All Forum Posts by: Marc C.

If you are interested in multi-family in Albuquerque and Santa Fe, New Mexico, perhaps we could work together. I have a lot of MF experience (enough to get a loan for a 20-unit, say), some cash (the least of our problems is finding cash to invest), but less time than I'd like due to health reasons. I'd like to work with a go-getter who understands why multifamily is the best way to go in most markets for newbies and ex-single family landlords. My goal is to develop the SYSTEM that systematically works to find off-market leads, acquires them, fix them enough to raise the rents, and either flip them or hold them (hold is preferred). 

We won't find deals listed in the MLS. This will take manage mailing lists and, "egads," actually CALLING owners to see if they would like to sell to a couple of local boys. If you don't see yourself calling owners in order to build long-term relationships that may one-day turn into an off-market deal, this is probably not the business for you. It's a get-rich-slow relationship business.

Send me a colleague request if you have any interest. I live in S.F. but am down in Albuquerque 3 times a week. Happy to meet for coffee/lunch and . But again, I'm looking for someone who wants to WORK: Meet, make calls, tour properties, and build relationships. 

I certainly don't find decent cap rates on small MF in Albuquerque New Mexico and surrounding areas. I've been looking for years. Most of the time, they are in sketchy neighborhoods, need too much work, and have very little chance for appreciation. Your appreciation is totally dependent on the neighborhood, your ability to raise rents ($525 for 1BR, $625 for 2BR's are my min. goals), attract QUALITY tenants, and you ability to control vacancy and expenses. (Which are going to average 40%-50% of the rent.) We live in a  poor area, and most of our tenants are dirt poor. Managing them is tougher than high-end tenants. 

I would be happy to JV or mentor you or anyone else on multifamily if needed. No charge. Just looking for those who will WORK and not talk.

Another active investor from NM. Welcome! 

Look, there are SEVERAL sites on where to look. KOA will help with financing. And there are other financing opportunities. Decide how much down payment you have (You'll need 25-30%), then go to http://www.rvparkstore.com/ and shop around. There are some great ones in Colorado right now. I like the one 15 mi. south of Pagosa Spgs. There are also several books on Amazon on starting and running a campground/RV park. There are also a couple of consultants I would hire when things get serious. 

You CAN do this thing! A lot of people with less brains than you have done it. 

Remember, this is a business. You will be buying it based on the business's last 3 years of financial operating data, plus, whatever you decide to add or deduct based on the park's condition/location/amenities. Generally, since it's a business, and takes ACTIVE, full-time management, it should have a higher Cap Rate than an apt. bldg. or a manufactured home park. Somewhere north of 10% would be my goal. 

Financing may be available from the seller, from KOA (if a KOA park), or from a local bank (who may loan on the land and improvements, or extend a business loan guaranteed by SBA). LOTS of options if you have good credit and assets. (If you don't have one of those two, one of you may have to hold a day job for awhile, especially in the off-season.) 

I'm jealous...I'd be doing it myself if I could find something year-round from under $1.5M

I am not able to support the Albuquerque, NM market at this point. I can't seem to get 1%/mo. in rent, and lease-options seem impossible...either folks have the $3500 down and have qualified for a loan, or they don't have it and they can't qualify for a L/O. POORSVILLE, in other words. Economy is flat. Rents are growing, suppposedly. But job growth is limited to call centers.

Here is one way I'm proposing to do financing for homes. I am waiting for the resident experts to come in and crap all over it. 

1. I set up a financing company, "Joe's Mortgage, LLC."
2. I fund the LLC/lender with the amount needed for the loan.
3. My other LLC, "Joe's Mobiles, LLC," buys a home in zip code 88888
4. The LLC/lender approaches my favorite mortgage broker, Mrs. Smith, with a special offer: "We will finance used mobile home transactions in zip code 88888 at 9% with 10% down."
5. I advertise for a buyer for my home, I say, "financing available through third party," but I don't disclose the terms. Maybe I disclose a range: "Purchase price $30,000. Terms: 8-12% interest, down payment 5-10%, payment $500-$800, depending on buyer credit."
6. I find an interested buyer, and I send them to Mrs. Smith.
7. Mrs. Smith sits down with Mr. and Mrs. Buyer, checks their credit and income, etc., then says, "I have only one lender who will loan on used mobiles in zip code 88888. Let me check with them."
8. Mrs. Smith sends a proposal to the LLC/lender: "We have a buyer who has qualified for a loan if the monthly payment is $500 per month." She forwards the buyer's qualification package to the LLC/lender.
9. The LLC/lender agrees to do the loan.
10. The purchase is closed, now with a 3rd party lender, NOT the seller acting as lender.

I just don't know how this could be "seller" financing. Different entities, perhaps with different partners in them. 

Wow, usually if you use the words "SAFE Act" or "Dodd-Frank" in a post, 2-3 experts will just jump in (and all over you) and tell you the sky has fallen. Often, quite rudely. (Interestingly, none of them has the initials J.D. after their names, but they are still "experts.") Guess they are on vacation. 

The answer to your question is that the SAFE Act does specifically apply to any loan offered to a secured by a dwelling to be occupied by the borrower, regardless of whether it is a manufactured home or stick built, personal property or real estate. In other words, it might not have applied before, but it definitely does now. I am NOT AN EXPERT, and I am not an attorney, but, from my research, what it means is you need to hire a licensed residential mortgage loan originator to screen the buyer to make sure you are in compliance. The RMLO will check their income, credit, etc. How they are supposed to then "originate" and "offer" the seller financing terms to the buyer? That has never been answered, since YOU, the seller, are setting the terms for the deal. I'm sure an expert knows, once they get back from vacation. It certainly regulates what you can charge for interest: On a $50,000 or less loan for personal property, the number is Average Prime Rate + 8.5 (the Prime rate is currently 3.5%, so 12% or it becomes a High Cost Mortgage, which may be considered predatory lending). 

Here's the way I THINK there might be a way, not around it, but to be in compliance: 

1. I set up a financing company, "Joe's Mortgage, LLC."
2. I fund the LLC/lender with the amount needed for the loan.
3. My other LLC, "Joe's Mobiles, LLC," buys a home in zip code 88888
4. The LLC/lender approaches my favorite mortgage broker, Mrs. Smith, with a special offer: "We will finance used mobile home transactions in zip code 88888 at 9% with 10% down."
5. I advertise for a buyer for my home, I say, "financing available through third party," but I don't disclose the terms. Maybe I disclose a range: "Purchase price $30,000. Terms: 8-12% interest, down payment 5-10%, payment $500-$800, depending on buyer credit."
6. I find an interested buyer, and I send them to Mrs. Smith. 
7. Mrs. Smith sits down with Mr. and Mrs. Buyer, checks their credit and income, etc., then says, "I have only one lender who will loan on used mobiles in zip code 88888. Let me check with them." 
8. Mrs. Smith sends a proposal to the LLC/lender: "We have a buyer who has qualified for a loan if the monthly payment is $500 per month." She forwards the buyer's qualification package to the LLC/lender.
9. The LLC/lender agrees to do the loan.
10. The purchase is closed, now with a 3rd party lender, NOT the seller acting as lender.

Now, I'm sure this will be crapped upon by the experts here on BP as soon as they are back from vacation. They  really don't want us doing any seller financing anymore, especially on those "awful" manufactured homes. 

By the way, it's not the "experts" knowledge or statements I object to, it's the WAY they say them: They are often rude jerks to newbie investors. I guess being rude makes them feel more powerful. 

We all make mistakes, Earl. The important thing is that we learn from the experience, and it sounds like you have. Good luck to you in your endeavors, and don't forget our real estate investor's mastermind group, http://www.meetup.com/New-Mexico-Real-Estate-Mastermind-Group/. 

Hi, Paul, 

I am using Rock Solid Property Management. They are pretty professional. Good communicators. They use Appfolio for their software. 

I've owned both multi-family and single family. Currently I hold 3 SF rentals. I actually prefer multifamily, but I've found that 1.) There is little available for-sale inventory in decent neighborhoods, 2.) There doesn't seem to be much appreciation in small multi-family, vs. single family. 

I will contact you privately with some screening questions for property managers. 

Marc

Hi, @Carlos Duran. I am an investor in Santa Fe. If you don't mind a little driving, you might benefit from networking with other investors. There are now "Meetup" groups for real estate investors in both Santa Fe and Albuquerque. The Santa Fe group is just starting; it's first meeting is April 28. http://www.meetup.com/Santa-Fe-Real-Estate-Investm...

In Albuquerque, we also have a Mastermind group that is just for investors who own at least one investment property. It is divided into 2 sections: Rental Investing and Fix-and-Flip Investing. Next meeting is this Saturday. http://www.meetup.com/New-Mexico-Real-Estate-Maste...

Hi, all, 

Surprised I have seen this before: I just put down new carpet in a rental, and I'm wondering how I can insure it lasts more than a year or two. Has anyone tried carpet protectant, like 3M Scotchgard or Dupont Teflon, to protect new carpets so they last longer? (I've had great luck with Scotchgard on fabric upholstery...water/stains do bead up and run off. )

I'm hoping professional cleaning between tenants followed by one of these treatments would make the carpet last longer and clean up better. Thanks to anyone who has a recommendation.