All Forum Posts by: Dale Snider

@Paul Moore I suspect it‘s never wrong to pursue additional learning / experiences. Thanks for the note.

@Ryan Olsen there is a ~1/2 acre available on the property. I was thinking that would be a good place for mini storage units. 

Thanks Mike. Seller is old school. Doesn’t use automation much, takes cash. If I do a financing contingency and the Lender won’t cover the note I’ll be able to readdress the PP with seller. Thanks. 

Thank you all for taking time to comment. Let me take a slight turn on a related question. What is common for me to expect in lending for an RV park? F the park is performing is 25% down, 25 year note, 5% rate common?

Also, is it common to use equity in another property to get a park financed. Maybe that would also help keep the rate low. I‘ve an excellent track record and credit score, but a commercial lender is only interested in the performance of the property, right?

I’m eager to here your recommendation / advise. Thank you.

I have negotiated a deal. Have not presented a contract to seller, but we agree on terms and price and a 60 days to close for me to get financing. Ultimately, I believe this comes down to, I need 250K for the down payment at a 5ish % to make this work, but I‘m so new the unknowns are holding me back. I have flipped one house, 1 LP on an appartment syndication, and have 3 BRRRRs - all have gone very well. I have a W2 for now, almost retired. REI has happily become more than a hobby the past two years.

The deal: 34 lot RV park, 20 are rented. New build. There are 3 older houses that come with the property and one 40x40 metal warehouse. All are rented a little below market. All with new roofs in past 3 yrs.  

The area is growing at a rate of 5-8% depending on class of investment. There are 5 other RV parks in 10 miles and 12 in a 30 mile radius. Most look to be mom and pop when you drive by and call them.

$1,250,000 PP

He will carry 250K at 5% for 10 years on a 30yr amortization. Making the loan a $1M.

Current income is $11,250 with 20 pads rented at $400. The 11K includes the 3 houses and storage metal Bld income. Owner pays utilities. Pads not metered.

Expenses are: $2,550

I can get a manager for 5%

Using 5% for CAPEX and Maintenance

With the above it has a negative cash flow of $540. With 5 more pads rented it cash flows $1460 (74% occupancy). 

Property isn‘t well marketed. 

I will hold reserves, but how much is needed for an RV park. 2% of value?

I've not planned to sell the property I've just rehabed, but the neighbors have watched the rehab and are interested in a buy. I would carry the note. The area is growing at an estimated rate of 5.5%/yr. I could offer to sell the rehab at $210K. I acquired it with my brother (50/50) and have $35K to buy out other interests in the property and I've just put $38K in rehab in it. NOI is 8,570. Its 1678sf. We intend to put all proceeds to future purchases. I've initiated a cash out refi of $146K at 4.78. How do I set up the second property buy?

PP value ~$138K. They've $30K in an existing note. Its a 1317sf with maybe $20K in rehab needed. I have asked them to carry the note. I could offer to make a large down payment at closing to allow them to pay off the existing note & $20k for walking money or for a down on the purchase of my rehab. Thanks in advance for your thoughts  

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Super helpful!  @Jim Peret- book ordered. The notes on taking tax free distributions during my projected 5 year syndication has my interest. 

Progress report: new custodial account was opened Tuesday. Processed selling IRA funds Tuesday. Funds avail tomorrow (Fri). Syndication contract paperwork completed yesterday. Lots of phone calls to ensure the paperwork was filled out correctly. The app tiny scanner is so helpful while traveling.... more tomorrow....

Thanks @Brian Eastman  I was curious of what conversions a Roth would qualify for.

I'm quickly learning you need about 3 weeks to open, fund (by wire transfer) and direct funding to an investment... I'm going to see if I can get this process completed in about 7 days. I'll let you know how it goes.

@Alina Trigub@Lane Kawaoka thank you both. I’ll check to see if I’m eligible for a Roth to 401k tomorrow.