All Forum Posts by: John Brinkos

This is a devastating act for most of us! Must read and tell your representative and congressman your thoughts!

https://www.warren.senate.gov/newsroom/press-releases/senator-warren-reps-chuy-garca-and-lee-introduce-legislation-to-extend-nation-wide-moratorium-on-evictions

Take action to stop this.

A real estate agent is not essential in a deal but they do act as a negotiator and advisor. If you have a real estate lawyer they can provide advice to make sure you are proceeding correctly and you are protecting yourself in the process. The agent also has a network to assist with financing and closing the deal. The lawyer can help with closing. Your BP network can help with the finance side. Try your bank, don't hesitate to contact the commercial side because they make have a portfolio loan program. Search "finance" in BP and that should get you to lenders that can work with you. The agent does provide a level of comfort and familiarity in the purchase but is not essential.

Remember when you are running your numbers for an FHA loan to add in the PMI (private mortgage Insurance). It can be pricy and significantly change you profit numbers.

If she is an investor and planning a move and you have worked for her so you have a business relationship already...maybe you can offer her a share of the flip ptofits in exchange for holding a note with 0% down payment to acquire the park. She keeps passive income from payment and makes money on the flip sale profits. Everyone wins!

That is not always true. It depends on the lender and tyoe of loan. Some banks who hold a commercial loan in their portfolio will not reuire that. You need to shop around and build out you finance network and team. Have you talked to any commercial mortgage brokers?

You are leaving out the mortgage paydown (by tenants) and appreciation that comes from rent raises...since NOI drives value in commercial and not market appraisals you can raise rents $25 in 16 units and increase property value by $80,000 at a 6% CAPRATE. So much higher growth in IRR can be achieved in commercial MFP then residential.

IRR should be balanced against all of the financial evaluators. It is a great tool for measuring one turn around deal against another turnaround deal. Cashflow proves your are not funneling in cash every month to cover expenses and financing, NOI helps compare deals "apples to apples," and IRR gives you the final piece of the financial puzzle to see if you can obtain the total return you are expecting. They are building blocks...they all have to fit and balance each other for it to be solid.

@Amelia M. What are the reason you selected Cincy and does that neighborhood and type/class of property for in with those reasons for investing in that area? If you are going to invest remotely you can pick anywhere.

- will you be traveling to that area?

If so are there driect flights?

- what are the added costs of investing remote in that area?

- will it keep you up at night worrying about a PM in a lower class area and the expenses that increase in a lower area in an old property.

I live in Norfolk VA and will be closing on a MHP in the Cincy MSA in a couple weeks. These are some of the issues we had to get comfortable with before we made the leap out of our local MSA.

I think Cincy has upside and could see a solid 5-10 upside but are you okay if there isn't. I guess might point is are you happy even if it is simply stable for the future and can you profits overcome the distance.

@Paul Shay We did not. We added a $150 per unit to the marketable price, advertised at the same way infilled and went from rehabbed 0 residents to 100% occupancy in two months. Our utilities run us about 475 to 480 on average throughout the year so we are actually netting positive in that process.

@Paul Shay can you market as a positive and bump rents to include utility cost...we did this ona 4 plex (4 1/1 untis).

"Save yourself headaches!!! All utilities included in rent!!! Apy one bill for all...ideal for the one the go professional. Don't let this oppurtunity pass you by."