All Forum Posts by: Ken Virzi

I use PenFed for my investment HELOCs and they have no seasoning period at all. They do use appraisals to set the value though. I had a duplex that is renting for $1775 collectively just get appraised for $27k (which is way under value, but it is what it is, Cleveland appraisals range big time), they took that number and gave me 80% so a $21,600 HELOC.

I use PenFed Credit Union for my investment HELOCs. They recently did one for me in Cleveland with an appraised price of $27k, so they just go with appraisal of any amount. Unfortunately I am maxed out as three HELOCs is their max.

My first property (a condo in the Los Angeles area) was purchased when I was local, but by the time I closed I was moved to Miami with my job, so I became a long distance landlord by accident. Little problems happened and my tenant found someone to do the work. It did not cost that much, but it ended up being useless. Then I go with the handyman that the property managers for the complex use. Talk over the phone, develop a good relationship and think I have my go to handyman, I am stoked. I bring in a good plumber from a friend rec who is in the industry to redo a shower. He charges a lot (and gave me a deal) and left the finishing work for the handy man. Then I have a leak in the kitchen and need a plumber so I ask another investor in my complex if she has used anyone and I call this guy who has worked on a lot of the units in my complex. He seems legit and is also not cheap, but not crazy expensive. He has to redo some of the things the handyman had done and all the things the tenant's find did. So I thought I had a good handy man but apparently I didn't. Also this new plumber says the expensive plumber who re-did the shower put in one that was way too low to keep the water in, so the if the drain is slow the water pours over. This seems to never end. How long before you normally find your go to people? With the handy man, is it a matter of figuring out what he can and cannot do, regardless of what he says? Do even the best people regualrly make small mistakes?

Also, when it comes property management, wholesalers, etc. It seems I create relationships, let some go as a result of the interaction and do business with those that check out. Develop even a friendship built on trust, and do several deals together, then you start learning they have not been completely honest. Does it ever end? 

I am still in this for the long haul, my place in LA is still cash flowing and appreciating and I am not regretting it all. This is just the one piece of the puzzle I cannot seem to figure out. We all talk about building a team, but this is not easy. Finding a deal is easy (may take time but I can do it), figuring out financing is easy (may take a lot of research, calling, paper work, etc, but I can do that), meeting people and building relationships is easy (I can do that), but building a team of those you can trust to do a good job, not rip you off, and be honest with you seems way too hard. 

Is it true that in cold environments some tenants of old houses will board a window for insulation purposes?

I invest in high yield dividend stocks

I would say Old Brooklyn ranges from C- to C+ some of the C+ areas or blocks or houses might be like B- maybe

So just for reference governments and banks and many other smart people got scammed by the horrible loans put together and sold which crashed in 2008. Bernie Madoff fooled the best of the best with his false papers, easy going personality, and past credentials. Sounds like Morris is taking a page right out of Bernie’s playbook. BTW there are ways to do diligence without flying out there. Google street view is a great resource. Look at the cars parked and if there are bars on the windows. Scroll up and down the block. Then trulia has a crime map which isn’t perfect but gives you a general idea. Redfin can show the actual comps and if everything is selling for $17k then you know $50k is too high. Also BP is a great place to get info on different neighbors and such. General google searches of cities, neighborhoods, etc might help. All in all there are lots of things from afar we can do. Also I want to reiterate many others with tons of experience have been taken for much more.

It took me awhile to find something that worked. I ended up buying a condo in Gardena (just 7 miles from Manhattan Beach but worlds apart). The place has appreciated but the main reason I pulled the trigger when I did were the numbers seemed safe. I didn’t want to buy anything I couldn’t at least break even from rent. I ended up never moving in but my rent is going up from $2050 to $2200 in May and i’ll finally be above the 1% mark. (Purchased for $210,000). I think places like Gardena, maybe Hawthorne, Carson to a degree still, Inglewood a little bit all still have room to appreciate. Obviously i’m more focused on south bay. Also parts of east torrance have slightly decent deals and being in Torrance always gives you a better exit strategy then Gardena. There are also some really cool neighborhoods in south LA that i found literally a few months too late. Prices are now way up there (two years later) and unfortunately I didn’t have enough to get one. But look around, check rents, and explore. If you could easily cover your costs with rent then it allows you a safety net if you move out and the appreciation isn’t there.

have you heard of life hacks? the word hack has long been used beyond the internet or computing world for quite some time my friend.

Originally posted by @Andrew A.:

@Ken Virzi  Did you end up finding the source of the 74o gallons a day?  Wow

 yes, it was a toilet running, got it fixed, but man it was an expensive toilet for a couple of months.