All Forum Posts by: JJ Chojnowski

Investment Info:

buy & hold investment.

4-plex in Roy Utah. I bought this property 10 years ago. It has 2 bedrooms, 1 bath per unit. Washer/dryer in every unit. Also includes a carport per tenant and small storage unit.

What made you interested in investing in this type of deal?

Looking for an investment besides a typical 401k route.

How did you find this deal and how did you negotiate it?

I found this my family and just offered a fair price at the time and the deal was done.

How did you finance this deal?

I paid off my personal home before I bought this 4-plex, so I refinanced my home and paid cash for the 4-plex. Now the 4-plex pays my mortgage payment.

How did you add value to the deal?

I couldn't add bedrooms, but I've upgraded the siding from old wood siding. I'm currently replacing the deck and stairs and I will continue to make capital improvements to keep the asset up to date and push rents to "market rates".

What was the outcome?

Within this year or next I will become "financial independent". Meaning my current assets will surpass my fixed expenses. Now, I want to help others find their way to becoming financially free.

Lessons learned? Challenges?

As I look back over the past 10 years. I wish I would of bought more properties. But at the time it was what I could handle with my day job, family and other obligations.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

At that time, I didn't use any real estate agent.

Self Directed IRA Accounts

Hi, I'm curious about the pros and cons on moving my 401k monies into a self directed IRA Account. A couple of questions.

1- If I paid (for example) two four-plexes in cash from my monies within the self directed IRA account can I benefit right now from the passive income generated from this asset? Or do I need to wait until I'm 59-1/2 before I can use any monies from this investment?

2- Who would you recommend using to set up a "self directed IRA"?

Thank you! 

Jay Hinrichs, I hope you read this and could give me some advice.     

I currently own a 4-plex and a duplex in Utah and I'm working to 1031 exchange my properties into a 26 unit apartment complex.   In my intial research I called First National Bank and with a $1.5 million dollar loan this is what they offered.

$1.5 million loan, they require 25% down and they offer a 25 year adjustable loan.   Every five years the loan can adjust up/down.   Current interest rate is 5.25%.    Max interest rate is 12%

Here's my questions:

1- Is there any banks that do a "fix Interest loan" on an apartment complex of 26 units over 25-30 years?

2- When I negotiate this deal would I want to make sure the loan will have "individual release policy" because this property has 6.5 arces and 12 buildings.   If I want to sell off part of the units 5 years from now and pay down or pay off the loan.   

3- I also want to change the bank clause.  (Not sure if I'm stating this correctly) "no do on sales clause".   I believe there is a clause in multifamily loans that the banks can call your note due at anytime.   Have you ever had this waved before?

4- Going along with question #2, would you get with the local city before buying the property to see if they would separate the parcels before doing anything else?   I assume, yes. 

5- Lastly, what else would you do?  I know I will close between the 5th - 10th of the month and add the following to the contract: the buyer will receive prorated rent for the balance of the month after closing.   

Truly appreciate any advice.  

JJ