All Forum Posts by: Dakoda Spencer

@Jay Hinrichs 

So that means the interested rate adjusts every year? So does the interest rate just go up by 1% each year?

Sorry for the simple questions.

Hello BP!

I have been having a difficult time wrapping my head around the meaning of some numbers. When I asked a local bank for info about their investment loans, interest rates, etc, the following were some of the numbers I was given:

7/1 5.99% - adjusting at Prime + 1.00%

5/3 5.50% - adjusting at Prime + 1.50%

3/3 4.99% - adjusting at Prime +1.50%

1/1 4.50% - adjusting at Prime +1.00%

Could someone please put it in plain English what these numbers mean? Or point me where to find the meaning? If someone could simply break one of these down for me, I would really appreciate it.

Thanks everyone!

@Matt Boettinger The rezoning was done a couple years ago, and the current structures have been grandfathered in. Of course, no new structures can be added or replaced there now. I'm aware that it is a tenant problem, but my mother and aunts don't like to listen to me.

@Kathy Johnson Thank you for the resources! I have confirmed that they indeed do own the trailers. 

Does anyone know of a good lawyer for the West Virginia (WV) that is close to Morgantown? 

@Kathy Johnson

Thank you for the reply. The only document that they currently have is a lease agreement. I read through it yesterday, and it is very poorly written and dated. They need every other document. Some tenants own their trailers and some tenants don't. I'd say there is a pretty even amount of both. I'm not sure how they track their rent, but I know they do something. Would you suggest using excel for this? They have been in trouble from the state multiple times but I'm not sure for what specific reasons. Where could we go to see our state/county requirements?

The park is set up on well water. Haven't had any issues with water that I'm aware of.

These are all really good questions to understand the park in a whole. The owners are attempting to evict two of the tenants for not paying their rent for a very long time. I'm not too sure of the process, or what documentation to use. So here are my questions from all of this:

1. Would you suggest using excel to track rent? No? Then what?
2. Where could we go to see our state/county requirements for mobile home parks?
3. What is the basic process for evicting a tenant, and what documentation is needed? Eviction notice?

Thanks for taking the time Kathy! I really appreciate it!

Hello BP family!

Here is what I ask of BP: What legal documents do we need to completely revamp the park?

I could really use some assistance. My mother is part owner of a trailer park. It was passed down to her (and her sisters/my aunts) from my pap. It was set up very poorly and they do not have the correct legal documents in place. The park is slowly being ran into the ground.

Please give all the basic docs, where to get them, and an estimate of how much it will cost. The lease agreement, eviction notice, etc...If you could simply provide templates, that would be great as well. This facility is ran so poorly, that I cringe when they begin to talk about it. I often joke with my mother that the tenants sign a napkin for the lease agreement. It was set up by my pap many many years ago, and anyone who could walk in was able to rent. As you can imagine, there are a lot of issues. 

I don't have any real experience with this, but I know enough to know that they are doing everything wrong. 

Any assistance would be GREATLY appreciated. Thank you all who contribute!

PS. The park is locate in the northern part of WV.

Hello BP family,

This is be a simple post of encouragement to others who are struggling starting out in real estate and haven't even bought their first house.

I am 22 years old, haven't held the same job for longer than 9 months (the one I'm currently working), and I haven't bought a house before. I was born and raised on a farm, was home-schooled for the first part of my life, joined the military out of HS, and have pushed myself to become something greater than what I was told I would be.

About 2 years ago I was given the book "Rich Dad, Poor Dad" as a gift. I know, I know. It's the book everyone is sick of hearing about (if you haven't heard about it, read it). I bought a course from the Rich Dad Poor Dad company. It was a HUGE waste of money. I kept seeing search results popping up from BP, so I started checking them out. BP has been my #1 resource for all my RE (Real Estate) questions, hands down. I have used the resources that they offer, I'm a pro member, and I have learned what a deal actually is by learning how to run the numbers the correct way.

I am in the process of buying my first house that should end up with about with about 30k in equity. I've passed up on a lot of cheap houses in crappy neighborhoods to get a okay house in a great neighborhood. 

If anyone is looking for someone to discuss some REI basics, comment and/or message me!

And for everyone that has had a part of teaching me (too many to mention), thank you.

-Dakoda Spencer

Wow. This is an old post but I'd love to find a meetup in this area. Please keep me updated!

-Dakoda

@John Leavelle, Thank you very much for your "two cents". I agree with both you and @Brent Coombs' responses. I'm just going to hold of and save my money for a better investment that has higher returns and less risks involved. After walking through the house, I now have a better idea what it needs. 

Thank you both for your time! I really needed to get some advice on this. As a side note, do either of you know someone willing to hold my hand a little while I start my mailing campaign? That will become my new focus moving forward.

@Brent Coombs, I will be going to talk to my bank today to get more details on what they are willing to do. So, I don't know yet. Since they are a small community bank, I was hoping they would be willing to work with me. I have also been watching the market for a while so I have somewhat of an idea of whether or not this is a good deal. 

Of course, there could be a ton of things wrong with this house that I don't know about yet, and that would simply make it a bad deal. Thank you for your input!

Hello BP family!

I'm looking at an REO and I really would like to have a second opinion on it as a SFR rental. Also worth noting, I will be living in this as my primary residence for at least a year. I will be walking through the house tomorrow, so I don't know all of the conditions on the inside. Here are the numbers:

• Asking: 35.5K
• ARV: 50K (I know, not a good neighborhood for appreciation)
• Average Rent: 650/month (also a small 1 car shed that could bring in more income)
• Old Victorian style house, build in the early 1900's
• Rehab Estimate: 5K - Has some work already done to it, but will need some siding, paint, etc...(I will be doing this myself, since it will be my primary residence and I don't have the cash available to me right now)
• I put in $600/year for taxes, which I looked up.
• I'm using 10% for Cap Ex, Vacancy, Repairs, and Property Management.
• Putting in about $75/month for insurance (which should be a little high, I will call about this tomorrow)
• Using 20% down traditional loan from a local bank with an estimated 5% interest
• The Rental calculator here on BP said I would be cash flowing about $112/month, and would get about a 9.58% COC ROI. I think this would be the worse case scenario for this property. Of course, after I walk the property tomorrow, I will have a better idea of the rehab costs, rent and appraisal potential.
• Here's the link to the analysis I did here on BP.

I'm trying to over estimate on my expenses and underestimate on my profits. Again, this will be my primary residence for at least a year before I rent it out. In that time I will be getting it "tenant proof" as much as I can. I would normally want some more cash flow and better ROI, but I'm really in need of a primary residence and thought this would be decent purchase. All constructive criticism is welcome! 

-Dakoda Spencer