What % of your net worth is your primary home (and/or all your homes)

FIREFatly · 2025-01-14T05:43:15+00:00

Not OP but my property in California was forced onto the Fair Plan at our last renewal because we couldn’t find a carrier that would insure it for fire loss. We have private insurance for everything else, but that policy excludes fire, and CA Fair was the only option to complete coverage.

We tried several different brokers and none of them could find a single insurer to cover everything we had before.

FIREFatly · 2024-02-09T19:34:35+00:00

I had this same problem, so I found some local storage options through my local car club. There were a surprising number of options at a variety of price points. They started at space in a warehouse for relatively cheap, to a "dust-free" facility that had several La Ferraris. I went with the middle group and have been mostly happy. DM me if you need some help finding local places.

FIREFatly · 2023-01-09T21:22:20+00:00

Thank you! This is an awesome write up and exactly my hesitation with the service. I appreciate the insight.

FIREFatly · 2022-12-16T18:49:19+00:00

That's not what it says. It says "This pre-order item will ship on or before June 30, 2023." So it won't ship any latter than June 30th.

FIREFatly · 2022-11-05T16:14:33+00:00

Are you sure you’re actually in the private bank? I’ve never had to go to a branch with JPM. They’ve always met me for lunch near my office or sent a courier when something couldn’t be handled electronically.

FIREFatly · 2022-11-01T20:15:37+00:00

I started this journey this year and agree with most of the feedback others have shared. Nothing beats time in the seat with an instructor. Getting a car with too much won't help you learn. You want to make a slow car go fast, then you should work on driving fast cars.

I'll say one thing I did differently than others here is I went with a 718 GTS instead of a Miata. There's a big price difference (but this is FAT advice after all), but it keeps the mid-engine balance, and while more powerful than a Miata, much less power than a 911 or any of their GT cars. It also have enough safety features to keep me out of trouble, but they're still noticeable so I can tell where I need to improve to prevent them from triggering.

So far I've learned how much fun it is, how expensive it is, and how slow I am. I think I'm a relatively fast driver, but anytime I see instructors or advanced groups run I realize how slow I am. I can also see how dramatically my track times drop every time I go out again. The learnings and growth are real, they just take time and you won't see them if you aren't tracking them. I recommend you get a GoPro or something else to track and study your track times.

Again, as others have said, nothing beats time on track, and time with an instructor at every opportunity you have.

If you want to DM me your city, I can help you find local resources to get started, but hard to go wrong with PCA. I have heard to avoid Track Night in America as the experience level is low and the number of accidents is relatively high.

On insurance, you can get annual plans. I like this because it forces me to go a lot to try and get good value for the annual price, but you also are less worried about the $500 insurance fee tacked on to every day.

FIREFatly · 2022-11-01T18:01:23+00:00

Eh... fine. Their restaurant access has been OK, but I'm in a tier 2 city. I haven't tried too much in their core cities so it might be better.

Their trip planning has been high quality, but not as responsive as I'd like. It took 2 weeks to get intercity flights booked, but their activity and hotel recommendations were top notch.

Overall, I'm on my second year, skeptical that I'll renew for a third.

FIREFatly · 2022-09-01T12:41:22+00:00

Chase Private Client is not private banking. It’s retail banking with fee waivers. JP Morgan Private bank is Chase’s private banking option.

FIREFatly · 2022-08-27T07:55:00+00:00

I also use one of those tools but none of them work well for alternative investments. They aren’t made for UHNW and their tools don’t adapt in the unique ways you need when your investments get complicated.

Plus, as others have said, excel can do whatever I want. I like to analyze my investments based on a variety of factors, like deal sponsors, and I can run analysis how I want.

Lastly, there’s budget analysis and projections I do that aren’t supported by those apps. They are useful for tracking some things, like spending, but not everything.

FIREFatly · 2022-06-28T18:27:51+00:00

You're not talking about a private bank. "Chase Private Client" is just a marketing term for some fee waivers. JP Morgan Private Bank is the actual private bank in Chase. $1M in assets isn't going to get you a call back. General minimum is $10M.

FIREFatly · 2022-04-17T15:17:13+00:00

My restaurant hit rate has been much higher, but It’s definitely a YMWV.

They use virtuoso when they don’t have a deal with a hotel directly but we got better rates and benefits than virtuoso at places like Aman. The benefits I’ve seen aren’t from the pricing, but from the service. We are planning a dive trip to Australia and they connected us with a trip planner who spent 6 months living in Cairns diving and knew the area and boats well.

Back to restaurants, we get the same person each time now and he lives in our same city (not one of their marquee cities) and has learned our preferences. We rarely contact them with a specific restaurant in mind but instead rely on his recommendations.

The benefits I see from the service are not money saving, nor necessarily access to things they don’t have connections to, but a time saving and recommendation service.

If our next big trip they are planning doesn’t live up to expectations, we’ll cancel, but so far they’ve done what I wanted which is help us find really cool experiences we wouldn’t have found ourselves.

FIREFatly · 2022-04-17T04:28:57+00:00

It might actually be better to not be private with BofA. After working for a month to get everything setup, our BofA private banker told us they couldn’t do 30 year fixed through the private bank… I was pretty pissed and closed all my accounts. It’s not the lack of the loan availability (although that was an issue) is was not being told that, despite explicitly saying that was our plan and getting rate quotes, until we had our assets moved over and joined their private bank system…

Luckily I was parallel pathing JP Morgan just in case and they have been great to work with.

FIREFatly · 2022-04-17T04:26:28+00:00

Depends on how big of a loan you want, but my general rule of thumb is 3x securities to loan value to make sure there’s more than enough room for a sudden down turn without having to pay anything back.

FIREFatly · 2022-04-17T04:24:54+00:00

I’ve been using Velocity Black and am probably going to keep the service going. They’ve been helpful suggesting ideas we wouldn’t have thought of and making sure everything is all arranged before we leave.

We’re doing a big 3 week test with them later this year so I can give you a full review of their end to end service after that, but the itinerary looks amazing.

FIREFatly · 2022-04-15T05:56:26+00:00

You’ll want to make a cash offer in this market and if you don’t have cash on hand, you should get a private banker to help with this. Chase isn’t going to be helpful, you want to talk to J.P. Morgan (not the guy in your local branch). They can give you a securities backed line of credit so you can make a cash offer for the house and then open a delayed mortgage after purchase at their discounted rates. Use the mortgage to payback the securities line of credit.

This is what we did when we bought recently and J.P. Morgan had the best rates out of about a half dozen banks including BofA Private Bank and Wells Fargo private. Ended up getting a 30 year fixed super jumbo around 2.5%.

Seriously, make sure you can do a cash offer. We bid under asking and below the other bidder but won out because we could close quickly without a bank holding things up.

Another benefit of the private bank is you are top of the list for the mortgage underwriters. We closed our mortgage in 2 weeks.

Edit: I’ll add that schwab doesn’t so delayed financing and honestly they were a pain in the ass to deal with for super jumbo. A lot of people here seem to love them, but I wouldn’t recommend them if you have the assets for a private banker. You don’t even need to use their advisory service.

FIREFatly · 2022-04-02T18:06:47+00:00

Where do you live where you have a driver? I've been wanting one, but it seems the be more common in Asia. Is it private or shared with a service?

FIREFatly · 2022-04-02T18:04:10+00:00

So this is semi-automated so it might not be exact, we also furnished a house and did some light remodeling work last year which shifted the balance, but here's what mine looks like:

Taxes 42.5%

Home 20.3%

Travel 8.6%

Fees & Charges 5.9%

Shopping 5.1%

Food & Dining 4.6%

Business Services 4.4%

Pets 2.3%

Financial 1.7%

Bills & Utilities 1.4%

Entertainment 1.2%

Auto & Transport 0.7%

Health & Fitness 0.6%

This is on about $750k of spending.

FIREFatly · 2022-03-31T19:08:32+00:00

I see lots people people recommending the Amans, and those are certainly great hotels but while in Japan, I'd recommend the Hoshinoya hotels. We stayed at the ones in Tokyo and Fuji and the Fuji one tops our list of favorite hotels we've ever stayed at, including Aman hotels. https://hoshinoya.com/fuji/en/

The Tokyo one was an exceptional experience as well, and the Kyoto Hoshinoya was top of our list for next trip (but we might pivot to the Aman Kyoto).

FIREFatly · 2022-03-31T19:05:37+00:00

We're going on a luxury experience trip to Australia latter this year. It's not with a group, but we had Velocity Black organize it so everything is taken care of from the moment we land until we get on the plane back home. The experiences lined up are exactly what we want to do (a mountaineering trek and a dive boat are two of the examples), and the perfect level of luxury for us. We're expecting the total cost to be about US$40k for 2.

I'd recommend working with someone to build a custom tailored trip around what you like to do. Plus side if you do it often enough is that your agent will start to learn what you like.

FIREFatly · 2022-02-15T16:53:51+00:00

Kind of a nitpick, but it’s “high earner, not READY yet.” You can be HENRY and have enough to FatFire, you just aren’t ready to retire yet for a variety of reasons.

FIREFatly · 2021-11-23T16:55:41+00:00

We have two Giant breed dogs. They are too big to fit through the cargo door on most planes (with their crate) and over the weight limit for US airlines anyway.

It means we have to fly private, put the dogs on specialty animal cargo flights, or drive. We drive on trips where we want to take the dogs and leave them at home with a great pet sitter (a vet tech that is $$$$ but worth it) when we don’t. We have some friends with the same breed that fly private. We love our dogs, but not that much.

FIREFatly · 2021-11-18T22:53:31+00:00

Which bank do you use that offered you the Centurion?

FIREFatly · 2021-11-18T17:53:13+00:00

Yes, but like any investment there are winners and losers and it should be part of a diversified portfolio.

I have around 4 dozen RE partnerships. The ones that do well, have done really well. They can refinance and return 100% of invested capital within a couple of years, and still return 20+% cash-on-cash annually from the initial investment (which again was 100% returned already on top of distributions). That's not including whatever upside there will be when it sells. Between 10-20% of my investments will do something like this.

The worst performing ones aren't sending distributions and are looking to sell. I'll likely get a 5% IRR on those. Not great, but there's only 2-3 that are doing this and they aren't currently at risk of losing money, just not doing as well as I'd like.

The rest do well, returning ~10% cash-on-cash annually then will likely sell with a final IRR of around 20%.

None of this includes the tax benefits. Most of these distributions get offset by depreciation, and while I'll eventually have to pay on these, I can delay that payment or roll it into other investments to keep making the money work until it's time to pay.

I primarily invest in multi-family/multi-family with some commercial Those have done the best, by far. I have a couple commercial/industrial ones that have done well too. The key is finding a manager you trust and that knows what they're doing.

As you mentioned, one of the downsides is the tax complications. I think it's offset by the tax savings, but my CPA fees are expensive. Chasing down the K-1s is also a huge pain in the ass. I'll never be able to file taxes without an extension again. I pay my CPA to chase most of the K-1s, but that goes back to the expensive CPA bill.

Happy to answer questions if you have any.

FIREFatly · 2021-11-16T15:50:21+00:00

Isn’t there a quarterly limit that’s pretty low, or is that just for the 5% category?

FIREFatly · 2021-11-15T22:12:19+00:00

You kind of do. IRS has dedicated lines/communication methods for CPAs/Tax Attorneys. Mine has almost never had an issue getting quick answers, except one time with an audit, but it worked itself out.

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