All Forum Posts by: Scott Johnson

"...sell for yields in the 20 to 30% apr range." is a bit foreign to me. So I'm putting the 30% into the interest spot on my financial calculator along with the other same origination terms and having it calculate the PV?

To clarify, this land has all hookups required for a mobile home, including septic. 

Thanks for that quick response! Much appreciated!

Hey, Everyone!

I found a mobile home lot in a good neighborhood that has everything ready for another mobile home to be moved on and hooked up. I'm going to purchase it cash ($16,000) and originate a loan at $25,000 at 8% for $209.11 per month (which is the cost of renting a lot in the area).

My goal is to hold this note, but I also want to keep my options open by making sure it's a quality note that I CAN sell if I deem it necessary. I'm planning to use this education for all of my future seller finance deals as well.

If you are a note buyer and know what you like, please post it below. If you know of any educational materials I can review or paid programs that you've found valuable, please let me know!

Two of my guiding questions are:

• What do you look for in a quality note?
• What percent of face value do you normally buy your note (if that's even the measure that you look for)

Thanks in advance!

Hey, Jennifer!

Don't worry too much about it. Just keep looking and learning. You'll find something that you can purchase!

We primarily wholesaled contracts this year, but we did end up purchasing a 4 Lot Mobile Home Park that has a permanent unit in place. We rented that permanent unit immediately and are advertising lots for rent. I slacked off on getting the lots rented before so I'm picking up the pace now to improve cash flow. 

@Jon Schwartz

It’s important to remember “trickle down economics.”

1) They start by taxing the wealthy

2) The money comes in

3) The wealthy find a way to avoid the tax

4) The government still needs that money

5) They pass it in to the poor and middle class

Just because they’re not raising property taxes now, doesn’t mean they won’t when they get used to, and stop receiving, their money.

Hello all,
I've been wholesaling and learning about acquiring rentals (own 1 property so far) for about one and a half years now, but is it really the best and highest use of my time?
I've played monopoly and really get the 4 houses for 1 hotel, but I also know people looking to buy into apartment buildings in my area.
Would it be a good idea me to spend my time building deals on apartment complexes or should I stick to finding smaller deals until I can trade them in to get into a larger deal?

@Nikki Closser personally is cash out. Seattle is a tinder box right now and if properties are still selling like wildfire I’d 1031 out of it and buy something else.

I tend to stay, or get, out of areas when I don’t understand what’s going on. Seattle is one of those areas.

@Avery Rustad I like to stay away from having tenants doing repairs, but if you’re treating it like an external transaction, then I don’t see anything wrong with that.

Just make sure he’s as qualified as any other painter you would use to do the work. Agreed on the rent. Just pay him cash. Keep it clean.

A lot of it comes down to education. A part of that education is learning how to understand the market and the cycles it goes through. @Kevin Hill, you have a great grasp of that.

When I hear from new investors, it seems like they believe investing fits inside a nice box. Gotta do a flip and then use that profit to buy rentals. This is the perfect time for rookies to decondition themselves from that mindset and develop tools they can use later on.

@Ryan Howell and @Kevin Hill both had awesome insights:

- Why not house hack a property by renting out the other room or unit?

- Do a live in rehab to that same property or another one when you rent your first one out?

- Get even more creative by acquiring those subject to an existing mortgage or with a lease option.

- Develop and implement lead generating activities by using social media and your web site (Carrot FTW)

All of this takes education. Wholesaling in Greenville NC has been slower for us, so this is exactly what we’re doing. Focusing on creativity and marketing is key at this point in time.

@Alexander Felice so is the value of the property going up, or the value of the dollar going down? 😉 Lol

Yea, this is where my thoughts lie.