All Forum Posts by: Jacob Nunn

Not a MHP owner, but check out this search result for the Charlotte area. https://m.mhvillage.com/Communities/ParksWithVacantSites.php?City=Charlotte&Radius=10&State=NC&s=Default&lp=10

Welcome Jeff! I'm over in Rock Hill and also at a similar spot as you. Learning all I can and this is the place to do it!

Welcome!  I only have about a month head start on you, haha!  The information you'll find with BP has been the most helpful out of all the resources.  Make sure to read the blogs, forums, and most importantly...the podcasts!  They are fantastic and the interviews will really open your mind to different investing strategies (some you've never heard of before)!  Good luck on your journey!

From what I've heard from multiple interviews on the podcasts, as well as from what Josh and Brandon say, it's always a good idea to have a knowledgable real estate attorney in your corner.  Can you do it all yourself online without an attorney?  Probably.  However, you want to make sure you are covering yourself from any liability for and keeping yourself compliant with the ever changing laws.  Just my 2 cents.

Welcome!  I'm pretty new here as well.  Whenever I've posted on the forums, people have been very helpful!  I definitely recommend incorporating listening to the podcasts as part of your daily ritual.  They provide a wealth of information, but also help to keep you motivated each and every day about real estate investing.

@Mike Messersmith Thanks for sharing that blog post.  That was a very good summary on portfolio lending.  I did notice that the post said most portfolio loans have a higher interest rate typically than what you'd get with a conventional lender, and that they are usually shorter in term or have a balloon payment.

Based on my personal situation, I shouldn't have much of an issue getting conventional financing for the first few properties.  Does it make sense to go the traditional path until you get capped at a specific number of properties and then switch to a portfolio lender (just given the more favorable terms most likely with conventional)?  Or is it more advantageous to start off with a portfolio lender that will work with you so you have the benefit of having an established relationship with the lender so when you get to 10+ properties, they're more willing to work with you if the numbers make sense?

I'm trying to get into real estate with as low risk as possible, and to me one thing that will help with that is low interest rate and 30 years of payments, which gives me the smallest monthly loan payment.  That way, I can at least afford on my own to cover the mortgage payment if the property is vacant for an unexpectedly long time.

Mark Gibbs I really like the alternative you mentioned. A couple of other strategies that I thought were good options are tax liens and mobile home parks. Your idea seems to mash up all of my ideas into one strategy potentially (although wouldn't be an entire mobile home park)! How does the tax deed differ from the tax lien as far as steps in the process? I'm assuming this is where the lien holder is not paid off after the allotted amount of time. If you have any other ideas, I'd greatly appreciate it. I just think it would be able to use a strategy that is more focused on generating capital in the beginning in order to be able to have capital to put towards and investment strategy. Thanks again.

Mike Messersmith I appreciate your insight. On the distressed land, I was planning on giving it a shot for a few months and seeing if I got anywhere with it. If it seems to be a strategy that I can't execute well, then I'll probably just continue saving up for the single family rental. This could all change as I continue to research and determine how my local market is for rentals. Another reason for distressed land is because my local housing market is a heavy sellers' market (based on my limited real estate knowledge and after what I experienced purchasing my primary residence last year) so I'm trying to use the time while the market cools a little to invest in other opportunities . Unfortunately, house hacking isn't much of an option for me, since my primary residence is in a neighborhood that doesn't allow rentals per the HOA. I also have a new baby, so having someone rent a room also wouldn't be something my family would be comfortable with. If there is another house hacking idea you have other than these, I'd definitely be interested in hearing about it. Could you elaborate on the portfolio loan strategy? I would be interested to learn more about how that could accelerate my acquisitions. Thanks!

So over the past month, I've been soaking up as much information as I can.  I've read 4 real estate books, watched the BP free course videos, listened daily to the BP podcast, etc.  I'm just trying to build a good foundation.  I knew I wanted to invest in real estate, but I was trying to determine the HOW.  The end goal is to have a substantial amount of passive income as well as build equity, to have additional security for my family in case something were to ever happen to myself or my job.  

After what I have learned to this point, my plan is to invest in single family homes.  I have a decent amount in savings, but I would like to build additional investment capital before I purchase my first single family home.  The way that I am planning on doing this is purchasing and selling vacant land (method mentioned on BP podcast #39 where buying at deep discount).  This will require capital to start purchasing vacant land, but it would be significantly smaller than a down payment on a house.  After doing this for about a year and raising enough capital for a downpayment on a home, I plan on purchasing my first single family home.  I will continue to seek out vacant land opportunities.

For the single family home, I'm shooting for something with 1% rent to purchase price around the $150k mark.  I'd like to self-manage the first rental as a learning experience but would eventually plan to transition to a management company, so the numbers have to make sense to cover this expense.  I would then use the net rental profits from this home towards the down payment for a 2nd rental property (along with proceeds from any vacant land deals).  Based on my projections, I would be able to purchase the 2nd rental after 3 years.

I would then continue to use this plan (saving all rental income towards down payments) to purchase additional single family rentals around a similar price point of $150k.  I'm approximating that I would be able to acquire my goal of 10 rentals by year 10.  At this point, I would use all rent payments to pay down the loan balances of the 10 homes (1 house at a time) with the goal of having all the homes completely paid off by year 20.  

Any thoughts or comments on this plan?  I live in SC.  I'm somewhat conservative from a risk standpoint (especially since I've never invested in real estate to this point), which is why the goal is to eventually own all the rental properties outright.  I would be open to investing in higher rent/higher value homes depending on how everything goes, but this is my plan for now.  Thanks.

That's great! Congrats!