All Forum Posts by: Scott Johnson

Just wanted to say that I found this post, went to https://biggerpockets.mysmartm... and my first screening is pending. REALLY enjoyed it, @Andrea Collatz! Simple and super easy to use. Reminds me of the software I used when I was a leasing agent. 

Did they actually tell you they'll only do the HELOC on the remaining equity? That's new to me.

Good afternoon, BP!

I hope you're awesome! We currently have a 4 lot trailer park under contract and are pursuing financing. We haven't had much luck thus far with the brokers we were speaking with.

Have you worked with any lenders that financed your parks here in NC? Any recommendations are greatly appreciated!

Hey, everyone!

Situation: 

• 15.9 Acres wooded land ($2.7K/acre) off of a country road that connects directly to a Bypass that was recently constructed. This road has rural homestead properties, wooded land and farm land down the entirety of it. It is surrounded by rural residential, wooded and farmland. It is 20 minutes drive to Greenville, NC and 14 minutes from Winterville, NC. There are three parcels: Two 2.87 acre lots (zoned Rural Homestead) and one 10.21 acre lot (zoned Residential Manufactured Homes). Perk test was performed back in 1985 and it was confirmed not to perk in a certain area, but owners aren't sure which. This was inherited and the family wants out of it.

My thoughts: 

• it seems like someone was looking to put a mobile home park on the 10 acres and sell off the other roadside plots as home lots, since zoning is in place. 

My questions: 

• What things can I do (at little to no cost) to investigate the highest and best use of this property?
• At what point should I be comfortable paying for specific tests (including perk and logging income analysis)?
• If it won't perk, are there other uses for it aside from hunting land?

Here's what I planned to do to figure out what this land can be used for:

• Contact the county to see their thoughts on whether the property will perk
  
• Have a perk test done
• Have the timber analyzed by a logger to delineate income (if log-able)
• Figure out (before logging) if it will still perk after it's logged
• Find a mini storage builder and work with them to see if it is suitable for one

Any thoughts are greatly appreciated. I'm still looking for my stride when it comes to figuring out the highest and best use of land.

Please let me know which you like!

Also, what do you think about the colors?

Any other ideas?

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Here's the deal. I'll have more accurate numbers by the end of the week, but as it stands right now I'm assuming $20,000 of repairs to get it up to $750/month rent. The most interesting part of this deal is that it's a 0% interest owner finance. It currently has a tenant that has been paying $300/month for the last 30 years, and is very difficult to work with. In fact, we're having to do an addendum that states that if we can't get into the property by the end of the week, Due Diligence has two be extended.

My questions:

Is it worth taking a (possibly) lower Cash On Cash in return for a 0% owner finance?

Would you do this deal (why or why not would be fantastic)?

What sticks out to you?

Flip, ma'am. :) 

@Taylor L. Great distinction. Even in a commercial thread, my mind was still working in residential 😂😂😂

@Meryl McElwain how do you confirm what amenities and styles to use in the properties to maximize sale price, but not go overboard (like granite counter tops on a $100K home)?

@Taylor L. Agreed, but I’d also add that if you don’t offer low, it’s harder to identify a truly motivated seller. I’m a wholesaler, so I’ve started adding value to my agent in other ways, such as presenting their listing offers alongside my cash offers and cold calling their lists of leads (and we split the leads depending on what solution the seller prefers).

If my broker didn’t send in my lower offers, I’d honestly find another broker. As long as they know WHY you’re doing something they should be able to help you.