All Forum Posts by: Adam Lawrence

@Gerry Lopez

What is the explanation for the purchase price to be so much higher than the appraised value?

@Jack Martin 22 spaces. Half full. Lot rent is $150, but it is a disjointed explanation. I’m waiting for the rent roll to figure out what’s going on. 13 homes are park owned, but I don’t think they are all rented. Not sure what the trailer rent is. I’d do a rent to own deal on the trailers.

@Mike Storey thanks. The owner sounds desperate, but I’ve got to figure out why. There might be reasons it can’t be turned around.

I’m looking at parks and I came across one that has some potential. However, it is only half full, a few homes need to be removed. When you subtract reported income from expenses there is only 3k profit per year. When pricing this park it seems that you’d want to get it for 40 or 50k. How do you price a park that isn’t really making any money? My inclination is to move on, but if there is a big enough deal to be made it might be worth a deeper look.

@Steve Hall I don’t need a family member thank you. You don’t need to be patronizing either. Have I looked at real estate investing for a long time? Yes. Am I now in a position to invest? Yes. My deal with the partner last year didn’t work out. I am the only income earner in my home. I’m a special education teacher and for a long time I wanted to invest but had no money. I started a business that has been very successful and now make enough to invest like I’ve always wanted and always planned to do.

My biggest issue with talking to people on forums is coming across people like you. I have a simple question about how loans are looked at by lenders. Instead of answering my question you nominated yourself as the person who should choose whether or not I should be investing at all.

@Steve Hall got the joke the second time through. I was imagining 30 year old kids living in my apartment building. Like a Bigger Pockets version of Step Brothers.

@Steve Hall

Being that my oldest is 13 and my youngest 2 that won’t work. I’m a w-2 employee. I have a business as well that has been going on a while. Make about 350 a year. Why buy both in one year...why not? I current have no debt aside from my personal property. $294k owed on $415k house.

I need a bigger house for my family. I don't want to wait to invest if I can avoid it. Attorney and accountant aside. The $11,000 a month debt will screw up my Debt/income ratio. So the question is how do lenders look at that? Do they include the rents coming in? What do I need to know about how they look at investment property that is more than just SFH properties?

I’ve got two goals for the next 12 months. One is to buy a multi family property, 5 or more units. My other goal is to buy a home. I’be got 5 kids and 3 bedrooms so I’ve got to get a bigger house.

My understanding is that the lender won’t count income from rentals for 2 years. How will the commercial loan on my credit affect my debt to income ratio? Will they really count the mortgage (suppose its $11,000 a month) against my income but not credit me any of the rent for two years?

If that’s the case how to you move up in house...especially if you are always doing new deals and the debt goes up.

Thanks

Adam

I am looking at a industrial property that is 650k. I am purchasing with a partner. Is it a problem having part of my half of the down payment coming from a signature loan from a family member? The property cash flows and the rents per square food are about 20 cents too low. There is a lot of room for improvement on this property.

I am looking at a property that is 650k. I am purchasing with a partner. Is it a problem having part of my half of the down payment coming from a signature loan from a family member?