All Forum Posts by: Samuel Coronado

https://www.texasmha.com/news/market-analysis

Your state manufactured housing association would be a great resource for your specific question. It's worth the investment to join and go to the meetings to network and find people who can fit every niche you need or want. You'll see that the person or couple of people who do a feasibility study in one area probably do it for a lot of other localities as well. In my experience, it's better to pluck someone out of there because they understand the zoning, political, and economic nuances of Texas and Houston. 

I've found some success here. Here are a couple of my findings:

Vetting is different. Throw credit scores out the window and look at "credit stories" to determine the right candidate. Medical reasons are the number one reason for bankruptcy in the US. Paying attention not just to the what, but the why. 

Do shorter terms. I don't go above bi-weekly. Not semi-monthly or monthly. I go only weekly or at most bi-weekly. This helps people budget better and gives me more touchpoints because I collect in person in cash. This lets me identify problems early on in regards to broke down cars, etc. I've also dealt with programs with people who are coming out of great rehabs. Two of the guys wound up staying for years after and they're doing amazing. I am proud of them, but not all of it is a success story for everyone. I keep things week to week with no obligation to them beyond what they are paying ahead for that week.

I offer incentives. Many of these people don't have the best credit for whatever reason. If they want, I put them in a program called Boost that increases their credit score every time they pay rent. This helps the people who struggle to even get prepaid credit cards. 

Be aware of other programs, how they work, criteria, etc. Food banks, rental assistance, etc. 

If you do not feel comfortable putting a personal guarantee on it, then send it my way. I will take that deal! 

I think you are dealing more with pre-closing jitters than a serious concern. 

Weird thing here right now. There is a tenant applying to one of my properties in north Alabama. He lives and works in Chattanooga. He doesn't plan to leave the job. that is a 2.5 hour drive. I can't fathom it on a daily basis, but he says it's alright. How much of a red flag is this? I have a day job people where people make that same commute, but for much more money. Is this an automatic no?

Came here to say that. As a veteran, they are the most annoying things. We were always told that a VA assumption would be 2-4 months long.

 It depends on what kind of lending institution you are asking, the age of the homes, POH vs TOH, and a few other factors. Not everyone likes them. Some are a little more skittish and some see it as just another asset class. I've found local credit unions are the easiest to work with. While Charles Schwab, CitiBank, etc love bigger commercial projects, credit unions are better with smaller or more nuanced properties. 

For real estate- 20% per year is the goal for COC return, preferably with a 3.5 year payback period at max if there is no cash out refinancing opportunities.

long term stocks- 8%

weekly options trades- 2%, but I don't this anymore. 

All of this is goals. I have 20 acres in Athens, AL that I want to do something similar with. Affordable housing is a big priority in our country. I'm looking at a pricing strategy that balances not targeting Section 8 levels, being competitive in the market, and being affordable for an average American family. So many are going into credit card debt for the basic necessities these days, never mind a spend happy middle class buying $75,000 cars. It will eventually come back on all of us in a big way but I look at what I can control. What I can control is whether or not I use my land to add to the housing supply or let it sit vacant and not add as much value to the community. The loose plan now is tiny homes or mobile homes. I am looking at putting in the infrastructure and doing some in-fil operations with TOHs. I will need some partners though. 

There's a science behind it, brother! Get them in at any cost. Pay for them to move in (3k-5k depending on size, location, and age where I'm at) and give them a reduced rent for a few months. There's a lot of expenses for the tenants coming in like deposit fees and such for utilities. Then slowly turn it up from there as appropriate with the market. A frog in water does it feel it begin to boil until it's too late. (that's a metaphor, not a scientific fact, so don't too closely on those words haha)