All Forum Posts by: Mike Reynolds

Quote from @William Hernandez:

Quote from @Mike Reynolds:

Quote from @William Hernandez:

Hello Fellow BP'ers

I'm looking to purchase either mutli-family units or a SFR to convert to assisted living facilities for the disabled or pregnant mothers to be that need a temporary home. I understand there are various rules/regulations to begin with. Who, may I ask knows where I can obtain this type of information (HUD?) and is there anyone out there currently working this niche that may offer more insight? Thnxs all!

We stumbled into it by accident. Had a house for rent and were approached by a provider to rent the rooms. One bedroom per person. They have a nurse there 24/7 working in 3 shifts. They did all necessary modifications for compliance. I'm loving it. 

 nice. What type of modifications did you have to make to the home? Rules/regulations?

 That was the best part. They made the modifications. But that they did was convert them to ADA code.

You should look in every MSA. Every city, town, settlement, county, parish and borough. That is where the deals are. There are literally deals within 3 miles of your house right now. You just have to look for them. 

Quote from @William Hernandez:

Hello Fellow BP'ers

I'm looking to purchase either mutli-family units or a SFR to convert to assisted living facilities for the disabled or pregnant mothers to be that need a temporary home. I understand there are various rules/regulations to begin with. Who, may I ask knows where I can obtain this type of information (HUD?) and is there anyone out there currently working this niche that may offer more insight? Thnxs all!

We stumbled into it by accident. Had a house for rent and were approached by a provider to rent the rooms. One bedroom per person. They have a nurse there 24/7 working in 3 shifts. They did all necessary modifications for compliance. I'm loving it. 

I'm looking to get a line of credit and not sure which one to get. Possibly an acquisition line if credit? 

I want to use it to purchase SFHs to BRRRR. I have equity in other properties but I don't want to tie that up because I have plans for that next year. I am willing to use the income from these properties as collateral and/or proof of solubility. It has just been building up anyway and I need to find a place for it.

Is there a loan vehicle like this? If not, what would you recommend?

I have used Citizens and Eagle. Both have been awesome. 

Quote from @Brett Miller:

@Paul Moore I really appreciate your input. This Dela has evolved the more we've dug into it. Still seems like a very good deal but it's turned into more of a large trac of land with Mobile homes on it instead of an actual park. More digging is needed to really know for sure but we are up for the challenge.

Thanks yall!

I actually like park owned homes in it when I buy it. There is more upside later after you sell the homes. And you can sell the homes if you are in a good area. That is the qualifier. Bought my first park and all the bank would finance was the land. It was as if the houses are not even there. That way, I was able to negotiate a better deal. I was very nervous that I could sell them, but they sold within the next 12 months. Not owner finance but cash. I was getting bids on '80's models for 12 to 18k cash. Fixer uppers too. We remodeled 2 of them and only realized about 1-2k more after expenses. We just quit fixing them up. It wasn't worth it. 

We had to crunch 2 and dispose of them. People moved their own in and rented at the new rate. It is doable but I dont think you could do this in a rural setting as easy as that. 

Quote from @Stephanie P.:

Quote from @Mike Reynolds:

Not really a fan yet of DSCR. Have a deal that I have under contract. Will close on Wed next week.

I went to a local "meetup". Well, it was a 90-minute drive but that is considered local in Texas. Met a lender there and gave him the first crack at it. I got the run around for a few days then I was told it would be 10% with 2 points. Now, I have this property under contract for 200k. It will appraise for 325k right now and I am putting 100k down. No work needed on it at all. 

I ended up getting 5.75% commercial from a trusted bank I have done business with in the past. They jumped at the chance even. Maybe I am using the wrong DSCR people? Oh, btw, my credit is in the 800's. Not sure why they wanted to fleece me. Maybe they think I was born last night?

DSCR should only be used once you've exhausted your conventional and local bank sources. 10% and 2 points sounds more like hard money than a long term DSCR loan.

At the meet up, he just said he was a lender. Both commercial and residential. That was on me for assuming I guess. I have a commercial property that I want to refi and a SFH that I wanted to finance. I just wanted to give him a shot at it. I had no idea it was a dscr loan. I have heard about them but never really dug into what they were.

I can get financing. But just wanted to see if my lenders were staying honest. Looks like they are. 

Quote from @Mary Jay:

I work full time+ have few rentals that I self manage+ have a family+ have to cook+clean the house+ have to excercise and I am tired!

I dont remember when I had a day off when I did not have to do anything at all. (Like stay in bed the whole day and read a book or watch movies).

Of course my family helps me, but I am just mentally tired, I think.

I want to go into my childhood when my main job was to go swim at the local lake and clean the house on Saturdays..

How do you guys balance your life?

 Try buying something like a mobile home park and just rent the lots. It is a game changer. 

Not really a fan yet of DSCR. Have a deal that I have under contract. Will close on Wed next week.

I went to a local "meetup". Well, it was a 90-minute drive but that is considered local in Texas. Met a lender there and gave him the first crack at it. I got the run around for a few days then I was told it would be 10% with 2 points. Now, I have this property under contract for 200k. It will appraise for 325k right now and I am putting 100k down. No work needed on it at all. 

I ended up getting 5.75% commercial from a trusted bank I have done business with in the past. They jumped at the chance even. Maybe I am using the wrong DSCR people? Oh, btw, my credit is in the 800's. Not sure why they wanted to fleece me. Maybe they think I was born last night?

Quote from @Morgan Menshouse:

Hello everyone!  This is the first time I am considering commercial real estate. If anyone has expirence in this area and can suggest tips or guidance. Recently, I have had the desire to purchase a 3-4 acre plot of land and build an RV park from scratch. This includes purchasing the property, graveling the lot, installing utilities including septic. Again, assume I know nothing in this area so any advice is much appreciated. Thanks! 

Water and septic are your biggest issues. Especially in the country. You would be surprised at how many water companies are at the max. They just don't spend they money unless they need to. 

Septic is next in line. If you build near a water source or lake, you will have to jump through hoops with the Corps or the local authority.