All Forum Posts by: Joe Pitrolo

Park Owner had a couple trailers that needed work. I offered 3,500 and they countered with 6k. I waited a while and called back and they accepted the 3,500. Immediately someone in the Park called and offered me 3,500 for one of the trailers that needed the most rehab. I was glad to get rid of it.
I put 4k in the other home and sold it for 16,500 with 7 down.
I'm currently working on another home in the park.

Here's my story how I got burnt on a burnt trailer. A mover I dealt with called me and said he had a deal on a 96 Oakwood with a small kitchen fire. He only wanted $1,500. He kept pestering me and finally I went by to look at it. I wasn't very good at the time at geustimating repairs and I figured 5k and sell for 15k. Turns out, the home was a total loss and the insurance co. had totaled it. The owner paid the mover $500 to get rid of it and the mover was unscrupulously trying to resell it to me. I finally told him I would partner with him if he would do the repairs. I gave him $750 and never heard from him for months. Finally, after 10 k more investment and three months, I had a beautiful 3 bedroom, 2 bath 92 Oakwood with a fireplace and calls off the hook. Trouble was the insurance co. did not want to release a title but they finally agreed after I sent them pictures. I found a buyer who gave me 5k and 15,500 total and she moved the home and has been thrilled. Nothing like getting Burnt on a Burnt trailer, but fortunately things worked out.

Terry, you could be pushing guru status if you say the guy threw the boat in also?

Why only 4,500? The appliances are worth $500?
I'm going to have to take back a 73 2/1 bath that I sold for 1k down, 7,500. I had good demand for it so I'll try again, maybe at 8k.

My leases need to have a penalty clause so this is not an issue. Technically, the renter is breaking a contract and I don't think I am legally obligated to refund any amount. I have to re advertise, clean etc.
Also, I would have a much higher rent for a six month lease as opposed to a one year lease.

You will guarantee to pay the lot rent until home is paid for. You'll screen for good tenants and make sure tenant buyers are approved by the park.
It depends how distressed the park owner is and needs your assistance. You can make more promises to someone with more wishes.

have you checked some of the Fla. Deals on Ebay? Seems like a lot of homes under 3k.
You may have saved yourself some headaches? 1 to 2 mos of doing repairs- additional 1500 plus park rent. Also, aluminum wire not as safe.

anyone able to pick up 5k houses? I would think this may be difficult? I like the concept of owner financing homes though.

If you have a renter who breaks a lease and leaves six months before the year, if you recoup by renting the unit immediately and the previous renters leave the unit in great shape, do you return any of the deposit?
I had some really good renters who left because they needed a bigger place. I was thinking of returning a partial refund. Any thoughts?

I'd love to see a forum for mineral rights. I think this is a very interesting and important part of property rights.

4 lots .5 acres with 1 vacany for 40k. Homes are in great shape. Lot rent is only $125 mo. could easily be raised to $150. Alot of room in the back to put possible 3 to 4 more homes. I would want to add 3 or 4 homes for around 7-8 k a piece and owner finance for 16,500.
Only expenses are $50 mo garbage and taxes, ins around $125 mo (guess)

one possible negative, lower end is near a creek, so the water level gets high. Home on lower end won't flood if raised high enough.

Positive is location: Right near a busy inetersection and they are talking about a potential interstate connecter near by. My feelling is that the property might really go up in value should this happen.

There are two house in front in an adjacent lot , additional .5 acres with two old , but stable homes that rent for $850 total. He wants 40 for these. I would buy these for the increase in value and ability to more easily access the park. These will barely pay the mortgage and expenses.
The safer bet is to just buy the small .5 acre park and put a few more homes in.

6 lots $150 mo. $900 mo.
3 homes, $250 mo $750 mo. 13,500 loan at 5 yrs 10%- just averages for my owner finance homes
2 homes in front $850 mo.
rents-- $1,750
notes $7,50 5 years
total $2,600 5 years then $1,850

exp 20k down
20 yr. note 5% 120 k $800 month Taxes ins. $200 $1000 mo.
maintenance $ 250 month
$1250 mo.

The owner is motivated. He will owner finance with 20k down.
Another option is just to make a 35k offer on the park. I could pay cash out of my IRA.
If I owner finance, I probably won't go with an IRA purchase.

To summarize some of my concerns: buying adjacent property that will probably be a $300 monthly liabilty for upside and more control over property. The back of one home could probably add another MH lot.
Buying in a potential flood zone.
Buying with and SDIRA vs. Owner Financeing outright. I'm worried about finding financing down the road if needed.

Making a wrong call about property value.
I looked at a duplex yesterday in a busy area. They guy bought 10 yrs ago fo 100k. Beautiful lot in the back. He wants 60k. He said he thought real estate was like investing in gold. Said that he longed for day that renters were just alcoholics instead of oxycontin, meth users.
Funny sidenote, but I guess it empasized to me the point that you can't always bank on RE increasing in value.