Chapter 7

Chapter 7

1. Check in:
It has been a very busy week as a whole. I have been communicating with two realtors that I believe will be good fits within my team. I am pretty interested in four (4) mobile home parks. They are in the range of 40 to 100 lots or units, and have an asking price that ranges from $600,000 to $1,200,000. I am currently trying the get the actual income/expense statements for the last two (2) years from the owners which is turning out to be somewhat of a problem. They want proof of financing, and a sign a confidentiality statement. The confidentiality statement is not a problem, but I would like to view the financials before I go through the trouble of finding financing so that I do not waste my time if the numbers are not good. There has been no progress on the rehab house since New York got nailed with snow. I have made great progress on meeting people. I recently started communicating with 4CInvestor (Josh), along with some others. They all seem like great people, and I will actually be meeting 4CInvestor in AZ at a get together. This get together should be fun. I have also been working on a small speech that I have been asked to give at our new Cash Flow group. I am getting really excited about this group. We have some very notable people from our area coming. I can not wait to network with them.

Things that went wrong: I was unable to get as far as I wanted on my previous goals due to a few road blocks that I had to work around. There also has been a halt on the construction/rehab of my SFR due to the extremely bad whether.

Things that went right: I believe I finally found two (2) realtors that will add value to my mobile home park team. They are both hard working, knowledgeable, and get things accomplished in a timely manner. I also had the privilege to talk to 4CInvestor for the first time. He is an interesting individual and I can not wait to meat him in person. My Cash Flow group is coming together very nicely for it being my first one. There seems to be a great interest from both beginners, and more advance individuals within the community.

2. Main Points:
1. Know your numbers or partner with someone who does

3. Questions:
1. Is it worth it to try to get a “proof of funds” before you are able to see the numbers? I am not used to dealing with properties of this size, so I do not know what is normal.
2. What would you consider average ratios in your area?
3. Why is there so little dedicated to the financial analysis of a place? I would think that this would be a major part of any type of investing.
4. As anybody read “The Complete Guide to Real Estate Finance?” Would you say that it is worth a read? Or no.

4. Requests:
1. Get the financials for the places that I am interested in.
2. Analyze the financials to determine whether they are opportunities or not
3. If they are opportunities make an offer.

Chapter 5 - 6

Chapters 5 – 6

1. Check in:
These past few days I learned a tremendous amount about my particular investment that I am looking to get into. I know a good amount about investing in apartments and SFRs. I am looking to branch into mobile homes, and mobile home parks. So I am trying to apply what I have previously learned from investing in the other areas of real estate, along with this particular book to purchase and turn around a mobile home park. My goals for the past few days were as follows.

(1) To find out one interesting thing from at least to people from this forum.
I am still working on this. My first approach did not work as well as I thought it would, so I am off to a new approach.

(2) Begin the process of evaluating a potential deal.
Found many potential deals. Talked to at least five (5) realtors, and am in the process of evaluating the investment as a whole. I received the financial numbers for the park, but have yet to evaluate the physical aspect of the park. I will hopefully have this completed shortly.

(3) Come up with a written plan for investing in a mobile home park.
Almost completed the rough copy of this. Needs final editing, and a little more thought.

(4) Direct one other individual to this forum page to participate.
I sparked the interest of one individual with this website and book. But only time will tell whether he actual moves towards it. I am in the process of starting a cash flow / investment group and will definitely be advising them to complete this book assignment. So I believe that will bring a few more people to the site, and book review.

Things that went wrong: since I am looking at investing into a new niche, I am looking for a realtor that knows this particular niche. The realtors that I was using to look for apartment buildings and SFRs do not know much about mobile home parks. So I called about ten (10) realtors, and out of those ten (10) three (3) responded. So I spent a lot of time trying to form this part of my team. Then in one of the rehabs I am currently doing the foundation cracked badly due to the extreme cold we are having at the moment. Not good, but fixable.

Things that went Right: In the final stages of forming a Cash Flow/Investment group. Things are progressing rapidly with this. Actually found two (2) realtors who can add great value to my mobile home park team. Found six (6) potential deals that may turn into opportunities. I purchased amazing hardwood floors for $1.25 SQFT that normally sells for two to three times that amount. I purchased 12” x 12” Flooring tile for $0.60 SQFT that normally sells for $2.38 SQFT. And finally I purchased interior doors for an average of $50 each that normally sell for $100-$160 each.

2. Main Points:
1. Set guidelines for the type of properties you are looking for. Find a niche that you are interested in, and try to stick to it. This will help keep you focused on properties that will lead you to completing ones goals.
2. There are thousands of ways to locate properties. Do not stick to just one. Use as many resources as you can find. This will help speed up ones purchasing process.

3. Questions:
1. Is it real to expect to turn over a large apartment complex in 12 months? For my particular investment I am looking at a three (3) year turn around. Do you believe I am being to cautious with this, or not cautious enough.

4. Requests:
1. Narrow my potential properties down to three (3) that I am willing to make an offer on.
2. Begin to talk to managers about managing a mobile home park. Figure out costs compared to what they actually do.
3. Try to get people interested into their financial education through playing Cash Flow with them.

Chapters 1 - 4

Chapters 1 - 4

1. Check In:
I learned a lot through reading this first section (Chapters 1-4). Some things that really stood out were the NAI website. This site should be of great value. I “re-learned” what to look for when determining what areas to invest in. I also had a “re-introduction” to various ways at increasing the value of a property through such things as rehabbing, cutting expenses, etc. Good things to never forget.

2. Main Points:
1. He puts a lot of focus on the “How” but even more focus on the “Why.”
2. Have a solid Plan. (Entry, Middle, Exit)
3. Have Goals, know your Motivation. (great story of the child and his dream of a ranch)
4. Win over your Fears.
5. Reasons why investing in large apartment buildings are beneficial to single-family units.

3. Questions:
1. Is there a specific number of units one should focus on in the value play strategy or can this same strategy be applied to all types of units?
2. What is the difference between the different types of apartment classes (A, B, C)?
3. What format or type of presentation would one show a bank?
4. How can one implement this section of the book into their plans, or into their current system? (Good question for every one to think about)

4. Request:
1. To find out one interesting thing from at least to people from this forum (dealing with real estate, or just life in general)
2. Begin the process of evaluating a potential deal.
3. Come up with a written plan for the above deal.
4. Direct one other individual to this forum page to participate.

The Complete Guide to Buying and Selling Apartment Buildings

I am recommenting that everyone reads, and studies The Complete Guide to Buying and Selling Apartment Buildings, by Steve Berges. It is a great book loaded with useful information. I have been participating in a book study group for the past few weeks, and would like to offer the opportunity for you to do the same. The book is broken up into sections and once you complete a section you answer a few questions regarding that section. I would highly recommend that everyone do this that is interested in any kind of real estate investing. The link below will take you to the site where I am currently participating.
yesinvestor.com

You may have to register to participate, but it is free and well worth it.

I will be posting my responses to the book here as well.