All Forum Posts by: David Benton

Listing Agent has a duty to present all offers to the seller, if they don't they are not fulfilling their duty under Agency Law Guidelines. 

If they are a "Realtor Member" you may be able to report an ethics violation to the local board. You can also contact LLR if they are a Realtor Member or are not a Non-Member. If you file a complaint it is usually taken seriously and goes on their record. Up to the LLR as to what they do.

You can create the LLC in any state as many used a Delaware LLC or a Nevada LLC years ago because of anonymity and some other law unique to these states but don't think it's common anymore. No need to file in the state you buy in as it complicates the taxes. I would just file in your own state and on contracts write a (whatever your state is) LLC.

Congratulations Derek! I see your objective is to scale 100+ which is what we're in the process of doing. I look forward to seeing you post more success in 2019.

I emailed Ken and waiting to hear from him. Thanks.

I'm looking at buying a MHP at $360k. It's a very good deal / money maker, but having trouble with the capital. The lenders I've talked with won't lend on that low amount. Does anyone know of a lender that will fund this size project?

I'm looking at a MHP with 14 pads and another 6 spaces. Only 9 of the 14 pads are rented currently. The property also has a restaurant, general store and small warehouse on the property that are all in good condition but not producing any income (currently closed). 

The analysis shows the property cash flows at 80% LTV at 5% interest, DSCR 130% and at a pp of $360k which it looks like the seller is willing to accept. I don't like tying up property unless I can close.

One question is a lender that does a loan like this. The lender I deal with won't do less than a $750k loan and this would require a bridge loan at 65% LTV even if they would do the loan.

The other question is how to attract an accredited investor as a 50/50 or a PML on this?

Thanks Vitaly, good information. I decided to pass on this one as I think the price is too high to justify rewiring and I don't like the idea of owning an asset that I may have issues with selling.

There are several to choose from. These guys have an audio and video library.

They can tell you all about the Self Directed IRA, can set your account up and walk you through the process from a to z.

http://www.americanira.com

Just saw you have the DSCR in the spreadsheet to toss the previous post. lol You can increase the price you offer the seller by 10% and have him credit the repair money at closing. A lender will typically allow up to 10%. If repairs are over the 10%, you would find out what your lenders DSCR requirement is (1.25-1.35) and that will tell you if you can add the Cap X to the expenses for x number years. The 1.05 is too low so the next step is a bridge loan with the Cap X included in the loan. Once the property stabilizes you would want to get a perm loan. For this size property this may not make sense. Ask the lender you deal with and they should be able to tell you the best options.

Debt is usually cheaper than Equity. The exception of course is if you're having a private lender put up the capital and paying a set rate without having to give up equity. Hope this is helpful. 

What may be an option is ask the seller to do some creative financing so you can bring it up to market standards and get a private lender put up the capital for repairs. Could do seller financing on a 6 or 12 month term or a lease option etc... Once the property is stabilized, get the perm loan.

You can increase the price you offer the seller by 10% and have him credit the repair money at closing. A lender will typically allow up to 10%. If repairs are over the 10%, find out what your lenders DSCR requirement is and that will tell you if you can add the CapX to the expenses for x number years. If not, you may need to get a bridge loan. Ask the lender you deal with and they should be able to tell you the best options.

Debt is usually cheaper than Equity. The exception of course is if you're having a private lender put up the capital and paying a set rate without having to give up equity. Hope this is helpful.