All Forum Posts by: Lawson Ott

assuming about 75k all in, a 1050 rent = 1.4% cap rate.

figure 50% of rent is all your expenses (PITI+vacancy+maintenance), theoretical cashflow of 525/mo.

sounds good.

just be sure of the facts. new roof is expensive, so is plumbing.

also, what's the price history on that street? on an upswing over the past 3-5 years?

there are deals in every market. not every area has a market though. market is defined as where houses are being bought/sold.

the best DEALS are harder to find. maybe you have to examine 100-200 units to find the one gem.

as for insects, litter the place with diatomaceous earth (makes the most sense between tenants, but can be used around humans and pets)

worse problem with much contact is dry skin/rash.

the powder is crushed diatomes (creature shells, chemically silica-ish) in effect it's micro shards of glass which wedge in the crevices of the exoskeletons. so bugs eventually get clumped up with the stuff and can't move. and sometime pierces the innards. so either way they die.

it's organic, non toxic. just don't wallow in it, and don't let kids/pets play in it.

the dodd-frank act is likely the law you are referring to.

in a nutshell: no one entity may finance more than 3 transactions per year without complying. basically, you can offer seller financing, land contract, etc up to 3 times per selling entity. so you can do 3, your llc can do 3, your other llc can do 3. - but compliance is just properly screening to make sure that the buyer can afford it. you'd have to prove that you did an almost-bank-level credit worthiness and financials check before approving a buyer.

just a summary from a non-lawyer, for more info, please defer to a competent attorney in your space. 

rule number 1:

ask them. "he who open mouth first, winds up with foot in mouth"

most sellers would love 20% down. most of those are willing to take 10-15% down. a few will take 5% (or less) down.

standard LP is 2 yrs, easy to get 3 though. 5 is pushing it, but can be had.

hi Greg, your plan is in my space. 

as an indiana resident and investor, i'm deep into SFR's duplex triplex quads in the area.

as an example, a duplex i'm about to close on: the seller works out of town and does not have the time to landlord it and so just wants to be rid of it. however he's still making payments (about 20k left). i offered a sub-2 and his lawyer said not to, but we are working something similar. i put 1500 down and he applies that to the mortgage, with payments of about $350/mo (PITI) i'd own in about 5 years. (sooner if i pay more to principle).

the 1 brdm 1 ba would easily rent for 325 (up to 400) and the 2 bdrm 1 ba for 375 (up to 475)

so i'm looking at bringing in 700/mo minus the 350/mo to buy it, leaves some for emergency fund and the rest can go to principle. once it's paid off, it will be mostly profit.

my first deal was a 50k house which i got for 10k (over 5 years at 175/mo with $25 down)

-i find deals all the time, i just have to pass on most for lack of capital. hence only 2 deals in my first 2 years since seller financing is scarce.

but if you have cash, (or down payments) i can hook you up.

if you'd like to work together on some hoosier/buckeye properties, let me know.

whether you'd like to partner, or just have me feed you some wholesale (contract assigns) i'd be happy to help out.

put the land trust into an LLC

the LLC is the beneficial interest of the LT

you and your partner are the owners/BI of the LLC

shop around for other companies like the one you mentioned. see if any of them can get a better cashflow, or even guarantee a certain number. compare these to listing it on Air-BnB yourself.

if it were me, i would put the new trailer in. i'd offer it to the upper end of the blue collars as RTO/LP.

whether they exercise the right to buy or not, the "new-ness" can command a higher monthly rent/payment. if you can find someone to put a sizable down payment proving intent on ownership, they ought to treat the property better.

3rd option, just offer the lot for rent at $300-$400/mo. they can bring their own trailer. if they ever leave, it should be in the lease that if they leave the home on the lot more than 30 days beyond their move-out date, the trailer becomes your. for free. clean it up and rent it out again. save yourself from spending 30k up front.

just make sure your Monthly rent - PITI = cash flow.

bankrate.com shows $400k amortization over 30 years = about $2700/mo

2700/mo loan
1000/mo reserves (crap happens fund, vacancies)
1100/mo taxes
1500/mo insurance
________________
$6300/mo total expenses

so...

10,700/mo rents
-6,300/expenses
________________
$4,400/mo profits

how do i shop this around to get a lender to loan? the deal is a winner among winners. i have to get in on this, but how?