All Forum Posts by: Allen Lundgren

I've got a broker that is located in the DSM metro. Message me and I'll get you their contact info. 

Allen

@Mark Mesedahl

Deal Maker Live in Dallas July 25-28th.

Put on by Michael Blank, lots of great speakers such as Joe Fairless, Randy A Adams, Robert Helms and Hal Elrod and several other guess speakers that have been on Bigger Pockets over the years.

I get that market rents were likely way undervalued, I really do and don't see a problem with going up.  But it still feels mismanaged a touch to me.  They bought an under managed asset which has a great value add component.  But these people have 30 days to sign a new contract or forced out.  

Again, I'm not an expert on mobile home parks or how they are ran...but it sure feels like they will likely have a lot of people sign the contract with no intention of staying just to give them more time to sell their home and move on.  I would have personally sent all the owners a notice on how the rents will scale over time to eventually get them all to market rate.  Jumping that quick so fast just feels like you are going to cause a management and rent collection issues.  Jump it $x immediately, 4 months later they know it will be $x plus, and then at the end of 9 months to a year you have it where it needs to be.  4 rent rate adjustments at say 75 bucks each turn just makes so much more sense to me and allow people to either adjust their budget of provide them the time necessary to move on.  

I appreciate the convo and points of view.

So I'm a SFR investor and realtor in the greater Des Moines Iowa metro. And I'm a huge advocate of the BRRRR method.

But holy cow is there some bad publicity going around right now on a trailer park that just changed hands a week ago or so and they are upping the rent 150% in 60 days. Sorry if the new owner is reading this. The deal feels like a 6-18 month BRRRR and sale to me.

I'll be the 1st to say I don't know a ton on trailer park investing outside of listening to the podcast and going to best ever conference. But raising rent on a trailer park from 200-500 a month is gonna cause a lot of house hold stress in low income households. If you make that big of a jump so quickly you darn well be adding value before the jump in prices. Or have a wait list a mile long, which very well could be the case.

I'm sure this new buyer saw $ signs all around... fast growing suberb with trailer park close to new city amenities, no doubt the land value is sky high. I don't doubt rent is way under priced. But I also know in Residential housing we have % caps that we can raise the rents each year. Maybe this isn't the case in trailer parks since it's only a lot. Again I'm not an expert in this area.

I guess what I'm truly trying to get at is don't forget about the human element of our business before we make a dime.

At the heart of our business we are all in this to make money and lots of it... but we are also playing with a human necessity of shelter. You can brag to our friends about how much money you raked in a deal. But raising rents 150% in 60 days and forcing families out of a home isn't something you'd brag to ya mother about, I hope.

Allen

I've got the best concrete contractor who can do the inside and can do the perimeter tiling if that's what needs to be done along with sump pump pits. 

Most water issues can be handled by grating the soil around the home, gutters cleaned and down spouts extended. 

Dm me if you want my concrete guy's #.

Allen

Herr Plumbing does all of my rehabs.

I've used Rock n Trowel a few times in the past.  Their work with textured walls is good, but smooth finish work isn't as good as I like. 

Also have a guy Joe that does his own thing. I can DM you his # if you are interested. 

For updating Abstracts, Iowa Title, People's Abstract and American Abstract are the big ones.  If it's for title opinions, your closing attorney will be able to help you...otherwise Whitfield & Eddy and Wasker Door Wimmer Marcoulier are a couple notable ones.

Here's the problem with asking this question, and also the reason that I love real estate so much...there's no right answer.  

In essence this becomes a popularity poll question...would you rather house hack or invest out of state...BOTH can make you a lot of money.  But it ultimately comes down to what calls to you...what are you more comfortable with...where are your strengths (financially and otherwise) and who do you know that will help you where you are weak.

I recently listened to podcast 300 again because it's really fun and great...but there are 11 investors on it, and they all do it differently.  But they all understand their strengths and weaknesses and find a system that works for them.  

When you talk to you wife about your future real estate empire, what do you envision...does it align with your strengths...does it align with your desire...then jump in with both feet. 

or you can try Jill Ludwig of Ludwig Closings LLC.