All Forum Posts by: Samuel Coronado
Samuel Coronado has started 27 posts and replied 296 times.
Post: Rents are EXPLODING in Huntsville & Birmingham Alabama
- Investor
- Huntsville, AL
- Posts 300
- Votes 173
I'm here in Huntsville and see the ground truth everyday.
No. Just no. Huntsville is overbuilt and continues to be overbuilt. Several of the new apartments are offering all kinds of incentives because they cannot fill them.
A lot of not-so-astute out-of-state investors are taking monthly losses just to hold real estate here. It's not the best situation for month to month cashflow, but there is a lot of institutional interest that may pan out in their favor.
Post: Why Class D/Section 8 returns are not as good in Real Life vs on Paper - Real example
- Investor
- Huntsville, AL
- Posts 300
- Votes 173
Quote from @Alan Asriants:
Quote from @Samuel Coronado:
The issue is not the Class of the property. The issue is people try to skimp on properly vetting tenants. I have people in a mobile home park who pay on time every time and take care of the properties very well. I've also had people in a nice house on acreage skip out and leave it infested with roaches. haha.
Proper management cures most of these.
Class of area determines class of tenant, they are directly proportional. Class A tenant with 800 credit score, perfect landlord references, and a 6 figure income will not live in a Class D area.
I 100% disagree with that. I have clinical psychologists from Huntsville Hospital living in my MHPs because they're paying off student loans with a fury that would tickle Dave Ramsey. I also have a guy with 85-95k salary (mulligan on the 6 figure) with great credit that also lives in the park because he wants to be closer to family. These guys were vetted same as my Class A properties, but just live in a different mode where they understand getting a lower personal housing cost is in their favor long term, especially if they're young (35 and under).
Post: The #1 Funding Challenge Real Estate Investors Face—And How to Overcome It
- Investor
- Huntsville, AL
- Posts 300
- Votes 173
I did my first flip on a credit card at 19 years old. At 31, I still rely on credit cards a bit. It's a good time getting 0% at 12-18 months (Discover, Navy Federal, USAA, Independent Bank to name a few specific ones). I prefer this over the 2-5% origination points and 12-15% interest only payments from hard money lenders.
Post: Connecting with investors in Alabama
- Investor
- Huntsville, AL
- Posts 300
- Votes 173
Quote from @Vanesca Charles:
Yes, preferably Huntsville.
I have a 5 bedroom 4 bath in Huntsville I am looking to sell off market. I am the owner, not a wholesaler.
Post: Why Class D/Section 8 returns are not as good in Real Life vs on Paper - Real example
- Investor
- Huntsville, AL
- Posts 300
- Votes 173
The issue is not the Class of the property. The issue is people try to skimp on properly vetting tenants. I have people in a mobile home park who pay on time every time and take care of the properties very well. I've also had people in a nice house on acreage skip out and leave it infested with roaches. haha.
Proper management cures most of these.
Post: Seller finance MHP
- Investor
- Huntsville, AL
- Posts 300
- Votes 173
Quote from @Kilian E Peterdy:
Quote from @Jordan Moorhead:
This is available or you bought it? How many occupied lots, what was the lot rent, what is the source of utilities and who pays?
I had it under contract until yesterday am I cancelled the PSA.
What unraveled the deal?
Post: Room rental to Sex offenders.
- Investor
- Huntsville, AL
- Posts 300
- Votes 173
Quote from @Bruce Woodruff:
You're also incorrect about recidivism amongst SOs. It is at 4 out of 10 according to people who would know. @Ken M. was right.
So ok, not 100%, but 40% is waaaaay too much too take a risk on.
https://smart.ojp.gov/sites/g/files/xyckuh231/files/media/do...
This also requires a bit of digging. Sex crimes are some of the hardest to prove, especially when the victims do not want to come forward out of shame or intimidation. It is possible that someone continues to commit these acts with more sensitivities to not get caught than when they first got caught. A friend of mine was assaulted and the cops basically said they couldn't do anything since she waited a week and it was just a he said-she said thing. Now Jose Enciso is walking free without a care in the world.
Post: Should contractors be expected to work on Saturdays?
- Investor
- Huntsville, AL
- Posts 300
- Votes 173
Quote from @Bill B.:
It may also depend if they are paid per hour or per job. I can tell you first hand that the people building new houses in my sub-division are here 7 days a week. And if you start talking about roofers the nails guns start darn close to 7am and run until sunset. Certainly it’s not the same guys working all those hours. But work’s getting done.
But I think the biggest companies and the smallest companies run different shifts than a solid “get the job done middle of the road sized contractor”. Honestly, If you like the timeline it doesn’t matter if they work 1 or 7 days a week. Just get a timeline before they start. If it’s 3 months or 12 weeks. Get a 3 week, 6 week, 9 week “goal”/were on track estimate from the contractor. If they want to get paid more often get those goals written down at that interval and pay when that works completed. Don’t get too far ahead!
The time and cost estimate accuracy is way more important to me than the work schedule. The only way I’ll know they’re way behind before it’s too late is if they told me where they’d be at that time.
I assume you talked to previous customers and looked at their work.
It could very well be the same guys. A smart construction company knows not to do too many roofs during the summer due to the health risks, so they will bank them up quite a bit in the cooler seasons (winter is usually too rainy). Roofers definitely operate on a feast and fast cycle. That's not saying they don't do roofing in the summer. The tempo slows down for companies with a good reputation at least.
Post: Lenders only wanting to lend 80% of purchase?
- Investor
- Huntsville, AL
- Posts 300
- Votes 173
Quote from @Deborah Wodell:
Yeah, being a manufactured home does limit lender options, but there are still possibilities. I’d be happy to take a look and see what we can get for you. Based on similar deals I’ve worked on, the quotes you’ve received so far seem pretty standard.
Let's run it.
Post: Lenders only wanting to lend 80% of purchase?
- Investor
- Huntsville, AL
- Posts 300
- Votes 173
I tried editing the above post, but it looks like it never updated. To clarify, this is a doublewide manufactured home on almost 3 quarters of an acre. This will cut out a lot of lenders.