All Forum Posts by: Reuben Gathright

Quote from @Henry Clark:

Couple approaches if they fit. You might already be doing tax lien investing.

...

Leave a bunch of trees for your conservation interests.  

Dang, Henry!  You're giving the shop away here.  Seriously, this is a great approach.  This also works outside of military areas but you want to own the RV's even less.  

The real issue is there is almost no way for someone to have a safe, clean, dry place to eat, sleep and keep some personal things for under $800 per month.  Permanent RV, Cabins (tiny-houses that aren't built to mansion finish-outs), container homes, manufactured housing, and other alternative housing is the only way to keep these folks housed.    Add in small town land prices and you can build a win-win investment strategy.

Couple approaches if they fit. You might already be doing tax lien investing.

You’re close enough to Texas.  Do the tax sales.  

Start with the off auction list properties that you can just make an offer and buy.  Stick to just land.  

Do the actual auctions.   Again just land.   You get ownership in 6 months versus 2 years on a house. 

Fort Polk.  Saw the post where military investors can’t find properties.   Do what you do and buy some property you can put utilities and roads close to base but off the road.   Scatter lots out with hookups.  Don’t do a straight line packed trailer park.   Make a casual RV park.

Research and develop a business model for the military investor where they buy a really nice used motor home.  Something that isn’t new and loses value when you drive it off.  Something that 3 years older retains most of its value.  

They have a couple options when they move.   Move it and sell, sell in place or rent out. 

They make money even if they sell for less if they manage their numbers.  They get some of the government BAH base allowance for housing back.  

Say they buy a $60,000 used coach home.   Sell it for $45,000 three years later.  Depending on rank and Base say they get $20,000 per year on BAH.  Then the full $45,000 is Cashflow to them.  Less their utilities and lot rental to you.  Say 36 months lot rental of $300, don’t gouge them, utilities and trash $150 for total of $450.  $16,000 total.  They make $29,000 tax free.  That’s the same as a $40,000 pretax gain for you and me.

Doesnt sound like a lot of money? 
But in the military and starting your snowball that’s pretty good when your 25 years old.

They sell to the next Soldier for the $45,000 and they do the same thing.  

How do you make money?  You rent the lots out. Over in Texas los rent for $500 up to $800.  You’re going to rent for around $300 to cover your costs and make a profit.  Also to make the overall model work.  4 lots per acre for $1,200 beats $200 per month on a rental unit.  You never want to own the RV.  

Leave a bunch of trees for your conservation interests. 

haha, these are mailmerge form letters sent by the 10,000's...

every field in that merge came directly from the county assessors office - LSM gets the tax roll, extracts the usecodes for vacant residential, and then starts printing and mailing letters.

these folks send letters and wait for replies, then offer startlingly low prices over the phone or email, all without even looking up the parcel.

they are not interested in a typical sale at all.

call them and play it out - it's educational, free and sometimes very entertaining!

ps - occasionally the exception to this exists.

all the best~!

Bumped into your post.  I’m from Pickering, LA.   Grew up outside Ft Polk.  

Forget the individual deals, what is your overall objective?  

If you get a chance stop by a gas station and post a picture of a stick of boudin.  It’s 5 degrees up here and that will warm me up.  

Wait a sec.

How do you pull a "tired" landlord list?

Let me try to show you something if you don't,mind.

I am a landlord, right? I own several properties.

I think .. that 60% of bigger pockets here are also land lords? Ask them if they want to sell their house below market value. I am willing to bet most landlords are landlords for a reason. PASSIVE INCOME! So right off the bat, it is a REALLY bad list. You are targeting people that per DEFINITION do not want to sell, they WANT to own. So you are literally targeting the exceptions, the minority.

Makes no sense right?

Now let's dig deeper.

So you can not get a list of "tired" landlords. That is not possible. .. but for argument's sake let's pretend you somehow did get one.

Because they no longer want to be landlords you assume they are OK with selling below market value?

From the entire list of landlords, only a minuscule fraction would want to sell... and from THAT minuscule fraction, an ever SMALLER fraction would be willing to sell at a discount.

Think about it, my dude. What seasoned (regardless if they are tired or not) would GIVE AWAY all that well-earned equity TO YOU, just like that!! Wouldn't you think that if they no longer want to be a landlord they would sell it for as much as they can? I mean they are investors, and savvy in this space right?

Are there those that are SOOOO desperate that they would sell at a discount? Sure? Maybe? who cares!!

That you are spending time money and effort to GO FOR that list seems absolutely crazy to me. It is like people are trying to go out of their WAY to make this hard for themselves. It is like people get off on failure.

Why on EARTH would you go for that lsit? Let me guess. Your favorite Guru told you this right? Or that is what every person here on BP says right? Dude, there are more dumb and stupid people walking on this planet than there are smart ones. I would NOT follow the masses. Follow that one guy that has almost no followers that speaks common sense and logic,  that speaks DATA. That kind of people won't have followers! they have success!

Mind you..

In the beginning, I said... you CAN NOT target "tired" landlords.

Can't! Impossible. Who knows other than the landlord themselves they are tired?

ONLY they know.

Nothing else and no one else can possibly know they are "tired". So, there doesn't exist a way, system, gadget, or software that can get you a list of "tired" landlords. How would they determine they are "tired"? How can anyone possibly determine some random stranger is tired of owning property?

Now there will be plenty of people that will say "ohh don't mind him, I got plenty of deals with this list". Absolutely.

But what you will NEVER hear about is that for every one person that brags about their luck finding a deal this way, there are thousands of others that tried the same thing with ZERO luck! But you will NEVER hear from those people. You only hear about the ones who had success.

Be careful.

Take this however you want to. I am just trying to help you .. and whoever read this