All Forum Posts by: John Hamilton

Hi @Orlando Paz

 I'm glad to hear about your interview.

If it were me, I'd pass. There are so many mobile homes out here in Florida for cheap, the market is very brutal. You can buy a new MB for $14K. Fixing one that is almost 40 years will most likely cost you half of that just to get it to code, and maybe more to attract buyers for resale.

And there is the monthly rent. I don't know what you're paying now, but, maybe it's cheaper for you to live there for a while, since they waive lot rent. That will give you a chance to get caught up on your bills and maybe save some small capital for making deals.

Also, you mentioned the two red flags. Depending on your age, you may not qualify to live there. Take the step and fill out the application to see if you even qualify to live there. Then move from there.

It's free for a reason: falling apart, bugs and pests inhabit, mold and other toxins, unsafe (condemnable) habitation, etc. If these aren't an issue, then maybe it might be worth investigating further. 

However, once there, you can always invest in other MBs that become available to invest and resell. to me, it's a hard market and very little reward vs risks. However, if the park manager knows of your investment schtick, it might become a little gold mine for you. And her, if you fix and flip. All she cares about is occupancy. The more the park is filled, the better.

@Lee That is awesome Lee. As long as the broker is ok wit your activities, you bring business to him, and you don't become a liability, everything should be good. 

On advertising and marketing, don't you have to use the broker license on every advertisement? Do you own your own LLC for your personal RE activities? Do you disclose your a realtor to all your leads?

@David BattleAwesome! And thanks. I like Chase. 

They just seem to be up on things, as opposed to Wells Fargo or BoA. At least personal accounts. 

Based on your review and experience, I will most likely end up going with Chase, too.

Hi All,

There was an LLC (family owned) that I was a managing member on, but the license has elapsed this year. It was in business for a few years (started in August 2012, i believe). It was a basic LLC used for my Dad's work as an IT contractor (SAS Programmer). I was also employed in the IT field as an IT Project Manager.

Since my Dad has passed, could I reinstate myself as the principal managing member and add another partner (to keep it officially a partnership rather than a sole proprietor)? It was originated in the State of Delaware.

OR

Would it be better to get my own LLC as a series (can also be done in Delaware, maybe Florida where I lieve, I haven't checked that) for real estate investment purposes? With a series LLC, I can add other LLCs under that (for every investment property) and maintain the master LLC as just that. All property assets and liabilities would not affect anything but the series, or individual, LLC. This also helps to keep additional properties separate, if I have more than one owned.

My purpose now is to just do fix and flips, one at a time. However, I'm sure once I get one, I will want another either right after or as I'm nearing the end of the first for resale. Eventually, if the situation fit, I will be doing buy and hold for some cashflow.

Any ideas or suggestions with others who have faced this situation?

I was considering Chase and Wells Fargo, which I bank at both. Bank of America was what my partner used for her business, but that was in California. Of course, they're here, too. All of these 3 banks are BIG banks and will have associated costs and most likely more stringent regs or rules, compared to smaller banks or credit unions. However, they could offer more services that the smaller guys can't.

I'm in Florida, so this is definitely is a decision I will be making in the near future, too, when I start my LLC.

@Gabe, to me vendor #2 is a no brainer, if you are keeping the property for the next 5 years. Less calls from your frustrated renters at the most inconvenient times (A/C in the Summer and Heater in the Winter). Prices may change based on the time of year as demand goes up during peak times. It could take longer as their calendar has less availability.

If you don't know the condition of the heater based on your sub-par code lines, you may want to bite the bullet and go for a full HVAC install, which might be more with new line replacement than the original quote.

Going with just the blower replacement could save you big money, if the unit lasts and nothing is wrong with your heater. Summers are brutal in Texas, but winters are brutaller (new word?). You might end up having to replace your whole system if either one crashes. So, it's up to you. Say you replace the blower and you find your heater doesn't work. Now you have to invest more money just to get that running. That could be $2,000 to fix. Then you find your A/C crashes this summer after replacing your blower and fixing your heater. Now you're up to another $3,000. You still have the crappy system that could last a few years, yes, but no warranty or service attached, perhaps. Not mention service costs for both calls. and who knows what else goes wrong, which could up the ante. IT might have been better to dig deep and pay the vendor now and save your headache and renter frustration and relax over the next decade, with proper maintenance of course.

Although I agree that there may be occasions that having access to the MLS can be advantageous, do you really need a license for just that? Couldn't you find a realtor who is investor-friendly who will look up anything that fits your criteria? The more you move on their listing, which they get commissions for resale, the more they are happy to provide whatever you need.

Same with a broker, in my estimation. (not true in all cases as stated by the lovely @Jennifer Lee). As long as you bring in business and run your own investment LLC, and keep yourself clean (you're broker won't like infractions and violations you cause, it's a liability) the broker shouldn't have a problem. Of course, finding that broker might be the needle in a haystack if you're trying to avoid "company policy" firms. In fact, if you resale your investments through another agent in the firm, why would anyone balk at that? How short sighted some of these agents and brokers can be, in my humble opinion. Not generalizing, just saying.

Jump through the hoops (documentation and POF, etc) and start your bid and bid up to your no-go price if you find other bidders outbidding you.

There is no real way to win. No guarantee they will sell if reserve not met or will accept your bid at all. 

Good fortunes to you

@Frederick Jacksonit depends. 

What State(s) are you looking at (more precisely, what cities or counties)? 

How big is the MF (4 units or less or more)? 

Are you looking for rehabs or turn-key? That depends on your budget.

Do you have either residential or commercial funding (that could make a difference in the type of loan needed or required)? 

Do you have a RE team in those states? (realtor, wholesalers, bird-dogs, GC or handyman, etc)? You will need someone to go view the property and give you a report. Don't ever buy sight unseen, if you can help it. Having another investor do you a favor might save you trip costs to view it yourself.

Have you done any deals, yet? You might consider something local and SFH if you haven't.

Good fortunes in your REI endeavors.

I'm no expert, so this is only my humble opinion. Experts can weigh in. I'm familiar with the Bay area as I lived in Livermore, Pleasanton, and my Father worked, as so did I for a few days, in SF. I also was checking out properties in the San Jose, Oakland, SF, Walnut Creek, etc all around the Bay Area. Also, as a storage unit warrior at the time. So, that's my credentials to weigh in.

I'd always keep an eye open in your local market, first. Watch for "signs" of economic change (job losses, tech business news, increasing crime, rents and housing prices, etc). Although Oakland can be better priced, it doesn't mean it's the best move (pun intended). If you know the area of Oakland, it can be just as much as the middle market in SF. You might get more land, rather than an apartment/condo for the same price. However, dealing with Oakland Bay Bridge commute everyday is a consideration as opposed to living in SF. Though, traffic sucks either way.

You still have time as the baby can bunk with you in the cradle for now. 6 months down the road (from birth), it may be time to kick the child out to their own space. So, you still have time to view the scene. keep reviewing the market prices in the areas you currently live and want to move to, but always go with what is currently happening. If you base your move on futures, it may not happen as you expect and may end up regretting your decision.

Also keep an eye out to take advantage (move quickly) on deals that fit your criteria. For example, you could buy a duplex with one side needing repairs, but the other livable. You do quick fix on your side, if needed, to start residing. Then, as quick as you can, rehab the other side to start getting that renter in-place. Hopefully, their rent could pay your mortgage costs. Ideally, it would give you some cashflow. Save for repairs and vacancy for your rental side, just in case.