All Forum Posts by: Gabe Radovsky

Hello Jax Investors,

I'm just curious whether any of you have experience buying property from Peng Lee and his company, Daddy Home Buyers, and what your experience was like. Thank you in advance!

I guess this might come down largely to how long you're planning to hold a property. If you're looking to flip or hold it for a couple years tops, it's probably worth sacrificing a lower rate for the lowest possible fees and closing costs. If you're planning to hold for 10 years or more, those things will probably come out in the wash with a lower rate.

It's also worth noting that you can negotiate with lenders on rates. Have any of you asked your favorite normal, reputable lender to match another lender's lower rates? If not, why not?

Interesting assumptions... but no, no points, buydown fees, etc, on either loan. The lender offering the lower rate gave me the option of taking a credit up front in exchange for a higher rate, I guess you could call that a "reverse buydown"?

Just curious, what makes a lender "normal" or "reputable"?

I'm currently looking at small multi family deals in LA county, and possibly looking to borrow up to about $1.2 million. I've spoken to a couple of lenders out here who are offering me 3.25% on a 30 year note, and one who offered me 2.875. At the high end of my price range, those 3/8 of a percent end up saving me about $250 a month. On a low down payment deal, this translates to a significant bump in ROI, and even if I were putting more down, a few thousand a year for the life of a deal is worth a few hours of my time to shop around. Even if you're looking at much cheaper deals, you're probably going to want to buy more than one, and those savings will add up the more deals you make with lower interest loans.

Can one of you more experienced folks please explain to me why this amount of money isn't worth my time to make a few phone calls? Is it just that you feel new investors are spoiled on these low rates, and we should expect them to go much higher at some point?

I think this cuts both ways, and as with most things in life, the middle path and avoiding either extreme is best.

Are you more interested in working with consumers or investors? Your physical image probably matters a little more to consumers, and your track record and industry reputation probably matter a lot more to investors.

Looking clean and smelling inoffensive are good baselines no matter how casual you are at the moment. On the other hand, some people are probably going to be put off if you smell strongly of cologne, look like you spent hours on your hair this morning, have a watch that's more expensive than their car, or a car that's more expensive than their house.

John Mayer? Don't you have like $10 million worth of watches?

"Would you rent your house to these freaks?"

"Some people use their foreign language ability to talk fast gibberish when I ask a touchy question."

"renters need to wise up about how much stress they can cause the landlord"

Based on everything you've said, I probably wouldn't want to rent to those tenants, and I definitely wouldn't want to be on any side of a business transaction with anyone who speaks about other people the way you do in this post.

I'm just curious how some of you experienced property owners determine how much liquid money to keep on hand for a given property, if there are important reasons to keep that money in a separate or LLC bank account, etc.

Much appreciated! I grew up in Mass so I have connections in New England, which makes it an interesting idea. Living in SoCal has ruined me in regards to weather though - I might have to stick to the sunbelt ;)