All Forum Posts by: James Rey

@Michael Ablan. I agree. We have several parks and if POH we do lease options with down payments to try to convert all our maintenance just to common areas. You get the best of both worlds that way.

@Roland Osage Hi Roland. I’d recommend 2 things. If you are a passive investor get some education as to what to look for in deals etc. The last thing you want to do is hook up with a syndicator that is overly ambitious in their pro forma. If you are going to be a syndicator, get a qualified mentor. I can’t tell you how much I’ve learned and been succesful due to mine. We are now partners and at 4700 units in 10 states. Let me know if I can help in any way.

@Jessie Eagen 100% in agreement with Brian. Doing a PPM yourself is a recipe for trouble further down the road. One complaint from an investor to the SEC and all of a sudden the 15k you spent in a true syndication attorney is totally worth it. We’ve never had the situation happen but if it ever does I want our team and our investors protected.

@Ken Jernigan. Have you bought a park before? It’s bringing in 20k a month but are the homes park owned or resident owned. Expense ratios for each are drastically different. If park owned how old are they on average? If you have park owned homes and you go to refinance the bank will only consider the income from the lot rent, not the home rent. I’d encourage you to get as much data from your uncle as you can. Seems a bit pricey to me though the owner financing can be attractive. Once you do the analysis you should end up at at least an 8 cap or more if there is not a huge upside such as bringing in new homes etc. I’m helping some friends buy a park also in Maine. I have 5 in Georgia. Let me know if I can help in any way.

@David Flores. I’d recommend a mentor which is what I did 5 years ago and we’ve been rocking ever since. Make sure the mentor has a track record you can verify; make sure they are buying currently and not only in the past. Get referrals. I have a guy out in San Francisco but I have not talked to him in a while and have no idea what he charges. I’d ask him the same questions above. PM me and I’ll give you a name and number if you want.

@Scott Morongell. We do the same thing. Market is pretty tight though we can still find some deals if we look hard enough. Our main focus this year is raising more equity and adding new investors to our database. Let me know if I can do anything for you in the MD area.

Some banks will require you to set aside reserves as they are collected in a separate account. Even if the didn’t it’s dangerous not to do so. Stuff just happens. We’ve done Multifamily and mobile home parks. You can text or call if you want to talk. You can pm me if you want to talk

Hi Gavin; we’ve done syndications for both Multifamily and mobile home parks. I’m more than happy to share what we’ve seen. Text me or call me at (240) 472-7555. James

Most banks are going to want a sponsor to back someone that is relatively new . IE someone who's net worth is equal to the note and has a least 9 months of cash reserves to cover loan payments. When you find a deal and look for a sponsor most will want a percentage of the management side, 20 to 30 % of the deal, both cash flow and equity. The positive part is you basically have a mentor that will qualify your deal for you and help you be successful because that have skin in the game. As you acquire more and larger properties you'll have the opportunity to be a sponsor for your own deals as well as other investors. I can't speak for anyone else but that has been my personal experience and it has worked out quite well. Best of luck!

As long as you do less than 3 owner financing deals In one year you are ok with Dodd Frank. Once you go over 3 there are a lot of hoops to go through to do it legally and the information is pretty ambiguous at times. I agree with above in renting the unit out. We've got about 250 that we rent out and though your cash flow is higher, the maintenance and turnover expenses can get out of whack unless you monitor your team carefully or have a very good property manager. Best of luck whatever you decide.