All Forum Posts by: Patrick Sears

Hello, Anyone here ever qualified as a retailer/developer with a manufactured housing company to buy directly from them vs. buying from a retailer and paying the retailer mark-up? Around 2010 I visited the Commodore plant in NC and they gave me their price sheets and qualifications to become a developer with them--much cheaper than paying retail. It doesn't look like they are doing that now (it was actually for an "on-frame modular" which was basically a doublewide built to state modular code).

Thanks Jay. So you think this is a good alternative to me just carrying the paper and selling partials (i.e. the "note business")? I could definetely add value by helping to smooth the process of them qualifying through 21st Mortgage (btw: no age restriction on MH in Virginia) but it takes away the vaue of "Owner Will Finance!" in my marketing. But I guess it would depend on how I couch the marketing; I could even offer both options... Thoughts?

Thanks for the reply Charlie!

I would be selling mobiles tied to the land as real estate on FHA permanent foundations.

Hello, Been thinking about fixing & flipping mobiles on land to buyers and offering seller financing. Then I would sell partials to get my money back out and repeat. However, I ran across the 21st Mortgage website where they say they finance credit-challenged MH buyers. What do you think of offering to my buyers the services of 21st Mortgage or other subprime manufactured finance specialists as an alternative to owner financing? It would eliminate the worry of finding a licensed MLO for Dodd-Frank, and I would get a lump-sum. Anyone done anything like this? Thanks!

Yeah, I guess it isn't any different from what anyone who operates a normal business such as a Dominos franchise has to deal with. Ordinary income is ordinary income. If any of you have done both, do you think you have done better tax-wise as a W-2 employee, or an ordinary income business owner?

Hello, Anyone selling/flipping homes on owner-carry as a dealer? No landlord headaches vs holding for appreciation, but wow-the short-term capital gains (ordinary income rate) plpus the self-employment tax b.s. really reduces your profit. Anyone have experience as a business owner who regulary sells inventory product to the public in how to deal with handing so much of your hard-earned money to Uncle Sam? Thanks

Hello,

I'm having troubles deciding on a business model to follow re: buy and hold mobiles on land.  Looking to here from other BP investors who have done this too.  My main issue is trying to decide between finding already existing single and doublewides on land that need fixing vs just buying new homes and placing them on land.  On paper the existing homes route seems cheaper (but not cheap like $15k-$20k like I see some posters talk about here!  More like $50k to start).  The reason I say "cheaper" is because with used stuff you inevitably end up with long rehab times, possible well and septic issues, etc.  Plus, even after you fix them up nice, the older mobile homes have HORRIBLE energy bills for your tenants.  

On the other hand, a new land home package would have brand new septic and well, and I could design the new home with whatever specs I wanted-Energy Star, strong roof and wall construction, etc that would last a long time.  

I've been veering towards mobiles on land because the inner-city stick-built is getting too expensive, even in the "ghetto".  FYI:  This is Central Virginia/Richmond I am talking about.  Plus, the suburban growth is heading in the direction of where I am thinking about concentrating.  This is a 10 year plan...

Thoughts?

p.s.  Anyone ever qualify as a builder with a manufactured home company and buy their homes at a discount to retail?

Now I am really confused.  How are the gains of the fund taxed after 10 years?  If an investor gives me $100,000 from  a recent capital gains sale that he wants to shelter for 10 years, I know that after 10 years that orig $100K becomes tax free. But what about any capital gains from the Opp Fund investment?  If his share goes up in value to $250K after 10 years, what does he pay on that new $150k gain?

And what about me? If I start with $50k of non-capital gains funds (say for instance I fund it with a peer-to-peer loan for $50K), I wouldn't have any gains to defer initially, but after 10 years the property I bought for the fund might have appreciated and made me some money.  Can that gain be forgiven by the IRS after 10 years?

Thanks Ashish for the quick reply!

So to clarify, I, as fund developer/owner, can contribute any cash from any source to initially fund and purchase property for others to invest THEIR recent capital gains into?  Then after 10 years I can cash out with a stepped up basis to current value and avoid capital gains on my fund profit?  Or if I initially contribute capital gains funds myself, I can avoid paying tax on those monies AS WELL AS the profits from the fund investments?

Is there anything in print from the IRS on this?

Hello,

Wanting start an Opportunity Fund to buy and hold SFR property located in Opp Zone. Planning on it being single-member LLC (taxed as corp, not partnership) for now to get started. From the reading I've done it sounds like any money I wanted to contribute to buy my first property for it would have to come from recent capital gains I incurred due to the sale of something (unlike a 1031, where the money can come from anywhere). Is this true? I know it's true for investors, but how about the original developers and creators of the fund?

Also, I really wanted to sell the plan property in 10 years and not have to pay capital gains tax on the appreciation of the plan property. Everywhere I have looked just talks about eliminating the capital gains on the original investment-but no discussion on the treatment of gains on the plan assets (which is what I really want to eliminate when I cash out, instead of having to roll into a 1031).

Thoughts?