All Forum Posts by: Johny Omaga
Johny Omaga has started 10 posts and replied 63 times.
Post: CPA or enrolled agent Los Angeles area

- Posts 77
- Votes 32
Hello everyone! I am seeking a good cpa or enrolled agent in the LA or greater LA area that I can contact in regards to rental properties and maximizing deductions, calculating expenses using different strategies (i.e brrrr, barrr, flip, etc.) and someone I can seek advice from. I don’t mind paying for the information as long as the information is good, but been having some trouble finding a good one to answer all my questions and providing sound advice. Preferably someone who themselves have real estate and are well versed with clients with multiple property. Thanks again my fellow bp community!
Post: Cashout Refinance on Private Sale

- Posts 77
- Votes 32
Hello everyone!
So my business partner and I recently did our first pre foreclosure sale and all we did was sign a purchase agreement, addendum to that agreement, and memorandum of agreement with the seller, and then upon receiving the warranty deed we paid off the loan through the trustee. We did a title search, but did not actually go through a title/escrow company as the sale of the property was only a few days away. Anyhow, my question would be how would the bank know what the initial purchase was for? In regards to cashing out at 75 ltv I know there's a seasoning period (usually 6 months), so what would happen in my case if it was a private sale and only thing on title is that we have the warranty deed effective a week ago? Please advise as this is a new topic to my associate and I. Thanks in advance for any feedback!
Post: Kansas City Auction Home Title Insurance

- Posts 77
- Votes 32
Originally posted by @William Robison:
Taxes and certain liens will carry with the title at auction sale. I know these in advance of bidding, then calculate those costs into my bidding. I clear them after we purchase. 2nds, and some other liens can be wiped away with a auction sale with trustee.
Is it okay I I can give you a call to go over a little how you do it? You are by far the biggest help I’ve found in regards to this topic.
Post: Kansas City Auction Home Title Insurance

- Posts 77
- Votes 32
Originally posted by @William Robison:
Are you looking for title insurance or a title search? I think you will be very challenged to find title insurance on a property that didnt have a warranty deed sale. I have bought over 100 at the Kansas City sales over the last several years. We obtain a title report and when we finance the property later, we obtain a title insurance policy as mandated by the lender.
@William Robison : well I was under the assumption to ALWAYS get title insurance? But in your case either way, how do you get title insurance when you refinance or how can you provide a warranty deed if you sell if the property currently doesnt have a guarenteed title? In the situations of your auction homes, at what point during the auction purchase do you do the title search? Before you bid or after? And what do you do if title search comes back and you see backtaxes or liens,etc? And if you do win the auction, but the house has liens, do you just hold it, or what would you do? Sorry if I seem clueless, but on our last auction home it was done online, so we were able to get title insurance and a special warranty deed. Thanks a ton for your knowledge.
Post: Kansas City Auction Home Title Insurance

- Posts 77
- Votes 32
Post: Kansas City Auction Home Title Insurance

- Posts 77
- Votes 32
Hello my fellow investors, I wanted to see if anybody knew of a title company that provides title insurance on auction homes (mortgage foreclosures at the county courthouse). I am having some difficulty finding a company that does so. I have contacted a few (Accurate, Platinum, Alliance), but haven't had any luck. If anybody knows of anybody out there that could so do it'll be greatly appreciated. Thanks in advance!
Post: Second BRRRR, Kansas City, MO

- Posts 77
- Votes 32
This was our first foreclosure. We did almost zero due diligence (not a good idea) but it still worked out since our rehab costs were fixed with our contractor. We probably wont be doing anything like this again unless the discount is substantial. However we always make sure to keep our rehab costs as low as possible to factor in anything that may come up later.
Originally posted by @Luke Meeker:
@Johny Omaga
What due diligence process are you working through for buying, what I assume to be, sight unseen foreclosures?
Post: Second BRRRR, Kansas City, MO

- Posts 77
- Votes 32
A co-worker of my partners gave us a loan through a promissory note. (We both work at huge hospitals, turns out everyone who works at the hospital has money they have no idea what to do with). 1.75% is about $1,050 a month in interest only. Turns out being about 21% annually. So it is in our best interest to pay it back as soon as possible
Originally posted by @Bryce Bunton:
@Johny Omaga the house looks awesome and good luck on finishing the deal!
We invest in Northwest MO and I’m curious about how you do your hard financing with 1.5% simple interest? I’ve got a couple places I’m interested in but am looking at different ways to finance than traditional. You can DM me or reply here. Thanks!
Post: Second BRRRR, Kansas City, MO

- Posts 77
- Votes 32
Acquisition Date: 09/14/2019
Anticipated completion date: 10/14 - 10/30
Actual Completion Date and Market Date: 11/08/2019
Purchase Price: $72,859.02
Projected rehab costs $50,000.00
Actual Rehab Costs:$55,137.64
Projected all in costs $125,000.00
Total Costs including purchase price, closing costs and other costs:$134,676.16
Tenants pay utilities=$255.00
Projected Rent=$1450
CAP RATE BASIC$17,400 - $0 = $17,400 / $134,676.16
= 12.9%
CAP RATE VACANCY AND USING MARKET VALUE
Net Income =77% x 95% X $
17,400
= 12,728.10 / 160,000 = 7.95%Cash on Cash ROI the same because there is no mortgage
ROI $17,400 / $134,676.16 = 12.9% = 7.75 years
COMPS in the area for 4 bed 2 bath are scattered ranging $150K-$180K which is why we are scared for the final appraisal. The best one we could find is $160,000 but we will expect the worst for $150,000 which wouldn't be terrible. However for the sake of the BRRRR strategy at 75% LTV we would return only $112,500.
Using $160,000 as equity however would yield an
ROE $17,400 / $25,323.84 = 68.71%
We are out of pocket with initially $74,767.16
$60,000 Hard Loan at 1.5 simple interest
We will update this once we get our appraisal for the refinance!Thanks for all the comments!Just added the numbers!
Originally posted by @Erik Stewart:
@Johny Omaga
Looks awesome! Would love to get all the numbers on the deal and hours of work you have into it! Keep it up!
Post: Second BRRRR, Kansas City, MO

- Posts 77
- Votes 32
Thank you for your kind words. Still could have done a lot more but we didnt want run over our budget. Are you flipping in KC, MO??
Originally posted by @Matthew Ewald:
@Johny Omaga you guys did an amazing job. I like the detail on the stairs and the floating vanity in the bathroom. The whole house is great. I'm currently doing my first flip and I hope I can do as good of a job as you! Thanks for sharing