All Forum Posts by: Eamon Sullivan

Guys.

Im looking into a nice MHP with plenty of upside in the Midwest. The property is currently 16 units, there was 38 spots on the property but many of them had to be torn down so utlities are in place at the moment. From what I can tell the current owner is burnt out and has totally transformed the property from my research. She owns 5 units total now and 3 are on rent to own.

The Property is an hour outside of a Major Metro. Has city sewer, water and city streets. All utlities are paid for by the tenants except the water ( very costly and part of my plan of action for this property).

The seller is willing to hold a 2nd position on the property 50% of the purchase price ( roughly $150000) for 5 years.

My question, is it possible to get bank financing on the property for the other 50% of the Purchase price ($150,000)? Are there any caveats when financing like this with a bank? I am hoping to reserve my capital for the addition of homes and overall improvement of the park.

My end goal would be in 3-5 years refinance the property.

Any help would be great guys.

Thanks !!

Guys.

Im looking into a nice MHP with plenty of upside in the Midwest. The property is currently 16 units, there was 38 spots on the property but many of them had to be torn down so utlities are in place at the moment. From what I can tell the current owner is burnt out and has totally transformed the property from my research. She owns 5 units total now and 3 are on rent to own. 

The Property is an hour outside of a Major Metro. Has city sewer, water and city streets. All utlities are paid for by the tenants except the water ( very costly and part of my plan of action for this property). 

  The seller is willing to hold a 2nd position on the property 50% of the purchase price ( roughly $150000) for 5 years. 

My question, is it possible to get bank financing on the property for the other 50% of the Purchase price ($150,000)? Are there any caveats when financing like this with a bank? I am hoping to reserve my capital for the addition of homes and overall improvement of the park. 

My end goal would be in 3-5 years refinance the property.

Any help would be great guys. 

Thanks !!

Mike H. A few more aspects. The seller has tried to sell the properties via real estate agents, these are the properties remaining. Some are 20% others are at 70% of Fair Market Value. So not smoking hot deals. Of the $250k worth I would say the sales price would be $350-400k. And then there are some properties that may be really hard to sell. Our agreement is that I will sell the properties for simply the money (tax deed) that he has invested. He is trying to cash out right now his money is frozen. That is why I think I have alittle room for him to seller carry with beneficial terms as long as he can see the end in sight. I think one of the reasons that he had so much difficulty selling in the first place comes down to 3 issues. - Lazy Real Estate Agents -Asking 110-120% -Not offering financing. (Which is the biggest barrier to entry) Setting an agreement ( x properties per month for y months at z price) land contract with financing might be the best option. This would allow me to sell the properties - At 70%-80% FMV -Low down payment and monthly payment To a newbie learning the ropes I appreciate taking the time to discuss. .

Mike H.

@Mike H. I totally agree. Option contract with a land contract is the way to go.

Would it make sense to purchase those 5 individual properties with a Land Contract and seller financing of 4% and 10% downpayment? I am not sure how you would do that contractually. 

@Jay Hinrichs

Thanks for the insight Jay. I agree with you on the risk involved with trying to sell low-end properties. 

Jay I know you have alot of experience "flipping" land. Would you consider this a viable option, without lumber? Do will people really pay a premium for clearing, installing water and septic? What kind of returns did you expect? 

I have a few lots that could fit the mold for nice Mobile Home lots or small spec houses ( $100-120k price range). 

@Maugno M. read a few of @John Thedford threads. I thought it was legal too.

@Walter Roby jr @John Thedford

How would you structure a deal with the owner to seller finance all of them and limit risk/ exposure while still being able to sell the properties? 

How would I be able to sell the properties if there is still a mortgage on the properties as a whole? Or would essentially be a line of credit backed by these properties? 

I prefer the idea of cashflow more than a few big chunks of cash. 

The seller has agreed to offer 4% and low down payment on the properties. 

Thanks for your help guys

@John Thedford Just read a few of your post concerning this matter. I've started the process of getting my licensure. Thanks 

Any idea on how you would approach selling these properties ( with a license of course)?? 

@John Thedford I have done this before ( not saying this is legal) but I haven't run into any issues. 

Do I need to work with a broker? Or have a real estate license?

Does it matter if I am doing a double close? 

Thanks for the heads up

@Andrew Johnson Thanks for the heads up. I will look for that podcast. 

That is kinda what I have been trying to do, neighbors and craigslist!!

Thanks!