All Forum Posts by: Account Closed

Let me guess, you have never actually done any of this work before?

I think bonding is overkill for most residential jobs.

How much do you figure you will have in this project when complete?

Why dont you ask an attorney?

Are you saying that with purchase price and rehab costs that you will 260k in this house? ARV maximun 300k? Thats disaster waiting to happen. Hard money lenders want to see the borrower have skin in the game. The most effective hard money borrowers are those that have often times enough money to purchase with cash but choose the hard money route as a form of leverage. Unless you have a long track record with a lender, you need to put some of your own cash in the deal upfront. My guess is that 160k is far too much to pay for this property.

This will be a good one.

People that REALLY know mobile home park investing don't use cap rates. This is a totally different type of investing animal. The rule of thumb is occupied lots are worth 70 times lot rent and unoccupied lots are worth half that amount. Very conservative investors value the at zero. No value is given to the trailers. In your example the park might be worth around 500k including the house.

I will be in the plumbing isle of Lowes on Friday, July 28th at 7:30 am if anyone wants to stop by and chat. I haven't made anywhere near that many deals but I have unstopped at least a hundred toilets and have hired a few guys to work for me that I have met there. If we hit it off we can wander on over to contractor sales and get a free cup of coffee.

The cost to develop lots has become outrageous in recent years. Municipalities now want Cadillac quality land developments to put Chevrolet quality houses on. Red tape and burecratic hassles have kept a lot of developers on the sidelines. Large institutional home builders are willing and able to put up with the hassles. Smaller developers don't want to deal with the hassles and have better avenues to invest their money. I have been to several meetings held by cities to discuss affordable housing and they solicit ideas one day and the next day they introduce new regulations that increase development costs. We can't all live in a This Old House world" where there are unlimited budgets to try every new technology and method as well as hire every expert in a hundred mile radius.

When it comes to matters like this it's just easier to give people what they ask for.