All Forum Posts by: Kendra Ellis

@Braden Coleman If I was to owner finance to someone again I would ask for a larger down payment, at least $5,000 down. Then I would would hold the loan at 2+ prime interest rate and then at year 2 I would the buyers on the deed.

This is where I messed up because I didn’t ask for enough down and I  immediately put them on the title. I would let them pay the monthly payments that are determined by the amortization schedule and at year 2 we would close on the property and let the buyer have the title.  So they are making payments to lower the principal and still paying interest but it gives me 2 years to see if they are legit or not before I sign over the title to them.  

I hope that makes sense. I guess it would be like a rent to own and at year 2 it turns into a owner finance deal.

@Account Closed I would love to help you out! Give me a call or text at 865 _ 437 _ 7433

@Angelo Wong this was my 1st time filling out the forums and I wasn't sure how I would calculate my all in cost vs cost it was to maintain over time. Sorry if it was confusing. 

To be honest, I dropped the ball a lot on this deal since it was my 1st time investing plus just being so young.  There was a big gap from when I got my 1st tenant, the one who owner financed until I got my 2nd renter. When it came to the 1st tenant I let him go a long time before I started the foreclosure process. Mainly because I was scared to kick him out and unaware of the process and I drug my feet on it because I wanted to think that he would get caught up plus I was more worried about college at the time. Lots of excuses = Missing out on potential profit 

It wasn't until I got engaged and brought my husband in on it until we started focusing on the property again and we worked together to get a new renter and started it all over again. ( This is why we make such a good team, I am too nice and forgiving and he doesn't let them go past 1 month before he starts evicting)

***Taxes are $135 a year, I didn't have insurance on the property and there were no holding costs since I bought it cash. (I hope this helps fill in the gaps in the math)

After the evictions there is always crap to clean up and a few thousand dollars worth of repairs to be done to get it ready to rent again.

@Jennifer Joseph The comparable homes and the tax record were about 45k and since we were owner financing it we raised the price a bit. The seller I bought it from was just wanting to get rid of it and cash.

@Matt Mullis This was a rural area where mobile homes are very common. I understand that most people would not invest in them but for me and my market it's different. You can buy them cheap and there are plenty of people who would rent or buy them in my area.

@Trish Giassa Thank you! It's good to see another woman RE investor on here! Girls Rock!!

@David Starr Sounds like you were house hacking before it was even a fad! That's a great price for eviction, ours was a little pricey because it was a foreclosure since we owner financed it, lesson learned... Never again on a mobile home!!  Your market sounds a lot like mine! I am glad you can see the opportunity mobile homes have. Thank you for your insight I am sure your family has much to learn from you and you can continue your legacy in creating generation wealth by teaching them to invest in Real Estate.

@Zachary Zinn You got this! Just be open to any opportunity and don't think that you don't have enough money to invest. There are tons of ways you can invest even with no money down.

@Bill Wilson That sounds like a good plan because the cost of moving the trailers can sometimes be more then what the value of the trailer is.

@Jesse Eberle That is so awesome that you are branching out and seeing that there is a profitable rental income from mobile homes if you put in a little work! I would not suggest owner financing on a mobile home because if you put it on a 30 year loan it will just depreciate. Definitely a good route for SFR but I just feel bad doing it with a modular home. And yes, it did include the land as well. It was a 1 acre lot so there was nothing I could take off of it and use for any other reason bc county rules was 1 septic per 1 acre.

@Motty Bayer I would start out being a new investor just looking for abandoned properties and seeing if the owner would owner finance them to you for you to rent out and make a profit. That is the route I would suggest if you have no money to invest up front. Did I answer that correctly?? 

@Braden Coleman What would have happened is I would have gotten paid the full amount that was owed on the loan. Which was around 45k so I would have happily have taken that pay off and move on.

The cost was just the cost for my attorney who does a lot with our family and it wasn't many billable hours for him.

@Braden Coleman My best advice would be hire an attorney to help you with the process. You just focus on specializing in RE investing and let the attorney do what they are good at. But the process took a few months because you had a lot of steps then it when it the paper and was sold at the courthouse but since no one was there to buy the property it came back to me bc I was the one who had the mortgage on it.

@Roderick Hullaby This was my 1st and only mobile home since then.  I grew up in a family that is heavily involved in RE investing and my papaw actually has had some great success buying and owner financing mobile homes that are not in a park. Our area is very rural and he know everyone and he also has the cash to buy them out right. He will buy it do a little bit of repairs then find someone by word of mouth to agree to owner finance it from him. Most of them stop making payments and he kicks them out and has to start all over again but he doesn't mind doing the extra time it takes to do that. 

I think he probably has over 40+ of them, he doesn't have systems or a property manager and he runs around making deals that his wife, the one who handles the booking keeping, doesn't really know about. It's a little messy, especially when last year he got cancer and we were sure if he was going to make it through the treatments. He also doesn't screen his tentants and thats why most of them stop paying.

I have a lot of good and bad lessons that I have learned from him and tho that maybe his niche I do not think it would be something I would pursue all the time.

@Nick Cantey Nice to see another CBWW agent on here! I just noticed we're in the same office. Let's chat sometime about RE Investing. I've been with CBWW since 2010 and I love the tools and stuff they offer. Get ready! Because we are working with the owners to bring some more resources to cater more towards real estate investors.

Kendra Greene Ellis

Coldwell Banker Wallace & Wallace, Realtors

The Greene Team- #4 Team Company Wide

@Luke Carl Awesome, Thanks Man!