All Forum Posts by: Samuel Coronado

Quote from @Chris Seveney:

Quote from @Samuel Coronado:

I have some land about to be under contract where I plan to clear it, reinstall the utilities, and either build on it or have a smaller new home built on it. I'm having trouble finding someone to lend on this. I am confident the land will appraise by itself as smaller 1 acre pieces are going for 20k a piece right next to it. I've called a couple banks and they say they don't lend that low or they want 35-40% down, which would take away from my working capital and slow down the process. I am gathering some investor friends now to go in, but was hoping to do this small development without giving up equity. 

 see if the seller will do seller financing. Also if it is 1 buildable lot, the additional acreage may not add a ton of value. For example a 5 acre lot is not worht 5x a 1acre lot if it can only support one home. But based on what you wrote, lenders will not touch something that small.

Very true. This has been a tough seller. We first started talking in November. She wanted 50k. I told her I would do 60k with 10k down and then the rest when I developed the land and sold it. The whole process would have taken maybe 3 months. She didn't like it and said someone had offered her over 100k. I said 100k is a great deal for her and take it fast. lol. I saw her casually on social media later and re-engaged. She said everyone who offered to buy was a scammer. We had the discussion about how I was a local buyer and we can meet in person, I can provide references, etc. She's stuck on it being worth 50k, which in a time when there is no land for sale below 30k an acre, I still see it as a great deal even the back 3 acres aren't the best and can't be developed. It may actually be a selling point as the back 40, so to speak, is against a huge plot of private hunting land that won't ever be developed because of the topography. 

On the lending front, I did find a couple of lenders. One with brutal, silly terms. The other with much more reasonable terms. Silly terms were 10.35% floating rate for 10 years with 35% down! The reasonable one was 15% down at 8.5% for 20 years. I am looking for this to be a short term development so however I can structure the deal where it's the lowest payment, I am happy. Going with the latter and hoping to establish a relationship with the local lender going forward. 

I have some land about to be under contract where I plan to clear it, reinstall the utilities, and either build on it or have a smaller new home built on it. I'm having trouble finding someone to lend on this. I am confident the land will appraise by itself as smaller 1 acre pieces are going for 20k a piece right next to it. I've called a couple banks and they say they don't lend that low or they want 35-40% down, which would take away from my working capital and slow down the process. I am gathering some investor friends now to go in, but was hoping to do this small development without giving up equity. 

I'll definitely have to check them out. 

I use CashApp and tenants prefer it. 

Can you tell us more about evicting people out of the TOHs?

Quote from @Terrence Ward:

I recently went to my second Kiyosaki seminar.  They at the end of course tried to sell everyone a package deal for a three day workshop. I spoke with a friend and he purchased a package from them and was not impressed as the company kept wanting more money from them.  Has anyone bought this workshop?  Do you recommend paying the 500 dollars for it?  

 When I was 17, I went to the 2 hour free seminar and at the end they tried to sell everyone on a 3 day event. I was young and hungry for success, so my mother paid the then-$200 fee for me to go. I went to the $300 one and was blown away by everything I didn't know. I had been religiously studying real estate and investing since I was 14 and thought I knew a lot (if not everything if I'm being honest to my teenage hubris). That 3 day event made me connections I still have to this day! At the end of the 3 day one, they had us attempt to raise capital to go to a $2k class or something in that ballpark. I failed because I wasn't the best at sales yet and had no track record. It sucked and was a great character building event at 17. 

I took the information from that 3 day event and immediately bought a mobile home for $500. We flipped it and sold it for $2800 two weeks later. The course paid for itself less than a couple weeks after it ended because I applied what I learned as fast as I could within the limits of my ability at the time. 

Information in itself is useless. Action is everything. I think a lot of people go to these classes thinking it will be the answer to their problems when the problem is inaction, insecurity, and fears of failure, poverty, and rejection. Mastering those internal issues is MORE important than the technical details. 

Quote from @Brian Brinson:

Hello,

I'm trying to find financing for a MHP purchase but am having difficulty. It's for sale for 400k ( too small a loan for some lenders) , it has over %75 poh ( to high for other lenders), and am hoping to put down 20-25%. Is this even possible or do I need to approach this from a different angle?

 This is an easy deal for your local credit unions. Look as local as you can. One of the ones I used actually only had 2 branches and out of those 2 only 1 processed any loans. lol There's a lot more flexibility in those places because they're looking to invest in the community instead of churn accounts and sell them to the stricter secondary market. It's a balance for sure for the smaller banks but in general they are much more flexible.

We could jump on a call one evening and I can let you know my modest and positive experience. I'm looking to get my second one soon. 

We were quoted $15,000 labor only by one contractor for a full rehab minus the HVAC. We shopped that around and got it to about $3500 labor only plus $2000 in materials. This is in north Alabama. I mobile homes aren't as bad as most people make them out to be I believe. I think there is a lot more opportunity in them than what meets the eye. 

Quote from @Bonnie Griffin Kaake:

Quote from @Brandon Tarby:

Would this apply to a park that only has tenant occupied homes? I’m new to this, could you explain what the purpose and benefit of this study?

A lot of your tax benefits are buried in land improvements to provide power, water, and sewer to each unit. In addition, the concrete pads and driveways and parking are great for expedited depreciation. This can give you cash flow instead of paying taxes on the income for some time. It may help you bring the property up-to-date quicker and fill those empty spaces. Estimates are free and will give you what you and your CPA/tax pro what you need to decide how it will fit your specific tax situation. I have done many of these with surprising results.

 I am interested in one. I bought my first park late last year and now I am looking at getting a second one and building a third.