All Forum Posts by: Sean Ridlon

Just took my first one down. Thanks for the advice, all you guys and gals. I'll keep you posted!

Took down my first Florida deal yesterday. Cash closing will be in 14 days or so. Here's the details:

In a semi-rural area, 1.5 hours from Jax and 25 minutes from Gainesville.

5 flat acres in high/dry forest.

2006 3/2 mobile home. Like brand-new (was a second home with 4 owners who lived in far-away Palm Beach). Rarely used. New well, septic, and power in 2006.

Very low taxes ($1200) and electrical.

Fully furnished to include riding lawn mower, brand new bedding for 9, TV's, furnishings, and all appliances like new and included.

Air strip and private boating launch access.

Insurance $600 per year.

Local property manager has 300 doors under management. Best guess after reviewing with his team was $800-950 per month or 1k if offered with my seller financing.

Asking price was 59.5k.

Offered 50k cash.

They countered with 55k cash to include all furnishings.

Done deal.

Thinking about bringing it under a note to pull some cash out of it later.

@Jeremy Kloter appreciate it. Thanks!

 Thanks for the pointers, @Jeremy Kloter. I'm still trying to figure out what folks are actually and consistently paying for these on the other side of a flip to determine what my numbers ought to be on the acquisition side. Some of the comps blow my mind (upwards of 100k) so I can see where flipping would work out for these as well. I like your focus points. Appreciate it!

I always charge a start-up fee for the work (how much depends on the size of the project). All funds must be deposited in am escrow account and cannot be withdrawn without both the client and my signatures. But we also have a contract, a schedule, an estimate which specifies what exactly is being done and how much each trade is costing, and a signed list of all material and finish selections. If I and the client don't live in the same town, they must sign a POA over to a local inspector or family member who will inspect the work at the phases designated in the contract.

Hey, anyone have a line on financing local banks or investment lenders who'd carry the note on a trailer with a good down that isn't a wreck?

Definitely bookmarking.

The only thing you might be missing out on is the lower down payment and interest rates on a primary home loan, the ability to use the equity in your first home to get a second home, the mortgage interest deduction on your first home. Other than that, nothing. Rent it if it makes sense to you. It's not like we all get together and laugh at people who aren't doing things the exact same way as us. 

@Jenn Barona thanks for the tips, look forward to talking with you sometime!
@Anthony Dooley seems like it'd be easy to liquidate anything that became too problematic by just dropping it on Craigslist with "owner financing available" on there. Good tip!
@Dave Carella hope to avoid crackheads!
@Ben Roddey a local was telling me that 2000 or newer trailers are ok for financing assuming they 1) have a good roof 2) double wide only 3) have never been moved after being set up the first time. Does that jive with your experiences? 
@Adrian Smude I'm hoping to find ones that are insurable as well as fanciable, although I'd initially buy and repair using cash. I've dealt with insurance companies for a decade and a half daily as a part of my career in restoration work but... no trailer experience involving claims in all those years. I'm definitely in the dark about how the Irma scenario might play out where trailers are involved, so I appreciate the heads up on that and the tip about the course and reading material.

 Anybody saying, "Pay the GC for their time" will get an up-vote form me! 

Another option: see if a GC wants to go in as partner with you: you provide the acquisition capital, he provides the labor and materials, you sell and split the profits.