All Forum Posts by: Crandall Thomson

I have a manufactured home on 1 acre with a large, powered shop in the country. There are a few major repairs preventing most funding options. I am looking for private money or even a partner to help me cover the gap. I am short 70k on closing and funding the repairs with cash.

This is a great deal, a once in a blue moon opportunity!

Contact me for more info, holding back details here because... deal thiefs... 

[email protected]

 Hey Paul, I agree with you. It is a very nice tool to have especially if you're the type of investor that is hands-on with rehabs, upgrades, and maintenace. 

I (we) have a great property (4 plex) to show case what a BRRR can look like for a beginning investor. The LLC was just created I had the solo proprietor experience to guide the LLC with two other owners. We purchased the home at 270k, it was in disrepair for 10-20 years.

- All the small stuff was way past its repair time and what was repaired was done very poorly.

- Rat infested, A literal health hazard. Found 5 nests 

- No updates since 1970's when it was built. 

- Major mold, and multiple water leaks. Including a tub crack that was slow leaking into 3 of the unit's lower floors.

- Lights flickering with hot grounds, and about 90% of the outlets and switches unsafe to use due to physical damage.

- Original siding (fiberboard) not maintained and allowing pest's to (rats and squirrels) egress in and out of the units.

- Caved in celling with open access to attic, from roof leak that went unfixed for 3 years.

Most repairs were sweat equity. Now the home is worth 350k. Units were renting out at $500 before purchase with extremely high turnover; now they rent for $850-100 (depending on yard and upgrades done).

Cash flow is double the expenses, giving us a 50% ROI in the first year.

If the piers are installed correctly you should be fine. Unless we have a earthquake large enough to dislodge the piers. When I was an agent I had a seller that was trying to sell their house that had huge problems. The 3 story house was next to a creek that was 20-30 feet below the average grade/land. During the construction (when no sod or vegetation was installed) a large rainstorm came by and a large part of the 'ravine' collapsed aka MudSlide, but very localized to the property. The owner wanted to just call it quits and sell for whatever someone would buy it for and call it a loss.

I was able to do the research and find out about the mudslide. Contacted my attorney about it. Sent a letter to builder demanding they pay for the piers or the loss on the sale (with full disclosure to buyer this time). The builders forked over the cash for the piers, around 120k for this property to get to bedrock. Then the owner decided to sell anyway. price went from around 350k to a sell price of 780k.

Last I looked at the house it was solid as stone, 15 years later. They have since put up retraining walls along the creek as well.

The point is piers installed correctly work, and with full disclosure increases property value, or at least prevents decrease.

What you are seeing should only be cosmetic but you may want to follow up with another company you trust to give an honest opinion. 

Andrew, This is great! I'd love to come, what date will it be?

I'd go the route that a Agent especially a Realtor(R) is used mostly to connect a buyer and a seller. You two have already connected so what you are paying a Realtor for has already been done. The other part that a Agent and or Realtor is used for is for the REPC and connections to title companies. I assume you already have a Texas REPC and a title company. The seller may want his own title company and attorney to look over the REPC. If that's the case do a price comparison for him. The Seller Always pays the Agent, even if the REPC changes the commission around it's still coming from the sell of the property and so always comes out of the seller more then the buyer. Show him a 6% commission verses a 3-5 hundred dollar attorney. The title is paid for in closing costs no matter what so you both negotiate to pay that regardless if a Realtor is involved. The point is the Main thing a Realtor give and is paid for is already done, connecting the buyer and seller. If he wants a Realtor or Agent "Friend" still offer to have the "Friend" be a transactional party only for a flat fee of around $300 to $1k depending on the size of the deal. I have done a lot of transactional deals as a Agent. They are easy and dam near free money in situations like this. If his "friend" is not willing to act as one then the seller needs to revaluate his Friendship with this Agent/Realtor. Just Saying.

Almost makes you wonder if Small Landlords should form a group, like that of the Realtors. We can protect our market share and also hold ethics and morals to a higher standard. 

Owner Occupied you say? Won't play by the rules of common decency you say? I say late night parties, Check. Early AM on sight improvement projects, with very loud power tools, check. Home Inspections twice a week (you know, one a insect inspection, one for water intrusion in the attic, one for water damage to the cabinets, one for measurement to fix one door, one for a second option on the first repair's quote, one for remeasuring the door, and all the same for the other door...again, one for an upgrade estimate on the... um bathroom yeah that's it, one for a roof inspection that needs access to the attic, one for... well you get the point. Oh, and don't forget all the common areas are now under construction and cannot be used until... well the contractor keeps extending the date... you know them contractors. oops did i park my car taking up the entire driveway again? So sorry... And never forget put up a advert for lease and show the property every chance you get.. move in date, sorry unknown. Be a Betelgeuse...

What about requiring First Month, Last Month, and Security Deposit? I know many tenants would not be able to afford this however, if their rental history shows this is a trend form them.