All Forum Posts by: Scott Schultz

all of my term loans are " portfolio" AKA Commercial Loans, terms are decent, generally Prime +1 3 or 5 year arm, amm'ed over 15 years, they will go longer, but i want to force myself to pay them off. they will go 80% LTV, but I wont go more than 60% cost to do the loan is usually around $600-700 and the renewal is usually $100

 There are a couple factors with Modular construction, one is geography, some places Mods have the same value as site built, other areas they tend to have less value, I currently own 3 modulars as rentals, and have flipped, as well as Listed a few for banks. Construction Quality is key, there are some that are really basic, minimum code spec, and others that are quite high end, where it was built, on site or in a building and moved is not as important as materials and practices. Today its getting a little tougher, as you can buy the same floor plan in either Modular or Manufactured, thats where the big difference comes in, 20-30% different.  Also the cost of construction of Mod to sight built is not much different, the big difference is time, if you are doing an on the lot Mod, it can be done in a month or less if crews are available where as a site built may take 9 months+ to complete. 

That 512% looks impressive, but i have yet to meet anyone that can spend %'s I have some that are Way better by your standards then, one of my more recent deals I paid $7K for the property spent $27K on the rehab paid for it using a line of credit I have against other properties i own, got an appraisal of $92K have a renter at $870/mo and did a cash out at $50K (banker would give me 75% but i dont need it) so if i have none of my money in the deal, and i pushed the value up $58K whats my COC? Infinite right? or not calculateable?

Be very careful with this though, if you have shorter term financing like I do prepare for a down turn, I have no idea how much values fluctuate in your market, and if your note need to be renewed in a down market, you better have enough equity, or a pile of cash to bring in, I have seen many investors collapse because they harvested too much equity, I limit my portfolio to 40% LTV, im running about 35% on 21 properties right now, so i feel pretty safe, I was through the last crash and saw some guys i thought had it figured out crash and burn, just a word of warning.

Yea, there are locations where I already own rentals, and this is an interest of mine, but it looks like it would be tough to do solo, looks like you kinda need investors to work this program. I could be wrong, but thats how i read it. 

What types of properties are you interested in, I have connections in GB some agents I use to work with at an REO Brokerage, do you need residential (1-4) or commercial (5+ res, or commercial properties)?

most leases roll over to be month to month automatically if a new lease is not signed, but if month to month a 28 day notice is required, tenant must still pay for the time they are still there. when a tenant is M2M the landlord may choose to not renew for any reason or no reason at all, many tenants dont get that a lease works both ways, its an agreement between both parties. 

It is common in rural areas, many townships have decided to not require permits for repairs, most will require permits for new construction, and additions, or changing window/door openings, or roof lines, I did a rehab in Merrill WI , we replaced windows, roof, siding, flooring and much more, I called the city, they asked if i was changing openings or roof lines, and since I was not, he said no permit required. Regarding inspections, there was a law change at the state level limiting inspections by municipalities. so yea this is pretty normal.  

A little insight @Brandon Williams, Shorewest pulls data from the MLS's IDX feature, the most up to date data for non Realtors is Realtor.com.

3&4 units tend to be in high demand for the casual investor, the debt level is not terrifying, and most owner own maybe 1 or 2 properties, as a diversification play in their retirement strategy, this makes them highly desirable, and pushes the price up. They are great properties, and i would love to have a dozen or more of them, but the prices per door tend to push me away. good luck

Im never a fan of longer amm's the extra you pay over time is astronomical,  and in the event of a downturn your equity position could trap you in the property if the need arises for you to move or need to liquidate. sonds like a risky proposition to me. 

I worked full time as a Real Estate Agent and transitioned to Investing, the leap to just investing is a big one, as the pay checks are far between at times with lots of money going out. also with out the W-2 job financing gets difficult until you have several years of significant track record on your taxes. The other part that many overlook is your lifestyle, what do you require to survive, vs thrive, many people cant deal with lean times well, or dont keep adequate reserves to weather a dry spell, I once went 13 months without a payday, you just have to prepare for those things while you are working.  Make a executable plan, with milestones and work to them, stick with your plan, and it will happen (assuming its viable)   Good Luck!