All Forum Posts by: Jason Mak

@Amit M.

I can't agree with you more.  You certainly live a good life and your portfolio and profits supports it.  Especially in this market, I can't preach quality over quantity enough.  

While operating and doing this Riverside property I coined a new investment metric, ROBD - Return on Brain Damage.  Sure, there was money to be made but it was also a lot of work, stress, and travel.  Would I do it again?  Sure - but will definitely have an eye on the risk adjusted return on brain damage.  :)

Another story - I once owned a very nice cash flowing hotel in LA metro area.  Great cash flow but the return on brain damage was horrible so I got rid of it.  The hotel is doing great now but I'm happy I took my money off the table and can concentrate on more pleasant projects.  
@Amit M.

Hello BP,

I am a licensed broker (not sales agent) but not currently actively using my license. I'm looking to broker a deal and would like to purchase E&O insurance for just this transaction. Does anyone know if that is possible or offered?

Thanks,

Jason

Sure makes sense and that is how the real estate game is played

However, check with your CPA or others on this board.  For a 1031, you need to hold the asset for investment purposes for a certain period of time in order to qualify for section 1031.

Also - be sure you can find a replacement property that can help you accomplish your goals.  I see you live in Austin, it is a hot market where you'll get a good price when you relinquish your property but may have difficulty getting a good price on a replacement property.

To answer this question Amit, I don't envision that I'll get the same rate of appreciation in my replacement property but its a long term hold and I feel pretty comfortable with it.  The goal would to acquire higher class properties for long term.  

@Amit M.

Hi Amit - thanks for commenting - I always enjoy reading your posts.

 Yes you are absolutely right.  As you know, the market is crazy so when you sell high to buy high, the true benefactors are the agents in the middle (you can say I lost a few 100k in equity by paying commissions and fees).  However, I was personally motivated to sell this project in Riverside to trade up geographically and in quality.  It was also difficult to give up 81 units in my portfolio but I had to remind myself that while I was downsizing in terms of # of units, I was upgrading in terms of quality of asset that I can see myself holding long term.

SF is a crazy market but as you say, a few good deals can be lifechanging.  

@Nelson M. hello Nelson - yes it is difficult.  My first multifamily purchase was in 2003 so times were a lot different back then.  I had some money saved in but also got family members to invest with me.  Keep on saving, learning, and starting small.  Find partners and mentors and keep your reputation clean and you'll get there one day.  Best of luck

@Andrew Oladipo  Thanks Andrew!

@Kenneth Hynes - this was a C- neighborhood, hoping that it is at least a C now :)

@John Monti - thanks John "i'm blushing" but it takes some grit,  and hitting the market with the right timing

@Ben Leybovich the great ben leybovich!  thank you...for the comment...again, market timing on this deal was good...still had several misscues that I can hopefully avoid next time

@Chris Willis  thank you Chris

@Kenneth Hynes

Thanks! It was an ongoing process but the landscaping, exterior paint, and security cameras were nice selling points and helped us "reset" our reputation.

It was also a matter of turning away bad applications that we would have once accepted once we evicted bad apples. It certainly takes time.

@Gene Lee

Thanks!  It was an ongoing process but the landscaping, exterior paint, and security cameras were nice selling points and helped us "reset" our reputation. 

It was also a matter of turning away bad applications that we would have once accepted once we evicted bad apples.  It certainly takes time.