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All Forum Posts by: Jay Chang

Jay Chang has started 17 posts and replied 146 times.

Post: MultifamilyMasters.com - Downtown LA Chapter

Jay ChangPosted
  • Developer
  • Los Angeles, CA
  • Posts 150
  • Votes 84

New Location: WeWork at the Fine Arts Building Top Floor (811 W 7th St, Los Angeles, CA, 90017)

Parking: $6 Flat Rate After 4 PM at Joe's Auto Parks at 746 Hope Street

6:00-6:50. Networking

6:50-7:00. Announcements/Ice Breaker

7:00-7:50. Panel Discussion/Speaker/Presentation

7:50-8:00. Q&A/Closing/Photo

8:00-9:30. Networking at Karl Strauss Brewing Company

No mandatory fee. Suggested donation at the event: $10.
--------
For this meeting, we'll do a presentation on market analysis and the apartment deal that we recently acquired in Tucson, AZ.

After this presentation, you'll have a better idea on how to find a great market based on statistics and what's it like to close an apartment syndication deal. This will be an engaging presentation, so feel free to ask questions!!

Is there a prepayment penalty for refinancing? 

Sounds like you have been paying the $1,900 toward your principal for almost a year now, so you should've at least $20,000 in equity. If you don't have any good investments lined up, then I'd say to not refinance your house yet. Otherwise, you'll be paying penalty fees and additional interest for no good reason at all.

There are other investment strategies besides buying real estate family homes. My favorite ones are stocks, mutual funds, and apartment syndication. There are also other options like bonds and REITs. Note that you don't get real estate tax benefits by investing in REITs.

Hope this helps!

Post: What property management fees do you see on small multifamily?

Jay ChangPosted
  • Developer
  • Los Angeles, CA
  • Posts 150
  • Votes 84
Originally posted by @Peter Tverdov:
Originally posted by @Bryan Mitchell:

@Peter T., I didn’t realize there was a formula. I’ll go ask my 2x PMs about this.

 As a reference, we use X% of gross rent collected for the month (we exclude late fees from that), so if for some reason we didn't collect all of the rent for the month, we're not charging you X% of what the rent SHOULD be, we're charging X% of the rent you received that month. I presume many other companies are similar. 

Peter,

Exactly what I meant Peter, thank you for clarification. This incentivizes the PM to collect as much rent as possible.

Post: How to find Off market deals

Jay ChangPosted
  • Developer
  • Los Angeles, CA
  • Posts 150
  • Votes 84

To find off-market deals, you need to contact local brokers. You can try cold calling or mailing owners as well. 

Find brokers that have the most listings on LoopNet, and reach out to them. Those brokers are the most active.

Post: What property management fees do you see on small multifamily?

Jay ChangPosted
  • Developer
  • Los Angeles, CA
  • Posts 150
  • Votes 84

For clarification, I believe the % of PM fee this post is referring to is the EGR (Effective Gross Revenue), which is total potential income minus vacancy.

So a 10% PM fee means 10%*("Potential Gross Income" - "Rent Abatement" - "Vacancy")

I typically use 8% for my underwriting, but this depends on your market area. The actual cost can differ by a little bit.

Post: Picking a market for my first deal

Jay ChangPosted
  • Developer
  • Los Angeles, CA
  • Posts 150
  • Votes 84
Originally posted by @Martin Fields:

Looking to buy my first deal, most likely a single family turn key property with positive cash flow. I live in Washington D.C. and considering Baltimore and Philadelphia as target markets. What are the key indicators you look at when picking a market for your first deal?

Hi Martin,

The main metrics I look at are population growth and employment growth. Job diversity is also important.

If you are wondering what kind of population growth and employment growth is considered decent, then I can send you some of the guidelines that I have. It's pretty details and goes over different market attributes that you should pay attention to. You can find most of the data on US Census or CityData.

Feel free to message me directly if you would like these materials. Happy to help!

Post: Multifamily Podcast Suggestion

Jay ChangPosted
  • Developer
  • Los Angeles, CA
  • Posts 150
  • Votes 84
Originally posted by @Yonah Weiss:

@Jay Chang there are so many. I have listened to a ton of them, and found the ones that speak to me. I've also been a guest on over 30 so I've been able to hear first hand how the energy and style of the podcast host. It's so hard to narrow it down, but I love @Adam Adams Creative Real Estate Podcast, I just really connect with his personality.

@Dan Handford has a great one going through real life multifamily deals

is providing value on a daily basis
The REI Foundation Podcast - Jason and Pili Yarusi
DJE Podcast - @Devin Elder
Target Market Insights - @John Casmon

So many more I am not mentioning.

Yonah,

Thanks for the suggestions, I will check them out. Adam Adams is actually speaking at my meetup event in DTLA on 8/21. I am looking forward to it!!

Post: Multifamily Podcast Suggestion

Jay ChangPosted
  • Developer
  • Los Angeles, CA
  • Posts 150
  • Votes 84
Originally posted by @Theo Hicks:

@Jay Chang have you check the Best Real Estate Advice Ever by Joe Fairless?

Hi Theo,

Yes I have, and I know you are one of the hosts. Thanks for providing constant value to the audience. Much appreciated.

Post: Multifamily Podcast Suggestion

Jay ChangPosted
  • Developer
  • Los Angeles, CA
  • Posts 150
  • Votes 84

What are your favorite podcasts on Multifamily syndication? What do you like about it?

Mine is Rod Khleif's Lifetime Cashflow because I really enjoy his energy.

Post: Getting started, networking, and building wealth

Jay ChangPosted
  • Developer
  • Los Angeles, CA
  • Posts 150
  • Votes 84

It's great that you are getting ahead of your peers.

I think before looking to meet/network with people, it's important to educate yourself with real estate knowledge first. This way, you'll have plenty of topics to talk about.

I recommend reading real estate books and listening to podcasts on a daily basis. The BiggerPockets Podcast is an obvious choice. For multifamily podcasts, I listen to Joe Fairless, Rod Khleif, and Kyle Mitchell (limitless estates). Joe Fairless has a great book on apartment syndication, which I highly recommend.

Once you have more real estate knowledge, or if you already do, start attending local meetings listed on meetup.com or BiggerPockets. 

The key to connecting with people is by constantly adding value to them - by solving their current problems, helping them reach their goals, or talking about their strengths, passion, and goals. Keep doing this and you'll inevitably connect with many great people in this industry. 

I wish I was as motivated as you when I was in the 11th grade. Let's stay connected, and feel free to ask me any questions.