All Forum Posts by: John Arendsen

Be sure to join us for this ZOOM meeting event tomorrow. https://myemail.constantcontac...

Be sure to join us for this ZOOM meeting event tomorrow.

Overview: Join us for this special edition 1.5 hour training on the possibilities of manufactured homes as an affordable option for ADUs.
Manufactured Homes have been around for decades, and have evolved with the times. They are banned in some jurisdictions from being an ADU due to legacy zoning codes.

But, where they are allowed to be built and installed as ADUs, they offer an affordable and streamlined way to add one to a property. All of California allows for HUD manufactured homes as ADUs. Join us to hear from one of the top teams in building manufactured homes as ADUs, based in the San Diego region, as they provide an overview of how this building type can meet the needs of homeowners looking for a relatively affordable, quick, prefab ADU option.

You will learn about the financing, appraisals, construction, and delivery of manufactured ADUs as a cost-effective housing solution.This 1.5 hour class is designed for building professionals, architects, real estate, agents, contractors, developers, and anyone interested in implementing creative solutions in the growing ADU industry.

AudienceAppraisers, Architects, Builders/Contractors, Code Officials, Consultants, Developers, Lenders, Real Estate Professionals, Remodelers, Students, Home Inspectors, developers, investors, property managers, property/homeowners and myriad stakeholders interested in generating additional profit centers and income streams on the dirt they own beneath their feet.

Please post your webinar https://myemail.constantcontact.com/WEBINAR--Manufactured-Homes-as-ADU-S.html?soid=1129877926497&aid=B3cvNzLllwk in the Events and Happenings page only https://www.biggerpockets.com/forums/521

Prefab Modular can be more expensive than ground up site built depending on the purveyor. But you are right. Time is money so the faster you can revisit your capital the faster you realize ROI.

On another note you could also consider HUD Manufactured as opposed to MOD. They are 15-30% less as a rule and the turnaround time is about the same as a MOD. Perhaps even less.

Site built and MOD starts at about $350 to north of $500/sf whereas HUD Manufactured costs between $200-$275/sf.

Definitely can't rule anything out nowadays. Thanks for the HU.

@Chris Seveney, I'm not talking about a onezie twozie deal with unsophisticated wanna be investors. I'm speaking about a well established company that's been around for a while who specializes in these types of loans. They're backed up 90 days just on  apps from folks trying to qualify for their funding option. I was just wondering if anyone knew of anyone else of the same stature that provides this type of funding.

Don Konipol, Did you have a reply to my post? I'm not seeing it for some reason. 

Just to be clear, I'm not personally interested in getting directly involved with that or any loan transaction except possibly as a 2nd trust deed lien holder on a conventional residential RE investment. I'm actually looking at a few companies that specialize in this type of lending for my ADU clients who don't want to lose their low interest loans. But thanks for your response.

What Are Your Thoughts About Shared Equity Investments?

I'm curious to find out what investors think about Shared Equity investing? We've been in the Accessory Dwelling Unit (ADU) aka BACKYARD HOME business in san Diego for almost 40 years. Until recently most of our transactions have been cash, leveraging capital from IRA's, retirement accounts, RE portfolios or conventional cash out REFI, HELOC, 2nds, etc.

However during the past few years since the new California ADU laws were enacted we've been visiting some of the companies that offer what is known as "Shared Equity" loans. Is anyone familiar with or actually used these types of loans? What is your opinion of them? What are the down side risks vs the upside potential for investors?

At first I didn't really pay much attention to them because our clientele had several other options. However, now that interest rates have blown up and folks are comfy with their -3% LIL's things are coming a bit more of a challenge for several of our clients. But the reality is most homeowners that we deal with have a mountain of equity or a good potential for appreciable equity gain given the thirst for San Diego RE desirability. 

Interestingly our business hasn't slowed down a bit. if anything it's actually getting busier while the over all buy/sell market is taking a break. I think it's because property/homeowners seem to be cooling their jets about wanting to list and/or move in this crazy socio/economic environment we're dealing with. Many if not most just want to stay put yet maximize their RE investments be they a single home or an investment portfolio. 

I'd love to hear from the BP audience on this subject.

Thanks