All Forum Posts by: Omar Khan

@Account Closed Each lender is different so I can't provide you a sweeping generalization. It's going to be hard to get financing especially on homes on other properties. Your rehab has nothing to do with whether the lender assigns the home any value. 

@Joey Isidore I think @J Scott raised an excellent point. There is no "one-size-fits-all" investing idea/approach. Otherwise, everyone would pile into the same investment and all potential profit would disappear. 

Average lender does not consider POH (park-owned homes) as real estate. Hence, hard for you get financing on them. Also, most owners tend to give the homes away to long-term tenants as a means to increase tenant retention and loyalty. 

You will have a hard time running a business if it relies too much on this type of income. 

Ouch! Not being able to casually talk or use words like quiet is pushing it. 

I must be missing something but how is this discrimination (especially the quiet part)?

Only one of those 3 eminent folks are reliable and put their money where their mouth is. No surprise that it's Dave Ramsey. The only guy who says what he means and means what he says. 

Harry Dent and Peter Schiff have been predicting hyper-inflation, recession, hunger, famine, end of times (the works) since time immemorial. Eventually, they might be right. We just might not be around to see it. 

Most of Peter Schiff's funds lost a ton of money while the market has been going up and up. You know who made money? Peter Schiff! All that sweet AUM fees are making the guy rich as he preys off the insecurities of others. Harry Dent is renowned for selling snake oil.  

100% agree with the precious metal part. I've always wondered how are folks going to use their stash of gold when the zombies take over? Ammo and guns still make sense.

No harm in asking if you will bend your rules just this one time and give an investor 100% financing especially when they have no experience, no track record but a ton of heart and grit. 

C'mon! Don't be heartless - show some love! ;) 

Who reads the Post for non-fiction stuff? lol

All the folks you have mentioned have been predicting a crisis every few months for the past 10 years. First it was Bush, then it was Obama, then it's Trump, now the Chinese, tomorrow... who knows? (my money is on aliens)

Take a deep breath, enjoy living in the most prosperous country on the planet and get some fresh air. 

@Pablo Flores Apart from the great comments provided by the posters above me, I would like to add a simple question: How many cooks do you want in the kitchen?

All other questions around structuring, et. all flow from this simple question. Also, if I was you, I wouldn't get too greedy (i.e. too much equity share) on your first deal if you know these are recurring investor. As an asset manager, you are building your track record. Spread some love, make everyone happy and you will reap the rewards in the long run. 

@Mary Lebreq Ideally, you should get a broker quote on your land parcel. You can divide the sale up into a separate land and multifamily sale OR just sell the parcel as-is by adding the value of your multifamily + land. 

Depending on where this is located, the parcel might be sold as a discount or at a premium. 

@Evan File Biggest situation which you must resolve is never letting your eyes get off the ball. For smaller properties, your PM is, probably, not going to be the best and brightest especially if they've been in the same position for 10 years. 

You will need to make sure weekly, monthly, quarterly and annuals goals are met, vacancy is kept to a minimum by either increasing your renewal rate or always marketing, keeping a tight watch on all R&M/capex as well as managing your cash position. 

This all sounds daunting but once you have systems and policies in place, it isn't too bad.