All Forum Posts by: Carl G.

Bill W. thanks for the link. Looks like I have some reading up to do.

So I had the opportunity to meet John Fedro and Jon Klaus at the Austin meet-up. Great guys if you ever get the chance. Anyways, they got the wheels turning on investing in mobile homes. I did some driving around today and located one that I'm going to pursue. I met one park manager. I'm going to look for other trailer parks nearby and take a drive out to them.

Just from what I'm seeing, the returns on mobile homes seem to be significantly better than on rental properties. Does this sound accurate? It almost seems like a no-brainer to me. However, I could be missing something...

Anyone else out there do strictly mobile homes? How's it working for you?

Thanks guys.

It was exciting to watch the bid on the house go to $153K. I didn't jump in on the lots but it was very tempting.

Steve Babiak Let me clarify. It was a public road with very small lots that had mobile homes on them. I researched the property and looked at it. It was just for the lot. I probably should have bid on it. Judging by the look on the winning bidder's wife's face, he didn't have much more to give. That's alright though.

From what I gather, they do in one form or another. It varies from state to state.

I do not know if the lots are actually selling for those prices. All I know is the lot directly across the street and right beside this one were for sale for those prices.

The rep handling the auction stressed going to see the property before bidding. I had already done this. He also stressed knowing doing your own due diligence and knowing what you are bidding on. Risk is mitigated with knowledge.

I recently ordered Deal on Wheels. I'll have to check this one out as well.

A few of you know that I'm just getting into this game. I went to the local tax auction (TX) today with a few empty lots in mind. I had previously done my research when the list first came out 3 weeks ago. Anyways, the list had dwindled to 3 properties - 2 of which I already had my eye on. The 3rd was quite a surprise. I had missed it during my review because the bid started at $9,100. It turns out it is my lifelong friend's uncle's house. I've known the guy for basically all my life. The county appraisal on that property is $290k. It went for $153k. The rep for the attorney's office stated that the house is still occupied and that they are aware of the auction. I spoke with another guy there about what happens now and here is what he told me.

1. There is no eviction process to go through because they no longer own the property. The new owner can tell them to leave or work a deal with them. If they won't leave, he can call the police for trespassing.

2. The previous owner will receive the remainder of funds after the taxes, fees, etc are paid. They can take the cash and walk away but still have 2 years to redeem the property if they want it back since it is homesteaded. The new owner can rent it out in the meantime.

Does this sound right? It sounds awfully easy to get the previous owner out.

I opted not to bid on the other two properties. I did my research through the county clerk's office. However, the rep mentioned checking with the city for any outstanding charges (mowing, etc) against the property. I was unaware of this. I don't see it really being a big deal but it would be nice to know if there's another grand or more in outstanding charges that need to be paid. Anyone know what the best way is to find out what these costs might be? I know every city is different. I might have to just call around. Is there anything else you think I need to check?

One lot I was looking at started at $2,100. County appraisal is $16.5k. The two neighboring lots are selling for $25k and $28k. The property sold for $5,500. The empty lot was in a rough mobile home park. The previous mobile home had been removed.

The other one was an empty lot in a small town. Started at $800 finished at $2,350. I heard the lady say her grandfather had owned it so they wanted it. That's fine with me. I notice that there area a lot of properties for sale in that are of town. That also turned me off on it.

All in all it was a good learning experience. There were more people there than I expected. I'm sure some didn't know that the list was so small and opted not to jump in the bid on the house.

I know this was kind of long winded. Just wanted to share my experience for anyone else looking to go to one of these auctions.

Great thread. It gives newbies like me some hope. I have a little cash to play with. Going to a tax auction tomorrow with my eye on a few empty lots. We'll see how it plays out.

I thought it was great as well. There was a lot of knowledge sitting around that table. I'm looking forward to our monthly meetings.

Great job setting this up!

As a few of you know, I'm working on getting my rental operation off the ground. I have an idea I want to bounce off you regarding loans for rental properties.

I will be forming at least one LLC to run this operation through. More on that later. Here is my idea on getting loans for the properties.

1. Purchase this property with a private loan.
2. Finance the repairs myself.
3. Get a renter in and have cash flowing.
4. Then go apply for a commercial loan through the LLC.

I *think* the banks will be more inclined to loan money on a property that is already flowing cash. Would you agree? My goal is to establish a relationship with multiple banks and lenders that way I have some options when it comes down to it. If all the numbers work, I don't see why I should have too much of an issue getting it done. But I could be mistaken...obviously this will depend on the bank as well.

I'm sure I will still need to put 20% down. Would it be possible to use the equity from the repairs to cover this? I would basically be doing a refinance as I will already own the property. I'm not sure how much this will change the game.

I've met with an attorney and accountant already. Banks and lenders are next on the list.

What do you guys think? Does this sound feasible or am I missing something?

Thanks for all the help.