All Forum Posts by: Matt Boettinger

Try driving for dollars to start.

i think overpaying is a bad idea.  It is worse in commercial.  with most commercial loans there is a balloon payment at yr 5, 7, or 10 for the entire outstanding balance.  If you buy at a 4 cap and you need to refinance with new interest rates at yr 5,7, or 10, you may be in trouble.   You still have to get the property appraised for that new financing.  If you overpaid and there is a correction it may appraise for less than you paid.  If market rents lag you will deal with serious cap rate compression.

There are ways to combat this.  If the property has upside (empty space that you can rent out to increase value, rehab/upgrade to increase rents) you can outpace these issues.

if you are marketing to investors mentioning cap rate makes sense. Investors should know what this means. 

due diligence starts once you are under contract. Make a promise to yourself that you will purchase it once you get a park under contract. 

Welcome to BP. There are some pretty active REI groups in the Atlanta area. GaREI has several meetings throughout the month. Look it up. You will find lots of local investors.

Hi Mike.  Welcome.  This is a great place to learn and network.

Buying far away does not make your problems any easier.  It makes them harder when they happen. (I am assuming this isn't a passive investment). If you buy far away you must find a good PM.  If you are limiting your search to a few areas I would also start screening PMs in those areas in parallel to looking for deals.

Welcome to BP.  Chattanooga is a great market.

I know of someone that did that with a mobile home park.  There was an amount down but it was significantly less than the typical 25-30%.

Welcome to BP