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All Forum Posts by: Jack Zhuang

Jack Zhuang has started 15 posts and replied 67 times.

Originally posted by @Brenda Chen:

Neal Bawa will talk to us about real estate trends in the Bay Area.

Neal Bawa is CEO / Founder at Grocapitus, a commercial real estate investment company. Neal sources, negotiates and acquires Commercial properties across the U.S., for nearly 300 investors. Current portfolio over 1600 units, projected to be at 3000 units in 12 months.

Neal also serves as CEO at MultifamilyU, an apartment investing education company. He speaks at events & meetups across the country. Nearly 4,000 students attend his multifamily webinar series each year and hundreds attend his Magic of Multifamily boot camps. Neal is the co-founder of the largest Multifamily Investing Meetup network in the U.S. (BAMF), a group of investors that has over 4000 members.

Neal is an accomplished single family and multifamily investor. Currently owns single families, duplexes, tri-plexes and quad-plexes in CA and IL. Active and passive investor in multifamily and commercial syndications in TX, NC, KS, OH, NV, UT, FL and IL. Taught Fundamentals of Multifamily investing, Real Estate trends and deal analysis to 1000+ students, including investors from three different IRA companies. Raised tens of millions of dollars to buy 200+ unit students housing and multifamily projects.

 Hi Brenda,

I would love to attend in person, but I will be traveling on a business trip during the time. Is there a webinar or video reply of this event?

-Jack

Originally posted by @Kimberly Nguyen:

Join “The Apartment Investing Network of Newport Beach” to Discover…“10 Reasons Why You Should Consider Investing in Real Estate Syndications Right Now” 

We’ll be covering topics like the following:

 What the heck is a syndication… and are they the right type of investment for you?

 If your investment philosophy is… “Don’t put all your eggs in one basket”, real estate syndications can certainly help you diversify and spread your risk. We’ll discuss how.

 But on the flip side: If you’re investment philosophy is more like… “Put all your eggs in one basket… and watch it like a hawk”, a syndication can help you further that objective as well!

So which philosophy is right? We think both… and will discuss the various ways a syndication can help with either approach.

 How to become a commercial property owner… with as little as a $25k - $50k investment.

 If you like the idea of making “mailbox money” (you know… money that comes in, whether you go to work or not), a real estate syndication might be right up your alley.

 Can you really increase your income… without increasing your taxes? We’ll show you how syndications can be the MOTHER of all tax loopholes… as long as they’re set up right.

 The magic of “Forced Appreciation”… and how a real estate syndication employs this powerful form of leverage to build massive wealth.

 How to mitigate and limit your downside risk through syndications.

 The obstacles that keep most people out of commercial properties… and how to use syndications to leapfrog over them.

 Can you really get cash flow, whopping double-digit returns, tax benefits, and a hedge against an economic downturn – all rolled up in one investment??

Yes, you really can have your cake, and eat it too… as long as you’re investing in the right syndication, in the right market, at the right time, and with the right structure in place. We’ll show you how that looks like.

 Plus, all your questions answered… and lots of networking time!

Here are the details:

WHAT: The Apartment Investing Network of Newport Beach

TOPIC: 10 Reasons Why You Should Consider Investing in Real Estate Syndications Right Now

DATE: Wednesday, April 10, 2019

TIME: 6:30pm – 9:30pm

LOCATION: Newport Beach, CA

COST: $20 per person

RSVP: Reservations are required and seating is limited so please email us or give us call right away (please include your name,

guest name, and phone number).

 Hi Kimberly, I would love to attend in person but I would be on a business trip. Is there any way I can join on line or watch a video replay? 

-Jack

Originally posted by @Chris Mason:
Originally posted by @Jack Zhuang:
Originally posted by @Chris Mason:

For an investment property and private financing without any FNMA BS between you and closing, and no crazy fees or anything, that is f-ing phenomenal. Take it. Now.

Or, if you don't like 5% with no FNMA BS, and it's a reasonable price for what the property is, PM me the details and I'll find someone who will within 36 hours.

What you should ACTUALLY be doing is running down your "is this too good to be true and thus a scam?" checklist. Generally 5% doesn't exist outside of FNMA and institutional financing. 

The asking price is too high and that's the issue. Plus there are issues with the property itself. The seller inherited the property and now wants passive income for his retirement without the need to manage it. 

At least it's a good news to me 5% is reasonable.

 Heh, google search "car sales four square technique." 4 things are involved in a car sale. Two of them are sticker price and financing. If you're focused on sticker price, the car salesman will give you a killer sticker price and "get" you on the financing. That's simple enough to understand and in your case only those two factors are at play. In a car deal, good luck keeping track of all four. 

That's why your Realtor and lender and listing agent are separated on a typical real estate transaction, and it's illegal for any of us to pay each other outside of what is disclosed to you on the closing paperwork.... so if a Realtor sells you a home for a price that's too high and I make up for it by losing money on the mortgage, the Realtor can't kick money back my way to make up for it. But that's effectively exactly what happens on the car lot every day. 

Fun trick for cash buyers of cars: say you want a loan. And focus on the sticker price. HAMMER them on the sticker price. They will quickly calculate how much to screw you on the financing to make up for it. Take the car at the great price with the trash loan, ensure only it has no early payoff penalty or crazy startup fees (just have them bake ALL costs into APR). Then pay the entire loan off when you make your very first payment. :)

 Chris, you are right on the point! I will try out your car financing tips too next time:)

In my case, is the seller is the bank. He can get me either way. I'm going to stand strong with my sales price. You make money when you buy.

Originally posted by @Chris Mason:

For an investment property and private financing without any FNMA BS between you and closing, and no crazy fees or anything, that is f-ing phenomenal. Take it. Now.

Or, if you don't like 5% with no FNMA BS, and it's a reasonable price for what the property is, PM me the details and I'll find someone who will within 36 hours.

What you should ACTUALLY be doing is running down your "is this too good to be true and thus a scam?" checklist. Generally 5% doesn't exist outside of FNMA and institutional financing. 

The asking price is too high and that's the issue. Plus there are issues with the property itself. The seller inherited the property and now wants passive income for his retirement without the need to manage it. 

At least it's a good news to me 5% is reasonable.

@Araz Jerahian

I’m sooo glad I posted this question. Development projects are a whole new level than buy and flip or brrr. I didn’t consider having an auto shop on the lot could be so problematic.

I need to seriously consider if it’s worth the risk and extra capital and time now.

BP is AWESOME!

@David Avetisyan

Sorry about the typos. Auto correct is sometimes annoying on my phone

@David Avetisyan

After spoken to an structural engineer who has busted the site, he this it will cost $200 per sq ft. The main reason is having such a small lot, I will need the entire first floor to be pillared for parking. In addition, handicap requirements might be challenging as well.

Based on his estimate, the construction along will be 40% over my original construction budget! So I decided to ditch the 6 unit route. Maybe a 2 story 4 unit townhouse makes more sense? Still need to figure out if they can fit.

Already talk to some of the big banks, they are not interested in funding me for a construction loan. What I can probably do is to keep the construction cost pretty low enough, so refinance on my other property will cover it.

Exciting opportunity, lots of challenges. So as life.

- Jack

The seller is offering 20% down, 5% interest rate, 25 years amortization, ballon payment due on 7 or 10 years (negotiable), and due on sale.

Asking price $750k. Location: SoCal. Property type: commercial

Considering the 30 year mortgage interest rate has been reduced to about 4% now, is the above term still attractive in today’s market?

Originally posted by @Sejj Jackson:

@Jack Zhuang 6000sqft is to small of a parcel for 6units. A duplex or a 4unit building is what code will allow here. And you can kinda guesstimate using cost per sqft. If the going rate is around $250 per sqft an you have a 4500sqft building $1.1mil.

I doubled checked the local zoning law, it would allow 6 unit building on 6000 sqft lot. But you are right, it is a very small lot! The only way I see 6 units might fit is to build a 3 story building. 

I personally want to go into more a depth analysis listing out the cost of each big ticket item. If I know the total project cost and building sq footage, cost per sqft is a great way to verify if I'm overpaying for the project. But with my unique situation that I have to take down an auto shop then remove the poured foundation, it is difficult to estimate (within fair accuracy) cost per sqft.

Do you have suggestions how to get a fair estimate on big ticket item costs? Do I call up each sub contractor? How do I know the quote I get is fair?

-Jack

Originally posted by @Greg Dickerson:

@Jack Zhuang the best thing to do is talk to some local GC's and ask them what  project like this will run. Make sure you have some level of detail ready for the discussion like interior and exterior finishes etc. You will need to scrape the lot to get ready for the new build so you will need estimates on that as well. New construction varies greatly form area to area so make sure you talk to at least the local GC's that do that type of work. 

 Greg advice Greg! Definitely in my next steps. However, estimates varies from contractors to contractors. Is there a way I could estimate the project cost on my own so I know the tough ball park?

-Jack