All Forum Posts by: William H.

So all of these are good points, Thanks for the tips. The delayed sale works too, didn't think about that. Well my thought was something that would increase the roi, So I was thinking something like $1000/m interest only for 24 months, with a option to pay off early,  and after the 2 years have a year that's at 5% with a balloon.  All of this is why I wanted to reach out on BP before agreeing to terms. I am all about creating a win win, but its got to make since.  

@Raquel D.

I do believe that the "end goal" is to get a mortgage. The reason I say that is because I believe the Father in Law is the beneficiary and is putting up the $170k. I think that the trust and the deal with

me is completely separate from them getting a mortgage. I believe they can and will get a mortgage later, and pay him back. Basically using me and the note as a way to get in the house now.  

I am not familiar with trust and how they work, or her part in the trust. My first thought that I mentioned to her was to see if she could borrow against it, like you mentioned. My example was like borrowing against a 401k. So I think we are thinking the same there. I just don't know how to go about that, or if she is able to. But yes Ideally that would be cool too.

@Account Closed

I could. But I rather sell. Even though it's not as ideal for me at the time, it's still a sale, and a return on the equity, and my thought is that each lump sum payment is a down payment for a rental each year for the next four years.

@David Dachtera

I agree, its is short. So they are flexible, they can do monthly payments of say $1000 each month and then lump sum payments per year, for the amount due per year with interest. Or just four payments (one per year). We haven't hammered out that part just yet. As for working for me, I mean sure if someone wants to buy the house for cash today, then yeah that is better for me.  On the flip side say I sell the house to someone else, pay agents commissions, and hope that its a full price offer, and no repairs, or closing cost are asked for. My thought was if someone who had the more capital than I was able to buy it, it would be a win win. I do see where its not as appealing, but that's why I asked. I figure that the chances of walking away from such a down payment was unlikely . 

Also worth noting, the lump payments each year, are from a Trust that they can only access so much money per year from, so that is what is covering the difference in the monthly payment example. 

So the house is worth $275,000 and the buyer, who happens to be a realtor wants to buy it, and get in quickly. She is having a tough time getting financing because she has been self employed for 1.5 years and not two. Her husband also is self employed. They hope to in the future refi and get a loan, but in the meantime they are trying to buy other ways. 

While I like the idea of investing in notes just fine, I have most of my cash in this house, and I need to sell. NOT in a way that I am hurting to sell, just I am not in a place to invest ALL of the money/equity that I have in the house. 

Here are the details, and we are going to assume (before taking the deal I would verify of course) good credit and everything checks out with the buyers, other than the lack of two years for the lender. Also, assuming the note is secured by the house.

House value/Sales price is $275,000. Could even a say after agents and a cushion, call it $250,000. 

She wants to put down $170,000 (So I can pay off the mortgage) and me create a note for $105,000 at 5% per year. She is asking for a 4 year note.

So my question is, since I am note currently in a place to keep this for four years (ideally) and considering that it isn't a "seasoned" note. What could I sell it for and to who, or where is the best place rather, to sell the note?

Again, I am not in the business so bare with me, but I do give some value to the loan to value, and the down payment. 

ANY help is appreciated, Thanks!

I am no expert so I am hoping for some insight. I am currently in the process of selling a home. Its in a great area, and values have been on the rise. Things are going quickly in the area. We actually had a contract the first day we showed it, However, the appraiser was from out of town and really picked terrible comps, I had a local appraiser review the others findings, and he agreed. He also let me know that other than trying to show this to the lender (quicken) and the appraiser, that I was pretty much screwed as far as a FHA appraisal goes. So now the house is back on the market, and I am confident that if someone was to do a conventional loan, and order a new appraisal that the home would appraise.

Deal #1: I have another offer on the same house, its different than most, but i'll entertain anything. Its from a agent that wants the place for herself. I am asking $275,000 for the place, and she has agreed to full price. The catch is that she is about 6 months to a year from being ready with financing since she's self employed. I owe roughly 170,000 on the home, and she says they can come up with the cash to pay that off as a down payment, if I can carry a note for the next 4 years @5% interest, in the form of monthly payments, or 4 payments.  Considering that I was going to reinvest the proceeds in real estate anyway, I do like the idea of a note. At the same time I do think that the same money could do better than 5%, however, Its 5% and in a way drama free. I like the idea of something creative, so I'm open to opinions on it. 

So here is what I am looking at: 10 MHs each on their own land, all older models that the owner is currently renting out. 9 are rented out, and 1 is junk and will need to be removed. This is a neighborhood that is mostly MHs and small SFR homes and as far as I know if I needed to bring in a home, it would be allowed. The lots all currently are set up with city sewer and water. I don't have a lot to base the lot value on because there is not many sales in the past 20 years. However, they are selling some empty lots in the neighborhood for around $7,000 each, but I would need to tap into the water and sewer. The price is currently $200,000 for the 10 MHs and land, putting them at $20,000 each. While I think that there is some value in the water and sewer already being in place. Still seems like a decent deal.

My plan is to sell all of the homes for say $2000 each, and just own the land under the homes and hopefully find good tenants to pay me "lot rent" ideally of around $300. That way I just own the land, and have a smaller headache than running around fixing these older homes. Does this seem like a good price/deal in general. My thinking is that even at $200,000 if I took that same money and bought one, or 5 SFRs I would make either the same or less money after Cap x and management. 

I am new to all of this so there are some things I don't know and maybe I can have answered: 

What does it cost roughly to run water and sewer and tap into the city (rough idea, lot size roughly 160x90)?

What are the cost to remove a home once it becomes to run down?

If the current older homes are renting from 400-800, is planning to do a lot rent of $300 a month do able (currently the tenants are paying for all of their utilities)?

If I were to buy any other lots in the same area that didn't have water and sewer, would I be better off moving a 3/2 single wide onto the lot and finding a buyer, or trying to offer a incentive for someone to move their home to my land? 

These are just a few questions that I have, but to me it seems like a better route than the other deals I have looked at. 

Let me know if anyone can answer anything and let me know what I am missing. Thanks! 

I was going to talk to her tonight. Her husband passed away last year, and I knew she wasn't working. I didn't know she was behind. All I know right now is that her payments are around 1200, and shes planning to let the banks take it (she told my other neighbor). I am about to sell my house on the same street and so I know her house is worth 230,000 all day long. I was hoping that since she doesn't care if she looses it, to put a deal together with her to get the process stopped, or do something. I need to see what she owes but I assume that there is a good amount of equity, and I was thinking to let her move in with her sister like she planned, and then sell go in and fix anything that needs to be fixed and then sell it. I honestly don't know what is owed on the place or why she's just going to walk away from it, but i do that that she is doesn't seem to really care that its about to be sold. I just didn't want to waste my time if there isn't anything that can be done, if she is interested in stopping it. 

So I just noticed my neighbors house just got a date set to be sold. I didn't even know they were in foreclosure. At this point is it possible for she and I to work out a way to stop the process and sell me the house for what she owes and anything she's behind? Im located in GA btw.

Alright, So....To be clear I ideally wanted/would have bought this place, fixed it up, and resold it, Cash or for payments. It also would have been my first MH. So before asking my question I have read a few post and books, and other sites online (months before this "deal" or post) And i will agree 6-12 months, ALL of the original investment back, probably even 6 months, just because of the age of the home. I guess I was just ready to do something of a deal that I got blind sided from my own numbers, however, I will say that I determined that its really not worth the time, especially at the price. I told her that if she really wanted to sell today and that i could do $2000, maybe but not by much i can go up?

But away from that deal I learned a lot from the park manager (not the owners) The manager was very polite and easy to talk to, and maybe I can find a way to make some money in the park in the future. This park doesn't look that great at all (to me anyway) and nothing really is included in the lot rent which recently went up to $375. It's owned by some investors who just put it some nicer newer homes but other than that all of the lots are metered, and trash and grass so everything else is on the tenants, so no yard of the month awards this month. BUT the location is pretty good, its 10 mins to Downtown, and maybe 20 mins to the beach, and from what i am told (manager) its the most desirable park in the area. Keep in mind there are not many parks around here, and the one closest i can think of is not in a good area for kids (school wise) and the others are owned and managed by a realty group that sells/rents them also, so i assumed not a good place to try to start out. 

All of that being said after talking to the manager, he told me about some sales and numbers on some stuff that he has going in the park, he also said that he'd lock me in at $285 on the lot rent ( that is why i said $300 before). He also has a MH two lots from the one i was looking at that needs everything and its a 70's model also with some add on the side, basically he owns it now after it was left there, and he just through out a number of $6,000, which i am sure is not firm, and is not near a nice looking as the first one i was looking at. However, the owners want it nice, and occupied so they will lock in a lot rent of $99 for 2 years if I/someone takes it over. So thats a nice break, but again would need to be cheaper, and on payments, I think we can all agree. But one thing this park does have is a manager and owner that doesn't mind working with someone that is only looking to invest and not live in the park. 

Resale, so just this guys numbers, and they seemed legit....a 2/1 would resale for 8k easy 10k-12k if nice and could sit on for a minute (his words). He also shared some numbers on what he had sold in the park, and 80's model for 12,000 (600/m) and 92 for 16,000 (700/m and this guy pays more each month) and a 99 model for 20,000 (700/m).

So i don't know but it just seems like, considering the price of the lot rent, and the age of the homes, and the money to get them to these selling numbers its just not worth it? maybe I am wrong, but this guy and others in the park are buying and renting them and i guess enjoy that. Personally I like payments, so that the tenant owns and takes care of the place and i'm not the landlord for a few bucks a month.

Moving forward, and I will dig into other post, but what is a good rule of thumb for buying land and putting a newer used MH on it, or one with a home already, and just selling the home and keeping the land and doing a lot rent there? I have seen that done and I have seen people advise that (when buying parks) to go with the ones on city water, not well. Is that the same for if i just owned some land that had a well and septic in place? 

Sorry i'm all over the place, it is just easy to read online and another thing on the ground, Thanks for the help!