All Forum Posts by: Joseph Cacciapaglia

Axos Bank used to be a good source for small balance mobile home park financing. Their website says they're still in that market, but it's been quite a few years since I've dealt with them. One issue you will have is they may not count your income from the park owned homes. You used to have to hold the homes in a separate entity from the park itself. I don't know if that's still the case. The investors that I worked with would buy the park with bank financing, but held all the homes separately, and used private lenders for those.

I missed this article. Glad you posted it. It's certainly no surprise. I think the article is right on when it says, "the city’s biggest advantage is that it pairs affordability with growth". This is such a cheap market to get into, and there is no end to the growth in site.

Several lenders here in SATX would let you take 75% of the appraised value out of the home after holding for 6 months in that scenario. Some will let you take 75% of purchase price immediately. If I were in your situation, I would be running this by my lending partners to get the real deal up front.

I was just getting started in real estate during the last crash. There were great deals everywhere, but financing was difficult. I put together a couple of deals, but wasn't able to make the most of it. Next time, I will be picking up several buy and hold properties. This time around I have much more access to capital, and have the experience of the last downturn to boot.

That being said, there is no guarantee we will have a real estate downturn anytime soon. Real estate doesn't always go down with a recession, and in fact has gone up in several recent recessions. I'm not changing what I'm doing today in hopes of an impending downturn. 

We need more details to know for sure, but this doesn't sound like a good deal at all. A lot can go wrong with a flip, and $900 is not a very large margin for error. What's the total budget, not just your down payment? How certain are you of your eventual sale price? Did you account for closing costs on both transactions? Do you have significant construction experience? Is your time worth more than that $900? The flippers I've worked with are looking at getting a multiple of their investment, not a percentage.

If it's "off market" how is there an agent and multiple offers? I guess that's somewhat besides the point of your post though. In this situation, I would usually request to have the mold and roof leaks repaired/remediated by the seller. It doesn't really matter that there were multiple offers, if this info wasn't disclosed to those other buyers, they probably would request the same things. As far as the A/C units and water heaters, it's difficult to negotiate based simply on the fact that they're close to the end of their useful lives. If they actually have problems, that's a different story. If the numbers are really too tight with the new information, then I might also request some additional seller concession. Having the ability to sell them off as condos provides some additional upside. You could always try flipping one at a time while holding the remaining units as you originally intended.

How did you come to the conclusion that there aren't many multifamily properties there? I'm not saying you're wrong, but a lot of out of state people think that about my market sometimes. This is because most of the small multifamily deals don't get listed on the usual sites that people expect. Some are on Realtor.com, Loopnet.com, etc., but many are only ever listed on local brokers' sites. If you don't know where to look here, you won't find them. Could it be that it's a similar situation in Indy?

There really isn't any downside to trying to get approved for a loan today. Any slight negative effect from the credit pull should be gone next year anyway. If you have a good loan officer, they should be able to look at your situation and give you a good idea where you stand before they even pull your credit. Your lender is one of the most important team members for your investing career. I would take the time to talk to several about your situation, as a way to interview them for the role.

San Antonio, TX is a market where you can still find 1% SFR or close to it, if you know where to look. We actually get a lot of investors that are leaving Florida to come here. I know it probably looks like I'm biased, because I'm in this market, but really I moved to this market in large part for the favorable real estate environment.

If you haven't already, you should pick up, "Confessions of a Real Estate Entrepreneur", by Jame Randel. I don't think there's a quicker way to learn a whole lot about different strategies in commercial real estate.