All Forum Posts by: Tim Rainey

I would ideally like to find a MHP and owner finance the deal directly with seller. In case I locate one that is listed, are there any workarounds to owner finance a listed MHP? Some kind of finders fee or monthly percentage of the payout to the broker? Just a thought.

Thanks,

Tim

I am always looking for deals and will keep doing so. An issue for me is just locating deals.  Being in a tertiary market and looking mainly there, I think is limiting me so I am going to start looking further out but I also wonder if I am missing any better means for searching. 

Loopnet, Cityfeet are the main ways that I search for commercial investments. Multifamily, Mobile Home Parks, Self Storage are my primary goals, but anything income producing is also on the radar.

My experience has been that when I inquire about a property on loopnet, cityfeet seems like only 50% of the time the listing agent actually responds?

Any other suggestions for search?

Thanks

I agree with yall. Seems like waiting for that long may lead to missing out on a deal.

A real estate guru in one of my groups believes that we are in an asset bubble now and its best to hold off investing for 12 months at least.

Is the consensus here that we are in an asset bubble currently and if so do you agree with holding off on investment at the moment? 

Thanks,

Tim

My concern with the sewer plant is that if it goes down its all homes that are down. dont know if it has an addvantage over separate septic tanks

OK, so 60*350*40= $840,000 valuation

At that value with 55% overhead, should yield a 9% return on investment? Am I missing anything? Would someone have really valued it at $1.5 million?

I am trying to value this off market potential deal. Here are the specs:

• -40 lots, I understand trailers are all owned by tenants
• -$350 per lot
• -10 acres
• -most homes are newer and well kept
• -outside city limits on well water
• -large central sewer plant
• -park is owner managed, his overhead is 25% but he is jack of all trades
• -owner told me he had appraisal within last few years and value was $1.5 million then
• -room for addition of at least 20 more lots

I have seen formulas online using a multipliers  of either 60 70. I am not sure which applies here? So I dont know what overhead would be if I owned it and I am paying someone to maintain and fix the things that he currently DIY's? Its not listed and I approached him.

Lets say 35% overhead? If my math is right, then this would be at a 7.25% cap, right? So my only value add component here would be to add more spots and fill them, right? If so, what is general cost of adding 15-20 spots?

So, I also invest in multifamily syndications. Typical conservative projections are 7-10% investor return on those plus and addition of potential refi cash down the road driving that higher.

In order to justify the extra work of dealing with sole park ownership vs passive investing I would have to have much better returns on buying a park vs putting that cash into multi passive investing. Also, I would expect that if the homes are not park owned, there is little depreciation on the park vs multifamily?

So, how hard is it to expand by 15-20 units and at what expense? Enough to drive cap rate into better returns?

Is it worth it?

Thanks

Tim

Joel, you are right. I was browsing online for strip centers, etc and searching by cap rate and stumbled across this 8 cap which got my attention. I am no real estate professional , but I invest with a group that syndicates multifamily. I understand multi pretty well but this special purpose thing is not what I know but it sounded interesting because of the NNN and cap rate obviously.

Deals are not as plentiful currently and I always wanted my own commercial property, the difficulty for me being locating it. From what you are telling me about this, it sounds like something that I would pass on and look for something else that is not such a specialty structure that would be hard to rent to a different tenant should this one move out.

Thanks

Its a 53 unit operator 2x5 year renewal option. One concern would be that its such a specialty structure that if Sonic didnt renew I suspect you would almost have to demo and sell the raw lot? I do recall seeing a sonic close once. 

What length of lease do you typically get on your warehouses?

I found a sonic drive in with an 8% cap rate thats NNN. Its only a real estate purchase. The business is owned and operated by the renter.

Does anyone here have experience with these investments? Pros/cons? Is it something to consider even though its single tenant? I have no idea how stable a typical sonic franchise is.

Thanks