All Forum Posts by: Corey Block

@Hai Loc ideally I am looking for something that matches your criteria also, which is why I haven’t jumped on this other deal.  No sure I want to deal with the development.  It was nice closing on this park and start getting paid immediately.  

@Noah Mccurley it is definitely an interesting investment niche.  I kind of stumbled into this first park, but I have taken the time to educate myself and have really come to love this particular niche.  I plan to purchase more parks very soon.  

@Hai Loc I agree that the perfect scenario is a park with zero park owned homes and municipal utilities all individually metered and paid for by the residents.  I am actually visiting with a seller about another park in my area that is set up for all municipal utilities, the only problem is that it is a run down park and would have to be cleared out and reconfigured to maximize the number of lots (which should be around 14 - 16).  Not sure that I want to take on a development deal right now, but it definitely has potential.  

@Anthony Rosa my cash on cash ROI is about 137.2%. After I took possession of the park and increased rents after a 60 day notice, this is what my return has been. I have had 4 vacant lots and just moved in 3 new homes and am in the process of getting tenants in them. Once they are rented my new cash of cash ROI will be 136%. I plan to lease them for a year or so then get them on an owner finance/rent-to-own deal.

The park is a 14 lot park with now 5 park owned homes and 1 vacant lot. There is room to expand a bit as there is a home that is part of the park but not sold with it due to an agreement between the seller and the owner of the home. When the current resident moves, I will get the home. There is also a SFH that is on the property...it needs a little work, but once it is renovated I plan to refinance it to pull my cash out and have another rental unit.

As for PM, I manage all my own properties.  There is a shortage of competent property managers in my area, which is why I am in the process of getting my real estate license and will start my own property management company.  

@Charlotte Dunford where do you own your park or parks?   I am actually looking at another 12 and 16 lot park in my area.  

I am also considering taking a partner or 2 and forming a separate LLC to purchase some parks. I have several close friends that have been watching what I do over the last few years and want to invest...but don't have the time or knowledge or desire to learn like I do. Hopefully I can find a way to bring them in as partners and really amplify my buying power.

@Hai Loc, the park has 14 lots and a 2bed/1bath home, and only 2 park owned homes.   The park had 4 vacant lots and I recently purchased 3 like new 3 bed/1bath homes and have them set up to rent.   My plan is the rent them for a year or so then get them on a rent-to-own or owner finance type deal.   

As for utilities, it has a water well and septic system...so I provide water, sewer, trash, and lawn care for the residence.   The municipal water district does provide service to my park, but I would have to go through the process of having meters installed and getting all the residents transferred over.   I will probably do that eventually, but for now I’m focusing on getting the park full and cleaned up.

@Isaac S. the one problem resident was an older gentleman that I believe had a problem with alcohol abuse and really didn’t like being told what he had to do.  He tried to push back on a few rules I put in place and of course didn’t like that I increased rents.  But fortunately he left on his own.   

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $110,000
Cash invested: $22,900

This is a mobile home park that I purchased from a “mom and pop” that lived in and built the park. It appraised at $147,000 with rents WELL below market and operating at 35% vacancy. I have bought and moved in 3 new homes and plan to get the rents up and the park full then refinance and pull all my equity out to put to work.

What made you interested in investing in this type of deal?

I like the idea of just renting the land to residence and the 14 units spreads my risk.

How did you find this deal and how did you negotiate it?

I found this deal while networking with local real estate agents and negotiated the price down from $125,000 to $110,000.

How did you finance this deal?

I put 20% down and financed through a commercial lender that I have a relationship with.

How did you add value to the deal?

I have moved in 3 new homes and working to clean the place up.

What was the outcome?

Rents have doubled and the only problem resident has been removed. I am working to rebuild the main road in the park and have someone keeping up with the lawn and landscaping. So far, so good.

Lessons learned? Challenges?

Very important to have all the paperwork and policies in place, and be prepared to enforce them to the letter.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I did work with a realtor, but not one that I would recommend

Investment Info:

Single-family residence buy & hold investment in Buna.

Purchase price: $25,000

Purchased the home with cash from an investment refi and some personal money, then refinanced at 75% LTV and left around $1,000 in the deal.

What made you interested in investing in this type of deal?

I stumbled upon this deal on a local online classified ad and the numbers worked.

How did you find this deal and how did you negotiate it?

I found the deal on a local online classified ad and I happened to know the seller who was also a real estate agent and investor.

How did you finance this deal?

Cash then a refi to pull my money back out of the deal.

How did you add value to the deal?

I didn’t, the property was turnkey.

What was the outcome?

Still holding the property today. I am no longer renting but in an owner finance.

Lessons learned? Challenges?

Was more difficult to manage the property since it is about an hour away from where I live.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with the agent/investor that I purchased the property from.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $117,000

Fix and flip and hold. BRRRR Deal, got paid at closing.

What made you interested in investing in this type of deal?

I like that multi family spreads risk. When I ran the numbers I could see that one unit rented would keep the property at break even, full would make a great return.

How did you find this deal and how did you negotiate it?

Found through a local classified ad

How did you finance this deal?

I paid cash for the property and paid for the rehab with a line of credit, credit cards and charge accounts at various building material stores.

How did you add value to the deal?

It duplex was completely gutted when I bought it.

What was the outcome?

I ended up with around $117,000 tied up in the property and it appraised at $168,000. I was able to use a local credit union to refinance 75% LTV, so I pulled about $9,000 out of the deal at closing.

Lessons learned? Challenges?

I did too much of the work myself, which saved money but allowed to project to drag on too long.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Worked with a local realtor that was great! Kirby Smith