All Forum Posts by: Ray Johnson

Sounds great! See everyone then!

Hmmm... I think it's a good idea to have a picture of yourself on the site, but it brings up some questions. How would you enforce that? How do you know it's a picture of the person that is sitting at their computer? And for myself, I was reluctant to put my photo up, just because I didn't know anyone here, and I don't even have a photo of myself on facebook.

I think requiring people to put some effort into their profile is a good idea, just to help weed out the time wasters, but I'm not sure about enforcing what's a good picture and what isn't.

Hi Frances!

I understand your points, that no school is going to pro rate tuition based on a snowstorm, and the train isn't going to pro rate your monthly pass, BUT wouldn't it be AWESOME if they did? Wouldn't you tell everyone you know about how wonderful your son's school is? How they are wonderful people and really run their school with integrity?
Now imagine your tenant saying that about you. "Frances is the best landlord ever! He went out of his way to fix the water heater, and when the repairman took a week to do it, Frances cut my rent in half! He really cares about his tenants." Wouldn't that be cool? A great reputation is worth it in the long run.

I know there are some people that will never care how much you do for them, they will always feel entitled. But most people will be loyal to you when they know how much you care. I hope that puts a different spin on things for you! :)

Hi Bradley!

Right now, it seems I am in a research and education phase. I am not quite sure what exact segment I would like to focus on or what area. I think I should focus on the local area until I have more knowledge and experience. It needs to be no money or low money until I have a few transactions under my belt.

I think I should focus on lease to owns right now with seller financing (mobile homes or sfr) I don't have a system in place yet for finding buyers and sellers for wholesaling, although I think once I am more experienced that would be something to try.

Once I have more capital, I think I would really love rehabs. My credit is poor right now as the past couple of years have hurt our other business and I thought I needed to take on debt ( I have since learned that it was the wrong way to look at it). It is stable and growing, but it will take a while to fix our credit. That being said I haven't talked to any local lenders about Rehab Loans.

My thoughts are to just find a great deal and then go find a way to make it happen. Either finding a cash buyer, or a renter, or a loan officer that sees past my credit score. I used to have a problem with rejection, but now I know it's just one step closer to getting a deal done.

Wow, I think that was probably more than you were looking for.

I would love any counsel that you would have for me. If there is anything I can do for you, please let me know.

Ray

Thanks for the advice and insight!

Karen - That's a great tip to check with the local MH dealers. It seems common sense now that you mention it, but I didn't think of it.

Will - I think I'll go with the Mailbox Money Income. That sounds nice.

Joel- Thanks for making me think about the math. The taxes and HOA fees around here must be low. The millage on the lots are .07 so the taxes are around $80 a year. There isn't a HOA for most of these, so the only other expense would be maintenence. I can get my yard mowed, edged, leaves removed, and clean up for $35. So I think I could get a lot mowed for that much. I figure 6 times a year so... 210 plus the $80 would be $290 for a year for the lot, round that to $300 for a for sale sign and miscellaneous. If I pick it up for $500 and held it for three years that would be 500+900= $1400. Does that change anything in your mind?

Now, one thing that keeps attracting me to this is that it seems cheap to me. Meaning that I know I am new, and that whenever I am new at something I make mistakes even though I have you guys watching out for me (which I am super grateful for by the way). But if I am going to make most of my mistakes in the beginning, I want them to be cheap mistakes. Does that make any sense?

Hopefully that doesn't sound like a negative mindset, I am just trying to be honest with myself. What do you guys think?

Hi Michael!
There is only one house being built by Habitat for Humanity right now that I know of. The city does own some of the lots. I don't know how it would be valued, but the lot could always be donated to the city for a tax break, but that doesn't make sense for me because I don't have anything that I need a tax break for yet. :) Hmmm. Has anyone purchased land way under market value and donated at market value for a tax break?

Hi Will!
Thanks for the input! I definitely like that idea, I just don't have experience with moving MH or setting them up, so I wasn't sure. There was a house on the lot, but it was demo'd in 2004 according to the circuit clerk.
Would you still do it if you could only get 1-3k down?
I wouldn't get my initial investment back quickly, but if I don't have a note, I think that would be a decent cash flow. The area rent for a 1 bed is 450. So even if it's not the greatest MH I would think I could get $350.
Does anyone know of any other hidden expenses other than setup associated with MH?

Hi Karen! Thanks for posting and getting me thinking.

The unemployment for the Metro Area is 7.2%
It has gone down the past 2 months. Here is a link to the data with a bit more info broken down by job types http://www.bls.gov/eag/eag.ar_littlerock_msa.htm

The lot is zoned R-3 SFR. Not sure if the zoning codes are universal or not. I left a voicemail with the Zoning Manager about a conditional use permit for Manufactured Homes. They do grant them, but they could always change their mind.

As for comps:
The area is pretty scattered
4/2 sold for 107k in Aug
3/2 sold for 49k last Dec
vacant lot for 4k in Feb
vacant house 3k in Feb
3/1 rehab 11k in Jul
4/2 fixer up 30k in Jun

As for potential buyers:

if I put a MH on it, then I could sell,lease to own for fairly cheap or just rent

I haven't looked into any builders wanting to build on it. I could let them build and collect $ when the house is sold (although I'm not sure if they could do it cheap enough to sell it quickly, but not ruling it out without looking into it)

I could try to sell the lot itself to one of the neighboring owners.

I think those are the only options I see. How realistic are they? I understand there is cost associated with moving and setting up a MH.

I don't want to end up like the typical newbie I read about in a recent blog where they do alot of research and analyze and research and analyze and then don't do anything.

What does everyone think?

Thanks for the insight. Although I do enjoy working outside, I'm not sure if I like option 2. :) I'll see if there is any interest from the neighbors. It seems pretty straightforward, but is there anything I should watch out for or make sure that I don't do?

Hello!
Not sure which forum to ask this question in, so moderators please move if you need to.
I searched the forums, but didn't find the exact question I was looking for.

What would you do with an empty lot inside city limits?

The lots are in a part of town where alot of the houses were demo'd 6 or 7 years ago. The area is now coming back with some new construction and rehabs. It's not uncommon to see a house about to fall down with a family living in it, next to a burned out house, next to an empty lot, next to a brand new house with a Lexus parked in the drive way. Not sure if this is common across the states or not, but if you could get a lot dirt cheap - $100 to $500. Would you want it? What would you do with it?

- Try to sell the lot again?
- Build and sell?
- Build and rent?
- Hold on to it?
- Try to move a MH onto it? (some of the lots are zoned differently)
- Run away?

Thanks for any insight. I am definitely new at this and wanting to learn. Still not sure what kind of investor I want to be when I grow up.

Ray