All Forum Posts by: Andy Lanyi

Is there a regular meet up for Multi-Family apartments in LA county any place. If not does anyone one want to start one? I know that there is one in Orange county. A bit far for me though, somewhere in Huntington Beach. 

Thank you for reaffirming my thoughts.I was not sure until now. That really limited my investing options, but you set me straight.  Thank you for taking the time to respond to my questions.  

Thank you for your responce

I am not understanding the 1031 exchange process quite right. Is it true that when you do the 1031exchange and you do not spend all the money on the next purchase that that money will get taxed as capitol gains. As an example you you purchase a pice of property for $1,000,000 you sale it for $2,000,000. Then you buy another property for $1,000,000. You do not invest the other $1,000,000. When you first invested your money it was all cash. So now you can not pull your money out with out getting it taxed? And if you wanted to be your own bank and take back a first of lets say 1,000,000 and the buyer pay you $1,000,000. Would you get taxed on that first $1,000,000.I thought that would be a good way to not get taxed, you being the bank and taking the first on the property. 

I know of a few real estate agents that get listings and have a big client base that they are both the listing agent and the selling agent. What precautions can I take to make sure that the agent is looking for my best interests. You would thing that it is in his best interest to get the highest price for the investment. You would not think that is not a good deal for the buyer?

With all of the expenses and the mortgagee payments from where money I pulled out of the other apartments, and the 100,000 that the loan company held back for a year I am in the red.  Good thing that I am making great $ on the other two set of apartments apartments.  It will be in the black if I calculate in the reduced tax rate for next year.  

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $1,750,000
Cash invested: $1,750,000

Set of five apartments, In a nice area of Covina. All apartments have a two car garage, and HVAC, washer and dryer, and they hove their one water heater.

What made you interested in investing in this type of deal?

I pulled out 1,500,000 out of another set of apartments and had to get something that was not in the red as soon as i purchased them.

How did you find this deal and how did you negotiate it?

MLS with an agent.

How did you finance this deal?

with some cash on hand and pulling 1,500,000 out of another set of apartments.

How did you add value to the deal?

Only a new roof and eliminated some trees that were causing plumbing problems

What was the outcome?

Nothing yet

Lessons learned? Challenges?

I should have waited and had more cash of hand before i made the investment, they are boarder line in the black. The only reason they are in the black is that they are reducing my federal and state tax rate.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

not at this time

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $1,750,000
Cash invested: $1,750,000
Sale price: $1,750,000

Two sets of 4 apartments, I could have gotten a residential loan for each of them, but had the cash

What made you interested in investing in this type of deal?

I had some houses that sold and wanted to get into more apartments with a 1031 exchange. lot of work getting updated. Each apartment takes about $13,000 to $20,000 to update, so not in a big hurry.

How did you find this deal and how did you negotiate it?

MLS with an agent.

How did you finance this deal?

1031 from other sold houses

How did you add value to the deal?

Exterior update and three out of the eight have been updated.

What was the outcome?

I am sure the value has gone up, but i have not tried to pull any money out of them yet.

Lessons learned? Challenges?

Just little things, make sure that you do a good inspection upon buying. I made sure that the apartment had all new copper plumbing above ground, but not under ground and that is where the problem ended up being.First thing you want to do is remove all trees, roots getting into the sewer system, finally there are not as many plumbing problems.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not at this time

Investment Info:

Large multi-family (5+ units) buy & hold investment in Glendora.

Purchase price: $3,000,000
Cash invested: $3,000,000

2020 pulled out 1,500,000 to reinvest in additional apartments

What made you interested in investing in this type of deal?

1031 exchange into area where I moved to

How did you find this deal and how did you negotiate it?

MLS through a Realestate agent

How did you finance this deal?

1031 exchange

How did you add value to the deal?

New roof, new plumbing, Update all apartments

What was the outcome?

The value has increased about 1,000,000 in the 6 years that I purchased the apartments.

Lessons learned? Challenges?

Make sure you are always trying to do improvements to the property, it really makes a difference to the residents. Quickly make sure you repair any needs of the residents. Always get tenants with fairly good credit rating.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not at this time

@Theresa Harrison

Great idea thank you