All Forum Posts by: Chris Ono

Hi everyone, We're looking to purchase 2 turnkey properties from Memphis Invest, but the mortgage company that was recommended (not by them, but they work with them regularly) is charging 10.1% to purchase price in closing cost. Most of what we're finding is an expectation of 4-6%. Are we misunderstanding something or does this seem outrageous? Thanks for reading.

Let me also add house hacking and 203K loans in that mix too.

Chin up! From what I've read, not practiced, wholesaling is an option to help raise capital. It does require you to know all faucets of REI so that's always an option. As you accumulate properties your financing options grow: LOC, HELOC, 401K Loan, cashout refi, partnerships. Don't let this get you down!

@Tom Smith - Thanks for sharing those articles!

That's a nice CoC return though. It's not $200/door, but your entry cost is pretty low. I'd strongly consider it.

Originally posted by @Scott Groves:

Thanks Chris. Do you know if I can use the same Title company that I am using to close the sale in Michigan to hold my money?

 That, I'm not sure of. Sorry! I'm sure Teresa can help answer that though :)

You wouldn't have to refinance if you can use a HELOC on your first. That said, you'll likely need a 25% LTV so you might get $10K on a HELOC.

If you have a W2 + 401K, 401K Loan is something I hold as an ace up my sleeve. You get up to 50% of your 401K fund and repay back to yourself. Interests are going right back to you so you'll only pay a small processing fee. 

Originally posted by @Scott Groves:

I will be closing on a rental property that I have in Michigan in a couple days. The closing was rescheduled due to a change that the buyer wanted to make regarding the loan. The new closing date has not been scheduled other than it is likely to happen in the next 10 days. I would like to take the profits from the sale and purchase another property. This property is jointly held. My partner does not want to reinvest their portion of the proceeds. I would like a recommended Qualified intermediary in the Austin TX area who can help me with a 1031 exchange.

Hey Scott - I used the 1031 Exchange Corp here in Austin. We were in a partnership as well between 3 people. Teresa Person is the President who we worked with and was very helpful. I'd recommend them. Link: http://www.1031exchangecorp.com/

Originally posted by @Alvin Price:

Welcome to BP, @Chris Ono; it is a tremendous resource offering a wealth of actionable information. Have you joined any of the REIAs in Austin? Happy investing!

~Alvin

 Hey @Alvin Price - We have not. Have you? If so what are your thoughts?

Originally posted by @Jonnelle Lewin:

Hi Chris,

I'm from Los Angeles, CA but am looking to buy a rental SFR in round rock. Any words of wisdom? How important are the schools when evaluating a property. This is my first income property.

Thank you,

Jonnelle Lewin

@Jonnelle Lewin - It was a determining factor for us in deciding what neighborhood we bought our primary in. Obviously people have differing priorities, but it's something to consider. People are willing to pay more for the right schools and are willing to stay long term. Just a note about Round Rock properties: the ground moves because of contracting soils so be sure to check the foundation.

<blockquote>Originally posted by <inline id="quoted_post" data-mention-id="0" data-mention-item-name="Alvin Price" data-mention-item-type="user" data-mention-item-id="582262">@Alvin Price</inline>:<br /><p>Welcome to BP, <span data-mention-id="1" data-mention-item-name="Chris Ono" data-mention-item-type="user" data-mention-item-id="524546">@Chris Ono</span>; it is a tremendous resource offering a wealth of actionable information. Have you joined any of the REIAs in Austin? Happy investing!</p><p>~Alvin</p></blockquote><br /><p> </p>

@Alvin Price - We haven't yet? Let me know if you have!