Westside homes, investment property and the estates that hold them.
For many Los Angeles families, most of their wealth is in real estate: a primary residence that has appreciated for decades, rental buildings, commercial property, and often a business. ARH Global Advisors helps them decide what to keep, what to sell and how to make sure the estate has the liquidity to carry it.
Enormous value, concentrated in property.
Decades of appreciation have turned ordinary Los Angeles homes and small apartment buildings into multi-million-dollar assets. That wealth is real, but it is concentrated, illiquid and increasingly expensive to hold.
California property tax rules, local transfer taxes, tenant protections and a strained insurance market all affect what a property is really worth to a family, and what happens to it when ownership changes.
Property tax and inheritance
California's Proposition 13 keeps many long-held properties on low assessed values. Since Proposition 19 took effect in 2021, most inherited property other than a family home used as the heir's principal residence, subject to limits, is generally reassessed at market value, which can sharply increase carrying costs.
Local transfer taxes
Higher-value sales within the City of Los Angeles are subject to an additional transfer tax adopted under Measure ULA, while other cities in the county have their own rules. Location within the county matters to net proceeds.
Tenant protections
Older multifamily buildings in the City of Los Angeles are often subject to rent stabilization and eviction protections that shape income, value and exit options.
Insurance availability
Many California homeowners face higher premiums, non-renewals and limited carrier options, particularly in wildfire-exposed areas. Coverage must be reviewed whenever ownership or occupancy changes.
Probate and trust sales
California has formal procedures for estate sales, including court confirmation in some cases. Many Los Angeles families hold property in revocable trusts, which shifts responsibility to the successor trustee.
Business owners and their real estate
Entertainment, professional services, healthcare and technology owners often hold the real estate their business uses, tying succession to property decisions.
How we help in Los Angeles
High-net-worth residential and investment real estate
Acquisitions and dispositions of significant homes and income property across the Westside and greater Los Angeles, evaluated as part of the family's overall wealth.
- Purchase and sale strategy for primary and secondary residences
- Investment property analysis: income, expenses, rent regulation, capital needs
- Transfer tax and net-proceeds modeling with the family's CPA
- Portfolio concentration and hold, sell or reposition analysis
California real estate agent — Balboa Real Estate – Kreative Luxe, DRE #02153277.
Inherited property
Support for heirs, executors and trustees deciding what to do with Los Angeles property after a death.
- Carrying-cost analysis, including the effect of reassessment
- Coordination of date-of-death appraisals and market analysis
- Buyout, sale and co-ownership scenarios for multiple heirs
- Preparation, marketing and sale of trust and estate property
Business owners
Coordination for owners whose company, real estate and family wealth are intertwined.
- Succession and ownership transition planning
- Business-owned and owner-leased real estate strategy
- Key-person exposure and buy-sell funding
- Coordination with corporate counsel, CPAs and valuation professionals
Insurance and estate liquidity
Life insurance and liquidity planning so that a real-estate-heavy estate is not forced to sell at the wrong time.
- Estate liquidity analysis: needs versus available sources
- Life insurance placement and review of existing policies
- Ownership and beneficiary alignment with the trust
- Funding for equalization among heirs and buy-sell agreements
Licensed life insurance agent in New York, California, Connecticut, New Jersey and Texas.
When the family home costs more to keep than anyone expected.
A parent bought a home decades ago. Its assessed value has barely moved while its market value has multiplied. After the parent's death, the heirs discover that keeping it may cost far more than they assumed. That scenario is now one of the most common real estate decisions in Los Angeles.
Know what the property will cost to hold
Reassessment can raise property taxes dramatically, and insurance for a vacant or tenant-occupied home may cost more or be harder to obtain. A realistic carrying-cost estimate is the starting point for every other decision.
Understand the family-home exception and its limits
Proposition 19 allows a parent-to-child transfer of a family home to avoid full reassessment in some circumstances, generally only if the child makes it their principal residence within the required period and subject to a value limit. Eligibility and filing requirements should be confirmed with counsel and the county assessor.
Compare keep, rent, buy out and sell
One heir may want to live in the home, another may want income and a third may want cash. Side-by-side numbers for each path narrow disagreements quickly.
Value it correctly for each purpose
The date-of-death appraisal generally sets the income tax basis for heirs; a current market analysis guides the sale decision. The two serve different purposes and should be reconciled with the CPA.
Coordinate the professionals
Trust or probate counsel, the CPA, the insurance professional and the real estate professional each hold part of the answer. We keep the property decision connected to all of them.
Rich in property, short of cash.
A Los Angeles estate can be worth many millions of dollars and still struggle to pay its obligations. Administration costs, reassessed property taxes, rising insurance premiums, deferred maintenance, loan maturities and equalization among heirs all require cash, and they usually arrive before property can be sold on good terms.
California does not currently impose its own estate tax, but federal estate tax can apply to larger estates, and the other liquidity needs apply to nearly all of them.
We help families estimate those needs in advance, compare them to available sources such as reserves, planned sales, borrowing capacity and life insurance, and coordinate with counsel and the CPA so the plan is in place before it is needed.
Read Estate Liquidity When Family Wealth Is Concentrated in Real Estate
1875 Century Park East
Los Angeles, CA 90067
Century City, between Beverly Hills and West Los Angeles.
Alejandro R. Hernandez III
Founder & CEO. J.D. and B.A. in Economics, The University of Texas at Austin. Serves clients in Manhattan, Los Angeles and Austin, in English and Spanish, and handles every engagement personally.
+1 646 290 7380
[email protected]
California real estate agent — Balboa Real Estate – Kreative Luxe, DRE #02153277.
Licensed life insurance agent in New York, California, Connecticut, New Jersey and Texas.
Insights for Los Angeles clients
Discuss Los Angeles property, an inheritance or estate liquidity
If you own significant Los Angeles real estate, have inherited property, or are planning for a business and the property around it, we can begin with a complimentary 30-minute conversation.
Important Disclosures
This page is provided for general informational purposes only. It is not legal, tax, accounting, investment or insurance advice. Laws, taxes and procedures vary by jurisdiction and change over time.
ARH Global Advisors LLC is not a law firm. Its advisory or consulting services do not constitute legal advice, legal representation or create an attorney-client relationship. Clients should rely upon qualified counsel for legal advice.
ARH Global Advisors LLC does not provide tax or accounting advice. Tax matters should be reviewed with a qualified CPA, tax attorney or other appropriately licensed tax professional.
References to "fiduciary" considerations or fiduciary-focused services describe an advisory and coordination framework and should not be interpreted, by themselves, as a representation that ARH Global Advisors LLC is acting as an investment adviser, ERISA fiduciary, trustee, executor or other legally appointed fiduciary. Investment advisory services are not provided unless and until offered through an appropriately registered investment adviser pursuant to applicable agreements and disclosures.
Real estate brokerage activities and insurance transactions, where applicable, are conducted through appropriately licensed individuals and entities and are subject to separate agreements, disclosures and compensation arrangements. Market analyses and broker opinions are not substitutes for an appraisal when a formal appraisal is required.
Real estate services in California are provided through Balboa Real Estate – Kreative Luxe (DRE #02153277), subject to separate agreements and disclosures. References to Proposition 13, Proposition 19, Measure ULA, rent stabilization and California probate procedures are general summaries of complex rules that change over time; clients should consult qualified California counsel, the county assessor and tax professionals regarding their circumstances.
Services vary according to jurisdiction, property, engagement and applicable licensing requirements.