All Forum Posts by: Pat G.

@David Smith Here is a good place to start with your search:

Landlord Friendly state or not. - https://www.rentcafe.com/blog/renting/states-best-...

Qualify a Market:

• Job growth – at least 2 yrs. going up
• Stable Job Market
• Net positive Migration
• Job diversity – a lot of employers in different industries
  • https://www.neighborhoodscout.com/
  • http://www.city-data.com/
  • https://www.wikipedia.org/
  • https://datausa.io/

You can Google search above as well.

• City state job growth
• City state net migration
• City state job diversity

http://www.best-cities.org/ - Milken Institute Best Large and Small Cities ranked

http://www.bestplaces.net – Sperling’s reports goes down to Zip code level

From here create yourself a database and then start mailing or contacting brokers.  Hope this helps

What is your criteria for a "Good Deal"? 

@James Rey is correct Banks and appraisers don't count the income that a Park Owned Home (POH) or rental homes brings in. They assign a value to the trailer based on its age, the older they are the less they are worth. Like 60's, 70's & 80's aged homes are worth only a few thousand dollars. You need to find out how many POH and Tenant Owned Homes (TOH) there are in the park. Expenses should be at 35%-45%. You would take the income from the TOH minus the expenses to get your NOI and then use that number to get your desired CAP rate and then add in the value of the POH trailers only after you have your desired CAP rate.

Now, if you can get owner financing, going a little above the number you get above could be OK, but just remember your goal is to convert those POHs into TOHs.  - That is a whole other topic of a post. 

If all 59 pads are TOHs here are rough numbers: $20K X 12 = $240,000 GPRI - 35% ($84,000) = $156,000 NOI at a 10 Cap that is $1,560,000 sales price - this doesn't take into account the repairs you mentioned. So the $2M price may be out of reach.

Hope that this helps, good luck. 

@Robert Leonard All great advice. What is your exit strategy on the property? Are you going to sell it in 3-5 years and if so as SFR or a commercial property. Yes financing on SFR is easier, but what are your plans? The city planning department may not want or can't re-zone it to commercial due to Master Plan of city. Is the property in an area with other Dulplexs, Triplexes and the such or in a SFR neighborhood?

Awesome, Thanks for sharing @Gino Barbaro Keep up the great work you are doing.

All Great advice so far, here is where I would start. 

https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters/ Landlord Friendly state or not. As @Matthewbalzell said above. It can be the best investment in the world until you can't get that "one" tenant from He.. out of there. 

Qualify a Market:

• Job growth – at least 2 yrs. going up
• Stable Job Market
• Net positive Migration
• Job diversity – a lot of employers in different industries
• https://www.neighborhoodscout.com/
• http://www.city-data.com/
• https://www.wikipedia.org/
• https://datausa.io/ - DataUSA put together by Deloitte, Datawheel, and Cesar Hidalgo, Professor at the MIT Media Lab – like BestPlaces.net but better.

You can Google search above as well.

• City state job growth
• City state net migration
• City state job diversity

http://www.best-cities.org/ - Milken Institute

http://www.bestplaces.net – Sperling’s reports     

Also check out where people are moving to and from by using the following:

North American Moving Services: https://www.northamerican.com/migration-map

United Van Lines: https://www.unitedvanlines.com/contact-united/news/

U-Haul: http://myuhaulstory.com/ and https://www.uhaul.com/About/

Once you find a state or states then you can use some of these to drill down into MSA (Metropolitan Statistical Area)

http://www.census.gov/topics/population/population-projections/about.html - Population Projections

Local Area Unemployment Stats By State: https://www.bls.gov/lau/

Seasonally Adjusted Metropolitan Area Estimates: https://www.bls.gov/lau/metrossa.htm

I hope I didn't overwhelm you and Hope that helps.

@Steven Greenspan In conjunction to those already mentioned, or to iTunes and search for Commercial Real Estate investing and there are quite a few Podcasts from the likes of Jake & Gino, Michael Blank, Joe Fairless, Kevin Bupp, Rod Khleff, and Dave Lihdahl (as of this post Dave has retired from teaching) and then start listening to them as they all offer ways to get into their deals

Congrats @Matt Popilek . 

@Alex Fabiano I agree with @BobOkenwa to start off you don't need that stuff. You first need a deal and the rest will follow. After or while you are in your first deal be thinking of that name for your company and when you get that first deal done you will have the cash to purchase your LLC and honestly I used fiverr to create my logo for my company.

Get out there and make it happen -the rest will follow!!!!

@Reid Mathews I think people got off track to your original ask here. I would check into whomever you are thinking of investing with, first what type of Apartments do they invest in, Class A, B, C or D. Are they a value add investor - looking for something to fix with or on the property itself or are they investing for appreciation - meaning they buy high and hold for 5-10+ years and "hope" that the real estate goes up in value, instead of creating the value. I would ask "Grant" in this example what type of investor he is. I have heard - and this is just me saying this - that he over pays for assets and uses appreciation to create value. Now, check that out for yourself.  I would listen to every Podcast he has recorded to get a good idea of his strategy.

Another point is are you looking at learning the syndication or private money business to do it yourself some day? If so is the group you plan on investing with, like Grant's going to let you "look under the hood" sort of say? Or are they just going to email you your money and that is it. 

Good question and hope this helps.