All Forum Posts by: Kody Foster

@CJ M.

CJ, a few of my properties are almost identical to this. But I bought them for cheaper than market value. Don’t give market value unless the seller is die hard. 99% of my deals have gone down anywhere from 5K -25k in price on deals just like this. I don’t know your market or your negotiating style, but imagine if you do get the property for less money and it cash flows better? Win win in my situation. There is nothing wrong with offering lower than market value( Who is telling you this is market value?). A lot of members of Bigger pockets seems to have “standard” rules they recommend and push from a lot of post I’ve seen, but almost all of them don’t apply to my area or deals. So if you’re happy with giving “market value” which could be cheaper or higher than you think, then go for it.

@Jason James

I always do an inspection. If anything it gives me and idea on rehab cost if there is any. Being competitive doesn’t always mean being risky. If you can live without it so be it. But I’ve never heard anyone saying “man, I wish I didn’t get that inspection”.

@Ben Satterfield Ben, I know a family with a couple mobile home parks that have generated a lot of wealth from them. Buy reasonably priced and keep good tenants and stay on top of maintenance and I’m sure it can compete with any SFH or multi family rental.

@Travis Guyer I’ve got a deal very similar to yours right now. But I look to have 25k in remodel. I too have thought of the occasional Airbnb but most entertainment that would draw a short term rental is anywhere from 45 minutes to over 2 hours away from my location . Maybe it would work for holiday seasons like Christmas and New Years if the tenants family didn’t have much space. I’m intrested in if it works out for you.

@Kyle Longacre Kyle, our family has done a fair amount of exchanges. We mostly built, bought and sold Dollar General and Family dollar stores. We also have exchanged into a Strip mall and a Self storage complex. We have liked the self storage complex and it has preformed well for us. This may be something you Uncle should consider.

@Janelle Hicks See if you can cut a cash deal for the mobile home unit and not include it in the financing with the bank. For $900 a month It Doesn’t matter how bad the mobile home is, especially if the duplex itself cash flows without the mobile home income. Maybe possibly get it surveyed out to be it’s on property. Just show the bank that it is cash flowing and that the mobile unit is a great residual Income. There’s many ways to work around it.

@Shiloh Lundahl True wealth lies in Christ. I feel in today’s market just 1 million would be considered middle class. Still, 1 million is a great accomplishment. Enjoy your life, provide the best life for your family (whatever you think that is). Work hard. People striving to meet certain marks is great, but many will say once you get there the satisfaction is not what you believe it to be.

@Thomas Good

I wouldn't make any deal without seeing the financials. This is vital for this kind of deal. I would ask for a P&L and for at least 3-4 years of Tax returns. 

@Thomas Good Sorry for the delay in reply.

To see c-stores at that price is not uncommon. In my area prices are anywhere from 200k-2 or 3 Million. 

Are you buying the business, land, and inventory? Or are you buying the business and leasing back the property?

 I am not familiar with above ground tanks. As far as sales being around 2 mil that is common for C-stores aswell. I would ask the owner if they are interested in Owner financing at least a portion or price of the "down payment". 

To really get an accurate net income, look strongly into the Cost of Inventory and the Labor. Those are the two big things that will make or break a C-store. If you can stay on top of those with an iron fist you can make decent money with C-stores. 

Gas stations with Food services are not for the faint of heart. They require a lot of time. Being an absent C-store owner is not a route I would recommend. Although I am a Real Estate investor and work for a family that has multiple commercial real estate properties, 99% of my time is involved with our C-store. 

Hope this helps.

@Marta Frey Marta, our family has used Southside bank in Tyler to build commercial properties throughout East Texas, some notes are 20 yr, some 25-30yr notes. We are also self employed.