All Forum Posts by: Mike Clark

Thanks for the reply! The 30-40k per year are written offers (not signed contract obviously but in writing nonetheless). How would you know someone was overpaying when I didn’t tell you how many acres were actually being rented? 

So that was my point… If the property is worth 450-550k without solar, how would 35k/yr plus escalators effect its worth? Someone could purchase at 600k, make a very safe annual 6% ROI (and escalator above that every year) plus have the base property appreciating at the same time for resale later.

Just curious of anyone else’s thoughts? 

Thanks again. 

Hi. I’m trying to figure a fair value of this parcel of land…

92 acres in southwest Pennsylvania. Partially cleared farmland. Partially wooded. Next to electric power substation. There is already several offers from solar lease companies to lease a portion of the property. 
Offers range from 30k to 40k per year. Each year there is also a 2% escalator. They would also pay the taxes.  Lease would run from 20-40 years. Land in the area and similar size has recently sold for 5k/acre. 

Thanks for the input guys. Mitch ... didn't think of that ... great point!

What about just having each tennant sign a waiver that they stay at their own risk and they forfeit their right to sue ... and getting umbrella insurance?

Do most of you run your business under an LLC or S-corp ... or do you run your business under your personal name? I'm know a lot here set up businesses but is it really necessary if you only invest on a smaller scale ... say 2-4 properties? I'd rather not go through the legal and tax headaches if it's not necessary. I also would think it would effect the loan process as well.

Do you buy a property based solely on numbers or does the location play a part ... even if the numbers are good.

I found a duplex in an undesirable community that I never even thought about. I really don't want to buy there but the numbers are the best I've found.

It is a Duplex built in 2005 ... only 6 years old! It's built in a "revitalized" portion of town ( about a city block of new homes). It has been reduced from 65,000 to 50,000 ... and I figure to get it somewhat cheaper of course. It's rented for 550 and 450 ... 1000.00 total rent. It looks beautiful ... the surroundings aren't great though. It's apparently been on the market for at least 1.5 years!

I hate to pass on it ... what do you think?

I'm looking to get into real estate investing. I've read many many posts here ... GREAT STUFF! But ... I can't find anything that has positive cash flow (by 100.00 per door) after paying the mortgage. What do you think about this...

An updated single family house that I hope to get at about 30% below the appraised or FMV. I can get a 12 year mortgage at 6%. But, I would only make about 100.00 over the mortgage amount.

House Value - 44,000
Bid - 31,000 (owner is motivated)
Mortgage is about 420.00 including taxes and ins.
Rent is about 525.00
Hoping that the 100.00/month takes care of repairs.

My payoff would be in the house when it's paid for... right? Does that make sense?

Thanks in advance!