was amazing!(sorry Corey lol) got to meet two of the three investors in a 170 space park with 77 spaces empty and quickly found out that even these facts were wrong. There are 161 certified lots and thirteen bootleg rv spaces all but one empty. I love these and if I get this Park will rent them out.
Bought Park for 4,65M put just over a million cash down and have bridge financing at 9.675% interest Payments are 30K per month and when they purchased they had 17 empty lots and lot rents were 415 per month included water,sewer,lawn care, garbage. Sweet deal 60K a month income 1/2 debt service, 17 lots to fill, rents to raise, utilities to pass on to homeowners, low interest 30 year mortgage coming. WRONG. Lost 22 homes their first year thru bks, repoes, attrition. Could not find mortgage, bought for cash 11 homes being repoed sold on contract, ran out of money about then.
Today they have a total of 88 filled lots. Of these 88 14 are 6 months or more behind on lot rent AND mobile payments. Property taxes are 7K per month…this Park is bleeding red ink from every pore.
I LOVE THIS PARK!!
We conference called the lender and they were very cordial…said they will reduce principal balance 22% for a cash deal.
I said for 345K I would assume a 1.5M mortgage 6% 30 years and my LLC would assume management of the Park. I would not personally guarantee the loan. My payments would be 9K and with 7K property tax and 1.5K insurance my costs would be approx 20K per month. Currently billing 31K per month so approx 11K cash flow per month to start. Bank rep asked what the 345K was for and I said to poach 100 good tenants from other Parks…my cost is 3450 to break down, transpo, reset a d/w home.
We talked for over 2 hours. Sonds whack but I believe the Bank wants to do it…I talked for over an hour with their legal dept. Uncle Sam has money in place tohelp modified loan originators. Will they bite?
I could care less. There is a TON of work to do and it could still fail if this depression gets much deeper. But I got off the couch (SteveWA) and had a great day…went by Universal and peeked the Harry Potter exhib WOW!!
Great Day, going cave diving tomorrow, how did I do? What could I have done better??
Holy cow! If they didn’t have some interest in what you were proposing, I doubt they’d have given you the time of day. That IS amazing! This is great info for those of us who are going after comm’l REO’s.
You’ve gotta respect someone who walks in and knows the numbers and says, …“You’ll need to pay me well to take over this problem.”
I just got a package from a broker for a beautiful 9 YO apartment community that’s an REO. They’re trying to sell it at an 8 CAP on pro forma numbers. It has a 64% economic occupancy. REALLY??? In this market?? Is anyone seriously biting on that? Apparently that’s a different bank than you’re dealing with…or maybe you just have to push your way through the crowd and the brokers and talk directly with the bank.
They will do a loan modification with a 1.5M balance 6%(I proposed) interest 30 year fixed. The Bank said they only do 20 year loans and I countered with 30 year ammo 20 year call…I’m 58 20 years is reaching lol.
Doc at actual numbers the Park is REALLY worth 1.5M at a 12 Cap. The Bank knows this and in a year it will be worth less. When I told the bank I would not personally guarantee the loan they didn’t even hiccup.
The Bank offered a “bridge loan” for three years. That 3 year call was last July and they have gone month to month since. The partners missed a payment in Dec and they added it to the back of the loan. THEY DON’T WANT THE PROPERTY.
I do, 345K cash and 11K per month cash flow. OMG!
This is Florida and Cali right now…a runaway train with no engineer or staff…Crazy!
packet today. There were 7 boxes under current balances on checking accounts I used 5. Total of all accounts 14.2K today lol.
Marked a lot of it N/A since I’m not guaranteeing the loan or pledging collateral of any kind except the LLC which will hold the Park.
Copied and pasted a MHP business Plan from Mr Google…changed some numbers and got it back in the mail in under 1.5 hours. WOW! Oh and gave them my current credit score 558…LOL
This will be sooooooooo cool if they pay me to take this Park.
I swear it now if I acquire this Park as outlined I will hold MOM IX ( IN MY NEW PARK) and pay all costs…again. Why not? I just got 345K free LOL
Greg
PS Cole did you really say this on CRE?
Then it might not work for you, idk. But if you research “how to” rather than “why you can’t” you might have some luck.
LMAO you are a BAD man Cole OMG LOL another say it like it is soldier and I LOVE IT! You will fit right in with my peeps Cole…do you surf, ski, or dive?
I cant wait to hear when you get the “KEYS” plus $345K. You can become an author and write real estate success story books. Stand back Robert Kiyosaki. Great Job