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All Forum Posts by: Chris Majors

Chris Majors has started 3 posts and replied 72 times.

Post: Ever heard of a VA Vendee Loan?

Chris MajorsPosted
  • Rental Property Investor
  • Evans, GA
  • Posts 74
  • Votes 65

Hey @Wesley Read 

It looks like it is legit back. If you go to vrmco.com and go to the VA owned properties, the site will indicate whether the listing is eligible for vendee financing. You can request more info and get the contact for a lender. I have a local contact, but have not yet applied for the vendee product yet. There haven't been any decent VA deals lately in my area. If I end up applying for the loan I will definitely post an update.

Post: Ever heard of a VA Vendee Loan?

Chris MajorsPosted
  • Rental Property Investor
  • Evans, GA
  • Posts 74
  • Votes 65

I believe all the info I just gave was from the old product.  The listing agents do not have any info either, they are just instructed to put the verbiage in their listing that owner financing with the vendee program may be available.  When you go to the vrmco.com and search listings there is a tab you can click to request more info.  Unfortunately, I was only sent an auto-email with no lender contact or any additional information.

It doesn't look like anyone has closed with the "new" vendee loan in my market yet.

If anyone has additional information or contacts please let me know!

Post: Ever heard of a VA Vendee Loan?

Chris MajorsPosted
  • Rental Property Investor
  • Evans, GA
  • Posts 74
  • Votes 65

Looks like the Vendee loan product is back!! I've noticed on some local VA REO's that they are now offering it. I just started researching it again and came across this thread. I'll post some more info after further research.

It looks like it's pretty much the same terms: 0% down owner-occupied and 5% down NOO. 2.25% funding fee and the seller will pay up to 6% of the sales price towards closing costs. No appraisal required. No limit on number of investment properties.

Post: Dont buy paint from Home depot.

Chris MajorsPosted
  • Rental Property Investor
  • Evans, GA
  • Posts 74
  • Votes 65

It's really tough to match paint perfectly, even when you have the same exact paint, same formula, same store, mixed at the same time.  That's why you box the paint if you have several buckets, to make sure everything will match when you go to touch up later..

Even though HD is not a dedicated paint store, they do have a great deal for REIA members: 25% off! They also carry most major brands. Obviously, if you buy large volumes of paint you will get a better deal with Sherwin Williams or another paint store, but for the small-time investor you will get a better deal on the same paint at HD with the discount.

Post: Tax Deeds Augusta, GA- anyone know how often they are redeemed?

Chris MajorsPosted
  • Rental Property Investor
  • Evans, GA
  • Posts 74
  • Votes 65

Hey @Amanda G.

They start the bidding at the amount of back taxes owed.  The winning bidder then receives a tax lien on the property.  The owner has 12 months to pay back the amount the bidder paid *plus* 15% interest.  If the 12 months expires the holder of the tax lien can legally foreclose on the property.  

In my experience, in order to be able to purchase title insurance you have to go through a "quiet title action," which costs ~$2k in atty fees/court costs.  Many tax lien investors on the lower end stuff do not.  I have purchased one deal this way.

I would definitely do at least a drive by on the ones you bid on, because the stuff that actually makes it to the auction is junk and may not be worth the back taxes.  Usually the good ones get paid just before the auction.  

I would say you are likely to redeem if it's a junker property that is condemned/borderline condemned dwelling and likely not to redeem if it's a decent property.

Good luck!! I may come to the auction this month as well.

Post: Would you buy this "mom and pop" 7 unit park?

Chris MajorsPosted
  • Rental Property Investor
  • Evans, GA
  • Posts 74
  • Votes 65

Thanks for the replies!

@Rachel H. Agreed. I think the big thing here that turns me off is the management.  The transactions are small and there are not enough units to justify any sort of on-site management.  

@Bill F. I am local and likely to be here quite a while.  

1. I'm not sure of the age of the septic systems, but assuming most of them are 30-40 years old.  The owner mentioned some replacements and maintenance he has done over the years.  I appreciate your point on that.  

2. The 24 month window should be ample time to fix/replace a trailer.  I guess the real question is, how much do you want to invest in the thing?  Same goes to the lots not currently being utilized and reaching out to the state.

I have decided to reach out to the owner and speak with him on some of the concerns.  I'm leaning on passing on this because of the headache factor.  I have some friends I'll share it with that like the lower-end rentals.  If he will do $50k on it.. I guess it will be worth some headache for a little while, lol.

Post: Would you buy this "mom and pop" 7 unit park?

Chris MajorsPosted
  • Rental Property Investor
  • Evans, GA
  • Posts 74
  • Votes 65

There is an older MHP in my area that I have been keeping tabs on for a couple years.  It's not the prettiest thing but throws off decent cash flow for the investment.

The property is just under 3 acres with 6 leased lots with tenant-owned homes and a 2/1 block building.  The lots are leased below market at $155/unit and the apartment for 450/month.  Two of the trailers share a septic and the other units have their own.  There is county water that is billed back to the tenants.  The trailers are a mix of 70's single wide's and 80's double wide's that have little value.  The block building is in relatively decent shape, being remodeled about 10 years ago with new wiring, windows, HVAC, etc.

The trailer park next store door is getting 200/month lot rent and you could rent the 2/1 for $585 section 8.  Other parks in the area are getting $250/month with no amenities so there is definitely some value-add by increasing the rents.

Rental demand is very high in my market and I could see rents increasing in the future.  I am a little concerned because the trailer parks are now not conforming.  According to the seller if a trailer becomes vacant the county will give you 2 years to get it occupied/put a new trailer on the lot.  This used to have 8 rented lots, but the seller decided to do anything with 2 of the lots so they are unusable.

*Current numbers*

Gross income: $1,380/month or $16,560/year

Taxes: $67/month or $800/year 

Management: I will be doing this myself with my team, but I am thinking around $250/month or $3,000/year

Maintenance/Capital Expenditures: $250/month or $3,000/year

Vacancy: I'm thinking very low since the trailers are not park-owned, but I figure 5% is fairly conservative. $69/month or $828/year

Net Income: $744/month or $8,932/year.

The asking price is $75,000 and the seller indicated it was negotiable. Owner financing may be an option, but the seller would prefer a cash deal. Based on my numbers I could pay the asking and get about 12% COC with no leverage. If I increased the lot rents to $200/month it would be 16%! These are pretty sporty returns with no leverage.

My main concern is the amount of time it may take to manage and the age of the mobile homes.  I'm hoping some seasoned MHP investors will give me some pointers on evaluating this potential deal.

Thanks so much!

Post: Groutable Vinyl Tile

Chris MajorsPosted
  • Rental Property Investor
  • Evans, GA
  • Posts 74
  • Votes 65

I love the vinyl tile!  I really like to use it going over existing "dated" tile in a bathroom to avoid ripping out the existing. Huge time and money savings!

One thing we have noticed is that the peel and stick adhesive isn't always that great and end up using floor glue.  Not a big deal, just get a 3.5 gallon bucket and go to town.

Post: FHA Loan issues- closing dec 22nd

Chris MajorsPosted
  • Rental Property Investor
  • Evans, GA
  • Posts 74
  • Votes 65

Forgot to mention doing a 203k would not be the way to go.  They are completely different than doing a regular fha and you would never close by 12/22.

One thing to note, the appraiser will have to come back out to confirm the required repairs have been completed prior to closing.  This may be something that will set you back.  Unfortunately the appraiser will charge for coming back out.

One possibility (not sure if they still allow this, check with the lender), see if you can get a quote for painting the garage door and put the cost of the repairs in an “escrow account” set aside for the lender required repairs.  

Post: FHA Loan issues- closing dec 22nd

Chris MajorsPosted
  • Rental Property Investor
  • Evans, GA
  • Posts 74
  • Votes 65

Is an agent representing you in this transaction? If so, your standard state contract should have an FHA loan exhibit with a paragraph asking the seller to pay up to a specified dollar amount in repairs to bring the dwelling up to fha minimum requirements.

This is a very inexpensive and quick fix and the seller agreed to sell you a home that meets FHA standards. I would have them handle it. I wouldn't make pre-closing repairs. Too many things can go wrong!