All Forum Posts by: Allan Smith

Most lenders should be fine with using heloc for down payment. It makes your DTI higher though. Any house, doesn't matter if it's a foreclosure.

using heloc is a very common strategy, but make sure you don't overleverage yourself. Have a plan to pay it off.

If you aren't sure if it's profitable you are not ready yet for this deal. MHPs are very profitable,  but you need to run the numbers.find out what a lot rents for if someone brings their own trailer. Figure out expenses then get your cap rate. Ask brokers in the area what a good cap rate is for that type of asset.

while researching lot rent, seek out demand for something like this. If it's very rural it might not get rented by anyone.

oh and lastly, make sure to run the numbers as if you paid someone to install septic and excavate. Way too much risk in this deal to only get paid as an installer. 

Any comps to support the price you are asking? I don't know your area but a year is a wildly Liong time for a house to not sell. It's probably very overpriced. 

Weird. You could try browsing in a web browser.

You could ask a family friend if they would be interested in Striking up a deal, but anybody looking for a return on their money is going to shy away from owner occupant partnerships.

he might be able to find somebody who would buy the house for you and then owner finance it to you. For it to be worth their money, most people will mark up the price to its future value, so you will end up paying more for the house. Of course there are exceptions in you very well could find somebody who will send in a down payment why, or owner financing for cheap, but odds are if you are at this point in the process that person is not going to be found.

If you are not in a flood zone that would border on Insanity to pay for flood insurance.

Any real estate investor making prudent decisions does not care what the tax appraisal is. You might start to see a pattern the more deals you do. In my area, the tax appraisal is usually low and buyers and appraisers will set it higher. But you should be doing your own due diligence to research comps and the tax appraisal is probably best to ignore for your level of experience right now.

Your points are well made and are why I often recommend to people that they don't worry about getting the LLC right out of the gate. People think it's the first thing they're supposed to do but they don't even know why.

people put rentals in LLCs for liability protection. If you run a tight ship, the only assets that a lawsuit can have access to is those that are in the LLC. If you own it in your personal name, your entire net worth is accessible. Insurance is very powerful and should be able to offset it, but nonetheless it makes you a bigger target if you have a decent amount of wealth all owned in your personal name.

That is a hard pass for me. If you have years of experience in there's a house on the market that you know is going to sell within a few hours and you've been waiting for a house just like that, then go ahead and make a site unseen offer.

but the red flag here is the broker is saying it's the only way to make an offer. No way.

People ask for this often and I sometimes wonder if mentors want to help someone that also brings something to the table. I have 45 doors and offer coaching services, but mentor implies free advice. I dunno how it works or if these posts asking without offering result in working relationships.