The multifamily sector of real estate, especially in Los Angeles, has experienced a sharp increase in prices over the last couple of years, primarily due to the demand from new investors and lower inventory. Many of these new investors have been first time investors looking for alternative investments outside of the volatile stock market. Some are just tired of not having any significant return from having their money in either the bank or in bonds. As new investors, many have not planned for some potentially significant pitfalls from investing in multifamily.