All Forum Posts by: Jon Dorsey

Conventional valuation would value just the NOI of lots. Up to you on placing value on the POHs.

@Mark B. If you still have a mortgage, that gains will be the difference b/n $250k, paying off the mortgage, and any other seller fees . Consult your CPA about the IRS requirements for identifying the property and transitioning the gains into the new property.

If you truly have $250k to work with, see if you can have the seller make the improvements, bring in homes, etc. beforehand and buy it at higher price. Doubt the seller would, but just a thought. Best of luck.

@Bill F. T12 checks out. No real savings to be had maybe a little on management.

City sewer/water 

Older POHs 70s/80s but have same renters for several years. I would sell these off. 

NOI does not include POHs.

Looking at a deal in northern FL, bigger city.

NOI 98k

Lots 42

POH 13 (1 vacant) ($450-650)

TOH 25 ($300-325) [at market]

Individually metered 

Asking is $1.4M. 

Recent comps are at 7 CAP but that seems like it's overpriced. It's a 3 Star Park, 55+ community.

I’m looking at more of a $1.29M figure. Is that too much? 

I would be utilizing bank financing so with debt service of $75k annually, is it worth the $10-15k at the end of the year$

@Odie Ayaga and @Bill McCafferty thanks for the information. I’m going to dig into some educational pieces and appreciate the openness

@Odie Ayaga I appreciate what you’ve shared and will work on digging a little more for some educational pieces. Thanks. 

@Chris Seveney Thanks and I’ll let you know if I have any specifics. What is your experience with investing in notes?

@Bob E. I’ll have to check that guy out. Thanks. 

@Odie Ayaga Sounds like you are echoing what I said.  Gives a broad overview but no specifics, which was my beef with it  I’ll keep looking into some additional podcasts and webinars  

First off I bought the book, Real Estate Note Investing, to learn more about buying performing and non-performing notes and different position strategies. After listening to Biggerpockets podcasts and blogs about the author and his new book on note investing, I went ahead and bought the whole package. 

I think the book is a good introduction to Notes and would fit under the popular theme of “Notes for Dummies”. The author has had a storied path through real estate and has a lot of insight and strategies to offer based on their experience. 

Big but, it barely scratches the surface of buying Notes. It didn’t live up to the hype and has left me steeply disappointed. 

Anyone have a recommended book, article, or blog they can point me to?

For clarification, are they all POHs?