JD Modrak

My first Real Estate deal: Left the Navy in 2014, a B School student, met my Landlord in a bar, had a couple cocktails, he mentioned a 3BR for rent, and he ran a "shitty Airbnb in the basement" Being cheap, my future wife and I offered to manage it, for a break on rent 👇

@JulieChangRE @StudentRentPro Chlamydia?

@StudentRentPro Yes it’s cause C which is well documented to cause histamine & mast cell issues. Lotsa people after C have alcohol intolerance. So you have a bunch of college kids drinking- living somewhere new - with all kindsa new allergies so yeah let’s just explain it as mold

@JulieChangRE @StudentRentPro C?

@DonovanBuilds Shoot me a text, have some thoughts

@JDModrak Minneapolis!

Acquired this biz in Jan 2024 revenue down slightly but margins are up by switching to an hourly pay instead of a percentage of clean accomplished our goal of making the entire investment back year 1 hiring is hard will need tips in how to acquire more commercial accounts

@patrickdichter Proactive accounting firm is an oxymoron

We’re trying a billboard marketing campaign for 3 months. It’ll cost us the same as the cold email marketing we tried last winter. You think it’ll get better results than email? And is our design compelling or too vanilla?

@Larspeter12 @alison_eichhorn I’ve not heard that, but haven’t specifically discussed this topic with anyone I knew in CTU

@JDModrak @alison_eichhorn I’ll expand. There is a toxic culture regarding the union inside many CPS schools. There is no discourse. If you question, you are either singled out or banished by the good CTU/CORE members. It's disgusting. Stacy uses racial animus to keep members in line.

Serious question for my CTU friends: let’s say we land the best contract we have ever seen. Was it worth it if we destroy the relationships we took a decade building? Both internally and with our allies? If we destroy the goodwill and trust of the public, was it worth it?

@shawngorham For investors!? Can she do my house? lol

My wife, Copper Home Co, newest project is complete. I think it came out amazing. She does interior design for investors. Reach out to her if you have a project.

@Larspeter12 @alison_eichhorn The fact that probably 70%++ of teachers are both powerless/ unaware of the machinations of CTU and great people, is often loss in this convo However, they also have more influence and responsibility than I think they suspect

@JDModrak @alison_eichhorn It’s important to recognize that good teachers are there for kids. Kids know who they are.

@yfreemark Red line ridership is low, the costs of this project spread out per rider over 30 years even, are INSANE Could build 50k units of housing for this, or provide tax abatements for 500k new units for south side for same cost That would be ROI

@shawngorham lol we are approaching the lowest common denominator: muck

@JDModrak Nope, but my plumbing one got 500+ comments and my toyota truck got 1m impressions - ha

You know what? He was right. I got really defensive, attacked then blocked. But I screen shot this, put it on my desktop. I was really uncomfortable to hear - but he was right.

@girdley Having someone manually sign millions of documents on your behalf every day, requires serious manpower

Did you guys know DocuSign has 385,000 employees? That’s more than Los Angeles Lakers and Chuck e. Cheese COMBINED.

@JulieChangRE VA reserve levels are kindof pitifully low, I believe like 10% of a given years Op Budget

For anyhow who is like so are you saying no more condos? Umm, who do you think runs multifamly apartments today? There are professionals who are equipped to run assets, and as seen in the blow up of some investors, not everyone is equally equipped And no you can't just let people do what they want if you want it to be lendable and insurance hence my comment above about understanding insurance and lending Level of reserves impacts FHA or VA eligibility Being structurally deficient can make the condo not warrantable meaning Fannie/Freddie won't lend on it Yeah you can maybe find a portfolio lender but they are more expensive on rate, have usually higher down payment requirements and other guidelines. It definitely impacts value

If I said you to Lets find a bunch of random people Almost none of them have real estate, finance, accounting, legal, insurance, lending, private equity, asset management, multi family housing, property management, construction expertise Who don't know what the word fiduciary means And lets let them run a several hundred million dollar asset And let them make decisions for the future of the building to ensure its structural integrity To care about the next generation who may own and manage this asset when you're no longer apart of it Would you think its insane? So who thought it was a good idea to do this with a HOA?

@FranWalsh73 I actually agree, especially in lower cap markets which many SFH mkts are, rent vs buy equation is an issue right now However, very odd to not “add back” to the homeowner benefit, their savings on rent To have “lost $73k” have to know against what.. silly argument lacking comp

That's a wrap! What's your take - do you view it as an investment? 1. Follow me @FranWalsh73 for more of these 2. RT the tweet below to share this thread with your audience

Think your home is your best investment? A $400,000 home sold for $1,000,000 after 30 years sounds like a win—until you realize the owners actually lost money. Here’s why your house might be one of the worst "investments" you’ll ever make ↓

@LA_Multi_Fam I would remove box, cap wires, outlet for decoration only :-)

LADBS requiring us to install outdoor electrical outlets on all our ADU buildouts is dumb! My new tenant came home a couple of nights ago to a homeless guy setting up his sleeping arrangement on his front door. Iphone plugged in to the outlet. When asked to leave his kind words were "fuck you bitch" lol Looking into lockable outlet covers now, but presume Homeless will just try to break these. Am told installation of these is for the purpose of "safety", but having an aggressive homeless guy outside your door seems unsafe.

@LA_Multi_Fam @ErikYesayan Paul if you don’t mind, I’d love to take a look too, happy to trade notes if there’s anything we’re doing that might be useful too :-)

@ErikYesayan Sent you email Erik

Out of roughly 200 apartments we manage, we have not had a single delinquency in over a year. One of the positives of owning/managing in LA. If you screen right shit generally goes well. However this month we have our first tenant that is delinquent & hasn't paid yet. The tenant happens to be a family member of our maintenance worker. About five years ago, we offered them a place to stay as a favor, expecting it to be a short-term solution while they got back on their feet. We broke our cardinal rule about screening & favors and sure enough here we are. To make matters more complicated, the unit is a 2BR rented under $2,544, so it falls under the new Fair Market Rent eviction rules. This means we can’t evict the tenant until their delinquency exceeds that amount. Essentially, we have to wait until they’re more than two months behind on rent before taking action :(

@StudentRentPro How do you typically access your equity to crystallize some liquidity these days? Good local bank who gets your model, or DSCR? Just not a lot of great options for your specific asset type ( that I’m aware of)

@ChrisVannini Should have started planning for Navy earlier it seems…

Navy coach Brian Newberry's first words after beating Army: "We've still got a football team in Annapolis."

@FSUmollz My army friends will be wearing these shirts, I took bets with no points, prettttty sure we’d take this one

It’s unpatriotic to take the under in the Army-Navy game