All Forum Posts by: Hai Loc

Quote from @Ryan C.:

When stabilizing a unit and getting your NOI in a good spot: How does the bank determine the value of the property without a cap rate? If all you have is an NOI, who sets the cap rate, and how?

 I would start with the most recent Cap Rate posted on CBRE website. Make you adjustments accordingly by area and asset class

I highly recommend you not to do this. If anything out there exist I am pretty sure its not accurate.

Do you homework. Run your own comps or have a realtor do it for you

Easiest thing to do is to get multiple quotes..  I think most trades will just do a zoom on Google Maps and should be able to give you a quote pretty easily 

Quote from @Darvin Ezell:

I follow this guy on Instagram that is behind the tiny home development project in Atlanta, Ga called "South Park Cottages" . He built about 18 nice tiny homes on about 3.6 acres of land. Ive put together a team to help me accomplish something similar where im at.  Can anybody share any advice on the steps after the  land is found? I have an architect in mind. Also how would one profit from this? Once I acquire the funds for the land and team to build on the land and get a homeowner into all of the properties, whats the strategy to profit? ANy help or insight so that i could go research more would be appreciated?

I am more familiar with development in Canada. But development in general here are some ideas

The more value you add to the land the more its worth hence the closer the land is from allowing structure to be built on it

Here is the generalization of steps in value

#1 Raw land to rezoning for allowing (residential lots, multi family etc..)

#2 Rezoning to Approved Plot Plan where you hire engineers to get plan approved by the city/town to have structures built on the land

#3 bring utilities to the lot line ready to go (water, sewer, gas, electricity) if out of city you may have to build your own waste water plant or septic system for sewer and drill well for water

#4 clearing trees, grading land to have soil elevation to be relatively flat

#5 bringing all utilities to each individual lot (residential subdivision, mobile home park) 

#6 build roads 

Hypothetically speaking your $100k raw land could be worth $250k after its been approved by the town to have 10-15 mobile homes built on it or worth $350k after you cleared all the trees and grading and have all utilities at the lot line.. 

Not only you are adding value to the land you are also shortening the time period of the builder to be able to obtain building permits

Quote from @Drew Sygit:

@Hai Loc we take over a lot of properties for investors that didn't do proper PMC screening and just went with the cheapest PMC, contractors, etc.

When will investors learn you get EXACTLY what you pay for?

I would never buy a turnkey SFR. Maybe multi family with some vacancies tops

Quote from @Amby Bhagtani:

To all the intelligent investors here, what are some of the worst mistakes you made and what would be your recommendations for a new multi-family investor to avoid those mistakes. 

 I wouldn't call it a mistake but I would prefer buying a multi family building with city water and sewer. I own one that has a large septic tank. Nothing majorly wrong with that other then an additional cap ex expense 

Quote from @Brian Cassanego:

And was wondering if I can talk to an experienced owner.  I found a property in upstate NY  (I know NY with the rules and regs and massive tenants rights), but it seems like a good deal as most of houses are tenant owned, so very little maintenance, and a manager is already in place.  Anyway, hit me up if you are interested in talking to me.  I own small multifamily out of state (in Ohio) and I live in CA, so I won't be near this park.

Cheers,

Brian

 MHP in New York.. Can't imagine the snow if its in Erie County

I don't think it makes any sense to lease someone else's land so you can put mobile homes on it. The infrastructure cost is so high and who is going to pay for it? I highly doubt the land owner will and even if they do if would be more worthwhile for them to bring in mobile homes themselves vs leasing the land to you.

Quote from @Victoria Casanova:

 I was trying to run the numbers in the BP Tool but have no idea what the property taxes are or how that works for Mobile Park Homes.

As a MHP owner you are required to pay taxes for the land and any mobile homes that you own. Its critical to know how much the taxes are and never assume. You need to find out from the source how much the taxes are. Keep in mind MHP and MultiFamily are analyzed differently  

The one of the right  Larger Bedroom 2 Less Hallway space