All Forum Posts by: Ric Ernst

@Richard Bonisa aren't you the same guy that posts all over BP advertising Bildwise under the name Ritch? Or is that a coincidence?

@Ashley Willis Chase has refinanced properties for me in the $50 - $100k range (coincidentally for Indianapolis properties) and you can do it from your local branch in Anaheim. You might need to have open an account with them if you don't have one already. You will need to have owned your property for a minimum of 6 months.

@Joshua Ventura Incorp (website is the same name) is pretty reasonable...I think cheaper than Legalzoom. They are available by phone to help you through any questions. 

So you bought a property and are going to create an entity afterwards? Weigh your reasons to create a LLC versus operating as an individual. There are many opinions on the subject all over BP. Creating your LLC after-the-fact will mean you will have to deed the property to the LLC.

Also, you didn't mention where you live but some states, such as California, will require a separate entity in your home state so would cost you much more not to mention another state to pay taxes in.

@David Ripplinger of course! Glad to help any way I can.

@Candace O. what type of property are you having an issue with? A or B class is a different animal than a C or D. I have several C class properties in Indy and may be able to recommend someone that can help you if you are in that market.

@Chandler Harker not sure you'll qualify if your LLC has both you and your parents as members. You may need to quit claim into your personal name and then quit claim back after you fund the loan. You'll have to wait 6 months regardless. Only delayed financing will get you around the 6 month seasoning policy but, again, that is only good for 75% of your PURCHASE price....not market value. The alternative is a commercial loan which is at best 20 years with a variable rate. My rates are in the mid 4's but don't get hung up on interest rates. A loan in the 4.5% range will cost you points whereas a loan in the 5.5% range may not have points. You'll need to run your numbers and do what is best for your business model.

@Carval Lyons I have closed Indy properties with Chicago Title and Centurion Land Title. However, I don't pick them. My agent likes Chicago while a wholesaler I work with prefers Centurion. They are pretty regulated so both do a good job and are prompt and communicative.

@Chandler Harker I actually have 30 year conforming loans with Chase for properties owned in my LLC...coincidentally they are in Indianapolis although I am banking in Los Angeles. The loans were made to me personally even though the properties are deeded to my LLC. One caveat...the LLC must be a single member entity (as in you) or, if it is a partnership, you and your spouse. There is a 6 month seasoning requirement if you are doing a 75% of market value cash out loan. Or you can do delayed financing right away and borrow 75% of the amount you paid for your property regardless of it's market value. They will do up to 6 of these loans. After that, you'll need to consolidate into portfolio loans.

@Michael Bettencourt rates have inched up this week but that doesn't sound bad at all. They may go up or down next week but a few percentage points shouldn't make or break your decision. You did not mention how much the loan costs. I was at Chase only 4 hours ago getting quotes on a small cash out refi for one of my rental properties. Rates for the exact same loan amount were 5.625% for a loan with 0 points or 4.5% for 2.5 points. You can always find a cheaper rate if you pay higher origination fees but need to run your numbers and figure out which works best for your strategy. 

@Nick Wilson you seem to be exactly where I was a year ago and heading down a similar path...price points and all. Once you finally close that first deal, it can become addictive if it goes well.

@Whitney Hutten asked a good question. "How are you relating to him (your Realtor)"? Just like anything, this is largely a relationship business. They payoff for selling a $60k house isn't all that great so be as low maintenance as you can and really show your appreciation for his efforts. If you don't feel like you have a good relationship, find a new agent. Call one of the bigger brokers out there and ask if there is someone on staff that deals with your specific market. They will usually be a more junior agent which is fine as you can both grow together.

I actually bonus my agent after deals close...I send a check to his house with a thank you note. He always responds to my calls and has even represented me in off-market purchases for a fee. Best of luck to you!