All Forum Posts by: Richard Sherman

@Account Closed  I think this is all more to prove a point than anything else.  I would accept chickens for rent payment if that was my only options.  That being said.  Anything you take in rent you need to track and report correctly, get turned into fiat ASAP..If you then want to TAKE the money you make and report and BUY crypto go for it. 

We are very unhappy with all of the available property management software offerings out there...and since my day job is in software, we are building our own (since 90% of the crap in most of the others is hard to use and not anything we actually need, we use Rent Manager by the way and they seem to be one of the better ones.) Anyways, my point is we will run all of our own payment processing and we will integrate taking leftover gift cards for payments, crypto, ACH, credit card, cash (with pay lease) whatever, but all of it gets converted to cash and put into the bank account.

Your worry about the value of the USD is overblown.  Unless you intend to SPEND in something other than USD, getting PAID in USD is what you want to do.  Then put it into real estate or hard assets if you are worried about inflation...though deflation is going to be a bigger worry in the next decade I think.

@Corissa Rogers  I would add a bed bug addendum to the next lease you do.  Make them responsible for some or all of it.  Also, typically you do not spray...or rather you don't ONLY spray.  Heat treatment is about the only way to be sure they are all gone and it will mean the tenants won't be able to live there for several days.

I do not want to have more than 60% LTV...now, I will buy at higher than that, all the way to 100% IF it is a turn around the property and I am aiming to drive the value and income up. Winter is coming....get ready for it, there is going to be a lot of pain AND a lot of opportunities.

@Vinny Martin @Charlie Cameron   I agree with Charlie, some very good advice.  Owning real estate is the best way to generate long term weather vs. an active business selling real estate (wholesaling, flipping etc) those are both fine, they are just jobs vs. investments (of course there is some overlap.)    Buying a 4 plex, living in 1 unit, renting the other and rinse and repeat is a WONDERFUL way to build up a portfolio!  I would say NEVER pay for a seminar until you have ready literally every book that BP publishes plus some of the good book lists on here.  Sure paying is not always a bad idea...just 99% of the time it is  ;)

@Vinny Martin Look for some local meet-ups/REIA meetings and just go and listen. I would start there and by figuring out how to live as cheaply as you can (should be easy in the service) and stack cash. My opinion is you need some more info before you jump in, to make sure you are getting into the right thing. Do not feel pressured to "pick" what you want to do.

The risk is to them not to you, so sure, that would be fine.  Just make sure NO DEED until all monies are paid.  For that reason I would probably use escrow to at least transact the deal.

@Karen Modell I have never heard of anyone getting one. Why are you wanting to obe ti to a LLC? Often better to just get really good insurance and blanket insurance policy instead of the cost of LLC when starting out.

@Jases Brown Unless they are experienced contractors there is 0% chance I would do this...and even if they are probably not doing it anyways.  Just get the work done by a professional.  It is not worth the probably misunderstandings and hassle not to mention inferior work quality to mess around with this.

@Wilson Lee   Sorry, I need to keep my postings straight, I was replying to a couple of MHP posts, one was well water and I confused it with yours.

If I were making an offer on this I am in the 350-400k range MAYBE if I am comfortable I can turn the POHs to TOHs and can increase rents without having a big issue.  Probably less unless there is some real value in the POHs, which at $300 in rent, I think your value numbers for those might be high...or the owners are just really underpricing things.

Things that might make me go higher

1. If it is near where you live and you think the market is one that will not continue to decline.

2. Owner financings with good terms.  I like city utilities and city streets...but not if they never maintain them.

@Wilson Lee  The occupancy is good and the other park rents are good.    The big worries are being able to convert those Rentals to Tenant owned homes.  Those rents all need to go up and moving them $80 could cause some issues but should be done (maybe in 2 moves instead of at once.)

Is owner financing available?  The vacant 20 lots I would assign a much lower value too.  $10k per pad is about the max we pay, but we mostly do turn around parks.  Those rents are a real worry.  Also, is there a path to City water?