All Forum Posts by: Kyle C.

Maybe I'm way off here, but why dont you just get conventional from the get go? It seems like your intial investment with HML is 9600 and a 20% down investment would only be about 11k and you would save a good chunk of money not paying the interest on the HML. This should give you some more money to do the rehab with.

Or, just get the rehab $$ from an HML.

Good article. A few points I noticed that I dont think will be entirely true. Just because an inexperienced group buys property, it doesnt mean they are going to not know how to operate/maintain expenses. Look at Bill's response, for example. Also, there are so many property management companies out there who could manage the property, and probably will.

The only real expense risk I see is the cost of capital. And since these are large groups buying these properties, I dont think they would have a problem raising more money and paying the balloon off(probably from the same initial investors) if rates did jump up to 10+%.

The problem with these type of sites is that it will still take A LOT of work to get people to them. For real estate that will be mostly through craigslist posts, bandit signs, marketing $$$. If you want people to get there organically, you're going to have a hell of a time trying to optimize your site to be on page one for "sell your house" or "cash offer" or whatever you are trying to attract people to do.

I do a lot of SEO for adsense and ecommerce sites, so feel free to shoot me a PM or ask away on the forums if you have any more questions.

I bought a 4plex a year out of school with FHA, so I dont see you having any problems. Also, if I remember right, you have up to 6 months to move in after buying it (to allow existing leases to expire, etc) so if you have a GOOD tenant who would be ready to move in it when you buy it, you can do a short term lease to help stash some extra cash and then move into that unit in 6 months.

My strategy is to hold on to this 4 plex, invest some money into it, i already converted a 1br unit into 2 for an extra 150 per month and will redo kitchens/bathrooms in the future. Once the market starts to bounce back and I have ~25% equity I will refi out of the FHA into conventional and no longer live there. Then, I will go buy another 4plex with FHA and 3.5% down and do it all over again.

I see this being a pretty good way to get into properties with little down and not a very comprehensive balance sheet since FHA guidelines are much less stringent than other forms.

Good luck!

Hey Tony,

Where are you looking in Minneapolis? I see quite a few opportunities in S. Mpls. I put in two offers this week on properties.

Iliyan G How are you getting your probate leads? In my minimal experience with probates, I sat downtown digging through county records and getting contact info for benefactors.

Have you found a more efficient way?

Hal, Vin, and Lance,

Im reading Lonnie's book as we speak, do you have any updates as far as licensing requirements go? I'm looking at a deal now, and dont want to get off on the wrong foot.

Also, I'm a licensed realtor, although I am a leasing manager for a commercial real estate developer in the cities, do I need to disclose this when working in mobile homes? It seems I wouldnt since its not considered real property and its all registered through the DMV.. any guidance on this??

Lance-

I am interested in the mobile home park business too, in the Twin Cities area. Have you had any luck finding any information regarding valuations market info? Also, if you're ever interested in meeting up and talking real estate, let me know!

Thanks,

Kyle

Nice Job Jason! I like the site and how it breaks down what you did to the house. That site would certainly appeal to me if I was a retail buyers (...but BP has taught me better than that!)

Are you paying to host the site?

BiggerPockets I pay a little every month
BiggerPockets I pay a little more than the guy that pays a little every month
BiggerPockets I pay as much as Josh feels like charging every month

:)