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All Forum Posts by: Aaron White

Aaron White has started 9 posts and replied 20 times.

Post: Structuring a Wraparound mortgage

Aaron WhitePosted
  • Realtor
  • Houston, TX
  • Posts 20
  • Votes 7
Quote from @Marco Bario:

Congrats on the purchase @Kingsley Ogwuegbu! A few tips:

  1. Make sure your friend sends an authorization to the underlying mortgage servicer allowing them to share account information with you in perpetuity. You'll want to be able to obtain balances, confirm payments were received, obtain payoff statements, etc.
  2. Ask your friend to share the username and password for the servicer's website
  3. I recommend using a loan servicer to collect your payments and disperse payments each month to the underlying mortgage servicer. It makes life much easier for all parties. 
  4. Your friend may be able to claim interest paid on the underlying loan as a business expense. Be sure you and your friend are receiving annual forms 1098 associated with both loans and that you discuss with your respective tax advisors.
  5. You will purchase hazard insurance in your name, listing the underlying lienholder as 1st loss payee and your friend as 2nd loss payee.
  6. When structuring a wrap, it's best for the wrap term to be longer than the term for the underlying loan and of course the monthly P&I payment to be higher. 
  7. The promissory note will be a "wrap note" and the mortgage a "wrap mortgage." Both state that they are subject to the underlying lien and both disclose its existence. 

 @Marco Bario what servicing company do you use?

Post: New Wraparound laws for Texas

Aaron WhitePosted
  • Realtor
  • Houston, TX
  • Posts 20
  • Votes 7
Quote from @Joe S.:

For starters it is a good practice that any seller/lender on a wrap transaction set up all payments through a third-party Note Servicing company. The third-party Note Servicing company would take the buyers payment and pay the underlining lien and pay the wrap seller the difference. This protects the buyer.

This does not simply protect the buyer only, but adds protection to the seller. The seller  has a third-party that is a witness to any dumb moves that the buyer could pull as well. Such as them claiming that they sent money when they didn’t, or claiming they paid more than they really did, or them saying they owe less than they really do. 


 Which servicing company do you use @Joe S.?

Post: Train my acquisition reps

Aaron WhitePosted
  • Realtor
  • Houston, TX
  • Posts 20
  • Votes 7

Does anyone have good recommendations on a training program to onboard new acquisition reps and management?

Post: Section 8 HUD pricing

Aaron WhitePosted
  • Realtor
  • Houston, TX
  • Posts 20
  • Votes 7

I have properties in TX and GA that I am currently renting. Do they allow you to charge more than the numbers shown by HUD? I found the numbers are lower than market rents in most cases and if it include utilities I have a hard time understating how investors make this work?

Thank you guys for the information. I found a recent link with fair market values. Thought I would share.

https://www.huduser.gov/portal/datasets/fmr.html#year2023

Does anyone have any recommendations for an investor friendly bank for LLCs to invest in small multifamily properties? (between 2-15 units) My area of investing is NE Georgia starting from Athens up to Helen, GA

Post: Refinish Tub or rip and replace?

Aaron WhitePosted
  • Realtor
  • Houston, TX
  • Posts 20
  • Votes 7

I paid a contractor to refinish a tub two years ago and after one year it had started chipping paint. He said to not use mats on the tub and that is why it was chipping the paint. I paid him to refinish it again and it is now chipping again. 

Is re-finishing tubs and sinks a good idea? If so what do I need to ask my contractor to know if they are going to do it right?

Or is it better to just rip it out and replace the tub?

Post: Looking for a rental property in Houston, TX

Aaron WhitePosted
  • Realtor
  • Houston, TX
  • Posts 20
  • Votes 7

Hi @Vishnu Reddy

I am also in Northwest Houston and have several rentals here. I am a real estate agent and mainly work NW Houston, Cypress and Katy. Feel free to give me a call if you are interested in those areas.

281-786-9899

Post: Is there a new build bubble?

Aaron WhitePosted
  • Realtor
  • Houston, TX
  • Posts 20
  • Votes 7

I live in northwest Houston (Cypress) TX. Looking at new construction houses and they seem a good bit higher than older ones. For example a house that is a 2016 build might sell $450-500k as a new build seems to be about $600-650. Is this normal or are we seeing a bubble due to building material inflation that will come back down? I don't know how to value the difference between new vs a few years old.

Post: Starting out but can't get a grasp

Aaron WhitePosted
  • Realtor
  • Houston, TX
  • Posts 20
  • Votes 7

@Moriah Giles I am not an agent but my career is sales. Agree with the above if you can reach out to friends and family first to let them know. At the same time start creating 2-5 minute videos with free information on real estate. Release these around once or twice per week and keep it going. Try to change your scenery and not just have a white wall behind you. After months of doing this people will think of you first. As you meet people find them on social media immediately and build your following.

A mentor of mine once told me "not all readers are leaders but all leaders are readers." The idea being leaders are often on their own as you may feel now. If they don't know something they need to learn what they don't know or become a victim of their lack of knowledge. Fortunately thousands of people have faced the same problems you face and written good content to work through it. Here are a few favorites I recommend :

1) Starting with Why by Simon Sinek

2) How to win friends and influence people by Daryl Carnegie

3) Questions that Sell by Paul Cherry

I hated reading when I was told that but built a habit regardless, now I love it. FYI, Audible is awesome too so you can listen while you drive, walk or do daily chores instead of reading.

Post: Old 401K into a Rental Investment?

Aaron WhitePosted
  • Realtor
  • Houston, TX
  • Posts 20
  • Votes 7

I recently switched jobs and have a 401k still invested with my former employer. I am looking for pros and cons of investing this money into an IRA that is invested in rental properties. Do you have any experience with this? Is it possible to invest portions of this along with personal cash or other sources of lending?