All Forum Posts by: Michael Spindler

Hi Kansas City - BP,

Are there any manufactured home investors in Kansas City (or Missouri state wide) on BP?

The unknown factors are slowing my research/progress... Would really appreciate some "hand holding" through the process of buying/leasing out MHs in Missouri.

When the state is involved with the process, my brain locks up. I am under the impression that there are requirements/forms to meet with the Dept of Revenue?

Thank you.

Michael

Hi Mitchell Smith

I too am new to REI, so take this with a grain of salt...

I am in the same boat as you and have recently come to the conclusion that cash is the way I am going to go. This also means it will be 3 years before my first. Many camps will counter to power of leverage and they are right, if used properly and under the right market conditions it is a powerful tool. My direction is a personal choice - free and clear.

If you are in a position to start saving for your first primary in a year. Make it a duplex. But treat it as you would any investment. Make sure the numbers work.

Just my 2 cents. Best wishes on your journey.

Tom Goans

Hi Tom,

Thank you for sharing your insight and experience. I really appreciate it.

Two points you brought up have me a little concerned... Currency manipulation/bubble aside.

I guess what I mean is that if a future population will have trouble making a mortgage payment, how can they be expected to pay a higher rent?

I also suspect the second point you brought up will be further subsidized by the govt., in growing numbers. Eventually, this way of life will come to an end for those citizens that did not or could not prepare for retirement.

As investors leasing or renting out properties, how do we protect ourselves? How can we move forward and meet our Customers needs while still making a profit. Where is the balance between being of service in the community, providing a quality home versus the bottom line and growing our business?

When you mention a strong interest in developing affordable communities... would you be willing to shed a little light on what you have in mind?

Thanks again for sharing.

Joel Owens and Karen Margrave

Thank you both. You bring up some solid points. And I don't disagree, nothing about this sounds easy, otherwise everyone would be trying it. But thank you for opening my eyes to some realities of the business.

I will look into Development classes and other education that will gear me towards that direction... eventually. : ) In the meantime, will start small in Commercial and MFRs, starting with developing a relationship with the bank.

Have a great day.

Karen Margrave Hi,I hope you are well.

In the area I was looking and most of the Northland (Kansas City North) for that matter, the past decade has seen a lot of new retail construction and redevelopment. In fact, the old Metro North Mall (big box with lots of retail) is in the process of a major $200M redevelopment, should be finished around 2015. The KC Business Journal article also mentions nearly 70,000 new residents to the area. This alone I can see in my daily commute in just recent years.

All that aside, you are spot on... I really need to research the numbers and check to see what local governments have in mind for infrastructure. If anything, for practice and to get a better picture of my market place and pinpoint where in the cycle we are.

As you suggest, admittedly, this scenario would be a bit large to cut my teeth on, alone. Can you recommend a course of action as a doable starting point in commercial, to "grow" me into being able to do the above?

What I am beginning to love about commercial is that it is not about me, but my vision and the deal on the table.

Thank you for taking the time to reply. Have a great evening.

Hi BP,

Regarding raw land - zoned AG. Does anyone on this site have experience with buying, rezoning and dividing land for residential SFRs/MFRs (2-4)?

Before buying, is it wise to speak with a lawyer specializing in local zoning laws? And to evaluate the property first?

Can anyone recommend a book(s) specific to this type of investing? Would you be willing to share your process, system, or other outlined formula that you follow?

Projects this large would require OPM. Would any book on writing a proposal/business plan work? And if so at what stage of the process? i.e. Do I hire and pay the lawyer, as to feasibility and a summary or other report to market to other investors? Or do I need to secure the property first with a contingency and then the mad dash to pull everything together?

In addition to dividing, do you need to put in the infrastructure, before you can sell to a builder? i.e. roads, sewer, water mains, etc...

I appreciate any information and direction you can provide.

Best wishes.

Michael

John A Hi,

I am no pro, but just running the numbers shows me a negative cash flow and that's figuring a 20% down. If you are just looking to offset your living expenses, this seems good. But even with the 4th rented out at a later date, still a negative cash flow. With a VA, I am guessing 3% down?... The negative cash flow gets worse with less down.

I highly recommend you read up on the 50% rule. Getting familiar with this might aid in your decision making process.

Being from the fly over, I have no idea if $379K is a good price or not and if $850 rent is too low. Maybe someone can chime in?

Best wishes.

Tom Goans That is a great idea.

Having a system to pay off debt was like a game. That software would make that game and of building a business more "fun" than a spreadsheet. : )

Tom Goans I too am very interested in what @Zachary S. is trying to accomplish and can appreciate his current position.

Obviously, for investors at our stage, what you outlined can be very intimidating without some hand holding... even though you explained it very thoroughly with a great example of a real life experience.

Can our respective REIAs be of any help? Are there mentors out there that would be willing to act with us until we build a working knowledge and some experience with seller finance?

Thank you.

Joel Owens and Matt Devincenzo

Thank you very much for setting me straight. This is much more encouraging.

I will get my .xlsx revamped according to your examples and recommendations.

Thank you for taking the time... I know this was not nearly as easy as some posts. : )