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All Forum Posts by: Jordan Feiner

Jordan Feiner has started 11 posts and replied 33 times.

hey folks, I need my driveway repaired and a gate installed any referrals would be greatly appreciated.  

thanks!

I'm still new so bear with me, if I'm looking to net $350k from a buy and hold portfolio assuming my doors are netting $200/month does that mean I need roughly 146 doors?  that seems like a large portfolio.  Am I missing a sizable tax loophole or reduced tax rate? I live in Los Angeles, does that mean my net for the doors should be higher?

Originally posted by @Matt R.:

IMO based on your time line of 18 years ish, try to find something you can work with in LA, which is easier said than done at times. My reasoning is based on average historical total profits (cash flow+equity gains) LA was #1 in the nation since 2000. Check any duplex value and rents from 2000 vs 2018 as these can be multiple 6 upto 7 figures concerns. I don't see any reason why this will not continue longer haul and then add possible redevelopment.  

Good luck with you search!

 thanks Matt, Are you saying buy a duplex in LA or a primary house?  

@Jonathan Taylor No pmi below 20%? Are they having you take a 2nd loan to make up the difference? I’m on la looking for a lender pm me details?
Originally posted by @Tony Kim:

By any chance, do you qualify for the definition of an accredited investor? Acquisition of properties in Los Angeles, while probably good in the long term from a capital appreciation standpoint, would make me nervous right now simply because of where we are in the RE cycle. For this reason, I have stopped looking for properties to purchase (but will keep my existing LA properties) and have started to put my money into syndicated deals and investment funds that are a bit more conservative and by their nature (i.e., hard money lending, litigation settlement funds, etc.) might hold up better in a downturn and aren't correlated with the RE market. 

By the way, I tried living in the valley because I was enticed by the lower home prices, but that experiment only lasted 2 years. If you are used to the paradise like weather of the Westside, the summers in the valley will be a difficult adjustment. I moved back to Wilshire Park two years ago and am loving it. 

Wilshire Park is a great neighborhood.  I's love to get a house in the country club park neighborhood.  I never knew about it and was blown away.  I hear ya on the cycle, but I'm focussing on a buy and hold strategy so the soonest I'd be looking to offload would be 15-18 years.  I love my day job and want to keep at it.  You're the 2nd person to mention lending to me so I'm going to dive into learning the ins and outs.  No idea if I qualify as an "accredited lender"  will look into it. 

Originally posted by @Colin B.:

First, congrats. What an empowering position to be in. I was in a similar position in NYC several years ago.

To me, there are several questions that you need to ask yourself. 1) Do you see yourself in LA for a long time (say 5 years or more)? 2) Can you find a building in the LA area in a neighborhood that you want to live and that will at least allow you to lock in your housing expenses at or close to your current housing expenses? I would look for something that you can turn into a 3 unit or 4 unit but a duplex may work at least initially — a shell is totally OK (and may be preferred) if you have the budget to renovate (note that you may be able to find a construction loan with as little as 3.5% down although you’ll need to run the numbers to see whether it will work for you).

If the answer to the first question is no (or the answer to the first question is yes and the answer to the second question is no), then don’t invest in LA because you are likely able to get better cash flow elsewhere to offset your current housing costs. If the answer to the first question is yes and the second question is yes, I think you may be in a better spot by buying in LA.

I initially was not sure that I was going to stay in NYC so invested outside of NYC. When I determined that I would be in NYC for a long time, I bought a duplex in a neighborhood that I liked that locked in my housing costs (including taxes, insurance and maintenance) at roughly the cost of renting. I didn’t plan for it but rents have gone up as have prices, which has put me in a better cash flow and equity position. I’m now in the process of expanding the duplex into a four unit. When this is done, the cash flow off the building will more than cover my housing expenses.

One final observation - if you think it is going to take you time to watch the markets before making a decision, consider becoming a lender over the short run (either by investing in hard money loans or re-performing notes). You can get good returns over the short run to increase your “war chest” without sacrificing the same level of liquidity as if you bought real estate equity. If you’re curious about the debt side, read articles by David Van Horn.

PM me if you want further thoughts. Good luck.

 Thanks Bumpy.  That's a terrific handle btw.  I want to become friends just so I can casually throwout, "my friend Bumpy"  I was thinking about a construction loan but can you use them for renovations?  I thought they could only be used for forced appreciation, i.e., increasing sq footage, adding bathrooms.  Lending is an interesting idea, I'll read some DVH articles tonight.  

Originally posted by @Natalie Schanne:

Jordan Feiner - did you already meet with the owner of your duplex to offer to buy it?

Sunny Burns was on the show a while ago. I met him in New Jersey and he bought a foreclosure quadplex near New York City through Fannie Mae firstlook or other home owner occupant only (no investor) periods.

Get set up on a property alert from a local agent and think about renting rooms (or buying a duplex) to long term vetted roommates for more income.

Thanks for the response Natalie, I would love to buy it, but I couldn't afford the Duplex I live in.  Based on comps in my neighborhood it would be $3 mil or just over.  

thanks for replying Sam. I am thinking about BRRR'ing out of state although i don't see the LA market cooling much anytime soon. Ive lived out here almost 20 yrs now and everyone says that and it's still hitting new highs.

Originally posted by @Samuel Glantz:

Dude first of all congrats. I'm a newbie just like you. I dream of being able to do that here you are doing it. I'm slow to start cause of funds. You have funds in spades. If your happy renting then rent away, it gives you flexibility. No rule that says you have own your residence to invest in real estate. 

If I were in your shoes I would be locating a city outside of Cali. Maybe kc, indy, Columbus, etc... And brrrr the crap out of it. Or if you want a more hands off approach look for a solid turnkey company. If you brrrr you can probably scale very fast after you have a few under your belt and the experience to mitigate mistakes. 

Saving that much is no small task. Houses will be there always. The market in California has to cool at some point. Get a solid investment portfolio and look toward a purchase in a few years. Like you said you like your rental your in, no reason to move unless your either needing more space, can't afford it any longer, or just plain miserable with the area. If your happy stay and invest away. 

Excited to joining for my first BP meet up!