Investor · Riverside, CA · Member since 2014 · 351 posts · 220 votes
Been working for months to get short sale approved on a triple wide 443 mobile home thats 1,880 Sq ft and sits on a 70,000 Sq ft lot. The bank has approved $184,000 and our contractor has given us a $39,000 repair price and we will be doing a complete transformation on the site and property.
We are betting because of the size of the property we will get a buyer above $340,000 the property will have to be in tip top condition, but we will get it done.
If there is anyone out there adding value to this type of structure let me know what worked well and what failed from the begainning. Pictures to follow
New to Real Estate · Escondido, CA (San Diego) · Member since 2015 · 112 posts · 20 votes
11y
@Jim Keller Sounds like a great opportunity. I'm looking forward to seeing pictures.
There are a lot of mobile homes down here in North County San Diego, but I haven't seen any with that large of a lot. I've always been curious how successful a mobile home flip can be. Can't wait to see the final product and hope that you will continue to post the financials. Best of luck!
@Jim Keller can't wait to see some pics! What area of CA is this with such a large lot?
A real estate agent that I work with told me about a area of Menifee, Ca just north of Temecula in this are there is many non conforming properties. This is what I look for it where you can create the most value by simple inexpensive improvments. This perticulare area has dirt roads and all 443 on a block foundation mobile homes. Some she noticed were selling for a very high price and when we say this deal on the MLS we jumped because we understood the 1 acer + was money in the bank. There is plenty out there for all of us, I would be happy to help call any time
Investor · Marina Del Rey, CA · Member since 2015 · 297 posts · 87 votes
11y
@Jim Keller It sounds like you have a good agent on your side. I've heard about investing in mobile home parks but to be honest I've never thought about flipping one. That's very cool, it seems like I new outlet and much more affordable price point for California. I can't wait to hear more about it!
Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
11y
I'll be following this. I walked through a newer (approx 5 years old) triple wide mobile home a few weeks ago and it was much nicer than I was expecting. With good landscaping on a large lot I can see how it would be an attractive option for a lot of people at that price point. The one I saw had a large wrap around deck, built in BBQ and a nice matching car port.
Investor · Riverside, CA · Member since 2014 · 351 posts · 220 votes
11y
@Ben Andrews
@Carrie Giordano
@Joe B.
Well guys completed the real estate disclosures and will complete my escrow instructions early next week.
I will be using a hard money lender called Rehab Loan Group out of Riverside, Ca. to finance the project. The high leverage loan product they offer has become the only one I use for flipping homes. I was told that they have fulfilled my loan commitment for an $184,000 purchase the $40,000 rehab. Ofcourse Stephen from rehab loan through in it was a new investor for them "so I better not mess this up"...... oh the confidence
Rehab loan will be charging me their 8% fee based on the $224,000 loan amount and that fee covers 100% of purchase and rehab cost and 105 days payments. After 105 days a per diem based on the 8% fee divided by 105 days which is $170.66 per day will be charged to me on my closing statement when I sell the home. We have gone over in The past by 10 or 12 days on our last one we will be under and get a refund for our fee since we are charge the fee for use of the money, great program guy being reward for doing good is nice.
I'm working with a friend I meet here on bigger pockets it's my first deal working with a BP partner I'm in the middle of wording our agreement so we are both protected. I think you will see I'm way better at finding and exciting these deals than structuring iron clad partnership agreements it's my only real uncertainty on this deal.
On my next post I I will have pics and we will have all the loose ends covered working towards closing escrow on or before 8/14 per our short sale approval.
Los Angeles, CA · Member since 2015 · 18 posts · 1 vote
11y
Hi I was just wondering if it is just a 8 percent flat fee or are there interest and other fees involved? If it is just the 8 percent it seems like a pretty good deal considering they are coving 100% of the cost.
Investor · Riverside, CA · Member since 2014 · 351 posts · 220 votes
11y
Originally posted by @Account Closed:
You've got what looks like a great deal. But the lender is getting a better one IMO. 8% fee? Why didn't I think of that?!
It's funny Kelly I go to investor show after investor show and have never seen a better leverage deal. On my last deal I only gave the address and contractor bid only and it funded in 9 days they financed 100% of purchase and rehab. I know of no other way of turning 15 to 30 thousand dollars into 40 to 70 thousand in around 105 days. This is a high leverage play for sure and your right if I had 5,000,000 cash I would be doing the same thing. We use them "Rehab loan group" @Stephen McKee for the ease and leverage and pay the fee for that privalage.
Really do the math, I have. I know there are 10% down on purchase price and 100% of rehab products out there at 2.5 to 4 points @ 11 to 13% IO PMT's or 80 of purchase with 2 pts. you pay for all the rehab and monthly pmts at 8 to 16% I can do 4 deals with the same 90k it would take to close on that deal.
I would love some help with a better deal. Up to now it's just not shown up yet. I'm getting enough deals under my bult where maybe they will, but I haven't seen it yet. I would welcome an offer from you I have 3 other projects approved by that lender ready to start in the next 45 days.
Hi I was just wondering if it is just a 8 percent flat fee or are there interest and other fees involved? If it is just the 8 percent it seems like a pretty good deal considering they are coving 100% of the cost.
It's all in 8% fee you only pay the per dium if you go over 105 days before the pay off and there are no payments in valves you pay through the closing statment
Investor · Riverside, CA · Member since 2014 · 351 posts · 220 votes
11y
@Aaron mazarillo
The transformation .....lol !!! Will be amazing. I feel like I'm selling soap, but we will just be doing a number in the whole thing new everything granite counter tops, new cabinets throughout . The grounds will be the biggest change I think here is a pic below.
It's very over grown but at 63,000 Sq ft with a 2.5 car detached garage and equestrian area in the back along with a covered shop behind the garage we will have our hands full but it will shine up nicely. We are scheduled to close on the 14th of this month.
In this market simular conventualy framed homes at our rehabed spec level would sell for over $575,000 so the land is the most valuable aspect of our deal. We are hoping to atract a conventional buyer, the purchase loan is complete and we received complete short sale approval so escrow can complete the instructions and go to closing.
Specialist · Riverside, CA · Member since 2008 · 382 posts · 72 votes
11y
@KMaire Our loans are a win win for everyone. The investor gets a sold return and the borrower greatly bumps their cash on cash return for only 1-2% more per deal than traditional hard money. We're pretty proud of our loan product.
@KMaire Our loans are a win win for everyone. The investor gets a sold return and the borrower greatly bumps their cash on cash return for only 1-2% more per deal than traditional hard money. We're pretty proud of our loan product.
I'm no stranger to high borrowing costs to make something happen. I'm one of the survivors of the 5 points/18% hml era. No issues with the lending. I think you may come out ahead of the borrower though. 1980s MFH can't be compared to stick built comps. Especially if that thing is built with 1x3s. Appraisers will notice that. I'm looking forward to seeing how this one goes!
Investor · Riverside, CA · Member since 2014 · 351 posts · 220 votes
11y
Originally posted by @Account Closed:
@KMaire Our loans are a win win for everyone. The investor gets a sold return and the borrower greatly bumps their cash on cash return for only 1-2% more per deal than traditional hard money. We're pretty proud of our loan product.
I'm no stranger to high borrowing costs to make something happen. I'm one of the survivors of the 5 points/18% hml era. No issues with the lending. I think you may come out ahead of the borrower though. 1980s MFH can't be compared to stick built comps. Especially if that thing is built with 1x3s. Appraisers will notice that. I'm looking forward to seeing how this one goes!
I closed 10 days ago on the mobile home and have worked all my exact construction out and agreed on a schedule with my contractor. We have a $37,700 agreement and I think we will have great success. Below is a few pics of the site.
This is the kichen..... we will be completely removing it and I stalling a new one.
This is looking in to the entry and dining area that will be transformed into the 3rd bedroom.
This is the view from the kitchen to the living room.
This is the master bathroom that will also be redone.
I will be posting the demolition pictures next week.
Interesting idea. Would definitely like to hear more as you move forward with this project!
Adrian,
We have started the construction and in the early days of this project it's been kinda scary. Many things to be done I will include a few pics for you to see and follow along.
The deck will be taken out and a smaller version will be installed.
This is the back edge of the property and where we will house the equestrian area. We have much to complete I will have new pics this coming week.
Well guys completed the real estate disclosures and will complete my escrow instructions early next week.
I will be using a hard money lender called Rehab Loan Group out of Riverside, Ca. to finance the project. The high leverage loan product they offer has become the only one I use for flipping homes. I was told that they have fulfilled my loan commitment for an $184,000 purchase the $40,000 rehab. Ofcourse Stephen from rehab loan through in it was a new investor for them "so I better not mess this up"...... oh the confidence
Rehab loan will be charging me their 8% fee based on the $224,000 loan amount and that fee covers 100% of purchase and rehab cost and 105 days payments. After 105 days a per diem based on the 8% fee divided by 105 days which is $170.66 per day will be charged to me on my closing statement when I sell the home. We have gone over in The past by 10 or 12 days on our last one we will be under and get a refund for our fee since we are charge the fee for use of the money, great program guy being reward for doing good is nice.
I'm working with a friend I meet here on bigger pockets it's my first deal working with a BP partner I'm in the middle of wording our agreement so we are both protected. I think you will see I'm way better at finding and exciting these deals than structuring iron clad partnership agreements it's my only real uncertainty on this deal.
On my next post I I will have pics and we will have all the loose ends covered working towards closing escrow on or before 8/14 per our short sale approval.
Hi all here are a few pics for the update.
This is the secondary bathroom that we will give a major facelift to.
There is a very nice 3 space garage we will be drywall in and finishing off the floor.
Retired · Canyon Lake, CA · Member since 2015 · 2 posts · 1 vote
11y
Hey Jim,
Great posts, very interested in this deal as it is located just a few miles from me. I'm just down the street, and have thought about this same type of flip opportunity in that neighborhood as well as similar ones in the area(Perris/Winchester/Wildomar).
Can't wait to see the transformation, and the success.
Investor · Marina Del Rey, CA · Member since 2015 · 297 posts · 87 votes
11y
@Jim Keller I have to say I am pretty surprised by the pics! Not at all what I would expect from a mobile home. Way nicer than many of the million dollar homes I see on the market in Los Angeles, and thats pre-flip!!!!
I'll be following this. I walked through a newer (approx 5 years old) triple wide mobile home a few weeks ago and it was much nicer than I was expecting. With good landscaping on a large lot I can see how it would be an attractive option for a lot of people at that price point. The one I saw had a large wrap around deck, built in BBQ and a nice matching car port.
Hi Joe
I was out at the mobile home flip I have going in Menifee, Ca and thought you may like to see the new pics..... no new BBQ or deck yet but we have hauled 10 tons of trash off the site and it's starting to show. We are hoping to have the drywall completed by mid next week and then on to cabinets and finish carpentry. Have a good week and talk to you soon.
In the living room looking into the new kitchen and new bedroom. The arch and opening is being consolidated to one large opening.
Here is the new bedroom we cut out a few Sq ft from the kitchen and 1/3 of the livingroom.