All Forum Posts by: Paul Sofia

The margins don’t make make sense anymore for me buying single families. Everyone is overpaying in my opinion. I want to buy the land and build 6-10 homes in a community. Anyone here looking to do the same thing?

If you can find a piece of property that you could subdivide based on just road frontage, that would be your best bet. Developing land is a different kind of animal. I have done plenty of new builds and have only been able to max out three homes on a parcel with existing roads. You may find something that will allow you more but I wouldn't try to develop property at this point of your experience level.

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Atlanta, Georgia

Quote from @Maksu Ize:

This is the kind of stories they need to do podcasts on, everyone thinks you buy a unit, spend 50k, and suddenly profit 30k.

The only person to blame for this is yourself, you rolled the dice on a questionable home, and here is the outcome.

Hopefully you find cheaper contractors, might have to settle for C- work, keep your costs low, and hope you break even. If your lucky even make some on it

Pretty lame response. Hope this never happens to you.

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Naperville, Illinois

Quote from @Alina Tana:

Quote from @Paul Sofia:

Learn a trade. Right now is not a great time to jump in. Most folks on here will disagree because of the "wealth" they have made on their investments. If you want sugar free truth, I'd be more than happy to discuss.

Disagree. Your 300k will soon be worth a lot less, considering the fact that the dollar is being devalued as we speak. Inflation rate? It is going to be much higher very soon. BUY. ANYTHING.

Dollar will be toast. I've got that covered. This economy is on borrowed time. Property is way overvalued. As long as Wall St. continues to buy, it will make the bubble bigger. Buying real estate right now, is not the best bet. Watch and see.

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Saint Louis, Missouri

1 Vote

Saint Louis, Missouri

If you have never done any new builds, all lenders I'm aware of would require you top partner with an experienced GC. If they haven't done any builds in the last 5 years, that would pose a problem.

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Most all GCs have no employees so they do not carry workers comp. The majority use subcontractors. I'm in the modular and manufactured home business which still requires quite a bit of site work. I carry liability only. I have 0 employees. The lenders that issue construction loans requires me only to carry general liability. I have been audited and my insurance co. required me to show them proof of sub contractor general liability.

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Colorado Springs, Colorado

Manufactured homes depreciate if they are not deeded with the property. If they are, they do the same as a site built home, appreciate and depreciate given market conditions. Title must be surrendered at DMV and that needs to be recorded at the Register of Deeds affixing the home to the property, thus becoming real property.

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Quote from @Brad Swearingen:

@Rachel H., thanks! I am getting a good deal on the lots because the owner doesn't want to deal with it. The squatters have been rude to him and he wants nothing more to do with them or the process. I do know a property manager so I will get some advice from him as well. Hopefully I can still get some good input from the BP audience here.

You need to look at NC laws. It's not as easy as one might think. Even if you pay them to leave, others may take their place.

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Raleigh, North Carolina

Quote from @Lorraine Martin:

My biggest thing I am wondering is if anyone would have any idea if it can be moved since porches and all are added on.

Shouldn't be a big deal, all hookups should be removed ie., hvac, elec., plumb, along with steps, decks, skirting. the house has to be broken down, wrapped and have axles and wheels put on along with the tongue, if removed. It's by no means cheap but that will be factored in for the potential buyer.

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Quote from @Colton Lucas:

Quote from @Paul Sofia:

Quote from @Michael Dumler:

@Colton Lucas not that it's any of my business, but how on earth did you purchase a property that already has 450k of equity? Before dumping your capital into another property, I advise that you educate yourself on real estate investing to a certain degree, otherwise, you're going to have shady folks reaching out trying to take advantage of the situation. Your question is also entirely dependent on your goals and how active or passive you want to be with your investments. If you have no desire to be a landlord, then maybe network with a RE syndication institution and evaluate your return via that route. Buying a multi-unit property is going to take time and energy and you will need to treat the purchase like a business. However, if you do desire to grow your investment portfolio, I would surround yourself with investors who have done it themselves who can be a guide to help you succeed. Hope this makes sense and helps!

Right on. Don't get lured by the easy money right now. Especially if you have minimal experience. Wall St is buying up properties for cash and inflating the prices right now. I would never risk leveraging my personal home. I've been investing in properties for well over 20 years and have never seen what's going down right now

I sold my last spec last part of July and sold all land holdings I was going to put specs on (with handsome profits). I am doing only customer builds now. I am getting ready to add addendums to contracts as a result of price increases. If you ever want to discuss in depth, I'd be more than happy to talk.

Thank you. That gives us an eye opener. This was very helpful indeed. We will gladly refer to you with brief questions. We appreciate your valuable time.

My pleasure

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Phoenix, Arizona

All Forum Posts by: Paul Sofia

Paul Sofia has started 3 posts and replied 321 times.

Post: I want to be a developer

Post: HELP: Bought a house that will likely be condemned

Post: I'm 22 and have $300xxx, What should I do?

Post: I'm 22 and have $300xxx, What should I do?

Post: Typical margins in new construction and lending options

Post: Worker's Compensation question

Post: Should I be looking into Mobile/Manufactured Homes in Boise, ID?

Post: Lot owner is different from mobile home owner and squatters

Post: Is there any companies or places that buy double wides?

Post: I have 450k in home equity. Needing advice.