All Forum Posts by: Adam Lendi

@Dale Snider I will echo what Justin said. Those expenses are way too low. I typically look for RV parks to expense between 50 and 55%. If your utilities are not metered, you really need to dig into those utility bills and make sure you are charging an appropriate fee to cover those expenses. One thing you should also look at is your maintenance expenses. If the current owner is doing the maintenance, your 5% manager will not be the one doing maintenance. You could be on the hook for some pretty big repair bills with contractors or you’ll need to add in a maintenance worker. personally, I wouldn’t touch it at this price, on what I know. 

Investment Info:

Townhouse fix & flip investment in Lakewood.

Purchase price: $250,000
Cash invested: $15,000
Sale price: $350,000

Helped a family get into a single level home without stairs and out of their overwhelming project.

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

Cold Calling

How did you finance this deal?

Hard Money

What was the outcome?

Successful sale above asking.

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

Boomerang FInancial financed and David Nielson was awesome!

Hi Aimee! It sounds like you found a great spot, with that zoning! If you decide to go the RV park route, I could provide some help. I am investing in RV parks and can at least get you started in the things to consider, should you decide to go this route. Transient traffic is your best bet to maximize returns in RVs, however, it requires something to draw them in. Otherwise, long-term and mobile home pay about the same. I'm not as versed in MHPs, however, there are plenty of experts on this site to help you.

Originally posted by @Justin Hoggatt:

@Andrew Casal, I always love this question.  It is something I think that we all deal with is maintaining motivation and mindset because whether you are a beginner or moving on to the next level, there is still the need to continue the motivation or change your mindset.  

For me, I've always been a very goal oriented person.  When I set my mind to something, I get it done.  I don't stop and I don't quit.  You'll run into road blocks and various hiccups and that's okay.  Just know that you'll find the answer and carry on.  That will include deals not working out, it will include a lot of time "wasted" but is a learning experience, and properties that just seem to have a lot go wrong all at once - to name a few.

For me, I've been working on changing over to a new asset class for myself along with my business partner @Adam Lendi, RV Parks and Campgrounds.  We've been doing a lot of work on getting that going and we haven't always won.  But we have done is gain experience and knowledge of a lot of other things along the way, even allowing us to focus on a new Wealth Watchers group and podcast.  If you realize that there will always be naysayers and negativity out there and ignore it, you'll also see a ton of positivity and others that are willing to help you get going.  Continue to stay focused, set those goals, allow yourself some time, and that ball WILL get rolling.

Good Luck!

To echo what Justin said, there will always be naysayers! Ignore them. They are self-conscious about their own success and feel better when they cause others not to succeed. Build a circle around you of like-minded people (this is a great place to find them). As Jim Rohn has been quoted... "You are the average of the five people you spend the most time with." Choose your 5 wisely.

As for your brokerage business, align yourself with the right people and build/join a team. No one succeeds alone. If you need help finding one, let me know. As you grow your business, consider hiring a coach. They will help push you to be your best.

Good luck!

That would be a great start... or consider getting licensed yourself. If this is an area which interests you and in which you want to build your business, that would be a great way to get the knowledge and the tools.

If you need a connection with a great broker, let me know where it is you are investing and I will make a connection for you. I know a top performer in Cleveland, if that is where you are looking.

Hi Terry and group!

My business partner @Justin Hoggatt and I are Denver based sponsors/operators with a focus on transient RV parks. Would love to connect with you all and learn how we can help one another out. We can help raise capital for a deal, take on LP investors interested in the asset, or buy a park from you which doesn't fit your model or which is under-performing.

Likewise, we'd be happy to share leads on the parks we encounter through our own prospecting which don't fit our model. We are not interested in long term stay parks and MHPs. Happy to network and share the deals we encounter.

@Adam Lendi ... Should have said "I'm not familiar with Ohio. I am in Colorado. Lol

Hi Abby! Congratulations on your upcoming purchase. Have you already negotiated a seller financing contract?

If this is new territory for you, I would strongly encourage getting a real estate professional on your team, be that a broker or an attorney. The legal and tax considerations of real estate contracts can be tremendous. Depending on your state (I am not familiar with Colorado), you will likely work with a title company or an escrow attorney to manage the critical closing documents and to consummate the sale.

There are a lot of contracts which are negotiated and enforced outside of the closing, related to the inspection, due diligence, surveys, appraisals, etc. If you aren't working with a real estate pro who is tracking these for you, you will need a secure system for storing these. Digital copies are only acceptable if the digital signing systems meet certain electronic signature requirements. Otherwise, keep your original wet-signed copies and guard them.

If you do happen to negotiate seller financing, you will absolutely want an attorney to draft/review the documents related to this private loan and also consult with your CPA. To answer your question, you will take ownership, even with private financing, however, there will be a recorded deed of trust in the name of the seller. If the seller is not financing the full purchase amount, you'll need to fully disclose this to an additional lender whom you engage with. There is certain positioning on the note that says who gets the first chance to foreclose in the event of default. Odds are an institutional lender will not be okay sitting in the second seat. Also, do not let the seller write a second contract nor side arrangement to help you get a mortgage for part of the purchase and seller carry for the rest. This is mortgage fraud.

In closing, engage the help of a professional. A good broker will negotiate their commission from the seller and your representation will be paid by the seller. I've been contacted by buyers before who executed contracts with sellers which were on personally drafted sales contracts, which stripped the buyers of their protections and heavily favored the seller. One such person ended up on the hook for all closing costs, her earnest money was non-refundable on day one, she signed away her right to ask for any inspection related repairs, and took possession of the property by quit claim deed. Scary stuff!

@Eric Weldon-Schilling

It seems to me you must have a personal experience that reflects your feeling about property ownership and the lack of access for some people.

We are doing better now than I am aware of any other time in history of removing barriers for entry into home ownership. It was less than a century ago when the first barrier was removed, allowing people to buy a home with 20% down payment. Compare that to nowadays where you can get in with down payment assistance and bring almost nothing to the table. Yes, there are credit requirements and anyone who is lending their money out to someone else should do their due diligence on their borrower. We need these sorts of checks and balances so we don't have a repeat of 2008, where we quickly realized we had gone too far the other way.

As for your remarks on landlords... I'm going to make an assumption that you likely don't have any rental properties in your portfolio. While I do agree with your point that shelter is a basic human necessity, housing is not a basic human right. Just because I own a house does not mean I need to house someone else in it who does not. From my experience, the overwhelming majority of landlords are doing the right thing to provide their tenants with clean and safe housing. Yes, there are a few bad actors out there and there are also a few bad tenants who take advantage of situations too. You'll find these in every walk of life and in every debate.

@Kyle Chadwick the possibilities are almost limitless. Some of this is easiest accomplished if you get your real estate brokerage license or if you make really good friends with a local real estate agent who can connect you with their MLS access... to get off-market properties.

-Old expired listings (MLS) - These are people who put their hands up to sell in the past and didn't for whatever reason. The recent expireds will be tougher as every real estate agent is calling them.

-FSBO (For Sale By Owner) - These guys can be a challenge to work with sometimes and there can be opportunities here.

-Door knocking - Sending letters is a high-volume low-return activity. Door knocking is my number one favorite way to meet people, put a face to my name, and build rapport. Take a purchase agreement with you and ask them what their number is. You'll start some conversations and build your pipeline quick here.

-ReMine (License) - If you make friends with a realtor or get your license, you can access this system. It uses public record data on time in home, date of last refi, loan balance, and some AI to build a heat map on probability of move. This will help you target your door knocks or letters.

-Network - Divorce attorneys, estate attorneys, bankers, and more can help you find houses that need to sell.

Just a few faves!