All Forum Posts by: Jack McWatters

@Daniel Smithson the problem I’m having right now is that it is on market, which means that the owner is going through an agent. And I’m not so sure when I suggested the seller financing option that it got through clearly through the agent. Although on a park this small it would be beneficial for him/her in many ways, similarly it would benefit me as well. So so I can’t get seller financing on this property I was thinking of going to a local bank for a loan, and then refinancing it after some time. I was hoping to add value in a few ways to the land itself and to bring the rent from 275 to 400-500 which could work, because 7/8 are renting their mobile units and there is one that is not, which could be an issue. What do you suggest on that specific person? I figured I could say hey I’ll come in and give you a 1000-2000 remodel in any area if you mobile and I’m going to raise the lot rent to 450 say and that is still a great deal because it’s affordable and I’ll be making the park nicer in general.

@Daniel Smithson wow thank you so much that’s is a ton of great information thank you so much. My idea was that I could have a property with low management cost at first that would allow a steady cash flow, that then I can funnel that cash into my next deal. But what it sounds like and I understand is you want to look for parks with something missing almost that would allow you to add enoug value. And to make sure you are able to get bank financing

@Daniel Smithson daniel thank you for your input with your knowledge! That actually does make a lot of sense and I may want to sub divide the house and sell it off if it makes sense. Also I should look to aim for a lower price rather than the 550k that they are asking.

In your opinion what is the best mode of financing in a mobile park industry. I wouldn’t mind bringing a partner on even if my profits were cut a little just to get me in the doors.

@Leslie A. I think particularly I was focusing on what numbers at that price would make sense. And I also weighed into what would work for the seller. But now knowing what frank told me I may do a little more due diligence to see what the lowest price I can get it for would be.

@Frank Rolfe what do you suggest if you don’t mind, do I offer and how should I go about it. I’m hearing that if they don’t come down to a certain price, I should leave the deal alone. No deal is better than a bad deal in my eyes.

@Leslie A. Leslie my target price was and I will admit based off of an estimation so honestly it’s not set in stone. What would you suggest ?

@Frank Rolfe Thank you so much!! And wow! Frank Rolfe himself!! I have been binge listening to your podcasts! Thank you for all the information you provide! I’m definitely going to re-listen and absorb it all.

Guys I wanted to start off by saying I might have possibly stumbled across the most amazing slept on investing strategy in real estate. Well maybe not slept on... who knows.

I actually have been eyeballing a park that went up for sale in a state I admire I won’t tell you where. Jk if you want to know just message me! Anyways it’s a smaller park only 7 units and a house. It’s actually fully occupied and I have the profit/loss statement that the agents sent me and it made decent profits in the years 2016-2017 I don’t have the recent ones I’ll have to find them. Anyways when I calculate what the current rents are

Unit 1 800/mo

Unit 2 875/mo

Unit 3 275/mo (lot rent only)

Unit 4 550/mo

Unit 5 675/mo

House 550/mo

Unit 8 800/mo

Now as the average lot rent is at 280 for mom and pop parks, I think that there is a possibility of raising that lot value up, and trying to get every unit on rent to own to allow them the opportunity to become home owners, which would benefit them and me. They already all pay their own utilities surprisingly, I would only pay upkeep and garbage they said.

The property is listed at 550k I think it would be better off in the 425-475 range if I could negotiate that.

550k @ 10.9 cap rate (please correct me if I’m wrong I’m new at the cap rate calculations)

450k @ 13.3 cap rate

I want to be able to only charge lot rent and get rid of having to repair the units myself allowing them to take care of their properties as their own, and giving them the opportunity.

Please let me know what you think and if my numbers are off. I’m posting on here to gain wisdom and learn, so please be nice and give advice. So I can learn.

@Lisa Lincoln that's funny you mention that property I actually am looking into that one and what it entails. I figure it won't attract a or b quality tenants, but I was hoping more for working class tenants, and at a good price I figure there's still good profitability, that being said if the ARV is good. Now that property has a detached unit above I was considering doing a short term rental above and long term below. Do you know the area pretty well would you be willing to shoot me a call tomorrow to talk about the area?

Hey guys I have an off market deal I’m going to take a look at on Saturday, and in California its a great deal. The issue I may have is the location of the property.

It’s not a bad location but it’s in a smaller forest town about 5 minutes from Lake arrowhead.

It’s a 4 plex and I was curious to hear what about people think about a short term rental/ long term rental combination would be a good idea or if I should just stick to one or the other?

It’s also hard to find comps because there aren’t too many in the area like it. Almost none, how would I look for comps on this property?