Foremost insures all … - Posted by Greg Meade
Posted by Greg Meade on May 06, 2007 at 21:36:20:
of my rentals and L/H’s while being co’d.My agent:
South Marion Insurance
352.245.1128
Liz is my rep. She says I can never lapse my policy…foremost is not writing new policies here.
Citizens will write anywhere in Florida.
Actually, I have not… - Posted by Greg Meade
Posted by Greg Meade on May 06, 2007 at 15:55:27:
been able to hold onto all 75 Notes by these L/H pacs(4 of these are partially complete). My business partner and I have been able to secure 36 free and clear properties(just finished one last Tuesday). We have sold L/H’s for cash to buy other parcels and it is an ongoing journey. In round numbers we can keep 1/2 of finished products for our individual portfolios.
My partner does all rentals period, he wants the appreciation, and depreciation. I have 16 Notes averaging 738 per month (changes every time I add one or lose one). With rentals and retail mobile sales I stay busy.
Sometime this year I will sell my rentals in a portfolio sale and buy a nice Park. The Notes I use for living expenses and savings…there is almost no cost to maintaining them, my rentals average 36% expenses and 1/2 my time, so they will be the first to go (or convert them to Notes and maybe trade seasoned Notes for down payment on Park…I have sold discounted Notes and I HATE doing that…they are too hard to put together!L/H’s have been very good to me…
Greg
the 36-48 month note myth - Posted by Anne_ND
Posted by Anne_ND on May 04, 2007 at 11:34:22:
Tim,
I have seen this comment frequently- that a short-term note just isn’t worth the work.
There are two reasons why this does not need to be a problem:
I am also willing to improve my MHs a little bit- add new washer/dryer or replace carpet or add a shed, to make the home seem very special and desireable to a clientel that can’t afford those things otherwise.
This means the cashflow is uninterrupted, the first payor markets and finds the buyer, and the new buyer feels like they’re getting something good because they get to keep the first buyer’s equity. And I get an extra $1500 out of the blue.
good luck,
Anne
Re: Should I buy Tony’s book? - Posted by Ryan (NC)
Posted by Ryan (NC) on May 03, 2007 at 21:34:11:
Tim the system still works exactly as written, we bought 3 singles this week, prices were $1050, $2900 (plus 1950 to the park), and $4750. Got a SW L/H under contract for 9k. The rehab end for a total redo takes me around 1-1.5k in most cases, you don’t make doll houses you try to make decent livable units that are safe, bright, and clean… nothing more nothing less!
The big thing is you won’t find these listed in the paper for 2-3k, the 1050 unit was asking 6500, the guy that got 2900+1950 called me back in January even though I don’t remember him or what he was asking, the 4750 unit was asking 10k. Not a one was in the range we bought for, you gotta find them. =) One thing I will say might be out dated in some areas is the sales prices, it’s common for us to buy for 2500-4k and lease option for 10-12k.
Best wishes,
Ryan Needler
Re: Should I buy Tony’s book? - Posted by Chris Reuman (Maine)
Posted by Chris Reuman (Maine) on May 03, 2007 at 23:01:51:
Hi Tim,
AS for the question, how much should you put down, the answer is nothing. Maybe to buy it you will need to put down 10% or 20%. But the value of the property should be at least 20% above the purchase price. If you don’t do that then you can’t tap your money back out and go onto the next deal. With MH on land, if you talk to enough banks, you can find one that will lend at around prime plus 1% or better. If you do a lot of these, then you will be dealing with the commercial department of the bank. Personally, I don’t think paying off the properties with your own money is the best use of it. You will only be making around 8% vs using the banks money. That is a lousy return. I do like my tenants paying off the properties. If you have no money in the deal, what is your return. As Lonnie would say, “Good Enough”. Your money could better be used for securing a large line of credit with a bank, hard money lending, or purchasing notes. These will provide much higher rates of returns.
I look forward to seeing you at the bootcamp. Chris
Re: Foremost insures all … - Posted by jpfl
Posted by jpfl on May 07, 2007 at 21:31:08:
I was told by the agent that issued a Citizens policy on my last L/H that Citizens is no longer writing new policies. AIIG is taking their place in writing new policies, however they won’t write a policy on a property that will be vacant for any length of time.
That is the problem, getting coverage on a property that will be vacant.
Re: the 36-48 month note myth - Posted by echo
Posted by echo on May 05, 2007 at 17:29:41:
Anne, I think thats a good idea and one that would benefit me as well, as I have enough things already on my plate, Can I ask you a question, You say most of your notes are 15 years, what amounts of money are we talking about? I’ve been thinking about holding notes for a longer period than 36-48, and just wanted to get more info from you.And are most your homes in parks or on your own lots?
Re: the 36-48 month note myth - Posted by Ryan B
Posted by Ryan B on May 04, 2007 at 14:22:52:
Anne - Why is it better to have a buyer assign the note instead of just taking the home back and reselling it? It seems like reselling would be more profitable in the long run because instead of the new buyer getting all the first buyer’s equity, you get to keep it instead. Am I missing something?
Assignment Clause - Posted by Wayne (ID)
Posted by Wayne (ID) on May 04, 2007 at 13:57:09:
That is Golden. I will be stealing that idea. Thank you!
Wayne
Re: the 36-48 month note myth - Posted by Anne_ND
Posted by Anne_ND on May 05, 2007 at 17:33:26:
Sales prices are about $18-22K, with monthly payments around $280-ish. Down payments are $1500 to $4000.
Most of my notes are shorter than 15 years, but I have about 5 that started as 15 year notes.
Anne