All Forum Posts by: Logan M.
Logan M. has started 136 posts and replied 728 times.
Post: How do you find out rent in a new mobile home park during Due DIlligence
- Investor
- Provo, UT
- Posts 737
- Votes 620
Quote from @Michael Smythe:
@Logan M. hope you keep posting!
Some additional posts for your series:
How you ID potential purchases?
How you find the actual owners and get past their registered agents?
How do you get them to accept seller-financed offers?
What discovery terms do you put in your offers?
What are the typical challenges after you close on a new purchase?
These are great topics. I will work through them.
Post: 15 unit Apartment building, Seller Financing Development
- Investor
- Provo, UT
- Posts 737
- Votes 620
Investment Info:
Large multi-family (5+ units) commercial investment investment.
Purchase price: $600,000
Cash invested: $130,000
In November 2021, I purchased a single-story commercial building in a downtown area outside Provo Utah.This building will have 8 apartment units, 5 short-term rental units, and 2 office spaces. Three keys allowed me to own 50% of this building with $130,000 invested. (To give you some numbers we are all in at 2.1 million and it appraised just shy of $3.2 Million)
How did you finance this deal?
This was a seller-financed transaction, the terms allowed us to use the ground as collateral and I brought partners in after I got all of the city approvals, and they took over the future expenses for the seller financing note and the other costs like engineering. We leveraged the land and got a bank loan for $1.6 Million.
Lessons learned? Challenges?
Negotiate harder
Post: How do you find out rent in a new mobile home park during Due DIlligence
- Investor
- Provo, UT
- Posts 737
- Votes 620
Quote from @Jordan Moorhead:
@Logan M. I hadn't thought of Zillow although I've had great success renting my units with it. Is there a cost or a risk of them seeing it not being real?
Not sure, I imagine every state is different.
Post: Ozone Machine in a Smokers Mobile Home
- Investor
- Provo, UT
- Posts 737
- Votes 620
Quote from @Matt McCurdy:
@Logan M. I use a vapor oxidizing system for MH's and rentals to remove smoke smells. I have a ozone machine (like yours) that I've had hit and miss results. Let me know if you want the contact information if the Ozone machine doesn't ever do the trick.
I would still love to have the contact, you never know!
Post: 2nd Delivery of a legacy home, 9 more to go!
- Investor
- Provo, UT
- Posts 737
- Votes 620
Filling vacant spaces in your communities can be a huge pain!
We were able to get financing through Legacy Homes, the terms are roughly 10 years with a fixed rate of 7.9% for the first 2 years then Walstreet Journals Prime plus roughly 4% (Kinda pricey after two years potentially), 10% down which covers the home, taxes and transport.
I have a third home coming in tomorrow and then I will stagger them out.
The biggest challenge I have right now is choosing a company to set up the homes they are all so expensive. I highly suggest though if you have spaces to fill talk to Legacy Homes. The interiors are not as nice as my Tempo Homes by Clayton but the financing is a game changer.
Post: What is the best debt structure
- Investor
- Provo, UT
- Posts 737
- Votes 620
Banks will lend on MHPs even ones with a lot of POHs you just need to find the right ones. I have had a lot of success with Local Credit Unions. My biggest suggestion would be to get seller financing and if they won't do it then only buy if its a screaming deal.
Post: Hard Money Loans for Soft Money Terms
- Investor
- Provo, UT
- Posts 737
- Votes 620
Quote from @Jo-Ann Lapin:
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I would like to hear more!
Post: Opportunity to purchase property in established mobile home / rv park
- Investor
- Provo, UT
- Posts 737
- Votes 620
I agree with @Jordan Moorhead, cash is going to be very important as you scale. I would try first seller financing, then a bank loan, and then cash.
Post: I built 15 units with only $130,000 out of pocket
- Investor
- Provo, UT
- Posts 737
- Votes 620
Quote from @Neel Patel:
Quote from @Logan M.:
Quote from @Robert Ellis:
Quote from @Logan M.:
In November 2021, I purchased a single-story commercial building in a downtown area outside Provo Utah.
Attached is the first picture of the front of the building. This building will have 8 apartment units, 5 short-term rental units, and 2 office spaces.
Three keys allowed me to own 50% of this building with $130,000 invested. (To give you some numbers we are all in at 2.1 million and it appraised just shy of $3.2 Million)
This was a seller-financed transaction, the terms allowed us to use the ground as collateral and I brought partners in after I got all of the city approvals, and they took over the future expenses for the seller financing note and the other costs like engineering.
We leveraged the land and got a bank loan for $1.6 Million.
THESE DEALS ARE OUT THERE!
did you face any hurdles for land appraisal without seasoning? interview multiple banks? I think a lot of people don't focus on the financing side or what it takes to get a deal done but that is everything
It is also one of the more difficult parts to understand.
We didn't run into seasoning issues but it was because I had owned it for a year by the time I got the construction loan. In that time I worked on approvals and interviewed several banks. We had full approval from three different banks before we made a decision.
Did you have the rental income coming during the first year you owned or it was vacant?
It was vacant, that is where most of my money went.
Post: Mobile Home Development
- Investor
- Provo, UT
- Posts 737
- Votes 620
Quote from @Robert Ellis:
Quote from @Logan M.:
Quote from @Robert Ellis:
Quote from @Logan M.:
Quote from @Robert Ellis:
Quote from @Jay Hinrichs:
other than the obvious land use rules. ( is this Oregon ).
the main thing we found when looking at land to do a park on in Oregon was Absorption.
A lot of money out to buy the dirt then the cost to set up the park which can run 20k plus per pad. then the time it takes to fill the park.
those are the calcs you have to run to see if its going to work.. Of course if your all cash drag and holding costs wont matter in the long run.
So for us they simply never pencil from ground up because of the cost and absorption time.
All these mobile home park investors imagine if they opened up their minds to truck parking facilities and did all the same utility improvement, higher density for parking than mobile home, didn't have tenants, same on site manager. Much higher returns.
Trucking is going through a major contraction right now and if self-driving trucks ever become a thing you are out of business.
you still have to park self driving trucks my friend ... and only some portions of trucking are going through a "contraction". Flat Bed is super strong, aggregates and trucking that supports new construction is extremely strong right now and is booming. I'm not sure if you know much about these industries than what you listen to on the news. Every truck parking facility that is built in our market is fully leased up quickly. And here's a really good kicker, if trucking is in the tanks, all the trucks have to be parked right? There you go!
Your last line is a great point. I am not saying that it doesn't have a use and won't have a future use but it is a lot easier to create a parking area than something with a higher barrier to enter. How long before it is overbuilt? I don't know the answer and maybe it will never get there.
No one is developing them it's too niche. it's more of a local developer type product but they are high cash flow and very low cost to operate and setup and you can pull out a lot of cash from refinance or sale. very little development. just focus away from rural markets you don't want to compete with overnight trucking.
Great information, I image you are trying to buy within metro areas, probably light industrial zoning I would imagine.