All Forum Posts by: James Edwards

Looking to utilize a 50/50 RE partnership to buy a specific property. 

Looking to evaluate if that can be done with both partner's having a sole prop/sch e, with each partner splitting all income/expenses 50/50. Or if some type of an llc/s corp should be used. 

Lastly, does 50/50 non married owners present any issues with financing/re-financing, with simple sole prop, sch e or llc/s corp. 

General positives/negatives would be of interest as well. 

Thanks

I've seen a lot in town with waist high weeds/brush. I know it has been vacant for quite some time, and the homes are older. No real idea of condition on them. Given that w/s/electric hookups are in place for each do you think you would spend the time/money to fix up the single wides, pay to have them hauled off and install new? What would be your deciding factor? Limited information I know, but my thought is given construction costs these days I would probably be better served spending the money to fix them up to rent. 

ETA: If the repair time/cost is reasonable. In my mind it would cost more to have them hauled off/disposed of, and then to purchase even a used mfg home and have it hauled/setup. 

Thanks Kevin. 

Beautiful idea. I guess it would be worthwhile to shop around for another lender to use for a heloc? Really hate to go outside of the good relationships I've already built, but guess it is what it is lol 

Is there a reason to use one over the other? A regular broker I use, does not offer HELOC's only re-fis.

There is an income producing property that is for sale locally. A re-fi on an existing house would provide the money to purchase it free and clear. 

The issue does arise that a re-fi takes a while, and if I do a re-fi and this property sells then it is just wasted time/interest/money. However, if I put an offer and cash on the line and financing doesn't workout, that is wasted. 

I have also considered using a credit card to purchase the property and then paying it back with a re-fi. Concern here is obviously DTI being negatively impacted, and then being stuck with a huge credit card bill.

Any advice or thoughts?

Thanks, 

Thanks for the replies. 

The situation is for a commercial property ( rv park) that is under utilized. I believe the situation is because of disrepair of some of the spaces. So my thought was to agree to the purchase price he wants, but terms would be flexible based upon revenues to help bring the rest up to spec. 

Has anyone ever purchased a commercial property, and used profit of the entity to set monthly payment amount, so it is flexible?

For example, full/contract price of $100k, 10 year amortization. Monthly payments not less than say 5% of revenue. 

Seems to me a decent option for an owner carry property, with the ability to share some of the risk between both parties.  

Hi Everyone,

Recently had a potential deal mentioned to me. 

I don't have all the particulars, and am going to meet with the seller. It is appx 5 acres in size, all together, on city water and sewer. 

Deal would include the land, a newer manufactured home on a separate parcel, a regular small stick built home on a different parcel, and something like 20 existing rv/mobile home spots. 

I think 3 older single wides are included, and one fifth wheel/travel owned by the park, all 4 are rented, and at least ten of the RV spots are rented/full.

Price would be $350,000 for everything, and seller wants to owner carry. The caveat is that he would like to live in his house/the park until he passes away, rent/maintenance free, and have no hassle from the park. 

Questions:

This is a weird mix of things, what would you be interested in knowing, other than current financials?

2. Would his proposal to stay there rent/trouble free impact your decision?

I often see disclaimers of a home not lendable, due to a lack of a foundation for a house. Either in part or in full. Typically something like a post/pier type foundation. 

I assume that there are ways to accomplish this, outside of owner carry?

Thanks, 

How does everyone handle late rent, appx twice what the late day is considered?

Renter has been overall good and keeps the house up, but has been rather needy at times. 

Tenant agreement spells out a late fee penalty. 

Would a simple text to see about rent be good? While I believe following the agreement is good,  I'd really hate to get into the late fee aspect because it can start getting tit for tat. 

Thoughts?

How does everyone handle rent increases with new home purchase, with existing tenants? Been there a lot of years and high points from previous owner. 

If they move house will need probably $1,500 in general cleanup/rehab.

Rent is currently undervalued, at $650. Do you shoot for more than you want, because if you negotiate down its a deal?

On the open market you could probably get $900. Trying to decide between saying the rent is $775 and having no rehab costs, or $875 right out of the gate and potentially dealing with rehab costs and likely eviction process and no rent.