All Forum Posts by: Briannan Burns

I'm new to rentals and fix & flips, and am currently just exploring my options, in terms of getting a loan or Line of Credit to help fund the purchase & renovation of future properties. 

My question is, after being approved for a business LOC or a loan through a hard money lender, private investor, or something similar, how do you ensure payments are made back on the LOC/Loan, without having cash flow from the property? Is it better to buy higher for a property with little to no work needed, so cash flow can come in quicker? Or, is it better to buy lower for a property that needs more work, but cash flow is postponed until renovations are finished?

This is pretty much the only thing really holding me back from moving forward, as I don't want to get stuck in a situation where I have payments of $600+ a month, with no way to comfortably make them.

By trailers, I assume you mean mobile homes, correct? 

If so, I think it primarily depends on your location & the demand for them in your area. MH's are something I've been looking into, as well, because as you stated, they are cheaper to purchase, renovation costs are *typically* cheaper, and the demand is still possible. For example, I know certain places in my area where MH's are allowed/not-allowed, so this helps to cut down on that guesswork. I also know there is a demand for MH's within & around my area, and the rent is decent in most places- put decent rent with low purchase prices and it seems to be a wise investment. To me, MH's seem to be an easier way to get into REI without having to pay thousands of dollars on a home- instead, those extra thousands saved could be put towards saving for another rental property, repairs on your current rental properties, etc.

Just make sure to  research your area, figure out the demand, make sure purchasing a MH is more beneficial & more sensible for you than buying (or saving for) a larger investment. Keep in mind repair costs, surrounding land conditions, and wherever the mobile home is located, make sure they allow manufactured homes, or if in a MH park, make sure they allow rentals.

Good luck!

@Tyrone Jackson This is such a good example! I've read so many horror stories about issues with contractors, title companies, zoning, and everything else in the world; but I never thought about the managing other people part of it. I've spent most of my regular jobs working in customer service, but I've never actually had to direct other people, so I'm interested in seeing how I handle situations similar to that! Do you have any tips on how to better handle situations that you know are putting you behind schedule, or situations that could be detrimental to your renovations?

@Clark Kirkpatrick Absolutely! That's why I'm so anxious to just jump in & get started. I know the only thing waiting longer will do for me is make me regret I waited so long, later on down the road.

I'm a very hands-on learner, as it is, so I know it's just a matter of stopping the second-guessing my abilities.

I've been studying wholesaling for about a month now & feel as though I know the basics pretty well. I think the main thing stopping me now is analysis paralysis, and getting ahead of myself wanting to jump into rental properties, even though I don't have the capital to do so.

I know that if I keep letting fear hold me back, I'll never get started. I believe experience is the best teacher. 

So, in an effort to jump in & get started in my REI career.. I was curious as to what some experiences you all have had that studying terminology, studying definitions, watching videos, and exploring other educational material just couldn't have possibly prepared you for. What is something (or some things) that you absolutely needed to actually get in there & experience, before you really understood, or felt more comfortable & at ease about, the situation?

Thanks for all your help!

I think this is why contingencies in contracts are important. I'm not 1000% sure that it would save you, in the long-run, but at least if you had a "offer contingent upon inspection", or something similar, you could point that part of the contract out to the seller.

This is such a great question! As a new investor, I have the same question. Mobile homes are typically cheaper to purchase, so it seems like they would be a good investment; however, as @Rachel H. stated, it probably totally depends on the neighborhood, condition of the home, and the surrounding area.

For instance, I found a decently priced mobile home in Florida, but I feel like because of the weather temperaments there, one would need to keep possible home repairs in mind. It's close to a few beaches, so rent could probably be a little more, which would help to make the price of the home back quicker, thus allowing pure cashflow quicker.. but I'm not sure if, overall, this would be a good investment.

Maybe try to make a pros/cons list with everything you can think of, just starting out, then if you're able to view the property, make a more detailed observation. 

Good luck!

I wish I lived closer & could attend!!

Yes. Also, I'm sure you would be held accountable if anything were to fall through, because you provided the "proof".

I can't say that I would, just because I want to build trust with the seller, and I feel as though if I were to make an offer before actually seeing the home, I may need to tweak the price lower afterwards, which may cause upset, distrust, and hesitancy.

I would also be afraid that making an offer without seeing the house first could cause the seller to be less likely to back down from the original offer, even if the inspection proves the house isn't worth the agreed upon amount. "Well, you told me that you could do 75k! Why would I take 35k?"

However, I have also heard people say that this is okay, as long as you have a contingency in place that allows you to back out of, or change, an original offer based on inspection. Just ensure that the seller fully understands this contingency & that they agree without hesitancy.