All Forum Posts by: Todd Murphy

@Michel Torres your ARV will give you some direction here. It sounds like rough situation with purchase price and that you are brrrr'ing the property.

Ensure that your contract is air-tight. No early pre-paymemt penalty, defined interest rate on that purchase price after down payment and how it is amortized. Cover all rights to you the buyer for resale if you choose to inside the 5 year balloon. Find a good title company that will do proper due diligence on title and property tax search.

You also want to look at the rental component of the deal to ensure you won't have a dead stick property that sits vacant. The rental demographic will drive your rehab and finishes to ensure you can maximize rents.

The HELOC will be short-term to refinance, so make sure you run that interest only in your numbers properly.

Good luck and would love to hear how it turns out.

@Jacklin Jackson there is not a typical term. We are in value-add projects that we will refinance out as soon as possible.

Stabilization and bringing NOI up in first 24 months is key to our projects.

We have 36 month terms largely based on seller's wants and needs.

@Chase Romine buying is your best option of entry from a time and money standpointe.

Development of land, cost of bringing in homes and finding a community that will allow for new development would be costly. Time alone would be costly and to @Jay Hinrichs point, debt would be a tough way to go.

We own two parks and are under-contract on another now. Communities are tough on parks as it is due to many being mis-managed.

@Luke Dilorenzo finding a seller's need(s) are the real way to creating a deal. I am under-contract on second seller finance deal.

Get to know the seller by taking a genuine interest in how it can be a win-win for everyone.

@Bevla Reeves 68 units in less than a year, I give a lot of credit to the Pro membership. Very worthwhile and easily recaptured that cost.

The calculators and access to documents were extremely helpful.

The networking has probably been the best part of the membership.

All the best!

@Jonathan Hulen You want to understand any area in or around Indy. I have lived, worked all throughout Indy and now investing.

We are a much more diverse city than most outside know. Progress is happening in many different areas with great opportunities.

Jay and Andy are both correct, it really does come down to knowing trends in and around city.

Feel free to reach out with any questions.

@Taylor Espich Welcome Taylor! We have a great state to invest in.

Feel free to reach out. All the best!

@Shawn Munoz Answering your question isn't easy without addressing the strategy on the buy, rehab and rent side first. I can tell you that the bar part is crucial to answering your question.

The first three letters will give you options on the refi and possible repeat part of the process.

All the best!

@Konstantinos Porfyris New MHC owner here and I can assure you there will always be something you can't account for.

There are too many things to list here, but especially on your first I recommend knowing as many current factors that play into operations.

It does seem lucrative, but you have to ask yourself if it aligns with your goals.

Distance or not, understanding how it will be run and solid information on why the current owners are selling at such a good price in relation to the NOI.

All the best!

@Michael Hanks You can choose yo pay it down or choose to let others pay your debt down.

Dave is practical and he is inspirational with his discipline. The common sense he teaches is not so common.

It is a great place to understand the discipline it takes and from there grows the question, "How can we?"

Unlocking leverage on our end was a great way to start, to build a future portfolio that considers risk and reward.

Financial peace really is possible and figuring how to do it has been the greatest experience to date.

I choose the chance to financial freedom and can't imagine not making that choice.

All the best!