All Forum Posts by: Dave Rav

My property manager charges 1/2 month first rent as commission for tenant placement.   My other property mgr (different property)charged the same.  

Folks don't fall victim to increased prices.  Call it "Cost creep" if you will, similar to lifestyle creep.  Sales trends lately are out of control.  Just like anything, hey, if you let them charge more, they will.  For instance,  why are some popular cell phones $1000-1250? Some people will pay that, though it doesn't make sense from a value standpoint.   My $300 Samsung performs 90% of the same functions as that other phone. 

Don't get me wrong, I understand inflation and costs rising over time.  My rent appreciation covers that (resulting in a higher commission for the PM).  An commish increase every few years of 10-20% whatever, is reasonable.  However, the increased commission should never be 100% greater (as in the example of paying 1/2 vs 1 full first months rent).  This is a very slippery slope, isn't sustainable, and quite frankly is greedy.  After all, in 2022 what's next- 2 months rent commission?!  (See where I'm going here?)

Ryan,

What kind of loans/projects do you fund?

Thanks @Jason Shackleton.  Appreciate the insight.  Does your lender happen to loan in SC?

Got it.  Yes, for the refi we may end up using the same bank that currently holds the note.  Just been having a lot of trouble finding an institution to loan on an MHP, and with competitive terms.

Good post.  Which financial institution is doing your refi/financing?  We have a smaller MHP here in SC and are looking to do a refi.  Thanks!

Thanks @Matthew Olszak and @Nathan Gesner!  Appreciate you weighing in.  

As for the business of making money...hey, aren't we all in this business?  However, in 99% of cases some kind of value, service, goods, information, or otherwise is pretty much expected.

Insurance, in some many arenas, in my experience continues to be almost a false sense of security.  One of two things.  1) You think you're covered and you're not.  Or 2) you're covered but all kinds of strings attached.  

Insurance companies need greater regulation.  My background is in healthcare, and we are regulated to the end of the earth.  

An update on this situation - I spoke to my banker (he is a great individual) and he will be meeting with me to co-sign the check.  No disbursement schedule, approvals, red tape, or other BS.  Good stuff!  After all, am I not the one paying the insurance premiums?  Hey, if the banks want to take over premium payments, then I'm happy to be inconvenienced by them controlling the way my claim is paid.  It only makes sense.

Hello everyone!  I continue to be disappointed (and quite disenfranchised!) with any and all insurance.  Be it health insurance, homeowners insurance, or auto insurance at every turn the insurer seems to disappoint or fail to perform.  Today's lesson in the HOI department..

I incurred a loss at one of my units.  A tenant mistakenly caused a kitchen fire while cooking.  Thankfully, nobody was hurt and the whole home wasn't a loss.  However, the kitchen was burned significantly and smoke damage affected several rooms of the home.  I contacted my insurance agent and he was nothing short of awesome!  The insurance provider and adjuster on the other hand, were shady as ever.  

Communication was poor and they acted as if they had something to hide.  They never answered my calls, nor would they reply to emails (why would they, as this "puts in writing" anything they say).  I dont play that game, and was very close to contacting my legal team.  But, just in the nick of time, they finally got with the program and processed my claim.  I was paid out the max covered as stated in my policy.  I was relatively "ok" with things at this point.  Until I received my payment - the check was made out to my mortgage company and myself.  WTH?  

Have you received a insurance loss payment with the check payable to both you and your mortgage company? Wondering what your experience was?  Were you able to cash the check with ease, or did they make you contact your mortgagee?

Failing to count the home revenue is a major flaw, guys.  Basically, on appraisal, banks need to view the "Income approach".  Not sure why they can't (or should I say, they dont want to)

No different than telling a doc with a practice they will only loan her/him on the value of the building, and will assess no credit for the thriving practice that generates hundreds of thousands in revenue per year!  (I have a healthcare background).  Its ludicrous!  Sounds like negative stigma of the MHP gets the best of them.

Unfortunately, I am running into the same problems. These banks dont see the value of the fully operating MHP, which is a major flaw. The cash-flow of MHPs obliterates many other types of residential investment. They are so quick to loan on that shiny 8-plex apartment building, even if it only generates $75/door positive CF or say, the DSCR barely above 1.0.

But, I understand why.  If they have to take it back through foreclosure, they want to be holding the shiny (apartments) object (even though the returns on the MHP would obliterate that apartment building). 

If a bank opened that specialized in this asset type, they would own the niche.

Just came across this post, as I too am looking for financing on a 20-unit MHP.  Problem we are having is finding lenders, but the very few we did find have issue with loaning on more than just the value of the land.  (they aren't giving us credit for the deal being an income-producing MHP, therefore the value they base their loan on is severely under what it should be).  Does anyone know of any lenders who truly specialize (and understand the value of!!) a MHP?