All Forum Posts by: Jeremiah Johnson

I went to this event live 4 years ago and have been flipping houses ever since.  This will be actionable intelligence for starting or improving your house flipping business.  You definitely want to attend this!

I am locating quite a few decent RTO opportunities with not enough equity to sell outright, but that can turn a decent profit on a sub2 with a RTO exit strategy. Anyone know of a good investor friendly title company and attorney to draw contracts in Wichita Kansas?

Any suggestions would be greatly appreciated.

Thank you for your responses, unfortunately an all cash buyer swooped in a full price and took the deal.  Onward

I have stumbled on a deal, but it keeps getting more complicated and it is making me nervous.

Duplex, ARV 135, Rent is 1400 total currently and market is 1700.

Seller is 6 months behind and it is 14600 to cure the loan. PITI is 1021 and the payoff is 91K. If I pay the cure the remaining balance is just under 80K.

I offered a subject to purchase at 104,000 purchase price seller finance originally not knowing they were in Foreclosure.   After due diligence and negotiation I found they were 6 months behind.  I then offered to cure the loan, and subject to purchase, with the difference for 20% down paid at refi or purchase.  All was going well until the seller called their bank to ask permission for the subject to.  Now the red flags have went up with their lender and I think they will call the note due.

My council has suggested a contract for close in 12/16 and the cure as earnest money and deposit.  I was good with that, but after doing the title search the seller has a second that is 3400.  They claim they didn't think it was tied to the duplex.

I have copies of the leases, tenants are current, it is in a desirable area.  I don't think they have other options, and I am tempted to offer to pay the second and cure with me taking all cash flow moving forward and no additional money at close.  That would be a total of 18K down + closing cost at the end of the contract or prior too it.  Cash flow with her note will be 400/mo minus any maintenance.

I have ran this through multiple calculators and it seems to be a good deal. Just a ton of moving parts and the seller is pushing to close quickly.  Any insight would be very appreciated as this would be my first foreclosure bail out and it is making me nervous.

I have asked for copies of financial records and lease agreements. Stay tuned

The property is managed by the owner, he has someone he employs that mows lawns, does minor repairs. The tenants tend to their own snow removal for their individual units, as they own the homes, it is just like any other homeowner responsibility, they just lease the lot form the Seller. The city owns the streets surrounding the park, they are as responsible for clearing streets as they would any other streets in the city.

The additional lot is zoned Single Family Home, as is the Park. The Park is a Legal Non-Conforming Use. The city does not have any issue with the Park, and would easily grant a zoning change if someone wanted the zoning permanently changed or to allow more mobile homes on the additional lot. The lot has utilities to it, but not on it, there is no current infrastructure there for additional homes, mobile or otherwise.

The additional lot is vacant because the Seller hasn’t taken any steps in the past 7 years to do anything with it, he thought he’d put more mobile homes on it or create a self-storage unit facility on it, but hasn’t got around to accomplishing that.

As to the owner carry, the Seller has entertained an owner carry in the past, he does require a strong down, your 30% would be adequate enough I believe, he would probably like a sooner balloon than 5 years, but he’d consider all options.

This is what I just got back.

I am using a self directed 401k company to help me. Sense Financial. I am working with them on what is an approved structure for property management. Will post back as things transpire.

All of the figures I have been given are via the listing Broker. I have not seen any official "books" yet, but have requested them. Once I have them I will get back to you on actual hard expenses. It's rural Kansas so they may be accurate.

Hello all, I am looking at a 13 unit park to invest some of my self directed 401 in. It looks like a decent deal, but I am wondering what you would recommend for an offer and how to best finance to maximize return. Or should I just pay cash for the whole thing with the 401. Details are as follows:

Purchase Price: $127,900
Land Size: 1 Acre, plus an additional .87 acre lot to the North of the site.
Mobile Home Lots: Income: $2195 per month,
Expenses: $450 per month, Owner pays for trash, sewer, water, taxes, and insurance.
Tenant Expenses: The tenants pay all additional utilities.

The property has very good cash flow; all lots are occupied at this time except for one and tenants own their trailers.

Rent Roll:
#1 ? vacant lot
#2? $175/mo. 4 mo.
#3? $135/mo >6yrs
#4? $175/mo >6yrs
#5 ? $175/mo >6yrs
#6 ? $175/mo >2yrs
#7 ? $175/mo >4yrs
#8 ? $175/mo >6yrs
#9 ? $175/mo >6yrs
#10 ? $175/mo >3yrs
#11 ? $175/mo >6yrs
#12 ? $175/mo >3yrs
#13 ? $160/mo >5yrs

Well Water: There is a well on the property, but the water to the trailers is city water.
Sewer/Water Line: The Seller owns the main sewer line
Seller also owns the sewer lines underground going to each mobile home. Seller owns the water lines from the city main to the lots. Each mobile home has its own water meter, which is owned by the Seller. The tenant is
responsible for maintaining cleaning sewer lines from their home out to the park’s main line on Pearl… The Seller maintains cleaning the main sewer line. If any of the sewer lines need further maintenance or repair, the park owner is responsible for that.

Hello all, I am looking at a 13 unit park to invest some of my self directed 401 in. It looks like a decent deal, but I am wondering what you would recommend for an offer and how to best finance to maximize return. Or should I just pay cash for the whole thing with the 401. Details are as follows:

Purchase Price: $127,900
Land Size: 1 Acre, plus an additional .87 acre lot to the North of the site.
Mobile Home Lots: Income: $2195 per month,
Expenses: $450 per month, Owner pays for trash, sewer, water, taxes, and insurance.
Tenant Expenses: The tenants pay all additional utilities.

The property has very good cash flow; all lots are occupied at this time except for one and tenants own their trailers.

Rent Roll:
#1 ? vacant lot
#2? $175/mo. 4 mo.
#3? $135/mo >6yrs
#4? $175/mo >6yrs
#5 ? $175/mo >6yrs
#6 ? $175/mo >2yrs
#7 ? $175/mo >4yrs
#8 ? $175/mo >6yrs
#9 ? $175/mo >6yrs
#10 ? $175/mo >3yrs
#11 ? $175/mo >6yrs
#12 ? $175/mo >3yrs
#13 ? $160/mo >5yrs

Well Water: There is a well on the property, but the water to the trailers is city water.
Sewer/Water Line: The Seller owns the main sewer line
Seller also owns the sewer lines underground going to each mobile home. Seller owns the water lines from the city main to the lots. Each mobile home has its own water meter, which is owned by the Seller. The tenant is
responsible for maintaining cleaning sewer lines from their home out to the park’s main line on Pearl… The Seller maintains cleaning the main sewer line. If any of the sewer lines need further maintenance or repair, the park owner is responsible for that.

Any suggestions are greatly appreciated!