All Forum Posts by: Kendall Anaya

When is the balloon payment on seller finance side? Also, what are the differing interest rates between the 3 options you took?

@Tracey Virtue There is a ton on complexity to it for sure. Keep your eyes open though, I am sure there is an answer to achieve this but it may not be soon is the other downside.

@Tracey Virtue Oh yea, I know most city and counties where I live are difficult to get approvals for anything like this. If you haven't already, I would try to be apart of local town hall meetings and just network a bit there, then it will be easier to lobby for these kind of expansions. I haven't had to use this technique yet, but I have been a part of town hall meetings enough now that people know who I am and it will make it significantly easier to lobby for change.

@Tracey Virtue That is certainly no small task but absolutely doable. Are there other trailer park community in your area? I would check them out and see how they are doing, gives you an idea of if there is a demand and clientele, or even if you find a park that isn't being managed as well you may even be able to find a deal and get a community that is already up and running and provide ad value through better management. Just some thoughts.

@Tracey Virtue Excellent! Sounds like you will be able to increase your profits well.

Were you able to get enough rent to cover the mortgage entirely or just partial?

I agree with a lot of what others have said. I just closed last month on my first deal and closing on a second at the end of this month. Try looking for a local real estate club in your area, then go to those meetings to network. Talk to everyone and ask questions, and if you find a couple people who may be good mentors, get their contact information and some time in the future invite them to dinner. I think establishing these relationships not only will help you learn but will begin the networking phase that could lead to a mentor or partnership.

This sounds like an excellent deal. Did you have any struggles converting it into a duplex with zoning or other issues? Did you have to make a second private entrance or was it shared entryway effectively already there?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $113,500
Cash invested: $28,564

This is a mobile home converted to a single family residence (title deed removed), 3/2. I started purchasing this property without having really figured out how to work in real estate yet and was still learning and it was before I really knew what "running the numbers" meant. I have positive cashflow though not much, so I consider this a very small win.

What made you interested in investing in this type of deal?

At the time of negotiations, there were hardly any properties available for sell in my area and this one met the criteria I needed as a turnkey.

How did you find this deal and how did you negotiate it?

Found it on Zillow. I had a compete offer so was only able to get it down by about 5K. The only reason the seller accepted because he mentioned a second property he is selling next that I ended up agreeing to as well.

How did you finance this deal?

Conventional loan but at a high rate of 7.5%

How did you add value to the deal?

This one I did not need to right off the bat but I just finished making a new set of stairs and very small deck.

What was the outcome?

I purchased it and within 8 hours had a renter applied, he met all my criteria and had him moved in within a week.

Lessons learned? Challenges?

Not to rush a deal and educate myself a bit more beforehand. Biggest challenge though was the even though the county recognized it as a SFR (title deed removed) the banks and insurer still see it as a mobile home.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tom Harrison was the realtor and he was fantastic to work with as well as the lender I used United Wholesale Mortgage LLC.