All Forum Posts by: Tom Goans

@Charles Helaine,

Buena Vista, great town and area. I have driven through there hundreds of times. I bet at times it is difficult to concentrate on working with all that scenery and thrilling things to do year round.

Have you poked your nose around the San Luis Valley area much. The prices are much more economical. The major drawback is the low income levels, which partly defines the reason for the low prices. But there are popular niches with out of state visitors and buyers. I once drove west of Villa Grove. There seemed to be a lot of activity in this mountain area with a lot of out of state visitors. I also came across a lodge in the area. This is also suppose to be a good hunting area.

I came across an excellent website that a photographer who lives in Crested Butte updates almost daily that you may enjoy.

http://cbshotoftheday.wordpress.com

Have fun.

@Blair Murphy,

May I recommend not investing as much as you can. This can be reckless.

You may want to invest some time in learning how to build wealth and keeping the money you earn today. You may thoroughly enjoy taking a short time and seeking continuing education courses in finance and business. Local colleges offer great continuing education courses at very economical rates. Many are in the evenings. I also include courses at real estate schools. I have attended tax seminars conducted by tax attorneys. All this will help you to develop a business and lifetime plan. You may also want to consider including a conversation or two with a financial and tax planner to help you create a strategy that includes today and future planning. There are many options to consider to achieve success and to building wealth.

Do this correctly and what the taxman was hoping to collect will pay for your children's college or your retirement or ...

Spend as much as you can because financing is cheap is the same path Detroit chose.

Much has been written over the decades of a wise investment of income. Some suggest in investing 10 percent of your income on continuing education and another 10 percent is put away for retirement. Every person and their situation is unique and must determine their own lifetime investment path.

As my father would say; "Plan your life and work your plan."

@Aaron Sims,

I am hoping that when you calculated the numbers before you bought the property, all of these costs of repairs and enhancements were considered. I am concerned of your statement that you were surprised by the cost of repairing the roof. Have you considered repairing the attic and other interior damages?

As for priority, I would think the first thing is to stop the damages from occurring. I would consider repairing the roof as the number one project.

Next, curb appeal is a premium. It is the first impression. Years ago, I read an article that stated flowers and a well-kept yard adds $5,000-$10,000 to a sale price. It must have a similar affect to tenants.

Next, I would think it would be wise to make sure no one gets hurt with faulty garage doors.

A new business plan, one with updated cost numbers, should help you plan your attack and set priorities while working with a budget that includes a positive cash flow.

@Edward Saavedra,

Consider taking marketing classes. Many local colleges offer Continuing Education courses that are very economical and great.

Until your are very good at taking photographs and then working with them in Photoshop, I would highly recommend hiring a professional. A picture is worth a thousand words. Just like art, photographs speak to one's emotions. Words are just words.

Of note: Nikon (the camera people) conduct excellent 2-day seminars on taking photographs and working with Photoshop. EXCELLENT. They are very economical and held in major cities across the country throughout the year. The Nikon website is the place to find the schedule.

I have always created a separate website for every property. Every property is unique and so is the information. Studies show that if a website visitor does not find the information they seek within seconds, they move on to your competitor's website.

While some find videos trendy, I never use them for two reasons. Everybody has their own opinion on this subject. Mine is based upon experience of creating my own websites and understanding the visitors. Most website visitors do not like websites that are heavily broadband reliant and slow. If they cannot get what they want in seconds, they move on. This last statement is based upon numerous studies and research.

I rely solely on my websites. So cost is almost nothing. The important consideration is a well-designed and maintained website(s).

You will get better and wiser with each project. Have fun.

@William Collins,

This speaks to your point.

Every Person Is My Superior

In That I May Learn From Each Person

@Chris Jones,

From what I am understanding from your post, I see one huge red flag that I would want to thoroughly understand before going any further. Why the low occupancy rate? Secondly, how long has this been an issue? Review several years of books and tax returns to confirm verbal responses. From afar, the lot rent is very economical. But, then again, in the market where the property is located, is the lot rent in line with the competition.

I completely agree with David. I have many years experience with manufactured homes and related properties, including parks and communities. Any segment can be fantastic investments and great cash flows. However, just like all investment considerations, you must do your homework. Not just the park in your case, but the business and target market.

City utilities is not an important issue if you have a good and reliable infrastructure in the park. Thoroughly learn about the utility options in the park. Study the age and maintenance requirements. Consider if you are capable of handling the issues that arise - financially and knowledge.

I also agree with David's point of sharing your investment with a seasoned manufactured home investor - especially a park investor. A good experience for you would be to become a park manager first to learn the ropes.

Work the numbers very hard. And do not overlook the time it may require, especially initially.

Good luck.

@James Hannon,

There is no one correct answer to your question. Not one article that will be able to specifically address your unique situation.

Every investor is unique with unique goals. Developing your business plan will help you to answer your question. You may want to have a visit with a licensed financial planner and tax consultant to help you with the fundamental considerations as it applies to your present situation, strategy, and goals.

The "usual" 20 percent down payment is a moving target.

@Joseph C.,

You are going about this incorrectly for numerous reasons.

First and foremost, the park may not allow investors to buy homes and then rent them. The park may require only owner occupied owners. There may be other restrictions you must consider.

Your very best approach that I would recommend is visiting each park manager. Find out if they allow investors to own rentals in the park and if there are any other consideration you need to know.

If there are no issues, develop a very positive relationship with the park manager. This is your primary source for investment opportunities.

Next, visit all the local manufactured home dealers. They sell repo homes, many still setup in parks or on land zoned for manufactured homes. The last home I bought was just this. It was a 2-year old home 3/2 with many nice extra features. It was ready to go and already set up in the park where I had 20 homes.

@Jeremy Collins,

Your issue is not with comparable properties. None exist. The appraisal is not very reliable. Photographs are unnecessary. Your primary concerns are costs and time.

The cost to repair this property, bring the property to local code, and the time it will require will probably far exceed the profit potential.

You can purchase in great condition a manufactured home ready to rent or sell for the price you are considering to offer for this property.

Don't lose hope. Just seek better opportunities.

@Justin Bo,

While your question is simple, the considerations are complex. Your situation is unique and there is no one correct answer, especially based upon the very little information you provided. And you should not provide personal financial information to strangers. Only to a trusted and licensed financial planner and tax consultant. Actually, you have numerous options to consider.

You left several extremely important factors from your consideration. Let me touch on some, but not all, factors that need to be considered.

You mentioned you plan to own the property for an estimated 5 years. Have you ever reviewed an amortization schedule? The majority of each principal and interest payment for the first half of the loan term primarily pays interest charges - in your example, the first 15 years.

Your considerations for buying down the loan interest rate goes far beyond the $86.04 monthly savings.

A financial planner and tax consultant will be a valuable to help you with this determination. Your present situation, strategy, and future goals are important considerations to reach a proper determination.

Buying down the interest rate can be a nice carrot to you, but it is certainly very appealing to the lender because it will increase the yield on the loan.

Paying an additional amount each month is a great way to reduce the amount of interest you pay (interest is calculated on the unpaid principal balance). This is also appealing to a note holder because it also increases the yield. HOWEVER, beware of the prepayment penalty. Read all the lending documents thoroughly to see if there is a prepayment clause. It may be very wise to have an attorney you hire also review the documents.

If there is no prepayment penalty, when paying more than the stated payment amount, be sure to send a separate check with a note attached and it stated on the check the amount is to be applied to principal reduction only. Keep good records of your payments.