All Forum Posts by: Carin Kveton

Very interesting conversation. Thank you to all who have contributed. I've gained additional insites to this topic. I've toyed with the idea of purchasing a MHP, but haven't found the right one yet. I worked with a mentor who has SFH rentals, but, he also rehabs and does a lease-to-own of mobile homes. I thought it was an interesting that he own SFH rentals, but also does lease-to-own for mobile homes. He stated that he fell in to it, just thought he'd "try it out", and the numbers worked. He can rehab a mobile home completely for around $8-$10K, (windows,wiring, etc), then does a lease to own on it. Since everything is new, he rarely has any issues with leaky pipes, bad wiring or windows. People are happy with the place because it is trouble free, so they keep paying their lease/rent. My mentor stated he has not purchased a MHP because he just hasn't found one where the numbers make sense to him (although I think he is busy enough with his other investing, I'm not sure how aggressive he is searching).

For me, I think I'd look for an under performing park. The kind where the owner is tired and wants out-needs some upgrades, not completely full, etc. Then do an analysis for a MAO. I would look in an area where there is working-class jobs available, in or close to a fairly well-populated area (i.e. not in the middle of nowhere), and maybe near a military base-where people are moving every 2-4 years.

Also, for us, we have rentals in a "C" neighborhood, but our properties are a "B+". All our units are currently full (thank you Lord), and we have a handful of tenants that are on their second or third lease. I only say that because, I believe that if you turn around an under-performing MHP, and add or rehab some nice units, it will certainly decrease the vacancy rate. I know many people have certain opinions of trailer parks, however, there are a couple in my area that are really just cute. Nice trailers, and even the older ones are maintained and have nice yards. You can see the work put into the maintenance by the owner and the individuals that live there. They rarely have an empty lot. (Just my observations).  Thank you

Thomas, That you for the information on your post! I have also used the MAO. I have, in the past, forgotten to figure in closing costs on the back end. (Did it once, and now I always remember)! Also, I did not think to figure in concessions (I've only had to do that once), but going forward, I will figure that in, as well. If we don't have any, then that's just a bigger profit at close! Thank you for sharing your expertise!

Joe- Inspirational. Thank you for sharing your lessons! Congrats on your latest deal.

Wow! Thank you so very much for sharing your story! One way to look at it is: you didn't lose money, and now you are getting paid $12/month for quite an education! (Beats totally losing your shirt!). Anyhow, wonderfully detailed lessons. Also, your "after" pictures are awesome! Be proud of the finished product and keep moving forward! It could have been a much more expensive education than it ended up being. Everyone makes mistakes. I think one of the many lessons here is, how one handles the mistakes. Did you let it defeat you? Did you quit? Blame someone else? No. What you did was recognize your mistakes, correct the mistakes, and I'm sure you won't make those mistakes again.

Thank you again for sharing! You seem to have kept your wits and your humor. Best wishes for a better "next deal".

How do I approach people about investing with us on an already purchased property that needs additional funding. It's one of those things where we ran our numbers and added 10% as a cushion; however, the house was in need of more than we initially thought. It's a variety of issues.  (For example, some of the cost come in with the city requiring a larger water pipe from the house to the street. The house had been expanded years ago -which included an additional bathroom, but they did not require a larger pipe at that time. Now that we own it, however, we must now bear the additional cost of the upgrade). That being said, we currently have some of the cleaning/gutting, a new roof, architect plans, etc, but if we don't get additional funding, we won't be able to complete the project correctly.

This is a great property in a very nice area and could garner a 150-200K return on our investment after all expenses. Most lenders want first lien, but we already have a loan. Does anyone have suggestions? I'm willing to wholesale and let someone else complete the project, but I'd rather keep it and complete it. I've approached family/friends, but, they don't understand what we do, and think we are crazy! (LOL that's what happens when you try to explain non-REI people what you do).

I'd like to also say that each flip is an adventure and is unique. We've never encounter this situation before. My hope is that, in the future, we would be able to fund the difference, should this occur again. We are working our way there, though. 

Does anyone know of a lender that is willing to take second lien, or loan based on our credit/experience? 

Thank you in advance for any advice or suggestions you can offer.

Because we had to rehab the properties we kept as rentals, they all have new appliances, with the exception of one unit.  I think they should be included, because, like someone else pointed out, you could have damage to the floors, etc, with install/removal. However, we may start adding in the "courtesy clause" and have the tenants be responsible for repairs, especially as the appliances get older. 

Thank you, Percy. So, regarding their track record, I'm thinking it is appropriate to ask for references, check the BBB, see stats on past crowd funding ventures... that type of thing?

I've been researching crowd funding sites where you can invest a relatively small amount of money (5-10K) for a group of properties, with other investors, with a return rate of around 8-12%. How do you do your "due diligence" on something like this? Do you request details of each property in that group? Do you research the company that is offering the crowd funding investment?  I'm used to flips and rental holds, so I know due diligence on that scale. How do you research this type of investment and make sure you are asking the right questions?

 Brie- Thank you for the info. I'm sure that lenders look at properties differently than investors do. This helps me understand what it is that they are seeking.

 Jerry- Thank you, yes. I am continuing to "shop". Thanks for the info!