All Forum Posts by: Joseph O'Loughlin

Was curious if anyone invests in or wholesales mobile homes? (note - not mobile home parks)  

If so, how different are they from investing in / wholesaling SFR or Condo's? I've started to get more and more mobile home seller leads and would love to hear some advice / feedback from those who have experience working with them or could point me in the right direction. Thank you in advance!

@Alex B. - Great question.  

Traditional financing for an investment property requires 20% down and typically the interest rates are 0.5-0.75% higher than a primary home mortgage rate.  So if you have a 3.25% rate on your primary home mortgage, you can expect that your investment property mortgage interest rate will be around 3.75-4.0%.  If you can afford the 20% down, this option will ensure the lowest interest paid over time.  And with a 30 year option, it will help keep your monthly expenses as low as possible.

HELOC loans will undoubtedly have a higher interest rate. Rates really boil down to how much money you take out and how long you give yourself to pay it back. It can be 5, 10, 15, or 20 years or anything in-between. But essentially the more money you take out and the longer you want to pay it back, the higher the interest rate. I was just looking at a bank that would give me 85% LTV with 15 years to pay it back and the rate was like 5.29%. The big thing though, is that 20 years is typically the max you can take to pay back the loan, so the monthly rates are going to be higher than a 30 year option.

So, if you're looking to buy and hold and rent out a property, traditional financing is going to help you achieve the lowest monthly mortgage rate. However, if you're looking to buy, renovate and rent and refinance, a HELOC loan might be a better move because you won't need to have that 20% down payment cash tied up into the property.

Feel free to reach out with any questions!

@Garvey Daniels @Luke Plonsky

My business partner and I are currently searching for undeveloped land and have been researching ways to finance the costs.  Here's a few things I've found:

1) Seller's Financing is the most ideal situation, you can get creative with down payments, length of loan, interest rates, etc...

2) USDA Loan - the land will need to be in a rural area which you can check by typing in the address to their website.  There are some stipulations on how you plan to use the land, the toughest requirement for us was the cap on your income.

3) Traditional Loan - typical bank financing, but they usually require a minimum of 30% down

4) Construction Loans - there are loans designed specifically to buy land and also finance the build of your house / farm / etc... What's interesting with these is that you sometimes only need to put a down payment % down for the land and not the total cost.  So if land was $100k and building the house is $200k and you need to put 30% down, you'd only need to come up with $30k down instead of $90k down.

5) VA Construction Loan - if you qualify, these are essentially construction loans but only require 10% down.

I recommend calling a local bank and asking questions, they're typically pretty helpful if they offer these types of loans.  I also recommend switching gears and potentially buying a large plot of land with a house on it.  Even if the house is in disrepair, it's easier to secure a rehab / construction loan.  You could essentially get the financing for the lot, sell off the fixed up home (or keep it, rent it, etc..) and subdivide the additional land and follow your original plan.

Feel free to reach out with any additional questions and good luck!

@Kaylee Walterbach - In 2021, my business partner and I turned a $100/month income rental property into a $10,000/month income cleaning business!

We decided to sell our first investment property, which was only making us about $100/month, while the market was hot.  We were able to take the proceeds (about $36,000) and cover the down payment and closing costs (about $25,000) to purchase an existing cleaning business in our area.  So we now own a 23-year old cleaning company with a full time manager on staff that is bringing in about $10,000 in net profit a month!

If you or anyone else is interested in hearing more or talking through how someone could do something similar, I'd be happy to share!

Hey Keely, 

I used Giovanni Fodera for a project at my house in Quincy, MA.  We had some foundational issues and needed to actually raise one side of the house.  Giovanni was very professional and I actually remember the contractor who lifted the house saying that Giovanni's engineering report was the most thorough report he'd seen in his 20 years of experience.  

I highly recommend reaching out and seeing if he can assist with your project.

website - https://foderaengineering.com/

Hi Tucker,

My business partner and I bought our first small business in November 2020 and we're closing on our 2nd business purchase next week.  We used SBA loans for both, but the first purchase process was definitely a whirlwind of tax forms, legal forms, speaking with our lawyer, needing last minute documents for the bank, etc...

However, this 2nd purchase was an absolute breeze.  We've made a check-list of all the forms, licenses, insurances and paperwork we needed to submit from our first experience and were able to easily knock them out this time around.  What was even better was that we used the same lawyer and bank for this 2nd SBA loan.  During the first purchase, we hit our lawyer's cap of $5,000 almost overnight.  But we re-used many of the same documents and only had to switch names, addresses, etc.. the 2nd time around and I don't even think we'll hit the retainer limit of $2,500.  As for the bank, this second loan has a more competitive interest rate because we now have "industry experience" and were able to show company growth with before and after P&L sheets from the first purchase.  Now the bank is more confident with our abilities to run a business and are more willing to earn our business.

I'd be more than happy to connect with you or Jessica Piff (who comment below) and help answer any questions!