All Forum Posts by: Robert Crossley

Roman M. Thanks for the input. As far as value is concerned I have no issues with that. As I said I have an office in the same park and space is at a premium...nothin is generally on the market for more then 3 days. I guess more of my questions would be based around the note as I am so new at what are the biggest pitfalls I could be missing that could off set that potentially 1mm in profit

Sorry for the spelling areas...My auto correct has a mind of its own

Okay BP, I'm calling on you guys for some real help here. I'm a serious novice when it comes to notes almost all of my investing is in multi families. Was contacted about buying the non performing note and I have little to no experience in the area. I happen to have an office in this exact same complex so I k ow the area well. There is nothing in this complex for less then 2million at this size. So what am I missing here? My limited understanding tells me there's about a million things on the note, they're already in default so I buy the note go through a for cluster process and have a 2 million dollar asset to sell. What am I missing here's the details > >> We have available the NOTE on a non performing commercial property in the *location removed*. The property is currently > >> > >> in default as the loan matured in February and has some back tax issues. SUMMARY > >> > >> 6400 SF Office Building > >> > >> 6400 SF Lot > >> > >> Built 1974 > >> > >> Features, 5 private offices and meeting rooms, > >> > >> 4 restrooms, 2 with showers, > >> > >> commercial quality kitchen..perfect for > >> > >> architects or engineer or others > >> > >> Loan Matured February 2016 > >> > >> Current Default Rate 18% > >> > >> Monthly Payment $5,501 > >> > >> NOD's Filed in 2014 and 2017 > >> > >> Comps at $1.8MM > >> > >> CURRENT UNPAID BALANCE > >> > >> $1,039,000 +3% fees to be paid by buyer

Alison Wise welcome from another PA to SoCal transplant :) (philly to Newport Beach) you defiantly came to the right place. Best piece of advice I could give you right now is just read everything...get the ap flip through all the different boards and never be afraid to ask a question. The community on BP has been so helpful it really is like having a secret weapon. Best of luck! Feel free to pm me if you have any questions (not that I'm an expert or anything but I know a few)

Solid advice Tim Chapman much appreciated. I feel the same way, apparently it is common when a tenant moves on to try to sell their home at a steep discount to the owner. My go forward strategy is take these homes that are in good condition, maybe even lightly renovate them and turn them into standard rentals, on the older ones there still may be resale or scrap value I'll take that on a case by case basis and then begin to Vet incoming tenants and establish a "housing code" so to speak going forward on appearance...this will be a multi year strategy as I can't just kick the old homes out and find great new tenants over night but I'm confident over 5 years I will greatly improve the appearance and there for the rent value

Hey Tim Chapman , great questions. Tenants pay for their own water, every lot has its own septic tank, I don't know what a field bed is could you explain that? The ages of the homes vary...as I said I'm not buying the homes the tenants own their own homes so it's going to change with time currently there is some nice very well maintained ones and some others that are older and not in the greatest shape

Hey Ben Gerald thanks for the reply! I'm a little confused about the first question, the calculation is based off of 10 vacancy. 23/24 plots are fully leased right now but for the sake of being conservative I used a 10% vacancy rate. As far as capex I would factor that in to pretty much ANY other deal at a much higher percentage here except in this situation there is litteraly nothing to add or fix up with capital.....maybe adding a pond or new road in the distant future? So I kept it very low

Hey everyone, wanted to put some info out on a deal I am closing currently. Feel free to provide any feedback and I apologize if I don't have all the details listed. So I laughed at my agent when he sent me a mobile park but then I looked a bit deeper at this deal and got pretty excited. The deal is for a 15 acre plot in South Carolina, 30 minutes outside of myrtle beach. The land is divided into 24 lots that all have their own septic, electric, water etc. each lot is leased to people who own their own mobile homes and they pay a monthly rent for just the land of $175 (which is a bit under valued should go up to $200) owner takes care of absolutely no maintenance, utilities, structural insurance, etc. 23/24 lots are filled with long term leases in place. Here is what I have projected Land cost $280,000 Down payment 100k, at 5.25/ 15 years Vacancy 10% Repairs 10% Capex 2% PM N/A (will explain) General Liability Insurance $800/year Prop taxes 1.4% (land only) Misc cost $160/mo So factoring in any capex and repair is me being conservative, as I explained I am responsible for very little but do have options down the road to clean the place up, maybe even buyout some of the homes to make the land overall more attractive and more profitable. The land is 5 minutes from my families home in SC so even without that the Property management is minimal but they will be handling all the rent collection and anything else that may arise. They are actually going to contribute to 25% of the deal so they have a vested interest. Here is how it plays after those projections Vacancy-$420.00 (10%) Trash- $80.00 (2%) P and I $1,515.31 (36%) Capex-$85.00 (2%) Repairs-$378.00 (9%) Insurance-$70.00 (2%) Property tax- $338.33 (8%) Total Expenses 2,886.64 (69%) Cash Flow $1,313/mo Cash on Cash return 15% Total return annualized 19% Been over this a lot and I still really like it, there is a lot of other upside potential as well. To those who are going to ask why put so much down or why do a 15 year...I'm not greedy and capital isn't a main problem form me...I'd rather build the equity faster and pay less interest . Questions, thoughts, concerns?

Also my version of out of state investing may be very different from others. I have a very fluid schedule as I own my own business and have thankfully racked up 2 million + miles on my Amex. So I have the ability to travel as much as possible at very little upfront cost (although I suppose not using the miles for other things could be considered a cost). OOS investing for me wouldn't be a matter of looking at something online and cutting someone a check, it would be more about finding an area I really really like, doing exhaustive research on any possible partners I'd considering working with and spending a considerable amount of time in that area vetting projects in people. I know that doesn't cut out all risks but I do feel like it helps

Thanks Jeanette Adler . Full disclosure, I don't respond to call me let's chat posts :) I made this post simply for feedback and the expertise of other in and out of state investors. If and when I decide to work with somebody it's usually a result of me liking something they said and contacting them personally and after that if something looks good I'll start an in depth diligence process.