All Forum Posts by: Ron Flatt

Look over the actual performance for at least 2 years (3 years is better).  Proforma numbers are pie in the sky.  

Hopefully the owner kept good records, many don't.  What was the vacany rate over a longer period of time, the maintenance records etc.   

Good luck, kinda of envy you for finding a nice package.

Ok, folks,  she made a mistake, so let that slide,  Once is a mistake, twice shows malice.  

Now Angie you can file a release on the property in a simple word document, stating the book and page, or document # and the date it was filed. Naming the parties involved, You and the seller.  Get it notarized and file it at the county clerk same place that you filed the memorandum.  

I am south of you, so not competing.  Reach out next time as you proceed, you are welcome to follow me or connect with me.  I am no expert, but I have a few rentals, flipped some properties.  Most of my properties come through foreclosures or one Realtor I have a good relationship with.  

I do have two wholesalers that have contacted me, but they have not had anything I could use at the price.  

Real Estate can be a rough teacher, just learn from your mistakes and move on..

The first thing I noticed, is that you said you have been wanting to invest for 10 years.  

If you wait for the stars to completely line up, you will be still waiting 10 years from now.  

My viewpoint is to find the best deal you can, that fits you now.  Then find the next one, the next one.  Imagine if you would have started 8-9 years ago.  

Now with that said, I am in a lower real estate market.  The way prices have heated up in California, yes it would concern me, but if you find a great deal on a good property, you should be ok.  You make your money when you buy the property, then you let your renters pay it down, which is lowering your risk, as they pay off your mortgage.  

You can't learn to swim if you do not get in the water,  start analyzing deals and get started.

Are they willing to move out or moved out of property already?  Would they be willing to sell "Subject to"?  Can you afford to make up the past due payments, make monthly obligations and do the rehab?  Remember in most states you have taxes due in Dec also.  If they are behind on the mortgage, are they behind in taxes, when is the insurance due etc?

With a note over your head, it will make you want the rehab done fast and efficient, to get it back off your books.  

If they have not already been discussing with the bank, I would doubt a short sale would happen.  I usually bid my rehab a little high, so I would probably be willing to do it.  If you have not done a rehab or fairly new, I would take a closer look to make sure on the cost of a rehab.  

119K + 40K + 9% for closing 180K (16K) = You make nothing for your efforts at $180

119K + 40K + 9% for closing 200K (18K)= You make 20k for your efforts less interest

9% closing covers a realtor, misc. fees etc.

@Mike Reynolds I check the tax office first, it will say whether it is personal or real property.   I am out of state currently, but the tax office can give you the forms to mail back to state.  

In Texas, we have some that are personal property.  I usually try to buy mine on property and have it attached, then it becomes real property and it flows with property in the tax records and deeds.  You do have to file for it to become attached.

I own 3 mobile homes currently.  there is nothing wrong with your idea.  I work the oil industry and have had some off times.  During the last down turn I had to sell a rental to stay afloat.  

The key is that a mobile home is a like a car.  If you buy new, you will take a beating.  There are a lot of people realize they can get into a MH easy, but trying to sell can be a problem.  I have purchased all of mine for basically the value of the land.  

I do not remember th pod cast but there was at least one about investing in MH.  Just go find someone who needs out of their MH.  You can get it to close to nothing, move in and improve it.  You can go find another and do it again.  

If i can help or you have questions give me shout on BP, connect with me or follow me.  

I know slumlords and I own property close to some of them.  I buy in these areas, I bring the property up to living standards and then continue to improve the properties.  It has worked well for me.  I have a duplex that I put in new electrical, new kitchen, and one new bathroom.  Later, I put in new vinyl windows and they have c/ha.  I have folks wanting my properties.  Does it still need a new siding job?  Yes  Does the yard need some landscaping?  Yes.  

I do contract my tenants to do certain small projects, but it is never taken off the rent.  I pay them for their work and I expect them to pay their rent.  I have one individual that turned down work because he had already received over $500 this year.  He knew that if he gets to $600 I issue a 1099.  

You do not have to be a slumlord to rent in the area.  You do have to be firm, and if you are improving the property, they will pay a little more and be willing to stay longer.  

The kicker is are you willing to do the extra work for the return.  You can have empathy for them but it is still a business and they must pay to stay.  

I started with a duplex in this neighborhood and now have an additional triplex, and 2 single family homes all relatively close, (within 2 blocks).  Now some of the other more reputable landlords are joining me here.  Paying more than I am willing to pay.  i have enjoyed seeing this stagnant part of our community begin to turn around and it is most definitely profitable.  

I personally think that it should not be of concern.  Look at history, housing has not ever taken a beating from war.  

I am not a flipper, but a buy and hold.  I have two military families, the families still get their housing allowance, even when the service member male or female is deployed.  

Just pray for the safety of our service folks but continue doing business.  

I am not familiar with your market, but with a quick internet search I was able to find several properties that were under 80K that should cash flow well.  Start looking at real estate and go to local meet ups.  You could either partner with someone or go it alone.  

Check neighborhoods and make sure it is somewhere that is either improving neighborhood or a neighborhood you would feel comfortable going to.  

Make sure you vet anyone you pard with.