All Forum Posts by: Paul Meyer

can you give me your feedback @Jeff Hassanniaeff @Henry Clark

I'm looking at a small laundry mat 15 dryers/15 washing machines. Mostly all older equipment at least 15 years old. The place is clean not attended. Owner is motivated to sell and says expenses are $2300/month (includes lease rent 1700+600 in electricity/gas water included in rent). Says averages $7000 month income. She says she only cleans it every night and collect change 4 hrs a night. Open 7 days a week 6am-9pm.

All income is from machines only. Wash/dry/fold services could be added and are wanted by customer base. She was $130,000 for the business. This number is a low multiple if she is earning $84k year gross.

I flip homes and my business has slowed and would love to manage it full-time still self-service style but add some wash/fold/dry a few days a week for additional income and update machines and coin to card reader. A lot of things are not used in store. 2 coin machines, 1 is broken and could be replaced by a card reader, large vending machine empty, soap vending machine coins could be converted to card. And manager/wash/dry/fold office not used. Its only 15 units in around a 600sqft store. Bright and clean.

I'm just worried about a lot of maintainence on older machines and whats a good price to be firm on since I could be replacing a lot of machines. Its a nice shopping center in demographics that will continue to use the space.

Is $130k too high or what would you offer with the information provided. I want to keep this mostly self-service within minimal management/part-time employee. I'm not interested in being their 12-15hrs a day (comes out to $10/hr or less possibly) 

thanks!!

omg you guys you TOTALLY MISSED THE POINT LENDERS. You are all lenders. Rates ARE low. I'm talking about everyday investor loans with no income verification, no taxes shown, no personal income shown. That's all I was saying thats very relevant with last homeowner crash. And rates ARE NOT low for flip and dscr refi out / bridge loans that are being packaged and sold to banks/big investment.

Granted I'm seeing Blackrock start doing more billion dollar buyouts of rental reit's which says either the market is still good or companies are getting greedy. I guess we'll all find out. I always say cash is king when **** hits the fan. 

Investment Info:

Mobile home buy & hold investment in Swanton.

Purchase price: $67,000
Cash invested: $140,000

ARV $400-450k

Mega mobile home makeover on 5 acres in class A area. After a $140k reno it's a little paradise on airbnb. $60k yearly revenue

How did you finance this deal?

All private cash / heloc.

Investment Info:

Mobile home buy & hold investment in Swanton.

Purchase price: $67,000
Cash invested: $140,000

Mega mobile home makeover. After a $140k reno it's a little paradise on airbnb. Currently goal around $60k revenue.

How did you finance this deal?

All private cash / heloc.

and as far for the CD debate. You are talking about a short term investment while I'm offering a transferable note. Yes you can make 5% now on a CD. I'm offering 30 years. Yes its long term. What if a note holder wants to have long-term payments to their kids and grand kids. Come on guys I thought you understood creative financing. And, yes I'm in this for me too but I didn't say I was firm at 5%. A CD also does not give an investor instant 200K equity into a property. If I fail to pay my note they get back their money plus a windfall profit because no liens are attached to the property. 

From what I see in this posts in a lot of loan sharks. No offense. Your loans are important and I totally and 100% still use DSCR loans for short term plays because of the cash on cash. But, this is a long-term hold so of course I'm looking for the best rate and creative private financing I can get for a longer note that could still be sold seasoned.

If I sell one property it pays off all my debt and I'm in pure cashflow so it's not the end of the world for me. I just wanted to throw my line out on the Bigger Pockets to see if A. better investor lenders out there I just don't know about that do 30 years on rural (not maybe, maybe?? that's real confident, no.) or B. private money long term of some sort. 

You all should watch The Big Short again. My sister and I watched it a few nights ago. It's crazy that everyone thinks the real estate world will just keep going up like the stock market with no corrections. How many business cycles have you been through? I've been through cycles since the 1990's with my parents. And, your right **** hits the fan 5% would be low but again the $400k home is debt free no 1st liens in a class A neighborhood so very low risk. My point on Big Short is that the DSCR lenders scream "No income verifications, no taxes, income showing only" and I mean your "assumed" numbers and this is from multiple lenders I keep in touch with on deals I bring them. Just REWIND back to the early 2000's before 2008 bust. I bought a home delivering pizzas on tips. Now I did put down a full down payment but half my loan was adjustable and my sister got her house no income verification (she still has it and multiple rental properties). My point is that's scary fokes. I do remember when you could only get a rental property "financed" when it had shown its rental income to get the loan at least conventional. That's why it pains me to say these quick high cost investor loans even though short term being sold on secondary market maybe the next bust from the boom if markets turned to quick or something in the market shook to hard. But of course you'll probably say real estate is a solid sound investment. okey dokey. cheers.

So would you just say sell both properties? I am holding an heloc at 8 and 9% on $225k hence why I'm not necessarily interested in looking to refi higher than what I already have. I am seeing if both STR's perform with all the data I have on them for 1 year. I want to flip again and my heloc money is my cheap money way cheaper than dscr money + points. I just want to get back in the affordable flip game because that's what I'm good at finding. Now I know not to fall in love with my flip turned STRs. thanks guys.

You are all correct. But your not thinking of normal inactive people sitting on money that would like to be a real estate investor. 

I do have access to $100k at 10% for 5 years with balloon but I've stated I'm not interested in that. I've already stated I can refi and cash out because it's considered rural so it would be a big risk to take a short term loan on something I already know there is no refinance for.

To the non predatory beginning lender this is for those people. I figured I would get negative feedback. I'm open to rate but not to term length. This is a long term play not something I want a balloon to force me to sell.

Looking a personal lender to be first lien holder on my mountain STR. Rural/stickbuilt completely renovated in 2024. Long-term permitted STR. Seeking a private loan of 150-200k at 5% for 360 months. Already denied by conventional lenders due to it being rural (tried multiple types of lenders). Seeking more direct loan of someone interested earning extra income on cash sitting in bank at only .05-2%. Great asset and low LTV. If interested msg me for information and pictures of property. Located near Roanoke, VA. Thanks.

I also have a second STR same situation with no liens attached (all cash located in Virginia) seeking same loan amount to cash out at 50% LTV.

I've gone through traditional hard money / conventional loans and denied because it's rural and manufactured home. I think that's a stupid reason not to lend on my investment rental. Home is paid in clear and comps over $400k. 100% renovated in 2023. Seeking a loan of $150-200k @ 5% for 360 months to be first lien on property to cash out to pay off higher interest rate loans/credit cards. Not interested in selling home. Seeking it as a long-term STR. For someone sitting on a lot of cash this is a low risk incoming earning opportunity.

If interested msg me for more information and pictures to property.

No hard money lenders for short term loans, seeking a long-term solution to finance what I have in it.