All Forum Posts by: Jason Chen

Wow just goes to show how petty some people are. The fact that she stalked you and did all those things means that she's got mental issues. I'd take it all as a blessing in disguise as you now have the freedom to make even more money than before on your own terms flipping houses. Kinda forced you to be in a better position if you think about it.

1 Vote

S&P 500 maintaining steady, only 13% or so away from all-time highs. Less and less panic buying of toilet paper and paper towels at the grocery store. 2nd or even 3rd round of stimulus checks coming. Perhaps the real estate market overall in the US will only take a minor hit that will last for 12 months tops?

2 Votes

Id prefer to wear $1.50 Walmart t shirts that you can buy in packs of 3, and have some paint and tiny holes in them, and show up to wherever in a new Rolls Royce Wraith

There is no better way to dress for success than to have a Mr. Krab keychain as well that you flash occasionally

0 Votes

Id offer about 200k down and carry a $700,000 note max

I wouldnt really go higher than that based off of what Ive read

Paying 1.48mil is too much unless theyre asking for 0% down payment which I doubt they will

Look to make a killing, not the other way around

0 Votes

I believe as time goes by, the better looking people will become more successful realtors.

3 Votes

Originally posted by @Eric James:

Originally posted by @Mike Dymski:

Hey Eric. Well written post.

Change your debt terms to 75% LTV, 5% or less interest rate, and 25-30 year amortization to have more accurate terms. My apartment loan is 4.375% with a 25 year amortization, as an example. The market standard for a Fannie/Freddie apartment loan has a 30 year amortization. And the debt is non-recourse.

Cap ex for an apartment community is significantly less than SFRs. The standard required reserves under the Fannie/Freddie apartment loan programs are $250-350 per unit per year. Many investors will carry higher reserves than that but still nowhere near SFR levels/needs.

Buying one 40 unit apartment community is a heck of a lot easier than buying 40 individual homes. That's not up for debate.

Raising rents $200/unit would be a home run. Do that on a 40 units community and you just made a $1 million profit (minus rehab).

And you don't manage the rehab, the PM does it. And it's conducted by affordable and professional vendors who specialize in apartments. Flooring installed is under $1/sqft and painting is around $250/unit. The word efficiency does not do justice to the difference between apartment rehab/maintenance and SFR rehab/maintenance...it's using professional vendors who specialize in apartments, not contractors. And all the rehab is done at one location.

Regarding the refinance, it's easier, not harder to get your capital out with an apartment. You get a construction/perm loan and finance the rehab. There are also supplement loan features built into commercial financing that allow cash out once the property has been re-positioned.

The most important factor is the profit per property...profit per unit is not as relevant. Many investors would rather have one 40 unit property that cash flows $6000 per month than twenty separate properties that cash flow the same.

There are lots of strategies to make a profit in real estate and SFR and apartments are both excellent.

4.375% IS a better rate than I get for SFH (4.79%), though I get it at 80% LTV and 30 year amortization.

How long, on average, would it take you from starting your search to complete the purchase of a 40 unit MFH? With the same amount of capital as needed for the MFH purchase, I think I could buy, rehab, rent, refinance, and repeat with 30 SFH within a year or less. Also, at the end of that time I'd still have the same amount of (or more) seed capital on hand.

I accept that all you wrote regarding lower costs for MFH is correct. Though, I'd suggest fewer than 40 SFH are equivalent to the cost of 40 apartments (maybe 25-30 SFH?). I don't know if refinancing a complex is 'easier' than for a SFH, but refinancing a SFH is quite easy (with local lenders who do not require seasoning).

However, your point regarding the efficiency of MFH would only seem to highlight the fact that MFH cost a lot of money to purchase, as they typically only have cap rate of 5-7%, despite their high efficiencies.

To me, I'd have to go more towards MFH as being the better and smarter bargain for many reasons. They also will pretty much always return more cash flow wise.

I feel like you're getting too caught up in the numbers, rather than getting the big picture, which is to focus more on how great a deal is on a case by case basis. I don't care if it's a multifamily or single family home as long as the deal is way in my favor. To me, this is like the most important thing.

I will say that refinancing and pulling money out of single family homes is easier with banks and whatnot, and they tend to have an element of better appreciation over time to counteract a number of cons. To each his own, but in general, if youre in it to win it, I'd say most of your deals at first have to be in the multifamily homes unless you find killer deals that are even better in the SFH segment in your area.

0 Votes

We're gonna need a lot more detail than this. Do you have anything else, like a ballpark price range, or pictures, or anything? Any detail would be great

0 Votes

Id vote industry jargon of the day, combined with millenials trying to make fancy-schmancy financial concepts/nouns "hip" so they can be more understandable to the general public

just LOL @ how dumb most "startups" arte

0 Votes

it depends on just a few key things

1. do you seriously anticipate this property appreciating pretty well over the next 5-10 years? if so, then absolutely its worth it

2. i believe youre overpaying for this property at 175,000. i know i havent seen it yet, but it seems like youre overpaying. this better be a badass 4/3 luxury condo or something, but if it were, youd be able to charge higher than 1200/month

3. before you make this move, take a step back and consider a deal that is simply WAY BETTER that might be hidden away fro your "radar" during all this time. this deal seems like its marginal or slightly better than marginal. why settle for marginal when you could knock it out of the park?

0 Votes

Originally posted by @Jerry Shen:

Originally posted by @Daria B.:

Originally posted by @Jerry Shen:

I've got some bitcoins that I would like to use to purchase real estate. Are there any institutions that will accept bitcoin as downpayment for a loan?

Admittedly I’m not up on the new craz...what is bitcoin?

It's a decentralized digital currency. Basically a way to transact and store value without any middlemen (banks, governments, etc). It's been on a tear this year (my initial investment grew 2000% in 8 months) so I'm looking to cash some of it out into RE but I would rather pay in bitcoin directly than cash out to dollars because cashing out large amounts of bitcoin can move the markets (if I sold $1M of bitcoin I would get a lot less because the entire market would see my sell order and it would drive the price down) than if I just used it directly in a transaction.

just sell the bitcoins 0.5 bitcoins at a time every 30 minutes bro

0 Votes

All Forum Posts by: Jason Chen

Jason Chen has started 11 posts and replied 229 times.

Post: BP post got me fired!

Post: Were we all wrong about COVID-19's impact on the overall market?

Post: Dress for success, really matter??

Post: Valuation on a 52 Unit Apartment Complex (Please Help!)

Post: Real Estate Agents Will Be Obsolete Within 10 years?

Post: Help me understand the advantage of multi's

Post: Need assistance w/ my first deal! 5 units - duplex & triplex!

Post: Unhealthy obsession with buzz words like Seed capital

Post: Would you buy a rental property with negative cash flow?

Post: Buying RE with Bitcoin