All Forum Posts by: Jordan Jaramillo

Hey guys, I’m trying to figure out if this deal makes sense.
the purchase price is $2 million. The seller wants $500,000 down the operating cost on the property runabout $8500 and the seller wants a $9000 payment each month. He is willing to do a 25 year seller finance on this deal after accounting for vacancies, maintenance, capital expenditures I should be looking at around an 18% cash on cash return ROI is that a good cash on cash return for a mobile home or should that be higher?

So many questions. How many lots? What’s the price per lot? Or you renting houses or renting lots only? How old are the houses? What’s the interest rate?

I would echo Mike, we need more information.

There is 28 mobiles homes that we would take and 1house on the property for a total on 29 units. Total of 28 units. Would come in around 5% interest

I usually won’t go for less than 25 units per million but I see you’re in Pensacola and land is probably at a premium. Let’s say you can get 500 a month lot rent. That’s 28*500 = 14000 a month gross. Plus the rents on the SFH. Let’s say 1000? That’s a total of 15k. If you sold the 28 houses for 20k each on payments, that equals 560,000 in accounts receivables collected over a 5 year period. If no interest is charged, that’s another 9,300 or so a month. That’s around24k a month gross. Minus 20% vacancy, minus 30% expenses equals around 12k a month.

I would offer 1.6. Give them 800k down and have them finance the other 800k on a second lien. Then I would get the bank to loan you the down (800k) on a first lien plus another 100k. all in you would owe 1.7 and walk away with 100k cash to get right into it and fix it up. Nothing down. If you have the 500k down then you don’t need the extra money. You are in the position of strength. If they don’t like the offer then walk away and find another one. Never fall in love with anything.

This offer will give the owner more cash than he is asking for and that’s a big draw. You will have cash to do upgrades right away. The bank gets a first lien with 50% equity. The owner gets to defer taxes on the second half of his capital gains. This is a win win for everyone.

I really like this structure, I think this would be a strong offer. I have a concern with loaning the money from the bank because I have experienced banks not wanting to loan on mobile homes and Parks. Maybe I am not approaching the right banks or framing things correctly. Is there any advice you could share in that regard.

0 Votes

Pensacola, Florida

Quote from @Logan M.:

Quote from @Mike Reynolds:

Quote from @Jordan Jaramillo:

So many questions. How many lots? What’s the price per lot? Or you renting houses or renting lots only? How old are the houses? What’s the interest rate?

I would echo Mike, we need more information.

There is 28 mobiles homes that we would take and 1house on the property for a total on 29 units. Total of 28 units. Would come in around 5% interest

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Pensacola, Florida

Quote from @Dave Kush:

Man, I'll take 18% CoC anywhere I can get it, provided the deal fundamentals are solid. That said, no direct experience with mobile homes.

Thanks for the advice.

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Pensacola, Florida

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Pensacola, Florida

Need help on a unique scenario, I purchased a property cash with the intention of flipping it understanding that I would have capital gains (please correct me if I’m wrong.) when selling it.
-However, I have decided to just sell the property, I was thinking about putting an assignment contract together with one of my LLC's for another investor that wants the property and wholesaling it. The tricky part is it is currently in my spouses name (who is now in Title) because that's how we purchased it.

- Will we still have capital gains if I put it under an assignment contract with my LLC and sell it to an investor?

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Colorado Springs, Colorado

I am currently looking for a property management company for my 16 rental units in FL.

I am having a hard time figuring out what I'm looking for. Is there a list of specific questions I should be asking?

Is there specific systems or questions I should be on the look out for?

One of my biggest fears is having them take over the property and not being able to fill the unit.

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I reside in a state that HAS state income tax, however I have rentals in FL and FLorida does not have state income Tax.

If I want to put those rentals into an LLC, can I avoid paying state income tax on the rentals in FL, by assigning the address of that LLC to another home we own in FL (with a mail forwarding address to the state in which we reside),

do I have to assign the rental LLC in Florida to my current state in which I reside and pay the state income tax where I reside on the property in Florida that is generating income in a non income tax state?

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Looking for Info on title transfers for deeds .

1. Things to expect

2. Things to be aware of/ look out for

References to any attorneys that could help me out with this would be great!

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Quote from @Erik Checkur:

Hey Jordan, I just had this come up with a client and lender I am working with right now in SC. My lender said it's called "delayed financing" which is the term used for essentially getting complete cash out refinancing within those 6 months from a deal you paid cash on. So yes, it is possible.

Thank you for your post, I truly appreciate it.

Can I do it through Fanny and Freddie or do I have to go another route. if so I just need to use the term, “delayed financing” and I can get a 80% cash out refi on appraised value?

0 Votes

Tampa, Florida

Is there a way to cash out refi if I paid cash for my home without waiting 6 months?

1 Vote

Tampa, Florida

All Forum Posts by: Jordan Jaramillo

Jordan Jaramillo has started 13 posts and replied 24 times.

Post: Help 1st mobile home park

Post: Help 1st mobile home park

Post: Help 1st mobile home park

Post: Help 1st mobile home park

Post: Capital gains with wholesale vs flip

Post: Property Management. what to ask and how to pick a property management company

Post: Aleiviating the Taxes and LLC

Post: Real estate attorney for title transfers, in Pensacola

Post: Refinance on home with out waiting

Post: Refinance on home with out waiting