All Forum Posts by: DJ Tosh

@Matt Littlepage This has been a good thread. There's been some good insight shared. You may not be doing anything wrong. I would agree with @Aaron Gaffney on a couple of fronts - 1.  If your funds are going to go there, then you should go there. Maybe you have, and likely you have, but you didn't seem to meet these agents and shake their hands. This might help you gain a valuable partner. 2. On the partner note - find someone already doing it and endeavor to get involved. That someone could be in Cleveland already or doing deals in these areas like Aaron. The numbers have to make sense, but the numbers can mean nothing if the investment isn't ready for success due to additional considerations or the future team required to create the success you desire.

Lastly, I am sure you are exploring other means of acquisition besides market deals by getting creative. So you can make those dollars do more for you. There are still good things happening every day for buyers and sellers that don't look and smell like marketed transactions!

Good luck Sir, its all part of the journey.

Welcome @Reid Chauvin.

I am new to the Nash area as well. Really excited to be here and am also flexible to make connections and explore the future.

First of all @Reggie Rearden, congratulations on the soon-to-be new asset on your balance sheet. Fantastic!

As has already been said by @Nathan Gesneryou can set up an online format. Keep it simple. There are some basic softwares that do this well and would be perfect for an MHP like this. 

One thing you can do which we have done before is find a local bank in proximity to the MHP and set up an account. Then you can have your Residents deposit directly to that account and the responsibility remains with them. You don't have to maintain a secure lock box if you don't want to. We've found this combination to work well when the Residents are deeply ingrained with habits and ideas about certain things. This "re-training" has been addressed above as well but giving them the perceived control of depositing at an institution always seems to make them comfortable. The downside is that it's another bank account to manage!

@Hayden Wright I agree with alot of the dialogue that brought you to your articulation of what it is you want to learn more about. If you're passionate now about "small multi family" then there are a ton of resources for analyzing, structuring, and negotiating those types of deals all over for free. The best teacher is getting in the fray and learning in real time, in that space. If you find yourself veering into other spaces or considering new endeavors then maybe you're ready for a coach/course geared toward that specific space (ie large multi family, mobile home parks, etc). A possible way to realize significant personal and professional growth would be to seek a few strategic partnerships in the small multi family space and get to work. Six months from now you will be more knowledgeable, have done some deals, and be considering what some bigger things for your future could look like.

@Jack Rozema I think it's great that you're mixing it up by tossing some ideas into a post. Have you syndicated or done a larger acquisition like this before? 

I agree with @Brian Adams that you are talking about factors that aren't quite ready to be discussed yet. You still need to vet the assets and consider a comprehensive business plan before you consider future variables. The debt has many contributing factors, and the team executing the acquisition largely plays into what the considerations are. If you are going to tour the properties, make sure you have a clear picture of how the entire process works.  Where you are honestly lacking, seek help to gain more understanding. A 326 unit acquisition is a team effort, and you can always be working on building an incredible team.

I agree with what @Jared Rine said. It is important to maintain the context of the given situation. What you may be seeing could be outside of the context of your specific situation. I would also say that your purpose for purchasing is a strong factor in the type of financing you might utilize. Without that backdrop(context), it's hard to know what might be a good fit. For example, if it is an excellent deal and you intend to hold for a few years and have the means to add some incremental value, maybe it's a great JV opportunity? It's possible your partner would then have several other financing options to execute upon...

@Jacob Ellsworth I think it's great that your coming to this space and seeking to learn. Learning is a ton of fun but the growing part that comes next is where you will measure your resolve. Regarding your specific situation, I would back track to the seed capital you have on hand and consider what that accomplishes for you(it appears you are to some degree)? This is really the point where your considerations start with a myriad of scenarios that follow. You've referenced BRRRR investing which is a very active form of investing that carries an associated amount of risk. You may possibly consider a passive investment that exposes you to RE and allows your future funds to grow while you continue to learn. Now, you're bringing more things into alignment and getting them going in the same direction, Real Estate.

Candidly, don't discount the velocity of time and your ability to create different outcomes than what you expect. When I hear I can't move for 17 more years I will ask WHY? every single time. 

Keep learning and growing!

@Heather M. There's a lot of information missing here that would enable an answer. Anything of this nature should be discussed and cost mapped with local professionals. I spent many years as a general contractor, and from what you've described, this is a scenario that won't be advantageous to execute. All of that work to create the efficiencies you discuss will put your ROI quite a ways out. Wouldn't it be easier to bill the heat to the Residents and retain the commercial boiler since the property seems to have 6 zones? Again, I have no clue where the property is and if this is possible or not(RUBS). I would also ask whether or not the fundamental structure isn't more so the problem? i.e. Insulation, Windows, Sill beams, etc
Keep digging in and analyzing opportunities!

I echo what @Neddie Smith said. I would consume knowledge at an absurd pace. This was the real beginning of my journey even though I had executed several of today's "trendy" strategies already. After knowledge, I would become part of or create a team that's going in the direction you want to go. The craziness often comes after this inflection point.

@Frank Leone Whats up neighbor? As said theres a bunch of ways to come at this...I think that if your positioned well for your first flip or potentially one of your early ventures that investing your time can be well spent. As a Contractor I sometimes get a kick out of listening to people talk about projects like I can just snap my fingers and make it happen. Having the real experience of unpacking a train wreck packaged in something called a house can be an education that will help you from here on out. Seeing the process through and having knowledge of the various trades will give you appreciation for the people doing this work day in and out, as well as provide you with the ability to interact with contractors moving forward from that prospective. Ultimately your goals come into play and your desire to scale would impact you continuing to do the work,  but you would also know that if push came to shove in a given situation you could jump in and make something happen if you've been there and done it. Theres so many other factors as well but if the deal is good and you can afford to hold for the time you need its definitely an option...

Are you actively offering or just contemplating options?

Good Luck.