All Forum Posts by: Landon Bleau

Start by listening to all the BP podcasts on development and getting started, there is some incredible information in there that will really help you out if this is the route you're looking to go.  They talk about how they got started from absolutely nothing and were able to get into an inner circle of a large developer and add value to them, and in turn, learn from them.  

John, I've been reading some discussions with those who have thousands of units and they all seem to be saying things very similar to what you've said.  First, they don't think it will happen.  On the off chance that it does, refinancing once they've built equity worth pulling out seems to be the route they're looking at.  Curious what others think as well?  

Nicolas, absolutely, many do refinance out of FHA to get into conventional (once they build their credit up a little bit and save more money) to get rid of PMI. This will also allow you to get another FHA loan as you're allowed to only have one at a time, so if you refinance to conventional, you'll be able to get into another property with a lower down payment using FHA.

Arif, depending on what returns you're looking to get, you could look into investing in a syndication if you're accredited.  If not, you could always find someone who is finding great deals and managing them, then just provide the capital to them and split the deal any way you see fit, 50/50, 60/40, 70/30, etc.  You could also become a lender to those flipping if you're looking for something more high risk/high reward.  

Congrats on such an awesome deal! Will the construction be finished in 2 years and allow you to refinance out of the seller financing deal?  Or do you just developing the property then selling as soon as it's finished?  

Chris, the purchaser shouldn't have any trouble obtaining financing for a manufactured home as compared to a stick built, however, do the numbers work?  If you can significantly increase the value of the property over what the manufactured home would cost, ie the land is worth $50k currently and $250k with the home and the home only costs $150k, then I'd say go for it.  If you can't increase the value much, I'd say just don't waste your time and just sell the land.  

Calle, I would check with your lender and see if they would have any problems with you buying an investment property/properties between now and when your loan closes.  If not, then you won't even have to worry about finding other capital, if so, networking in your inner circle is usually the best place to start.

Justin, I think a basement is typically most preferred just because there is extra room for storage, or can even be finished into more living space.  As for crawl vs slab, you'll get mixed reviews, some prefer one and some prefer the other.  From what I've seen, you can get more from a house if there is a basement, but there's no difference in crawl vs slab when it comes to price (assuming they're all in good shape).  

Katie, the most recent episode of the BP Rookie podcast was all about partnerships, it will definitely be worth your time if you're considering a partnership. As for the LLC, though most would say it is a good idea, it is not necessary. Many just get large umbrella policies to protect themselves.

Bryan, congrats! Reach out to those who are doing numbers wholesaling in your area and ask if you can take them out to coffee so you can ask them all these questions.  If they decline, offer to work for them for free and in return you'll be able to figure out how they're doing it.