All Forum Posts by: Ash Patel

Like @Christopher Phillips alluded to, there is no way this is legit regardless of what part of the country it is in.  Imagine if as some people stated, Florida law negates the original contract when an addendum is simply presented.  Everyone would be scared of submitting an addendum.  In addition all sellers would constantly seek backup offers on every contract.

Quick story: I FSBO'd my first residence in 2008 and eventually landed a contract. The economy had collapsed and I continued to hold open houses every Sunday in the hopes of landing a backup offer incase the first one fell through. The couple who had the house under contract would spend about an hour at each of my open houses. They would measure and discuss what furniture they would put where. On their way out, they would turn off the lights as if they already owned it. I knew they were emotionally attached to this house. A short time later, the couple's realtor called to tell me that they want all of my furniture and they demanded an extensive list of repairs following their inspection. I told her I didn't want to hear it. I explained that I had a full price cash backup offer and I would happily sign a release letting her buyers out of the contract. They did not call my bluff and dropped their demands for repairs and furniture. When dealing with people's homes, Real Estate is always a game of emotion!

I'm not in Florida but have been involved in plenty of contract disputes/litigation.  I am assuming you have something in writing that states the seller wants to cancel the contract.  Provide them with something that states you are intending to close in accordance with the original contract.  If they fail to close, sue them.  

Agree with @Joe Splitrock.  First thing a cop asks at the front door, who is the owner of this house.  If there is underage drinking at the house while you are there, even unbeknownst to you, you are going to jail.  Do not live there if they are going to be throwing raves.  Why would you want to live there with a bunch of unknown tenants anyway?  Have your friends become tenants.  If that's not an option, go buy/rent a place with FRIENDS.  

I rent in college towns also and understand the appeal of partying with college kids but, treat this property like a business not a playground.

@Sophie Thomas, you are on the right track.  The MHP niche is a pretty small community.  Most of the big players know each other.  My friend Ryan Groene (I'm surprised he's not more active on BP) knew he wanted to get into MHP's and went to a couple bootcamps/seminars.  He kept in touch with all the players he met and was an active networker.  I met him at a RE meetup about a year ago and and he knew I was an investor.  We went to lunch and he diligently kept in touch.  

You absolutely should get involved and learn the business.  Start lining up potential investors/partners/lenders etc.  If not for this property, maybe the next.  Keep in mind, there may be a few Ryans out there that have already approached your park owner.  

Regardless of what is in the lease, I always go above and beyond for my tenants.  Since this is a new tenant, I would offer to pay her deductible.  How much was damaged?  

You also need to find a new roofer!  Whenever I have a roof leak on a commercial building my first inclination is to replace the roof.  I refuse to have my tenants deal with a leaking roof.  Usually my roofer talks some sense into me and explains that he can fix it without replacing the entire roof.  

I know you are new but one of the greatest things I've done is build great relationships with:

Roofer - I no longer require estimates, just go out and fix or replace

Licensed plumber - has a master key to all my properties

Licensed Electricians - make sure they have a bucket truck

Old School licensed Electrician - For properties over 100 years old

Insurance guy - one call to give him the address and one more call to let him know when I am closing

Law firm for litigation, lawsuits, contracts and contesting property values

Asphalt company

They will definitely pay in cash.  I had a retail tenant that for whatever reason paid in cash every month.  He was a one man operation so we couldn't go in the back to count the money.  He would count out $4000 in small bills on his counter and would often lose count and have to start all over.  All this while people were in the store shopping!  Needless to say I had one hand on my concealed carry 38.  I never complained because he paid like clockwork and this forced me to visit the location every month.  If people know that you are the landlord, you will have to vary your cash pick up times or make arrangements to receive the cash offsite.  

Great advice!  Hopefully you inspire a lot of younger people on this board to do the same!  I will add, hold off on buying a new car until after you buy your quad.  I've seen so many people pre-approved for homes then denied because they took a loan out for a new vehicle.  In one case, a couple was pre-approved, they put money down with a builder and when it came time to close they were denied because of the new car purchase.  But the new car but after you purchase the real estate!  Good luck everyone!

$3/ft after 11 months free and $40k TI is very generous of you.  I am assuming the space is currently white boxed?  I would make sure a good portion of that $250k goes towards improving the space in a manner that is acceptable to the next tenant.  I am also assuming the tenant has other locations and this is not a startup?  What is the length of the lease and renewal options?

That is a very broad question. I would spend dozens of hours reading through the CRE forums on here. Learn how to calculate cap rate, learn the difference between a net lease and a gross lease. Read some sample commercial leases. I have read a few books but can't say I would recommend any of them. Are you familiar with residential investment?

I was born and raised in NJ but have spent the last 20 years in Cincinnati.  As @Jered Sturm stated, very difficult for out of towners.  The city has so many dividing lines that a few blocks can be a night and day difference.  Had a friend that lived in a 1950's home that was worth $100k, the same exact house 200 feet away was $300k.