All Forum Posts by: Scott Schultz

@Grayson Lynum Regarding Modular, I have gone down that rabbit hole several times, and what I found it, they are not cheaper, just faster, and they look like a modular, due to the transportation limitations, the rectangle box or Prow front on mods tend to have a stigma to buyers, also many of the finishes are very low end. if you site built a very basic rectangle with the same cheap finishes most mods come with, you will be financially better off. and they are not faster, typically from order to occupancy is 6-9 months, I did my last spec in 7 mo. its just not as much work on site, the time is waiting for the factory to get to your build. good luck!

I just sold a spec, I built a house for my self last year and finished a spec this year, I bough the lots at tax sale, and I was the GC, HVAC, Tile, Flooring, Cabinet, Painter, and Misc. guy, made a nice profit, but the crappy part is taxes, its like a flip, short term gains. good luck!

The issue is no one is enforcing the law, until someone does, so just be sure you know the risk, that there could be repercussions, there are many title companies and Attorneys that advise on this without reading the state license law, it is not likely you will get caught, but if a deal goes sideways and you end up in court, I will guarantee, the unlicensed practice will be brought to the forefront.

an LC is a form of owner financing, like any other, the seller retains the deed till the contract is fulfilled if you dont hold up your end, the seller has the right to the property back as liquidation for damages, just like a mortgage. 

Here in WI a Land Contract is looked at just like a Mortgage, I hold one on a lot I sold, and recently went down the road of determining my rights under the law, I am in 1st position, and if an action  is needed I would have to foreclose just like a mortgage, your state may be different, but the concept is the same. tax wise its the same, everything is pretty much the same, just that you are buying the deed over time

@Heather U. I pulled that up on MLS that price is Nuts! 2 years ago that would have been in the mid $50's

I lived in Rhinelander for 3 years, and bought like crazy, demand is high, but their are unique problems that come up, like winter, ice dams some years needing roofs shoveled off, and slow pay tenants are a bit more just the norm. “Classification” is not the same, the town is 8,800 people and the county is 32,000 residents, but Rhinelander is the Financial hub of the northwoods. It’s very much non typical, but I do well there, as with all my rural units. The key is buying right. As well as knowing what you are buying, a lot of properties are hacked together, lots of dodgy diy repairs so it’s important to know what you RE getting.  I am a Broker, A general contractor and Licensed in HVAC so I know what I’m looking at. I could not imagine buying site unseen and trusting someone else’s eyes on a property there. Just my opinion. 

Not sure about the buying side of things, but I have mine in Rhinelander with ABC Rental Management out of Wausau, they do a great job for me. 

Why won't the Commercial lender not renew? Do the properties cash flow? Adequate DSCR?

I said generally, and was referring to banks not private money.  Either way, my opinion is 30 years is way too long, if it wont cash flow on 10-15 years is not a good deal.  my most recent renewals were 4.25% & 4.35% on 5 year locks so round 2 of 3 total renewals my rate and debt risk is very low, so long term doesnt make sense.   Everyones goals are different, mine are to basically have an annuity, my properties are well managed and taken care of, no reason to not pay them off, use them for Lines of credit to do bigger deals. 

Im 46, retired on rental income at 43 and as my properties pay off I get a raise,  in the mean time I dable in this and that, like right now, Im building a spec house, because I had an extra lot that didnt sell. 

I dont invest in big cities at all, te largest I own in is 50K population, only because I know that town, but I prefer towns under 20K people