All Forum Posts by: Henry J.

I don't know if BP is known for stock type advise, although REIT is a type of RE. Even if people give you stock ticker info, you still need to do your own research to understand the company, earning, etc to decide if it fits your investing profile and if you can handle the risk. I can throw in a few tickers I've followed but that really doesn't mean anything - STWD, WY (I think it's converting to REIT but not certain), vanguard REIT fund / VNQ, can't find the international Vanguard REIT symbol. anyway, suggest you talk to your financial advisor to understand them, then google to verify the info if you don't trust your advisor, then decide if to buy them or not.

Abdul Azeez Rates have gone up since the election in anticipation of all the borrowing / building Trump said he wants to do. I had a quote before and after election and it's gone up from 4.5 to 4.8. Remember investor loan is usually 0.5%-1% higher than regular 30 yr owner occupy loan. Good luck searching for the cheapest loan. Henry

Depending on the banks / credit unions / loan officers you use, some will do 6 months seasoning and use appraised value. Some may do less than 6 months. You will need to find the right providers for you.

@Michael Braatz

I'm not an expert but something doesn't look right.  

Usually when you put down less down payment you end up with higher interest rate. In this case you put down less (15%) but you have lower interest rate (4.625%). If that's not a mistake from your loan officer then take that one because you get best of both worlds (except PMI).

Henry

@Kevin Godinho

You can do a search on the search bar on BP to get all the past posts related to MI.  It's been asked quite a few times, and with Thanksgiving holiday you may not get that many responses.

https://www.biggerpockets.com/search?utf8=%E2%9C%9...

They have a great reputation on BP because Chris Clothier is quite active on BP and shares a lot of his experience openly.  They had info sessions in southern CA in the past (maybe once a year), as well tour events in Memphis and Dallas.  If you are really interested in them, reach out and talk to them, and attend a info session if they have one and take a trip to the target market to visit their properties to learn more first hand.  You should do that with any turnkey providers to set your expectation.

Henry

Abdul Azeez Have you checked the rehab loan? Not sure if it's called 203k or what not... I haven't been able to use that option since every deal I tried I lost the bid. Also, I didn't try it in Memphis so not certain if that is an option for lenders. Graham Parham - do you have that available for Memphis? Thanks. Henry

Nitin Dhiman I think someone else asked a similar question before so do a search and see if you can find the answer. I also looked into this recently (last week) and wasn't told that I can't refi to cash out from my DFW property. Let me know if you need to connect to someone. Henry

@Rico See

In case you haven't spent enough time on BP, do some searches on BP and read those old posts related to this topic.

A few questions to ask yourself - why are you investing in RE?  are you investing for cash flow or appreciation or both?  where do you want to invest? how much do you have to invest?  are you hands on?  how much time do you have?  do you mind giving up control to get ease of management?  do you have trust in the providers?  how do you verify your providers?  what's your holding period?  why aren't you investing locally when Pomona / Chino / IE is around your neck of the woods?

We all have different answers so proceed based on your answers.

I can only share what I've learned and my path - I bought turnkey because I didn't know better when I started.  I didn't know BP existed when I started learning in 2011.  I didn't want to spend the time to deal with local realtors / rehabbers / tenants (or out of state one for that matter) because I couldn't handle the stress of late night toilet/tenant calls and I didn't have the money.  I know my return will be less but I was OK with that - I gain leverage from borrowed money and I have my tenants paying off the mortgage.  If the turnkey providers did a good job on rehab, and my cash flow is sufficient, I should be able to make "some" money in a LONG run like 10+ years either through cash flow + mortgage pay down + "maybe" appreciation.  I vetted providers by asking them questions, visiting the market, and checking their rehab quality.  I check in with them regularly to see how things are doing.  I have google keywords set up so I get general market update.  I also have zillow setup to send me daily emails on new listing for sell or rents so I know how the market listing is going.  It's not perfect because I still don't know Memphis market well but I count on my PM / provider to help me.

Can I do the same using a local realtor?  I probably can do it now with a new market with the help from BPers.  I'm not ready to invest in another market yet considering the market condition and my own personal situation.  

Hope that helps and good luck making a decision and move forward.

Henry

Chris K. I'm not an expert but I looked into this before. I'm assuming this is term life insurance? Do you have an insurance agent for your rentals, car or home? Are you using the same agent for the local agent quote? Do you trust your agent? If you don't, then search around for insurance company rating. From my experience, the online quote (for myself) was actually more expensive than an agent's quote. I believe you can request them to send the quote in writing and you can ask a trusted agent to go over with you. Make sure all the assumptions are the same from online to your in person quote. A health / physical check will make a difference on your premium. Good luck! Henry

Hi @Aaron Douglas - I'm not a MF investor (yet) but I think you will need to get current/proforma NOI and selling price and all the assumptions + calculations, etc in your post for people to comment.

Henry