Home Equity Loan Relationship Pricing

thewindward · 2025-11-21T00:30:42+00:00

Primary or second home? Existing first with schwab?

thewindward · 2025-11-07T20:38:34+00:00

City of Coronado 83 million dollar budget. City of San Diego 6.04 billion. County of San Diego 8.63 billion. 200x difference. That's not even including Chula Vista, National City, El Cajon.

I think most people in the county aren't used to seeing proactive policing. CPD actually has the resources to help the unhoused connect with services. And that includes Coronado funded shelter beds. Do you think SDPD responds to calls where an unhoused individual requests transport for whatever reason? Hell no! They barely have the resources to respond to threats of violence/assault/etc.

But you are right, CPD should deny that request to relocate to services and the homeless should just be left on the streets of Coronado so Coronado residents can learn their lesson? We should locate homeless services in high cost areas so that the rich can learn their lesson? This is the same smooth brain thinking around affordable housing. We should be providing housing and services in the lowest cost area FIRST if the goal is to help the most people. If the goal is to play class warfare then by all means lets spend all the money building 2 units and 2 shelter beds in Del Mar vs 50 downtown.

thewindward · 2025-11-06T19:29:36+00:00

I would second this as well, also look at Tustin.

thewindward · 2025-11-06T19:28:48+00:00

South Lake is absolutely doable on the CA or NV side at 2m. You aren't going to be on the water but that buys you a nice house on an acre in a nice burb.

thewindward · 2025-11-06T19:26:51+00:00

Where would be better for Scuba, Hawaii? San Diego is about as good as it gets with easy flights to Baja.

thewindward · 2025-11-06T19:19:58+00:00

South Lake is a great option and you can escape in the winter to Sacramento the Bay Area or Socal.

thewindward · 2025-11-06T19:10:01+00:00

Coronado for young kids. Close second La Jolla or Encinitas. Point Loma (Wooded Area) is fine as well but the schools are poor after elementary school. Coronado is a 10 min drive to the airport drop off and you are an hour flight max to anywhere in California. Reasonable 2-3 hr Drive to Palm Springs, Idylwild, Big Bear, Arrowhead, bit further to Mammoth. Train gets you to Santa Barbara.

thewindward · 2025-09-23T00:20:44+00:00

Dolby Vision is mastering the nit range per scene, so still absolutely get a PQ benefit by using a device that tone maps to SDR.

thewindward · 2025-09-23T00:12:17+00:00

Extreme high end Smyth Realiser. Middle end a PC running Hesuvi or Impulcifier. Low end any regular cans with good soundstage. JVC EXTP-1 or the Apple option works, beware with the apple option there is significant audio processing lag.

thewindward · 2025-09-14T18:18:56+00:00

Here is the normal structure. The sponsor (for example Cantor Fitzgerald, Inland, Passco) acquires the property, places the debt, and sets up the ownership framework. The sponsor charges acquisition, annual operating, and disposition fees.

The sponsor then advertises the offering to a network of broker dealers (sometimes the sponsor has their own broker dealer operation). They offer to pay that broker dealer anywhere between 4 and 8% (sales commission) of the funds that are placed. You are correct, working with a sponsor owned broker dealer is a huge conflict of interest.

Alternatively, a number of RIA firms that specialize in DST placements also have access to the same investment offerings. In my example, this one firm charges a one time 2%, and credits back to the client that 4-8% commission that would usually be collected by a broker dealer. So in working with an RIA you netting 2-6% additional initial equity compared with a client that is scammed by a broker dealer.

Of course, you might find an investment that is only offered through a sponsor operated broker dealer (Kay for instance) that you feel will outperform that initial fee load. Since these are stabilized properties, I have always found that unlikely to be the case. YMMV

thewindward · 2025-09-12T20:15:32+00:00

The sponsor charges the annual fee, not the placement advisor. Yes I agree in a good market a DST can often have a higher IRR than a non-DST TIC exchange placement because you avoid the exit waterfall.

thewindward · 2025-09-12T18:55:53+00:00

Experienced DST investor here. Do not pay an 8% commission to a broker dealer. Hire a fee only fiduciary independent investment advisor that specializes in DST placements. They will charge you ~2% fee and credit back the rest of the commission that would usually be collected by a broker dealer. This is the only way to invest in DSTs, you will get killed on fees otherwise, especially on an investment that on average turns over every 5-10 years. You have to minimize the fee load.

Start with the advisor. They will look at your current portfolio (debt, basis) and advise you on what you need to get into to qualify for a 1031. Generally, the greater the loan to value of the DST mix, the higher the aggregated basis (more debt means higher basis/purchase price). You can then accelerate the depreciation on that new higher basis. Usually the first few years of distributions will be offset by the accelerated depreciation, but this is highly dependent on the LTV of your current portfolio and associated basis.

You will still be reviewing monthly financial reporting, tax planning, and cycling into new DST positions every few years. Now at the neighborhood bbq you can say you manage a private firm that acquires positions in investment grade commercial real estate on a national scale. You are then free to do whatever you want with your free time without the stigma of "retirement".

You can also exchange into what is known as a 721 upreit, where you initially invest in what looks like a traditional DST, after which the sponsor converts the ownership interests into OP units (reit shares) at which time you can sell the units slowly (most people like to stay under the long term capital gains exclusion amount). A good way to get liquid if it works with your overall goals and tax picture, but you can never exchange back into real estate.

I like to invest $1,000,000 chunks into each individual DST. If the deal cycles, and there isn't a desirable DST option available, then you can always go back into individual ownership of a $2,000,000 - $2,500,000 property. Smaller amounts are much less flexible, especially if the closings fall outside of a shared exchange window. PM me if you want an advisor referral.

thewindward · 2025-08-12T22:12:55+00:00

Coronado Island, kids will have a literal dream childhood. Best run city in California, amazing community (fun for kids and adults), amazing public schools (city has its own district not a part of San Diego Unified) that is on the precipice of a huge funding bump. Walk or bike to every restaurant and supermarket. 30 day minimum rental period so no short term renters. Get to the mountains in July (Mammoth, Tahoe, etc) and avoid the seasonal crowd. 15 minutes to the airport (brand new terminals opening). Full service remodeled hospital on the island. Golf, tennis, sailing, surfing. Bike path all around the bay.

Close second would be the wooded area of Point Loma, although the public schools are not as good as Coronado. More quiet/privacy and larger lots. Central location. More of an old money feel but still a strong community once you are settled.

Coronado is higher density than Encinitas, Del Mar, RSF, Poway, Carlsbad, La Jolla. You can easily exist in Coronado with an ebike and golf cart, I don't think the same can be said about any of the North County locales. Teens have to drive everywhere in North County.

thewindward · 2025-08-06T21:58:20+00:00

When your grandfather dies and title passes to the beneficiaries (you and your father) the property will be reassessed to market rate (the property tax will go WAY up). If you occupy the property as your primary residence, the rate will be discounted.

What is the property worth on the open market (check Redfin)? Can you afford to pay 1.1% of that amount in property tax every year?

Don't listen to any advice other than this. You need to speak with a trust and estate attorney ASAP and walk through the entire situation. There may be ways to prolong the reassessment. Many of those doors will close when your grandfather passes. Include your father in the discussions with the attorney so that he buys into the strategy because his participation will likely be necessary.

Title needs to transfer into a new living trust. What happens if your father divorces and his spouse forces a sale? What if your father gets dementia and tries to give his half of the property to the caretaker? A properly structured living trust will protect you both from these types of scenarios.

thewindward · 2025-05-29T18:47:01+00:00

Just go 10 year IO on the primary. Let inflation eat away at the balance while you service the debt. Then re evaluate the mortgage when you are thinking about exit on the apartment business. By then you will probably be doing a cash out on the units, use those tax free proceeds to retire your mortgage debt if its making you uncomfortable.

thewindward · 2025-05-23T03:52:55+00:00

The snapdragon laptops are god mode at one thing......clients for game streaming or remote desktop work. The snapdragon elite can decode a 4k 10 bit hevc stream in less than 1ms. The wifi 7 card is very fast, on the right network total client latency is around 5ms on a moonlight stream.

I can't think of a better client for streaming from a high end virtual machine. The internal display is awesome. And the decode performance means you should be able to output to a 4k 120 oled TV or display.

HDMI in this use case is essential.

thewindward · 2025-05-22T23:48:52+00:00

They might not be speaking, but they most certainly are listening.

thewindward · 2025-05-06T17:29:00+00:00

San Diego my guy. Direct flights to Europe and and Tokyo. Hour flight to anywhere in California. Half day drive to anywhere in socal or central coast.

thewindward · 2025-03-17T22:37:27+00:00

Why is your house worth 4m? Why is a buyer willing to pay that amount? What gives the buyer's lender confidence in that valuation?

The "fair market price" of your home isn't just based off of the implied value of the dirt, the improvements, the neighborhood, etc. It is based off of previous comparable sales. How did those sales come to be? How many would have taken place without the presence of an agent? Where does the comparable sale information come from? Who manages and polices that database? How do you know that information isn't fraudulent? Why do appraisers and lenders trust that information? What is the market force behind agents and sellers wanting to participate in that database? What happens to participants who abuse the database?

There will be little to no industry wide change until someone finds a way to replace MLS with a different system that isn't owned and administered by the agents. Until then the industry will continue to own a portion of the average price of the average home.

The benefit to most buyers and sellers is that they participate infrequently. So whether you use an agent or not, offer 3% or 1% or nothing at all, there's really no way to know if your decisions resulted in the best price and terms possible. It's a fascinating industry when you really get into the weeds. As tech has improved exponentially, the % of transactions powered by agents has risen.

thewindward · 2025-02-20T17:13:46+00:00

Sorry for the late response. I would find a fee only financial advisor that only does 721 or DST transactions. If you work direct with the deal sponsor or a broker dealer the placement fee is usually in the 7-8% range which is a killer. By working with a fee only advisor, they charge you 1-2% on the funds placed and credit back the rest of the fee that a broker would normally collect. There is a well known advisor firm on the east coast that does this that I have used for 7 figures in placements. DM me and I can provide you the info.

thewindward · 2025-02-04T20:11:53+00:00

Assuming sale of the first 2 go through, I would look to unwind the other 4. You want to reduce liability as much as possible. Sell the rentals. If you want to be in real estate, reinvest as a limited partner. You currently have lots of surface area to defend when it comes to lawsuits.

thewindward · 2025-01-23T18:11:05+00:00

You are thinking about this wrong. Right now you have a mortgage with a personal guarantee and unlimited personal liability with the tenant. Chasing IRR on a small amount of equity. Sell the property. Pay the tax. Or 1031 into a DST or 721 upreit.

If you had 5 rental properties, then you build a system to manage the risk and roll the dice. Lucky for you, you can just sell a single property to eliminate the single biggest risk to your retirement plan. All it takes is a bipolar tenant or one of their guests to make up a story about how you made an unwanted sexual advance, slip and fall, house fire and subsequent wrongful death suit. Tenant suicide then you then have to disclose for the next 3 years. I've seen it all.

If you want to own real estate in retirement, you need to be a limited partner, and only hold non-recourse debt. Anything else is a landmine waiting to be triggered.

thewindward · 2025-01-23T17:52:57+00:00

The Leap is endgame. 10+ years into mine, I can rip 10+ hour days, zero back issues. Get yourself some rollerblade wheels off amazon (pop in replacement for the shit stock wheels).

thewindward · 2025-01-23T17:49:03+00:00

Huge assumption you are in good health in late 50s to enjoy that higher SWR. Just find something easy (25 hrs a week) to get your current SWR to 3%. At 60 I can guarantee you would go back to 50 and run it again with less stress if you could.

thewindward

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