All Forum Posts by: Alexander Glasser

Quote from @Chris Webb:

Hi @Alexander Glasser, that sounds great! if you have no money in a deal then any cash flow is positive. 2 things, 1, what rates would you get? I assume 7ish for the conventional and you could even do a 1% interest-only loan for the seller carry. This will lower your financing costs which will increase your monthly cash flow.

2. Have you talked with the seller about this? I had a seller agree to carry 40% for a deal I was working on and it was tough to get them to agree to 2nd position. I see this as the only hurdle. Do the leg work and keep us posted. 

I am closing on my personal home on the 17th of this month. I got a 5.99% 30 year. So I assume somewhere around there. 

I will work on getting the seller to carry but if I were to do this deal how I am thinking of structuring it. Do you still think the 720k is too high? I am having a hard time running the numbers with the two rates. This would be my first time trying to do a seller finance this way.  Any help on this would be appreciated. 

Quote from @Chris Webb:

Hi, Based on the information you provided, I see this as a negative cash flowing property at this price. After debt servicing I only see 442 which will be eaten up by capex and repairs @5% each. 

If I was able to seller finance this deal with no money down. Where would you feel comfortable with the price? The idea I had was to get a conventional loan through my lender. Get the difference in loan and asking price from private money temporarily. Which would be the seller financing portion. As we close on the deal, the private money would go into a second escrow account  which would never hit the sellers bank account and would go back to me. I would then pay off the private money, and have a note with the seller for that amount or even more. 

For example. I would get a 500k conventional loan and make up the remainder for 220k with a private party. The 220k would be seller financed after we close. The 220k would go into a second escrow and be distributed to me and I would then pay the private lender off and have a note with the seller for 220k. Maybe I can get a note with the seller for more to cover all fees ect. This way I have no money into the deal. 

thoughts on this approach? If I can get rents up to 1400 each in the first year would this still be a bad deal? 

Hey all can you help me analysis this 4 plex. Just drove past the property and now i'm confused as its located inside a trailer park.  I think its over priced but looking for ways to make it work.

Listed at $720k.

Long term tenants. 2-7 years 

Rentals are $900 $950 $1200 $1300. 

Average rentals in the area come back around $1400-$1700. 

Property last sold in 2021 for $425k

Property taxes $1300.00

Being in a trailer park im not sure what I will be able to get for it for the rentals. 

Seller is also listing agent. Anyone have any ideas on how to make this deal work?

Located in NC

@Jack Martin So my plan for this place since the property has not been taken care of is the following. Use a Master Lease to take over the property. Pay the Owner $1200 a Month, increase rents, and keep the difference. Use the difference to put back into the property and improve it. We would take over managing and maintaining the property, including paying utility bills, annual insurance premiums and property taxes. 

I will then get my grader in there and septic guy, move 2 septic systems further down hill and add 6 more pads for mobile homes. It is zoned open use so I shouldnt have a problem. Only concerning thing is the gis maps so a stream running underground thrugh the property which i will have to verify. I would fix the park owned mobile home and rent that out.

2 mobile homes on the property I think I can get 500 lot rent. They on the road outside the park.

So it would be: 

(2) lots at $500 each

(2) Park owned Mobile homes at $1000 each

(5) existing Tenant owned @ $350 Each

(6) Future Park owned or tenant owned at the above rates

What are your thoughts as to the buy out price? Should I base it on what the park is currently doing or meet in the middle? I was thinking of putting the buy out option at $250k-$300k. I guess they had a COMMERCIAL REAPPRAISAL NOTICE in 2021 and it came back at $230k.

Looking at Purchasing a Mobile Home Park using master lease with Option to purchase at the end.

Currently 9 spots for mobile homes. 

2 are owned by the park (1 occupied no rent collected, 1 vacant needs work)

6 are tenant owned. 

Current avg. rent lot is $175.00 (Owner hasnt increased rent in years) 

Avg. current market rent is $300-400.

Asking price is $400,000.00 which I think is too high. 

Avg market rent for POH is $800-$1000

I am trying to figure out a fair market value using a master lease take over with a purchase agreement in 3 years. Or purchase offer right now. I am coming up so far away from his asking price. Can anyone help me, i can provide more details if needed. 

Thank you.