All Forum Posts by: Jay Chang

THIS EVENT HAS BEEN CANCELLED

Come join us to learn about Multifamily syndication, and how you can invest your money to reach financial freedom and retire early. It’s actually easier than you think! Entry level investors are welcomed!!

Location: California Bank & Trust. Enter from the building's lobby entrance.
550 S Hope St #100, Los Angeles, CA 90071.

Parking: $6 Flat Rate After 4 PM at Joe's Auto Parks at 746 Hope Street. About 5-minute walk from the venue!

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

8:00-9:00. Networking at Karl Strauss Brewery

Suggested Donation: $10/person. Anything helps!
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We'll be presenting a 128-unit deal in Phoenix, which Break of Day Capital acquired last year. The management team is currently renovating and leasing up the property.

Link to the meetup page: https://www.meetup.com/MultiFamilyMasters/events/267920503/

Dublin's Irish Bar (815 W 7th St, Los Angeles, CA 90017) in the back of the bar, in a private section.

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

8:00-9:00. Networking at Dublin's Irish Bar

Minimum Spending on Food/Drinks: $10/person.
Suggested Donation: $10/person. Anything helps!
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Dmitriy is the founder and president of Sense Financial Services LLC, a boutique financial firm specializing in self-directed retirement accounts with checkbook control. He began his career in financial planning and real estate investing in 2000. Dmitriy is private lender, passive investor, owns multiple investment properties across the US dnd is a licensed California Real Estate Broker. Over the years, he has taught hundreds of investment and financial planning seminars and has mentored thousands of investors.

Full bio: https://www.sensefinancial.com/dmitriy/

Presentation Title: Tap Into Your IRA/401(k) to Invest Real Estate

Description:
Anxious about the stock market and your retirement funds riding on it? Tired of the financial advisor who makes money on your money even when your account value goes down?
We all share these or similar concerns, but the fact is, when it comes to retirement accounts, most don’t know non-traditional options exist. Those who do know, often underestimate the wealth-building potential of a self-directed retirement account. Join us for a powerful presentation by Dmitriy Fomichenko, founder and president of Sense Financial Services LLC to cover everything from IRA/401k basics to the advantages of self-directing.

TOPICS TO BE COVERED:

The difference between Self-directed IRA and a Solo 401k
Traditional vs. Roth Accounts?
Case Study
Conventional vs Self-Directed
Types of Self-Directed Retirement Accounts
Prohibited Transactions
Non-Traditional Investment Options
Non-Recourse Loans and Unrelated Business Income Tax (UBIT)

Mark your calendar and invest 2 hours of your time in this potentially life-changing event!

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.
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For this meeting's presentation, we'll talk about how to determine whether a deal is worth investing as a passive investor.

Putting in $35k-100k into a single deal sounds daunting, so this presentation is to help you distinguish a bad deal from a good one. If you follow the steps, then you'll know if your money is now in good hands! So fear no more!

To emphasize what Mike said. Your will get UBIT on your capital gain even if you use a Roth SDIRA. Your tax rate depends on the leverage on the property.

If the leverage is 75% LTV, then 75% of your capital gain is subject to UBIT, which is about 15% for capital gain.

QRP is a great alternative plan. It's pretty much a self-employed 401(k). The catch is that you need 1099 income.

Good luck!

That's great Andrew. Good job! How many offers did you make before you landed this one? Also, did the seller finance loan affect the bank's financial terms at all? Sometimes the bank doesn't let you take out a second loan.

What kind of property are you looking for? If it's a land, you look at $/SF. 

For condos and single families, I'd look at the $ based on the number of bedrooms and also $/SF.

For apartments, you should pay more attention to $/door.

These types of information, you'll need to calculate it based on the sale price per property and its SF. If you want $/SF by area code, you need to purchase a license on CoStar and run an analysis.

Hope this helps.

 T-12 is a good reference, but don't rely on it completely. Every region is different, especially insurance, so I don't want to mislead you with what I use for the Los Angeles and Phoenix area. The best way to check is by talking to a local property manager. He or she should know the regular expenses very well, on a per unit basis. Talk to two or three local property managers, so you can cross reference

Good luck!

Vic, the best way is to get a referral from somebody. Local investors, brokers, and property managers are all great resources. After you get a referral, ask the contractor for references, so you can talk to a couple of people that have used this contractor before.

Even better if you can tour a project that the contractor is working on.

Now, if you have a small renovation job, then the contractor might not give you a lot of attention. If this is the case, let the contractor know that you'll have bigger and more projects down the line, so you'd like to develop a relationship with him, or you can tell the contractor that you know other friends/investors that are also looking for good contractors (if applicable). 

Contractors are really busy nowadays, especially the good ones, so be mindful of their time.

Good luck!

In retrospect, you should've negotiated the price before having the contractor start work.

Before starting construction, try to get two or three contractors to look at the work and the design. Compare their prices and their feedback. You can make an informed decision much more easily if you have the opinions of a couple contractors. Utilize your resources :)

Good luck!

$185/SF of that floor, including the non living areas. For condo it's probably more than $185/SF depending how high end your finishes are. Do not use $185/SF if you're putting in high end countertop that costs $80/SF or real wood flooring that costs $10/SF. 

For the garages, use what I mentioned. $60/SF for above grade and $90/SF for below grade. Now, as you probably already suspect, this is a ROUGH estimate. To get a good estimate, you definitely should break down the condo into more detail. Like the SF of flooring, the SF of tile, the number of HVACs. 

It's difficult to get all the numbers correctly, so just put a rough number first to get a good estimate. Then send out the plans to two or three different GCs for bid when you need a more accurate estimate. You'll get a better estimate this way. This is when things start to get crazy. You need to level the bids to make sure they are bidding everything equal. Definitely get a seasoned construction manager to review and manage the bidding process.

Feel free to ask me if you have any additional questions. Good luck!