All Forum Posts by: Patrick Hale

Investment Info:

Buy & hold investment in Cell Tower, Land with Mobile.

Purchase price: $255,000

11 acre parcel with ATT cell tower, mobile home with well water, electricity, septic and 2 other structures. Zoned AG-2 allowing for farming or cattle/animal farm.

Purchased property for 255k. Tower value $240k. Net Real Estate Purchase 15k.

Rent for cell tower $1,000/m
Rent for Real Estate $2,000/m

It all depends on how nice your unit is and how its located on the lot. ADU's can be built in a way that looks like their own small home.

It's the same as if you had an extra room of your house with it's own entry. If you had to enter through obstacles, of course you would get lower rents. If access to the unit looked like it was it's own home, then you could get market or higher rents. 

Obviously you should also know your market. San Jose and the Bay Area is perfect for an ADU as rents are so high already. A lot of my clients are moving to areas like Marina or Salinas to buy homes....an ADU to stay at would be perfect as an alternative place during the week for those that work late. You could also use this as a 30 day or weekly rental if the city permits.

Depends on what you think your cash flows will be. If it's a decent amount, then file an LLC in the state you're purchasing the asset.

Not an attorney and this is not legal advice.

30 units is a small development for someone outside your local area to have an interest in unless you're just looking for a capital partner. 

If you have a builder lined up....why aren't they interested in partnering?

I'd look for local "flippers" or other individuals in your market...even prominent realtors who sell a lot of homes. They will likely have available cash and can also make the numbers look even better with sale commissions.

The bill is attached to the property through the old owners social security number. I would speak with the utility companies management/supervisor and let them know you were not the owner at the time the bill provided and no lien was placed so you shouldn't be responsible for the bill. Sometimes talking to receptionists doesn't get you the right answer. 

Not an attorney and this isn't legal advice...but alternatively, if they refuse to pay and your title will not cover the amounts, the only other option would be paying the fees and taking the old owner to small claims. Damages could exceed more than the amounts since they lied in their disclosures. 

This is not legal advice and I am not an attorney. In California - Seller's don't have to respond to a request for repair. You're buying the home as is. If nothing was agreed to in writing for repairs then you're only in your due diligence period and can cancel if you cant get the loan or don't like the outcome and havent removed your contingencies. 

Alternatively, if they did agree to repairs and it's holding you from closing, you may want to do the repairs yourself (if they will let you). Then, ask for them to credit off the price. Otherwise, mediation or court after closing would likely be the next option. 

Make sure you're prequalified or have enough to pay cash before you first approach them. If you're try to create a backup plan for owner financing or assumption of their loan. Ask yourself why they would want to sell and where they would put their money if they were to sell to you. In the end...they purchased the property as an investment for themselves...so unless they need the money out there's no point in selling unless they can place their funds into another solid investment.

@Derrick E. - Right. You should only leverage to the point where the investment can still create cashflow even in a down market....for those with limited capital to invest...not leveraging available cash diminishes opportunity to build additional wealth.