All Forum Posts by: Michael A.

Great, thanks for advice.  Should I be looking at these guys?
https://www.nerdwallet.com/best/mortgages/heloc-lenders

Any others to consider?

Thanks a lot for advice. Yes, rate did seem really high.  That was from USBANK, by the way. I asked if there was a recent big increase but she said she wasn't sure which seems like an odd answer.  Regardless, I plan to shop around.   

Hello,

Here is a bit about my situation:

In Los Angeles, California, here. Family owns 3 income properties in LA, all free of debt:

• 19-unit Multifamily ~ 3.8M
• Single family Home ~ $1.6M
• Single Tenant Commercial ~ $1.1M

They also own their own home which is $1.7M and has $430,000 of debt (fixed 30 year mortgage, payments are $3K a month).

All the income properties cash flow.

My goal is to have money set aside for real estate investment properties. As far as what or how much, it would depend where the market goes in the coming year. Also, we don't have a huge amount of savings. At least not enough where I'm comfortable taking a chunk to buy real estate with.

So here is my question:

Would you guys recommend taking out variable rate HELOCs on everything to have money set aside so if opportunities do come up, I can act quickly?

I would prefer HELOCs over just taking money out because I really don't know when a good real estate opportunity will arise, maybe a month from now, maybe 2 years. And I don't want to be making monthly payments, especially during a pandemic that could effect cash flow.

At this point only spoken to one bank but the reason I'm leaning toward variable rates is because the locked in rate nearly doubles the interest rate to 6.5%. I know banks are already tightening things up and they are currently overwhelmed but still figure I should try.

Thoughts?

Thanks

Hello,

Here is a bit about my situation: 

In Los Angeles, California, here. Family owns 3 income properties in LA, all free of debt:

• 19-unit Multifamily ~ 3.8M
• Single family Home ~ $1.6M
• Single Tenant Commercial ~ $1.1M

They also own their own home which is $1.7M and has $430,000 of debt (fixed 30 year mortgage, payments are $3K a month). 

All the income properties cash flow.

My goal is to have money set aside for real estate investment properties. As far as what or how much, it would depend where the market goes in the coming year. Also, we don't have a huge amount of savings. At least not enough where I'm comfortable taking a chunk to buy real estate with. 

So here is my question:

Would you guys recommend taking out variable rate HELOCs on everything to have money set aside so if opportunities do come up, I can act quickly?

I would prefer HELOCs over just taking money out because I really don't know when a good real estate opportunity will arise, maybe a month from now, maybe 2 years. And I don't want to be making monthly payments, especially during a pandemic that could effect cash flow. 

At this point only spoken to one bank but the reason I'm leaning toward variable rates is because the locked in rate nearly doubles the interest rate to 6.5%. I know banks are already tightening things up and they are currently overwhelmed but still figure I should try.

Thoughts?

Thanks

Not sure if this is best place to ask this but does anyone recommend a good real estate lawyer near Glendale, CA?  Preferably actually in Glendale.  My multi family property and residence are both in Glendale. And Glendale has some specific rent control ordinances. That said, open to suggestion in other parts of LA as well.  

Looking to confront tenants regarding lease violations and pretty sure the process is not going to be easy and I don't want to write/say anything that could be problematic later.  

Also, a bit off topic, but I imagine my question above has been asked before, either in the section or another. However, searching forums for "lawyers in Glendale CA" does not bring up relevant posts.  I end up getting results with mentions of any of those words, even when I use quotes. Is there a better way to search thousands of posts?

Thank you for the reply. 

Thanks! Looking forward to learning stuff.  

Hello,

First time asking a question here, inexperienced here so bare with me, here it goes: I am managing 20 unit multi family in Los Angeles that my parents and I own. Its an older building and there are some relatively big system upgrades / repairs needed.  Specifically electrical panel upgrades and plumbing issues that need to be addressed. The total cost is $55k - $60K. My question is: If borrowing is feasible option, what is the best way to go about this?

A bit of background info:

For the last couple years I've been renovating units with the cash flow from rents. I've also had to dip into savings a few times. The units are small one bedrooms and studios, but the building is old and often the improvements are fairly extensive: New drywall, flooring, ceiling. Repipe to copper plumbing. Rewire electric and install recessed lighting. New vinyl flooring, kitchen cabinets, appliances. New doors and windows, etc...  

I would like to continue with renovating the units as there is turnover, however, there isn't enough cash flow to cover expenses, individual unit renovations, as well as the bigger improvements mentioned above.  And I also don't want to keep dipping into parent's savings. 

Some Financial info:

This 20 unit property is paid off and has no debt against it. My last in depth appraisal is a few years old but it's value was about $3.8m. Since then I've done some considerable improvements but I actually don't know the exact current value. 

We own two other income properties, both debt free.  

The only debt my parents have is a home equity against their residence. That property is $1.6m but the equity line is for $440,000.  

My first thought was to borrow more against their residence since, from what I understand, that will be the lowest interest rate. Is that correct?  Any thoughts?    

Sorry for the lengthy post.  

I'm Michael. I live in Los Angeles and sorta fell into real estate. I'll be the first to say, I have a lot to learn.

Here is the short version: Parents own income property and have always been fairly hands off. After my dad retired (his job was unrelated to real estate) a few years ago due to moderate dementia (likely Alzheimers), I got more involved. Currently, I am managing my parent's three income proprieties (a 20 unit multi-family, a single family home and a commercial property), all located in Los Angeles. 

For the last couple years my focus has been renovating our multi-family property. I moved into one of the units because I was at the property so often. 

As far as goals: In the short term, I'd like to keep learning and meet people. And in the long term, I'd like to put systems in place so I'm not spending all my time on improvements, maintenance and repairs. I would like to focus on investing, possibly flipping, etc...

So far, I've been exploring the forums, listening to the podcasts and started reading the books that are often recommended. 

Aside from real estate, I'm very much into submission grappling (Brazilian Jiu Jitsu / BJJ) and also really like cars, specifically small, fast, German ones. My background is in photo/video.

Thanks for reading.