All Forum Posts by: Kaleb Woods

Thank you all! @Frank Rolfe your thoroughness and detailed replies are unbelievable. I appreciate that so much. I am going back to negotiate new terms with the seller. I unfortunately almost gave in to a deal because of a want, and was blinded by the facts.

City water/sewer paid by tenants. All lots but one are occupied currently. Lot rent is $325

The only utilities I’d be responsible for is street light lighting which is about $445 a year. Tenants responsible for electric, and the water/sewage which is city based. All homes are owned by the tenants, except for one that is actually a single family dwelling.

The sellers asking price of $460k includes a financed balance of 230k at his current bank. I guess it would have been easier to say the seller will be getting $3900 a month. $1700 goes to the already financed loan pay down, and the $2200 goes to the principal buyout of the seller. When it’s all said and done I will be refinancing the current loan, and paying him his remaining equity share. I really appreciate the insight! I have a few lenders in the loop. The biggest thing will be how the property appraises in the next 2 years. 

Hey all,

I'm about to put a seller financed mobile home park under contract in June, and am trying to get a few ducks in a row for the future balloon payment. The asking price is 460k, I'm coming to the table with 20k, the park grosses $4600 a month, my payment to the seller is $2200 a month plus i'm assuming a loan on the property in the amount of $1700 a month ($3900 all in a mo). 

The seller wants the balloon payment by June of 2022 as that is when his loan matures (2 year deal). The concern: my LLC is brand new as of 2020, and will have about 1 1/2 years of income under it's belt to show a bank when the full amount is expected to be paid. I still earn a good income from my W2 job, and plan that to be the case in the next 2 years in addition to this mobile home park. The worry is that the bank will really want that 2nd FULL year of reporting before they even consider touching this deal. My big question is: would you recommend going the traditional financing route here, or would a private lender make more sense? Do private lenders even exist for these circumstances? I'm all ears and will be grateful for any recommendations/advice.

Thanks!

@Jack Medford thanks for the insight. Look forward to meeting you at future events!

I’m right there with you Chandler! I’m a newbie as well, and plan on being at this meet up.

You're the man, Dennis! I really appreciate the insight. I just reached out to a RE Lawyer and am having him analyze the logistics of this. If this doesn't pan out, then on to the next!

Hi all!

I'm brand new to BiggerPockets, and this RE investing adventure. I'm breaking out of my comfort zone here, and hoping to gather a little bit of advice before I finalize a deal on a 14 unit mobile home park. I am in the works of constructing a land contract with the property owner. The only curve ball I'm facing is that he has a remaining balance on his commercial RE loan. I do not have the cash on hand to pay of his remaining loan balance for the terms of this land contract to make sense. If anybody has any advice for me here I would surely appreciate it!