All Forum Posts by: Jake D.

@Frank Rolfe could you go into this a little bit more. If I build a site for $15,000 and bring in a home for $35,000, before I sell the home, I am into the lot for $50,000. If I can sell the home and the buyer gets a mortgage, great, I see that I will get my money back ($35,000), and now have a basis of $15,000. So based on your valuation of $32,000 per lot, I created equity of $17,000. That I understand - but now, if I need to put the home on a rent credit system - does the math still work like this? Will I actually get my money back over time? Under the rent credit system, the park owner is still responsible for repairs and the home is technically a park owned home. And aren't park owned homes not profitable? Can you touch on profitability and getting money back under rent credit if you can't sell homes outright? Thanks so much!

For instance, if lot rent is $400 and home rent is $400. The the rent I would receive under rent credit is $800. If the park pays water/sewer, my operating expense ratio is 40%, so $400*.6*12=$2,880 of additional Lot Rent NOI. If the park owned home is technically not profitable, my ROI here is 8.2% on the home ($2,880/$35,000) and it's less once I include the cost to build the lot ($2,880/$50,000=5.76%). Now, if my homes can be profitable and has an expense ratio of 50%, I can now get $400*12*.5=$2,400 in additional income. So $2,880+$2,400=$5,280 which is 15% return on the home itself or ~10.5% return on the home+lot cost. Both of these are good ROI today. But can you touch on profitability of getting money back on homes under a rent credit system?

At a purchase price of $150,000 and 30% down, assuming 3% rent growth per year, 5% vacancy, 5% credit loss, and your total opex at 50% on a 30 year loan at 5%, factoring in your taxes and P&I, you will have positive NOI, but you won't be able to afford your debt payments.

Unless I am calculating this wrong: 

$1,600*.5 = $800 effective gross revenue. 

800 - 280-100=$420. 

Debt service is above 500 per month. 

Someone please let me know where / if I went wrong. 

I'm not a tax professional, but if he can wait to hand it over to his son, his son can inherit the properties when he passes. Therefore his son will 'step into' his property basis at fair market value. Therefore, the tax will be minimal or none at all. 

If he gives seller financing (installment sale), he will only pay taxes as he receives payments. 

Thanks you James. 

When you are going to wholesale a property do you need to put a deposit down on the property? Do people find they cannot get the property under contract without a deposit? 

@Rick H. is there any way you could share your one word you look for? Or at least what the next step you use to monetize the 'nixies?'

Thanks! 

I have been trying to put together a list of properties by borough, block, and lot numbers in the Manhattan and outer borough areas. Is there any way I can find a list or easy way to put together the BBL's for all the properties in a specific area? 

I want to begin sending mailers for small multifamily properties. 

What I have been finding is that I need every specific address to type in and then get the BBL or I need each specific BBL to get an address. 

Does anyone know how to quickly get either every address or every BBL so I can efficiently get owner addresses? 

Thank you Joel. I appreciate the insight.

Can anyone comment on what I will be doing and learning if I take a position as a commercial real estate office leasing broker? Will I get a sense as to how things are valued and why if I eventually want to use my commissions to buy office properties for myself?

Thank you.

Thank you for the replies. Joel, what type of values will leasing help me learn? Will it be building values and how to value them properly? Or really just how to value office space? And when you say other stuff, what other stuff are you referring to that I may not learn in leasing?