All Forum Posts by: Simcha Davidman

@Brenden Mitchum Thanks for your insight!

I put the ad on craigslist. Apparently, it got flagged and pulled - not sure why :)

When underwriting a deal, do you use any rules of thumb for expenses, for example $400/pad/year for payroll expense or $600/pad/year for R&M (these amounts are just examples of course)?

I'll be sure to check out the FB group.

I've been mulling over the boot camp. Aside from the networking (which I do not mean to downplay; I understand its significance), is it that much more information than the home study course? That looks very robust by itself.

Thanks for reading!

I'm currently a multifamily (workforce housing) investor but I'm looking to buy a small portfolio of parks. And I've run into some issues I need to address.

1. I ran a test ad for a rent to own mobile home and after 3 days got no responses (in the 100+ lots, there are 9 TOH homes, so I'm trying to see if there's demand to be able to convert the resident base over). Does anyone have test ad text they would be willing to share with me please? Do you put pictures in your ad? If yes, do you take stock photos, or pictures of homes already in your parks (I obviously don't have this option yet)? Any other hints and tricks of the trade would be greatly appreciated.

2. Any tips of converting/adapting my apartment complex underwriting model to one more appropriate for MHCs?

3. Along the same lines, I have a strong grasp of what my budget will be on an apartment complex. But how does that convert to MHC? If they are all POH, will it be similar (plus the added utility and road maintenance)? On the other extreme, if it's all TOH, how much lower will expenses be? Are there averages/rules of thumbs people use for budgeting payroll, R&M, etc?

Thank you very much for all your help!

Thanks @Jesse Scroggins, looking forward to connecting!

Hi all,

I'm looking to connect with mobile home investors and mobile home park investors in eastern OK and western AR. I'm looking at a few mhcs and am having a hard time figuring out if there's demand for rent to own and what lot rents should even be. Almost everything I'm seeing is poh, and that's not how I'd like to keep any park I buy.

Please respond here or dm me. Thank you!

Now for a bunch of tags to try to hit keywords: Fort Smith Van Buren Alma Fayettville Rogers Springdale Tahlequah Muskogee Sallisaw

@Robert Norvell Jeanne. Next time I'm in the area, we'll have to grab some socially distanced coffee!

Thanks @Marlen Weber! It's been a long time coming. It's sort of like I've been pulling a rubber band back since I started learning about real estate investing and it snapped forward nicely! But it's still small in the grand scheme so I've my work cut out for me.

Investment Info:

Large multi-family (5+ units) buy & hold investment in Fort Smith.

Purchase price: $1,490,000
Cash invested: $325,000

FIRST DEAL! 62 unit Class C apartment complex with the ability to push rents without too much capex. Plan is to refi in less than 2 years, return capital to the investors and then sit on this as a long term hold.

What made you interested in investing in this type of deal?

I'm actively looking for mid-to-large multifamily properties for my investors and myself. When this deal was brought to me, I ran the numbers and it looked good. The more I looked into the area and this asset, the better it looked.

How did you find this deal and how did you negotiate it?

My property manager brought this directly from seller before widely marketing the deal. He had a goal and I had my return projections that I needed to hit. We met somewhere in the middle from where we started, but that still met my investment criteria.

How did you finance this deal?

85% LTV from a local bank. 6 months i/o. 25 year amortization. 9 year term, with rate adjustments in years 4 and 7.

How did you add value to the deal?

We're pushing rents to market on as-is units. We're also lightly upgrading units as they turn over. Finally, I'm looking to keep a tight budget while not suffocating the property manager from effectively keeping this property very nice and welcoming.

What was the outcome?

It's only been 2 weeks... But we've been able to rent out 3 units at rates considerably higher than the average in-place rent.

Lessons learned? Challenges?

I can handle larger deals.

Also, there were several times throughout the process (including initial evaluation, negotiation, equity raise, loan process, due diligence - everything) where there are things you can do to push things forward or not do and let them fester. It's totally up to you to stay on top of things and be proactive. You either want it or you don't.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Property manager/agent and local lender. I'd highly recommend both. If you're looking in AR or OK, pm me. (As far as property management, she really would need to manage approx 100 units if it's outside of the Fort Smith market.)

@Jones Udo-Akang did you end up investing in Anderson? How'd it work out?

@Dentric Vance and @Jonah Hartsburg great insight! What about North Anderson, near Community Hospital? How's that area?

Thanks!

Thanks for the tag @Yonah Weiss

BS in Accounting which I think is useful. Unless has some really specific degree they need to obtain for their chosen career track, I tell almost everyone that accounting is the best option for options.

Law degree, which I guess helps me understand complicated documents, litigation, insurance, etc. Lots of relevant scenarios. I don't regret going to law school, because like you said, I believe it has helped make me who I am today. But in retrospect I would not do it again.

A wise man once told me - figure out what your goals are and then put yourself on as direct a track as you can find as quickly as possible. With that said, if I knew then what I know now - both about the power and opportunity in real estate and my passion for it - I would recommend to my youthful self to get straight into the field, without law school and without undergrad if possible.

I tell my kids that if they want to get into the family business, I'll put their education money toward their business venture. Time will tell whether they take me up on it.

@Keith A. @Account Closed is it illegal to rent to illegal aliens?