All Forum Posts by: Ken Virzi

So I know the power of the 1032 exchange, and many have used it successfully and swear by it. But I have been thinking through the pros and cons and in general just don't think it is compelling enough.

Assuming I have $100k equity in my place, if I sell I get at most $100k but most likely there are other fees, be it  selling through an agent, or title fees etc. So lets just say I would get around $90k to work with. So I leverage that $90k and buy a larger property.

Or, I take out a HELOC on that $100k and get $80k to work with. So that would be $10k less thus meaning I could use that $80k to get a larger property but maybe not quite as good as the one I bought using my $90k. However I would keep my original property that would continue to generate income. Also, if a large portion of the equity is due to appreciation, then the property is a good market and that $10k I missed out on may come through appreciation in a year.

Both pathways would grow my portfolio but it seems to me using the equity in my property while keeping my property would actually grow my portfolio quicker. I prefer the HELOC as well since I can keep using it over and over. Assuming I am able to pay back the $80k in less then 10 years, but even if I take the entire ten years, the pay off leads to opening up credit that can be used for purchasing more properties. Say after 6 years I have freed up $40k, I could immediately use that for another property.

There are so many different ways to go about the same goal and that is part of what I love about real estate, but as for me, not sure I will ever use a 1031 exchange. Then again, never say never.

 Called the water dept and apparently the month before I bought it they were averaging 74 gallons a day and in January on they have been averaging 740 gallons a day. So now we need to find the leak or see if the toilets are running non stop.

I just paid my first water and sewer bill on a new Old Brooklyn duplex and I am not sure what happened. I have another duplex in Old Brooklyn where I have been paying around $37 a month for water and around $18 a month for sewer. This second duplex I just paid $160 for water and $266 for sewer. Any idea on how there could be such a huge discrepancy especially with the sewer payments?

 I work with an airline, so I am in and out of the airport constantly. A lot of people who I work with that have been here a long time have moved to Ft Lauderdale, but I would rather not be so far from MIA airport. I have been here 1.5 years and not sure how much longer, but probably at least another year, maybe more. I am just tired of being in limbo so looking to try to normalize a bit.

 Well I live in Miami right now for work, that is the ONLY reason I am looking here. House hack possibly.

Where in Miami are you looking? I have had a difficult time finding any decent deals so far.

1 overseas, 1 in state, and 8 out of state with 2 more under contract out of state. 

 I was not trying to defame anyone. I was trying to figure out what the BP policy was in regards to keeping this a safe community. I have already apologized for not doing it perfectly. I provided context in order to have a productive discussion. I had no idea anyone would read this as an anti HW post in any way. I also have not mentioned anything about being contacted and not wanting to be contacted, however that does to appear to be a common concern by at least a few who chime in here. The confusion of what I wrote and others wrote seems to be confusing you, and thus your post is a bit confusing to me.

 I offer honest opinions and read before I respond. If you read you would know what the "hell no" was. It was a test. I have stated that, and have even apologized for too strong of a test. I have never attacked you personally. I have commented on your business practices and have mentioned both your strengths and weaknesses. All of us have strengths and weaknesses and I am disheartened that you are so opposed to feedback from your customers. I hope you take the feedback more then it seems and that might be the case. 

I have also stated that I would never rule out buying from you again several times. 

It is this behavior as a businessman that loses respect. I find it interesting that you took a simple test of two words "hell no" and claimed slander then wrote about me what you did above. I am not insulted and I think these posts speak for themselves. The original post had to do with a potential bad actor, not HW at all. HW was used as a test only. And you are making it personal for some reason. If you bring me an interesting deal I will inquire. You could rip me off, lie to me, and insult my mother, but bottom line is that if you have a deal that I think worth looking into I, I would. Just to be clear, since things have seemed to be taken out of context and jumbled here, you have not ripped me off, you have not lied to me, and you have never said a word about my mother.

My only feedback I shall give at this point is that you are dangerously close to coming off as a bully. Maybe you have enough buyers that you can afford such brazen words and that is fine. Like I said before it is your business and you clearly are doing very well. If I wished you ill will in any way I would not give you any useful feedback but instead would goat you into further incriminating responses.  

If you wish to cut me off from any type of relationship I cannot control that, but like I have said many times now, I am not interested in severing on my end. In fact, the entire post was based on an apparent unfriending and blocking of such a sudden nature that it made me wonder. My desire is to ensure that this is and remains a safe community, I am saddened that you see no value in that.

 Ok this is getting off track, but I do not think you are getting my point.

I wrote hell no to specifically test the waters in the message. I could be a huge HW fan and still have chosen to write that in this instance. If you read my posts on here I have said I am not opposed to doing business with HW again, but I have also been honest in my assessment regarding my experience. 

One of the things I have written about the way James Wise responds at times. He has every right to handle his business (a very successful one I might add) any way he wants. However, if I had someone feel strongly in a negative way about interactions with me as a business, the last thing I would do is accuse him of slander or being aggressive in any way. I prefer to deal with cooler heads and although this still will not prevent me from dealing with them in the future, it does leave a bad taste and can justifiably lead to a hell no from anyone. 

May I suggest customer service seeks to listen and understand the dissatisfaction or problem and then rectify it. Retaining customers is the goal when there are complaints. In my line of work if I came at every customer who came at me I would not last five minutes. 

Lastly, this post was not meant to be about HW, but unfortunately it got hijacked, and I take some responsibility as I should have communicated my "test" so to speak in different terms or more fully. For that I do apologize.