All Forum Posts by: Griffin Schermer

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,200,000

This is a 100+ pad community located near Downtown Bloomington (Near Indiana University). We negotiated a deal with the owner for 20% Equity, we are responsible for infilling the community as well as property management (which we also get paid separately for). When we found this deal the community had around 45 homes in it, now we are close to 60 total homes and looking to bring that number up to around 80. At which point our evaluation should rise on the community for closer to $4,000,000.00

Lessons learned? Challenges?

We've enjoyed digitizing all payments, streamlining service, as well as infilling new homes. Along with our partnership with GS Courtyard Homes this is a thriving and growing community, located in an amazing market. With hardwork and ceasing opportunities we've managed to be part of this major asset and making it even better.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,200,000

This is a 100+ pad community located near Downtown Bloomington (Near Indiana University). We negotiated a deal with the owner for 20% Equity, we are responsible for infilling the community as well as property management (which we also get paid separately for). When we found this deal the community had around 45 homes in it, now we are close to 60 total homes and looking to bring that number up to around 80. At which point our evaluation should rise on the community for closer to $4,000,000.00

We've enjoyed digitizing all payments, streamlining service, as well as infilling new homes. Along with our partnership with GS Courtyard Homes this is a thriving and growing community, located in an amazing market. With hardwork and ceasing opportunities we've managed to be part of this major asset and making it even better.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,200,000

This is a 100+ pad community located near Downtown Bloomington (Near Indiana University). We negotiated a deal with the owner for 20% Equity, we are responsible for infilling the community as well as property management (which we also get paid separately for). When we found this deal the community had around 45 homes in it, now we are close to 60 total homes and looking to bring that number up to around 80. At which point our evaluation should rise on the community for closer to $4,000,000.00

We've enjoyed digitizing all payments, streamlining service, as well as infilling new homes. Along with our partnership with GS Courtyard Homes this is a thriving and growing community, located in an amazing market. With hardwork and ceasing opportunities we've managed to be part of this major asset and making it even better.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,200,000

This is a 100+ pad community located near Downtown Bloomington (Near Indiana University). We negotiated a deal with the owner for 20% Equity, we are responsible for infilling the community as well as property management (which we also get paid separately for). When we found this deal the community had around 45 homes in it, now we are close to 60 total homes and looking to bring that number up to around 80. At which point our evaluation should rise on the community for closer to $4,000,000.00

We've enjoyed digitizing all payments, streamlining service, as well as infilling new homes. Along with our partnership with GS Courtyard Homes this is a thriving and growing community, located in an amazing market. With hardwork and ceasing opportunities we've managed to be part of this major asset and making it even better.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $3,636,000
Cash invested: $700,000

This is a brand new 40 home build to rent manufactured housing community. We have completely gutted all homes and old infrastructure. We are bringing in brand new fully drywalled manufactured homes ranging from 3 bed/ 2 bath to 2 bed/ 1 bath. All water, sewer, and electrical infrastructure is being replaced. This community is being built by GS Courtyard Homes, located out of Bedford, IN.

What made you interested in investing in this type of deal?

We specialize in affordable housing in Indiana. Our mission is to provide new and affordable rental homes across Indiana.

How did you find this deal and how did you negotiate it?

This was found off-market through a wholesaler.

How did you finance this deal?

We purchased the land all cash, and financed the rebuild of the community

How did you add value to the deal?

We are completely restoring this community with brand new homes and infrastructure

If this is for personal use then I'm not sure I'd entertain this idea. If your plans are to buy the land, build an investment property and your friend run/manage it. I would set up an entity that buys the property, you'll put the capital into the business and find an equity split that works for you. If you do this, you'd both be tied to the loan. I would do an 80-20 or 70-30 split in your favor. I'd let him collect some sort of management fee. 

Having an operating agreement with protections for you are essential, and making sure to run good numbers and having a solid plan in place are what you'd need for this to work out.

We have a small mobile home park in Indiana that we are in the process of stabilizing. We've raised the rents and are getting ready to sell 3 renovated homes on RTO contracts. We have some short term debt we need to pay off at the end of July (300k). We have already raised half of the money for the community on bank notes with friends and family, we need another $150k before Aug 1st. We are looking for private lender recommendations, and also, can we achieve private financing inside of 30 days? The bank notes with friends and family range from 8-10% annual payout.

The community has 5 tenants, 4 TOH (tenant owned homes) paying $325 per month, and a house $500 per month. We are about to have 3 homes on RTO (rent to own) contracts. They will be bring in between $700-$650 per month, we have one buyer lined up, and we also have another home we are beginning to renovate. Total projected revenue will be around $3,500 per month, after the 4th rehab it will be around $4,100 (4 TOH, 4 RTO, 1 house).

After 12-18 months we plan to refi with bank financing, we are just not in a position we can do that quite yet. Any suggestions for private lenders and advice would be awesome and also can private money be put in place fast? 

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $240,000

We purchased a 15 Pad MHP in Connersville, IN. Everyone in the community owns their own home and rents the land. This is our third community purchase as we continue to go after more communities.

What made you interested in investing in this type of deal?

Our team is focused on purchasing MHP's that are on all city utilities. Our goal right now is to pursue 1 new MHP every quarter.

How did you find this deal and how did you negotiate it?

We found this deal through a wholesaler. He was asking for $290,000 and we were able to get another $50,000 off of the price. He had told us this was a 100% TOH community, but through our due diligence process we found out the seller had lied. There was about 50% POH and 50% TOH. In a few short months we were able to turn this into a 100% TOH community.

How did you finance this deal?

We raised investor capital to fund this deal. We the purchased it all cash.

How did you add value to the deal?

We have turned all of the POH into TOH to reduce our liability and need to maintain homes. We've also sub metered the water and estimate we will save around $8,000 - $10,000 in cost through the first full year of ownership. We also have a $25 rent increase going into effect, and we are pursuing filling in a couple of vacant pads in the community.

What was the outcome?

We are debating whether to sell this community or hold onto it long term. It has been a great learning experience as well as a great asset that is producing cashflow for us.

Lessons learned? Challenges?

We learned that Submetering water will help you identify where there are water leaks at. It's easier to identify water leaks because we had a couple of tenants with bills double that of others. This also may help tenants identify if they have any leaks in their home they may be unaware of. We've also had some challenges with our onsite manager sometimes being difficult to work with, but it's taught us how to be better people managers.

@Taylor L. @Drew Sygit This was an off-market deal brought to me by a broker. It had been built and owned by the same family since the 1950's. After a brief phone introduction, we went to the homeowners house and chatted with them for a few hours, after figuring out what it was they wanted I made them a proposal and it stuck. Once I had the Community under contract, the next day I went to a couple of investors I thought would be interested and it was fully funded after one meeting. 

We recently purchased a 30 pad community in Southern Indiana. We've since started to clean it out and will begin infilling new homes this summer. We purchased this property for $250,000 and it sits on a little over 3 acres with city water/sewer. All utilities will be sub-metered, we estimate each pads "turn-key"cost will be around $65,000 . POH will be between $850-$1000, TOH homes will be set between $350-$400. We have 10 homes to remove/demo, and 26-30 pads to fill with new homes. We have our own property management company and mowing service maintaining  the community. I'm excited to see this park progress over our 1-2 year infill.