All Forum Posts by: Joel A.

@Ryan Mullin 

email sent

I have been looking at multis and singles in the Austin MLS for months now, I dont see how anyone could make a decent return at what the multis are going for right now. So with that being said, if you finance a multifamily from the MLS at the current retail value, then your cash flow will be very little if any. If you dont have sufficient reserves and cant find tenants, then yes will fall behind on your mortgage.

The good news is that if your rent is priced right, you will not have a problem finding tenants.  The rental market here is amazing.

I live in Austin and do not want to move at all. I love it here!  Its difficult to acquire good buy and holds here now which is why im now starting to invest out of state.  Working on Indy now actually.

Celine 

I'm looking for a turn key now in indy. Will be my first turnkey. Flying in today to visit for the first time and check out the areas. 

I have experience with working with Mike darrigo (pinnacle)  and am currently working with fshouses.  Meeting them today actually. 

Pm me for more details and I'll tell you all I have experienced and where I'm going with it.   I've spoken with and reviewed turnkey houses from at least 5 different turnkey providers there already. 

Good luck! 

@Michael Wu 

Hi Michael,

I would love to hear how that property you bought from wise is panning out for you now 4 months later?  Everything work out as expected?  Would you do business with him again?

Thanks

You need to find a local portfolio lender in your area.  They will allow up to 10 mortgages.  The rates are higher but they specialize in working with investors doing exactly what you want to do.    Do a search for portfolio lender and you'll see what Im talking about.

Your logic seems okay.   Youre paying for points to keep your interest rate lower so that also helps explain the high origination cost.

Do ask them about that $200 credit report though.  Im sure they can shave that down.  All else sounds about right.

the origination fee is around $2,000 -  that is almost a 4% origination fee.  I would try and negotiate that down to 2%.  Are you paying for points?  To bring the interest down?  That could explain that as well.  But this is a really high origination cost in my opinion.

• Credit Report ($200)  - that is way too high.  Should be no more then $30.  Typically $15.  Talk to him/her about this.  No way a credit report costs $200

• Appraisal and Appraiser Management Fees ($550) - this seems high too, most appraisals from what ive seen are $400.  This might be one they are just overestimating.

Everything else seems about right.

Have the lender give you a Good Faith Estimate with the breakdown of all the costs.  From there you can speak to him/her freely about each line and the cost.  They should be able to explain it all, let them know youre concerned about the costs.  1 - 2% origination fee is about normal, try and find a lender that will only charge 1% origination.  Plus about 1k for title insurance,  $400 inspection, insurance escrow and youre already looking at a hefty amount.  A lot of times the lenders over estimate the cost a little and you end up paying less.   

What you should always do though is get a 2nd opinion.   Compare the GFE from 2 different lenders, pick the one that suits you better.  Thats what I always do.

Im working with a lender now for a property in Indy and Im satisfied with it.  I can give you the contact info if you want so you can get a 2nd estimate.

Just PM me and ill send you the info.

Does anyone know how you go about using funds from an hsa account for purchasing real estate? Are there any specific rules or forms for it or is just a matter of using the money then indicating on your taxes that the money was used on real estate? Could it be that easy?

I would like to use these funds to help purchase a new property.