All Forum Posts by: George N.

A lot depends on the circumstances, the market etc. Few smart park owners would complain if an investor is bringing in a home to fill a vacant lot. There is little downside. If an investor is buying a home in your park, however, the fear is they will move it out. Many park owners don't want to have too many investor owned homes, especially multiple homes owned by one investor, because then that investor holds some leverage if they threaten to move homes out. For instance, if a single investor owns 8 homes in a 30 space park it could be an issue in a market where parks are competing to "poach" homes from each other. Imagine going to increase rents and being told by an investor that they would move all their homes out unless they stayed put. Unlikely, especially in my market where there is little to no vacancy in parks, but possible in some markets. 

One of my issues as park owner is investor owned homes rarely have much pride of ownership. As rentals they tend to do the absolute minimum especially when it comes to exterior appearance.   

Legal fees to fight that fine would quickly escalate, wouldn't take too long to get to to 20 in legal. And at the end you might end up paying that a long with the 20K in fines. This is one of the oldest stories in the book... entrenched interests fighting technological advances that threaten them but offer most people more efficiency and better product for a cheaper price. 

Hey Steve! 1 1/2 years is right, we shared a table as classmates, was a great time. I even had a ton of fun outside of class simply having lunch with Frank and drinking on the Riverwalk while talking parks with classmates in the evenings. Looks like the OP is ancient, I was about to say the same thing when I realized it. Just call Brandon and all should be made well. If Frank got wind of this he's the kind of guy who would comp the set immediately. I've e-mailed and spoken to Frank on his personal phone regarding issues in my park as an alumni. He called me on my way to closing when I hit a hiccup and offered advice that saved me a pretty penny. There was nothing left to sell me (which is the first thing Frank will tell you at the Boot Camp) he does it because he is passionate about it. Where he gets the time is beyond me though.  

Brooke, I think part of the problem is the incredible lack of realistic properties to even make offers on in the BZN area. If you can source deals the investors are out there in force. I sold a quad last year at what I thought was a stupid price (now seems way to low even) and had multiple offers on day one. Even the hysterically priced stuff is getting gobbled up now. I spoke to a direct marketer who no longer even bothers to send to the area but that's just anecdotal, no personal experience there. I'm definitely interested in anything distressed in the area but I think at this point in the cycle it's the builders who are getting fat and happy. 

Same here. Bank of the Rockies was willing to do a HELOC on an investment for me, I'm I didn't even bother asking Wells. But ya, doing anything as an owner occupier is better.

Brokers are fine but they come at a price. I've found small local banks not only offer the best terms but are also flexible. I got a 7 figure loan with a few emails and a half dozen documents. Wells Fargo would've had me doing circus tricks. Especially on commercial properties local banks are familiar and comfortable with the market and often even the property at hand in many cases. They can act quickly because there is little bureaucracy. Look at all options but I'd always give at least a couple local banks a shot. 

Hi Bryan. Friend and I from base just bought a distressed foreclosure here in Great Falls and plan to do the same. I think the name of the game is small local banks but who is financing it now? I spoke to the loan officer I have a commercial loan with and got some guidance. I'm guessing you'll want a residential loan. They'll generally accept 75% of the rental income but will want you to qualify based on your income as well etc. On a straight commercial my bank was simply asking for 6 months of seasoning/appraisal which you obviously have but rates and terms were not as favorable. 

I've had great luck with Bank of the Rockies as has another commercial investor in Great Falls even though their nearest branch is in Helena/Livingston. But you could probably simply contact the loan officer at your bank as well as a number of small local banks and get the ball rolling. Do let us know how it goes.

Hi Meghan. I own rentals in Bozeman/the surrounding area and I think your market assessment is right, the cycle is in building mode now and that's where the money is. People who bought between 2008-2011 or so made a killing. Super market for long term buy and hold but it's incredibly rough to find anything with numbers that make sense for much else. 

Frank is spot on that the other potential costs would come up in due diligence and Frank here is the expert on that. His 30 days due diligence manual is gold. There are things like master metered power/gas if you have it, certain types of sewer lines, bad roads etc. that could end up being expensive. The key is in doing solid DD and as long as it checks out there should be no unexpected big bills. 

Sorry Brie but the idea that being a good landlord negates the problems of excessively Tenant friendly laws is., well,  bogus.  I have a lot of family in NYC with property who can't even set their own rents.  Evictions are inevitable even for the best of landlords  but can often drag on for the better part of a year in places like NYC. Building and construction codes can make repairs or updates way more expensive depending on where you are. The laws matter, a lot,  and no matter how good you are they impact your bottom line.  They definitely should be taken into account when purchasing somewhere and priced in.  In my opinion cap rates in markets that are tenant friendly also tend to be lower further dictating caution.