All Forum Posts by: Jon H.

@Mana Silva  You're in a sector of the industry that works great for you!   I can tell by your enthusiasm that you love what you do.  It's kind of like asking why doesn't a pedal bike become a  dirtbike?  Or people who build mountain bikes just build a dirtbike?  Just preference and everybody has their own. 

I opt to further my skill in remodel ,new construction and other areas. 

I think new construction takes a vast amount of knowledge on a multitude of different aspects compared to rehabbing-depending on your area and market and what you're building.  

Mahalo

Keep at it!

@James Stallings  Know what you want...

@Karen Margrave

@Karen Margrave  Good link

@Garth Wilson I second that!  Why get into a upside down deal when you can find a real deal by searching a little.  

Explain to the seller your conundrum and ask for more favorable terms?  

Your time is well spent doing things that further your ability to use your time in the best way you deem valuable.

A partnership is a great way to get in the game.  You can leverage other peoples time, income, credit, skill, expertise to all partners advantage.   Should you decide to do a 50/50 partnership. I would recommend methodically going through (with all parties involved) everything that could go wrong and write down how as partners you will handle those situations.  Also have a written contract between the partners spelling out everybody's responsibility.  Hope that guides you to further your goals :)

Price is too high!  First telling factor is the amount of people who have gone through and not made an offer.  Your upfront purchase price should accommodate odd factors such as layout so that you can re-sell at an attractive price relative to other homes in the area.  Hopefully your spread is large enough to lower the price and attract buyers through again.  

Your low response rate could be associated with any of the items already mentioned as well as the amount of letters you sent out, what type of lead you are marketing to and your message in the letter.  I suggest making the yellow letter as personable as possible!

@J. Martin  Awesome stuff, most people settle for a picture of places to travel hanging in their cubicle.  You are now the guy in that picture!  Way to pave the path.  Dreams and action seem to have got you where you are.

@Scott Trench  

I love what I do!  For some reason It looks nothing like in the movies.  Just livin the dream.

Coming next is a vacant house movie...  There's a squirrel in the living room, the roofs caving in, the seller relieved of the headache.  Spoiler alert:  It ends with a fixed up house, seller has cash in their pocket, Investor makes money and the house is put back to use.

Or the raw land movie.  There could just be hours and hours of raw land footage.  People would love it.

@Vincent Crane Thanks Vincent that's a great idea! I will definitely listen to those again. I never thought I would even be interested in buying a mobile home park? I think I had those podcast on in the background as they weren't pertinent to my REI at the time. I guess now they will mean a lot more!

@Account Closed Bob, we will be looking deeper into the financials for NOI to calculate value. I had to make a quick judgment in my conversation with the seller when she asked 1.2 mil at 66,000 annual income...Gross/NOI? (I Dont know yet). My response was that a great mobile home park purchase would be at around 12-13%, average would be 10%, and thin return would be around 7%. She said she has some things to think about. I just went with my gut feeling at the time. Usually my guts right especially when I'm hungry :)

Definitely here on bigger pockets to understand how to decide on a cap rate, since it's just me and the seller figuring this out!  Now the many helpful people on BP

We will also be doing further research to verify market cap rates in the area were purchasing.

@Bruce May Glad there's only 4 of you to thank or could be doing the @ thing for awhile :)

We will keep you posted on updates/questions as this deal originally came from a house we wanted to buy located in a different city.  The direction it's going now is buying the house and the park and making one monthly payment for both.  We have a bit more work to do after the seller and I agree on a cap rate!

Thanks @Howard Abell  I kind of figured that's the way it would be.  The one were looking at works out to be a 5.5% cap rate.  I think that might be off of gross revenue.  What would we need from the seller to determine if the park is reasonably priced?