All Forum Posts by: Dan Bryskin

@Mia Kurbalija,

Call a few mobile home parks around you, they will have a few phone numbers for the movers, it may be a bit better then googling. You will need to remove skirting, tie downs, disconnect utilities, lift it up from the blocks, set it down on wheels, disconnect sections and move it. Then repeat a process in reverse order. Good luck

@Austin Largusa

You may look at commercial mortgage products or some favor of portfolio financing. Some banks will write commercial paper on 1-4 units. They want 25% down and evaluate property, not your DTI. They want 1.15 - 1.25 coverage, so you need to get $1.25 in rents for every $1 in mortgage. Some will finance rehab. Good luck.

@Kynell Martin, most lenders are legit, but there are some scammers pertaining to be a lenders. Asking you for a driver license may be a red flag. Think about it, they collect a lot of information. Your SSN or EIN, info on bank accounts, property you own what not. If they also have a picture of your driver license - that's all they need to steal your identity .... So be careful who you send your info too. Check references. Check here, see if anybody has done business with this lender before. Look into them. Google. Check if they are licensed in your state. Make sure they are not pretending to be somebody else. I don't deal with any lender I have not met in person. Good luck.

We are entering the crisis. Top of the residential real estate market may stretch into the fall fueled by low rates. Corona virus impact coupled with oil price collapse will stress economy resulting in local / global repression of SFH (single family house) prices / economy. The present runoff on single family housing is similar to 2007. By the winter we will be in 2009, at or near the top of the SFH market.

Corona Virus Impact

• Immediate impact: Reduction in travel will impact hospitality and VR (vacation rentals) at first (sell your motel 6). It will impact service industry (disproportionality in heavy travel markets). 
• Secondary impact: Uber drivers, insurance companies, delivery services, dry cleaners, retail, yoga studios, performers / athletes, manufacturing, housing, construction and by proxy the entire economy. School closures will disproportionately impact blue color. 2020 housing market boom is fueled by blue color, they are the last wave. 
• Stock market losses will add to the chaos creating a new batch of opportunities.

Oil Price collapse impact

• Will further depress housing and other aspects of localitiestes with oil dependent economies.

Conclusion: corona virus and oil price impact will take billions out of economy, impact can be predicted, quantified and opportunities could be generated. 

My prognosis and recommendations. (just for friends and family)

Sell SFR, we are near the top. Stress test your portfolio looking at ROE (return on equity). Look if the property will bleed at reduced traditional rents. Think of you want to keep / do in crisis. If you are in stocks, think of your portfolio. Think of desired cash position. I think we have 3-7 months runway left in SFR.

@Simond Wong

I too require renters insurance. To give you an example, say pipe busts in the house. My insurance will cover repairs & loss of income. What my insurance won't cover is getting a tenant removed from the house. Renters insurance would. Good Luck.

We all deal with appraisals. Weaver  it's a bank or buyers appraisal the objective remains the same, get the highest number. We do it by  helping the appraiser do his job. 

We meet appraiser on site with the binder for the property. First, I want to know how familiar appraiser is with the area, trends, price bracket. Then we walk through the house. I usually show before, after and during pictures. I also point out what we did in this space, why and how it's different from the competition. For example, fiber board instead of sheetrock, nicer windows, better plumbing fixtures, solid vs hollow core doors. 

Next we provide appraiser our own comps.  Appraiser will be looking for sales within 1/2 of the mile radius, same property type and 6 months back. But at times it is hard to find comp. In this case we look far and wide, extending both search radius and time frame. Some times we look at different property types. For example I make a perfectly valid argument, one story house should be priced the same or more as two story, or two story vs story and a half. 

Comps are send to the appraiser with the e-mail outlining key points. For example, 

• One of the very few properties in the neighborhood with master suite
• Has open layout
• Bigger lot
• Over-sized garage
• bigger bathrooms

• Some times we will provide an appraiser with our actual budget, but always with a lot of pictures. How do you handle appraisals? What are you tips, tricks, strategies? 

@Kevin Kanavaloff

I know an old lady who almost completely replaced her breakfast cereal with newbie investors :) If you need help determining an an accurate property value consider hiring your own appraiser or getting a price opinion from the good agent / broker.  Good luck.

@Cameron McNulty

Sorry man, I can't answer your question. But what I can tell you, investment carries a risk. Don't think about it in terms of - should I buy a sandwich or should I invest. Think how much risk are you taking on, what's your plan A, what's your plan B and so on. Are you taking an appropriate amount of risk for your position? What happens if you get laid off, or loose your job? Do you have money in reserves, borrowing capacity, other sources of income? How big of reserve do you need? How much a month can you afford in payments? I think you will find your answers by answering this questions. Let me give you an example:

Say you have 100k in savings and 10k a month in extra income with your monthly bills being 4k (gross monthly income of 14k). I'd say you can invest 50k & take on 5k a month in debit. In example above that gives you 12 month runway in reserves & you still have 50% of your free cash for contingencies. Good luck. 

@Kevin OBrien

I'd start by getting a number from the seller. I'd then put together my number for the property. I'd look at the exit, duration and expanse of the project, discount risks involved, make sure I have a healthy contingency set aside and make sure this project will pencil out the same or better then my other opportunities. Good luck

@Account Closed

1. Thank your uncle

2. Understand the deal. Ask your uncle what is he thinking? Are you getting a deal on the purchase price, on the financing on what. Are you getting a deal?

3. Determine highest and best use of the property / situation. May be you can just flip it, or fix and flip, may be you can fix, get it financed and rent, may be you can rent rooms out to your friends - analyze a pros and cons of a few options.

4. Based on 3, create an action plan

5. Execute

Good luck