Posted by Steve-WA on March 13, 2003 at 13:20:33:
OK . . . so . . .it’s been an HOUR . . . have you gotten the prop tied up yet?
does ANYONE else know about this prop?
A very wise man once wrote: “You don’t steal in slow motion.”
Get the property tied up with a sales agreement; leave a contingency in there that lets you out if something is flaky, use Joe Kaiser’s “Best Darn Document on the Planet”
http://www.creonline.com/articles/art-198.html
and dally no more!
Heed.
IMHO
Land home. need financing - Posted by Richard (TX)
Posted by Richard (TX) on March 13, 2003 at 11:13:30:
Does anyone know where I can find financing for this deal?
Have found a good deal. One 3/2 older MH, one 2/2 OLder MH, and 3 vacant lots. Elderly man did own. He has died and out of state heirs want it to go away. Can buy all for about $20K. Want to keep as rentals as these are very nice and have been updated. One has nice covered decks front and rear. the other has a covered concrete porch across the front and deck in back. It also has a nice double carport that is concrete as well. Fenced yard. Both have storage buildings.
All the lots are 100 X 132 each. The total is 5 lots.
The MH’s come with appliances and some furniture.
As to needed repairs: A total of about 1 sheet of plywood and paint over some old water stains. The carpet is very good, the paneling is great, They even have had new cabinets put in recently.
The 2/2 has new central A/C installed 2 1/2 years ago with furnace that works great as of about 1 hour ago.
The 3/2 has nearly new window unit A/C’s and central heat.
I have all my money invested in another Rehab that is about 1/3 complete. Just can not let these pass as they are the best deal I have ever seen.
Anyone know where I can find some financing?
Thanks and God Bless
Richard McCaslin
Tyler, Texas
If you made all these people say WOW - Posted by Philip
Posted by Philip on March 13, 2003 at 15:49:06:
you must be doing good!
Re: Land home. need financing - Posted by Tony-VA
Posted by Tony-VA on March 13, 2003 at 14:41:57:
I don’t know the market in your area but in my area, this would also appear to be a nice deal (to say the least).
In essence you have 2 mobiles with land that can provide income now. The other 3 are going to take time and money to produce income. Ignore them for now.
I am assuming the rent for even one mobile would cover your mortgage on this one.
Steve is correct, getting this one under contract is the first step. You don’t need a gagle of weasle clauses. Maybe the routine “conditioned upon financing” (add what terms would be the max range) and perhaps and inspection to be completed in a reasonable time frame.
Keep doing your homework on the property. Pull the tax records and see what the tax appraisal is. Some (not all) Local banks in my area lend based upon a % of tax appraisal. This saves me the time, money and hassle of awaiting appraisers to provide an opinion on such low purchase price properties. Not to mention that once you start talking a couple of units or more, the appraisers here start their fees at about $2,500.
The ability to close quickly with cash may or may not be necessary in this deal but it will build a nice system of relationships for future deals.
The local banks are your target on this kind of deal, or perhaps a hard money lender that will loan you the purchase price with a reasonable ammortization and balloon. So long as the numbers still work, this may be the way to get the property into your portfolio and set up for a refi in a year to 18 months. Just be sure you can bear the payments in the event you cannot refi on time.
Ray Alcorn has a great due diligence checklist here in the “How to Articles.” Not all will apply but you can take a lot from it to cover your investment.
Best wishes,
Tony-VA
wow! - Posted by Steve-WA
Posted by Steve-WA on March 13, 2003 at 12:03:37:
good find, Richard. Are the 3 extra lots utilitied (water/elec/septic or sewer)? If it were me, and all the due diligence panned out positively, I would take out a second on my house, or use one of those credit card checks that come in the mail all the time.
The money is out there, if you want it bad enough.
Re: Land home. need financing - Posted by JR
Posted by JR on March 14, 2003 at 17:56:44:
And where is “your area”?
James Robson
Re: wow! - Posted by Richard (TX)
Posted by Richard (TX) on March 13, 2003 at 12:54:02:
There are no utilities on the extra lots, but the power is at the road and the water line runs in front of the property, so all you would have to do is set the meters. Everything out there is on propane as for as gas goes. Septics would cost about $4500 each.
The neighborhood is mostly elderly with well kept yards. This is the best deal I have ever seen.
God Bless
Richard McCaslin