All Forum Posts by: Pat Jackson

I'm about to buy a mixed use (commercial and residential) in an an Opportunity Zone in Missouri.  One partner is selling off another piece of real estate, obtaining some notable gains, and 1031ing into this property.  We will close in 2019.

I understand if the 1031 partner is in the building for 7 years, he will be able to negate a fair amount of the gains he deferred at purchase.  I have heard if we all hold the building for 10 years we will face no capital gains if we well.  I don't know if this second piece is true.

My question for BP is this, what else can we do to maximize the benefits of buying such a property in an OZ?

@Mike Harding how did this pan out? I live in Reno and manage a 3/1 STR in Missouri. We netted $2600 in June. It's great.

That’s a real treasure having the ability to get the permit in SLT.

This question is regarding a trailer park, however I think it is equally applicable to pretty much any 1031 exchange.  In this situation a park owner owns a park outright (prime for seller financing), and he really wants to 1031 exchange into a farm.  He doesn't want to exchange right now, and my partner and I need a few years to stabilize everything (and document expenses) so we can get bank financing.  This is a nice park, the owner owns and rents the majority of the homes, however it's a typical mom and pop park.  Poor records, owner does all his own work and maintenance, and it's hard to get a true handle on expenses.

From my understanding the 45 day period to identify properties to purchase on a 1031 exchange starts the day the property goes under contract.  Obviously we need more than 45 days (or even 6 months) to stabilize and document trailer park expenses.  Someone recently recommended doing a lease to purchase option.  Does anyone have any experience doing this?  Any other thoughts on how we can "take over" a park, but allow for a balloon payment 3-5 years out and allow the seller to 1031 exchange this final buyout?

I'm looking at an off market park.  It's pretty darn nice in a nice part of town.  Many of the mobile homes are 2000 or newer.  The owner of the park owns and rents the vast majority of the homes.  He want's to sell, but will miss the monthly income.  He's interested in owner financing.  

My understanding is many park owners end goal is to own the lots and have the tenants own the mobile homes.  Does anyone have any thoughts on buying the park and the original owner keep the homes?  He would pay me lot rent, and collect rent (and still maintain) the vast majority of the homes.  He would get a monthly payment from me to pay off the actual park.

Is this idea crazy?  I'd rather own everything and slowly sell off the homes with seller-financing.  I imagine I'd want some sort of agreement where I have right of first refusal to buy the homes should the owner ever want to sell.  Thoughts?

@Kim Tucker thanks. Have any guess on what he charges to originate a loan?

@Daniel Peavey this is a year old.  How did it go?

Is @Bill Gulley still around?  Is he still offered any education?

I have a local portfolio lender that is receptive to allowing wrap mortgages, allowing me to do seller financing.  I would want these sold with a contract for deed.  I am not exactly sure how the insurance and tax payments would work.

I realize with a deed of trust it's really easy to have any number of third party note servicers hold escrow, and ensure insurance and taxes are paid.  Can it work the same way with a contract for deed?  If the house burns down and loans need paid off, can both I and the initial loaning bank be mortgagees?

Here's what we have, as my partner is about to walk a park with an owner....to get more info to put in a realistic offer:

1. Lot number
2. Year manufactured
3. Roof style
4. DOT number
5. Condition 
6. Ownership
7. Occupied/vacant
8. Current lot rent
9. Wholesale value
10. # bedroom and bathrooms
11. either square footage or dimensions (I don't know what the standard is here)

Any other important information regarding existing trailers?  This is a 28 lot park, the owner owns 26 of the trailers.

@Gabe Monroy if you ever get anything in Saint Joseph let me know.