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All Forum Posts by: James Park

James Park has started 9 posts and replied 29 times.

Post: Subject to, but small loan - what to do?

James ParkPosted
  • Rental Property Investor
  • Fullerton, CA
  • Posts 32
  • Votes 7
Quote from @Jay Hinrichs:
Quote from @Account Closed:
Quote from @James Park:

Hi all,

I've purchased properties subject to, and I understand how it works.

I am currently looking at a deal where the sales price is $290K and there is an existing loan for $150K. The loan is fixed at 3% over 30 years and has about 27 years left. Obviously an awesome loan to take over and the seller is fully willing to let me do so.

Problem is the $140K shortfall.

I can either:

1) Come in with the $140K cash - obviously don't want do this

2) Find a loan for the $140K. But what private lender is going to want to come in second, and what bank is going to do it knowing there's a first with someone else's name on the loan?

3) If I can find a private money lender to do a 2nd mortgage, they will need a high interest rate. Probably at least 10% if not 12% or more.  I guess this isn't the worst thing, since the low rate on the first mortgage would offset much of the higher rate on the 2nd.

4) Refinance the entire property at whatever I can get - 7% or so.

I'm just wondering if there is a solution where I can really take advantage of the low rate on the first, offer the property out to buyers with a wrap loan and drive up the asking price because it has built in financing with a fantastic rate.

Any ideas shoot them over!!


And Thanks in Advance!

That's a very common problem in this market. The technique to attempt, is an owner carryback on the equity as a 2nd. We teach this in our training.

Better yet and probably and easier sell.. is to have the seller wrap their own first and let them make some delta.. Plus if your end buyer fails on the 3rd loan they can foreclose easier. 

 Good idea, but the seller isn't sophisticated enough to do their own wrap. And getting them to understand how to do it would complicate things too much. And lastly, no need to give away delta if the seller isn't asking for it :)

I am working on getting them to seller carry a portion of the leftover balance. But he still needs $90K in order to pay his credit card balances off. So that part is nonnegotiable. And that's the biggest part to this dilemma. Only thing I can think of is to find a private lender who wants to do a long-term loan with a decent rate AND be in 3rd position. Not easy to do.

Post: Subject to, but small loan - what to do?

James ParkPosted
  • Rental Property Investor
  • Fullerton, CA
  • Posts 32
  • Votes 7
Quote from @Account Closed:
Quote from @James Park:

Hi all,

I've purchased properties subject to, and I understand how it works.

I am currently looking at a deal where the sales price is $290K and there is an existing loan for $150K. The loan is fixed at 3% over 30 years and has about 27 years left. Obviously an awesome loan to take over and the seller is fully willing to let me do so.

Problem is the $140K shortfall.

I can either:

1) Come in with the $140K cash - obviously don't want do this

2) Find a loan for the $140K. But what private lender is going to want to come in second, and what bank is going to do it knowing there's a first with someone else's name on the loan?

3) If I can find a private money lender to do a 2nd mortgage, they will need a high interest rate. Probably at least 10% if not 12% or more.  I guess this isn't the worst thing, since the low rate on the first mortgage would offset much of the higher rate on the 2nd.

4) Refinance the entire property at whatever I can get - 7% or so.

I'm just wondering if there is a solution where I can really take advantage of the low rate on the first, offer the property out to buyers with a wrap loan and drive up the asking price because it has built in financing with a fantastic rate.

Any ideas shoot them over!!


And Thanks in Advance!

That's a very common problem in this market. The technique to attempt, is an owner carryback on the equity as a 2nd. We teach this in our training.

 The problem in this case is the seller's primary reason for selling is he wants cash to pay off credit card debt. He has about $90K in cc debt to pay off. I spoke to him and he's probably willing to carry anything above the $90K, but he does need that amount in cash.

I suppose the main strategy would be to go and get a loan from someone willing to sit in 3rd position. 

Does anyone know whether a bank would be open to doing a second mortgage if I purchased the property but did a subject to on the first mortgage? Meaning, would a bank care if the first mortgage was in someone else's name?

Post: Subject to, but small loan - what to do?

James ParkPosted
  • Rental Property Investor
  • Fullerton, CA
  • Posts 32
  • Votes 7

Hi all,

I've purchased properties subject to, and I understand how it works.

I am currently looking at a deal where the sales price is $290K and there is an existing loan for $150K. The loan is fixed at 3% over 30 years and has about 27 years left. Obviously an awesome loan to take over and the seller is fully willing to let me do so.

Problem is the $140K shortfall.

I can either:

1) Come in with the $140K cash - obviously don't want do this

2) Find a loan for the $140K. But what private lender is going to want to come in second, and what bank is going to do it knowing there's a first with someone else's name on the loan?

3) If I can find a private money lender to do a 2nd mortgage, they will need a high interest rate. Probably at least 10% if not 12% or more.  I guess this isn't the worst thing, since the low rate on the first mortgage would offset much of the higher rate on the 2nd.

4) Refinance the entire property at whatever I can get - 7% or so.

I'm just wondering if there is a solution where I can really take advantage of the low rate on the first, offer the property out to buyers with a wrap loan and drive up the asking price because it has built in financing with a fantastic rate.

Any ideas shoot them over!!


And Thanks in Advance!

Post: 4 Mobile Home Park package in Indiana - in need of turnaround partners

James ParkPosted
  • Rental Property Investor
  • Fullerton, CA
  • Posts 32
  • Votes 7

Hi all,

My wife encouraged me to post about this on BiggerPockets, so here goes...

We own a 4 park package of mobile home parks in Peru, IN.  I'm guessing most people haven't heard of Peru, IN but it's about an hour and a half north of Indianapolis.

The 4 parks total 169 units.  However, we are only about 30% occupied and the parks are in need of a turnaround.

That's where you come in!

We purchased the parks separately, and each one of them were distressed when we took them over.  We have put money, time and energy into them and long story short - we got taken advantage of by some unscrupulous managers and others.  

We live in California, and I guess it was easy to scam us, as we are a 5 hour plane ride away.

Getting to the point - we are tapped out on funds to turn the parks around. And we are looking for partners to help us get it done.

We finally have a good manager in place, who is managing all 4 parks.  His name is Brandon Brindle and he is very reputable in Peru.

The big advantage is there are at least 50 park-owned mobile homes that can be rehabbed and either sold or rented.  This would bring in a tremendous amount of cash flow and also add great value to the parks.  We have a team that can jump on this and do a great job.

So we are looking for money partners to help us get occupancy up and drive the value of these parks sky high. At that point, we can either sell them or operate them for cash flow.  Up to you.


Let me know if you have any questions, as I would be happy to answer them.

To save time, here are the names and addresses to the parks:

1) Bourne End Mobile Home Park - 3 Wycombe Dr, Peru, IN 46970

2) Sherwood Mobile Home Park - 906 Main St, Peru IN 46970

3) Hi & Dri Court - 501 W 10th St, Peru IN 46970

4) Park Avenue Court - 23 S. Park Ave, Peru, IN 46970

James

Post: SEASONED FLIPPER LOOKING FOR NEW PRIVATE LENDER - Can provide 12% APY!!!

James ParkPosted
  • Rental Property Investor
  • Fullerton, CA
  • Posts 32
  • Votes 7

Hi all,

My name is James Park and I am a full-time flipper based in sunny Southern California. I live in Orange County but do most of my flipping in the surrounding counties of Riverside and San Bernardino.

My niche is manufactured homes on private land.  Not to be confused with mobile homes in a mobile home park! I purchased the home AND the land together!

I got into this niche because single family homes were too competitive. I had to fight and claw just to get a skinny deal with slim profits.  I knew I had to find a niche that wasn't as competitive to make the profits I really wanted.

Long story short, I discovered this niche and haven't turned back since! It's an incredible niche because the price points are lower, but the profits are fantastic!  I've been flipping these for about 5 years full time.

Previously, I had a private lender who would fund my deals.  However, he's recently become ill and his niece has taken over his finances.  And surprise, surprise - she doesn't want to lend out his money :( I guess she wants to hold onto it, since she knows it'll be hers if her uncle passes.

So I'm looking for new lending partners!  

What I can say is I have an extremely strong track record and would be more than happy to show you what I've done in the past 5 years. I can break down each deal individually, but because I (unwisely) have been transacting in my own personal name, all of the deals can be seen publicly and they should speak for themselves. They are all in my name "James Park". I am transitioning to forming LLC's but my previous deals are listed under my name.

Lastly, I can provide HUGE returns!! My flips are quite profitable, so I don't mind sharing the wealth with my private lenders. This arrangement is perfect for folks who have money sitting idle in an IRA or 401K and want to supercharge their returns. Again, I can provide plenty of references from folks I've worked with, including previous lenders, partners, brokers, sellers, etc so you can get a strong idea who you'll be working with. My results speak for themselves.

I'm going to be a bit picky as I only want to work with private lenders who are easy to work with. But I'm optimistic the right people will come together and make a great partnership!

Let me know if you have any questions!

Post: What are the differences in private lending in Indiana vs Cali?

James ParkPosted
  • Rental Property Investor
  • Fullerton, CA
  • Posts 32
  • Votes 7

Hi Andy,

Thanks for the reply.

This lender from CA is a little... complicated.  Essentially it's a group of professionals (doctors, attorneys, etc) that pool their money and have a person lend it out.  This person is responsible for finding good investments to lend against.  And because they have so many opportunities in CA, they don't feel the need to go out of state.

The main reason I am pursuing this is because I've tried like hell to get financing in Indiana.  But the banks won't touch me (yet) because I recently went full-time as a real estate investor and don't have the stable income history that most banks want.  

I've tried hard money lenders, but they don't lend against properties under a certain amount ($75K) and they have all kinds of stipulations as well, and I ultimately couldn't make it work.

I don't know any private lenders in Indiana. I tried to find some, but didn't have much success.  

So now that my private lender in CA is showing some willingness, I want to see if I can make it work.  I'm ok educating him as long as I can see this expanding and being a long-term arrangement.

However, I'll give Corevest and Groundfloor a look.  Thank you for recommending them.  

And I'm open to any other suggestions you might have.  Nice to meet another Californian who invests in Indiana!

Post: What are the differences in private lending in Indiana vs Cali?

James ParkPosted
  • Rental Property Investor
  • Fullerton, CA
  • Posts 32
  • Votes 7

Hi all,

I'm a real estate investor in California, but I also own multifamily in Indiana.  I have a private lender here in California that lends against homes that I flip.  He's always been resistant to lending on anything in Indiana because he doesn't know or understand the state. And he doesn't want to have to learn a whole new set of rules, regulations, etc.

However, he's now open to doing a few small refi loans for me on some houses in Indiana that I own.  What he's asking for is for me to put together a summary of all the things he needs to know in order to provide loans in Indiana.  Essentially, it's on me to educate him on all the aspects of providing private loans in Indiana to him, and he can make a decision from there.

Does anyone have information or resources you can point me to, in order to learn about what is involved when providing private loans against real estate in Indiana?  I can do some google searches, but it always helps to learn from someone who is knowledgeable on forums like this.

Thanks!

James

Post: 4 park portfolio in Peru, IN

James ParkPosted
  • Rental Property Investor
  • Fullerton, CA
  • Posts 32
  • Votes 7

Investment Info:

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

Purchase price: $1,150,000
Cash invested: $200,000

I own a portfolio of 4 mobile home parks in Peru, IN. Aggressively looking to buy more parks to reach my goal of 1,000 units. Looking for good partners who are as gung-ho about this space as I am!

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

The demand for affordable housing is endless. And the demand will keep going up as our housing crisis gets worse every year. This is a recession proof business, easy to manage once stabilized, and highly profitable!

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

I bought my first two parks with nothing done. Just assumed the bank loans. The next two parks I purchased with seller financing

How did you finance this deal?

Assuming bank loans and using seller financing.

How did you add value to the deal?

We are cleaning the parks up and rehabbing homes to rent to tenants. We will also be bringing in a large number of new homes.

What was the outcome?

We are still going through Phase 1, which is rehabbing the park owned homes. Phase 2 is next year. We hope to have the parks stabilized by the end of 2022. From there, we can keep them for cash flow, or sell them for millions more than we bought them for!!!

Lessons learned? Challenges?

It is certainly not easy to turn around a distressed park. We learned so much in the process, the most important one being to be properly capitalized (have enough money) before taking on a project like this. We've learned alot about how to hire the right people and how to deal with the city. We are just getting started in our journey and getting better every day!

Post: Looking for Solutions for SFR rentals in Kokomo, IN

James ParkPosted
  • Rental Property Investor
  • Fullerton, CA
  • Posts 32
  • Votes 7

Sorry it's 1420 and 1419 S Main St

Post: Looking for Solutions for SFR rentals in Kokomo, IN

James ParkPosted
  • Rental Property Investor
  • Fullerton, CA
  • Posts 32
  • Votes 7

Hi Joseph,

The address is actually 1420 S Main. I may have mistyped that.

I actually work with Chrissy Hitchcock, you may know her. She has that property listed currently. Yes it's on land contract.

Why do you think my homes aren't selling?