All Forum Posts by: Peter Sanchez

I think you should seek out millionaire investor Amanda Hugginkiss to invest in your idea.  She's very hard to find though, so start a new post titled "Looking for Amanda Hugginkiss" and I'm sure you'll get some leads.  

"What if I told you, there is a app on the market..."

-Jian Yang.

Also, is your refrigerator running?  

Well, those expenses aren't accurate, they are just guesses.  I know this, because they all end in a zero.  Can you name a month, let alone a year, when had water, electricity or other bills that all ended in a zeroes?  

I would ask for bank statements or income tax records too.  Sellers always overreport expenses to the IRS and underreport them to sellers.  If not, just assume that his expenses are what the average is (or a little more) for other parks that size and in that area.  The utility company isn't charging his less than everybody else.  

You're already paying rent now, so even if you don't do the upgrades and move in some roommates, it will reduce your rent by a lot (maybe to zero). You win!  If you do the DIY stuff, it's scary but you can learn a lot on YouTube and with patience you will be able to pick it up.  How do I know? There are LOTS of contractors and handymen in every city, and if the skills were as had to learn as juggling then there wouldn't be so many of them.  Even if you don't make a ton of money on your first one, you will learn a lot and you will be in the game building equity and getting ready for your next one. 

If you have Netflix, check out "Nightmare Tenants, Slum Landlords".  It's amazing, and not in a good way.  It reminds me of some of the eviction horror stories I've heard about in extremely pro-tenant jurisdictions like NYC.  

https://www.netflix.com/title/80224279

Did you know that squatting in a commercial property isn't a crime in the UK?  It's a civil matter. So imagine you catch pseudo-communist millennials in fatigues and backpacks moving there stuff into your office and you call the police...sorry, nothing they can do for you, you have spend months and thousands of dollars to get them out.  

It's frustrating to watch, but informative too.  A lot of the worst ones start with "I kept giving them more chances and they keep giving me excuses and promises to pay." Lesson learned...start eviction right away! 

Just because he was a good property manager, doesn't mean he will be a good broker, especially if his plan is to just put it on the MLS and see what happens. He was your property manager for 9 years? So what? You paid him for his services those past nine years, right? You don't owe him anything.

You might be able to get a hard money loan, where they are lending based on the value of the property, not your credit rating.  Most of them, however, want you to have skin in the game, so if you don't have enough for the down payment, look for someone you know to partner up with. 

Start with a lower price to get a few five star reviews, then you can raise the price.  People will be more likely to book at a place that has several good reviews. 

Make sure the place is spotless, especially the bathroom. 

A few nice extras like a coffee maker and snacks go a long way towards a good review. 

Agree that House Hack sounds like the best option.  If you already have a home, you can rent your current home and move into the purchased home as a primary residence. Buying as a primary residence gives you a lower interest rate, lower insurance and starts building up credit and home equity that you can borrow on later. 

I recommend starting with reading "Investing in REITs" by Block.  It's a great starter book and will make you know more than 90% of other investors.  

After that, check on Dataroma.com and see if any famous, successful investors like Buffett own any REITs, and pull up the investor presentations and annual reports and see if you like what they see in it.  

Some are very specialized, like WPG (malls in B & C cities) or NXRT (apartments in B and C neighborhoods) or REITs that are self-storage facilities, medical tenants, or cloud data centers. So you might think about what type of REIT is underpriced now and go from there.