included a landlord in the definition of “responsible person”, even if they were not in-

volved with the party, the AAOC was able to work with the City to remove landlords completely from being held accountable, unless they were aware the par-ty was taking place. The law will punish only those responsible for the unlawful party, with a fine taking place after a second response to an unruly gathering with in a period of 14 days. If you have questions on this or any other legislative issue,

please contact Emily Osterberg, Director of Government Affairs,

at (714) 245-9500 or eosterberg@aaoc.com

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A good man brings good things out of the good stored

up in his heart, and an evil man brings evil things out of the evil stored up in his heart.

For the mouth speaks what the heart is full of.

Luke 6:45

We Work Hard,So You Don’t Have To

AMBASSADORPROPERTY

MANAGEMENT

✓ Rent collection✓ Hands-on maintenance __Supervision✓ Comprehensive resident __screening✓ Payment of bills / mortgages✓ Competitive pricing with trusted __vendors

✓ Assistance / supervision of __on-site managers✓ Consultations✓ Easy-to-read, monthly statements __with detailed income / expense __reporting✓ 24 hours a day, 7 days a week __availability✓ Frequent property and vacancy __inspections✓ Services for buying or selling __investment property

W h y U s e a Pr o f e s s i o n a l Pr o p e r t y M a n a g e r ?Pr o f e s s i o n a l s m a ke i t a h a s s l e - f r e e e x p e r i e n c e.

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Give Candy a call today!

(562) 236-0102

16201 Whittier Blvd, Whittier, 90603

are often more active in spring and the residents will now be opening windows to let in fresh air. Walk around the building and check all the wood trim and stucco for water damage. Peeling paint and stucco will lead to dry rot in the wood and effloresces or deterioration in the stucco. Check balconies and stairways for damaged surfaces and loose steps or rails. Irrigation sys-tem may have been off for the win-ter season; turn on all sprinklers and check for proper operation. Replace any damaged heads and look for pipe leaks. Adjust sprinkler heads for proper coverage and reset the timers for warmer weather. It is important that the sidewalks are not watered as this can increase possible slip and fall accidents. Open and close each garage door,