I have been thinking about investing in real estate for several years, but have never had the capital to begin. After seeing the posts about mobile homes, I think I have found an “in.” I am all ears if someone can help. I am curious about start-up capital and big obstacles I may encounter.
Thanks
Well personally I only have borrowed funds to buy MH deals, which mean my money has interest attached to it. However, the notes I will be creating will be at a much higher rate of interest as well as with face values of 200% or more of what I have put in them.
I will be encountering a problem though once I do about 4-5 deals because at that point the $8,000 I have now plus any down payments I get will have been used up to acquire the homes. At that point I will be making say, $1,000 - $1,250/mo cash flow. I would then prolly need to wait 3-4 months before acquiring one more using the payments received.
Now I am not saying I want to buy 5 a month again and again, but what other ways am I able to continue? Is another unsecured loan at 8.8% one possible way or are there any better ideas? My income to debt ratio is really good as I only have one unsecured loan in my name with a balance of $4,200 and no other liabilities other than rent.
Ideas?
What do you think the biggest challenge is?
The biggest challenge for what? Getting capital? Finding the homes? Selling the homes?
sorry so vague…finding and selling the homes…
Well in my ONE week of looking for them I have found many in the right price range. However, finding one where the owner is motivated or realistic about the home’s worth is another. Seems I have found all the owners who have put their home up for sale with in the last 2 weeks! LOL
Best thing is to be kind let them know you are looking to ‘help’ poeple (sellers AND buyers) find a way to move UP or just keep moving along. One wants to sell me his home for $2500, but it turns out him and his dad never got a title from the company they bought the home from. Just a bill of sale.
I am working on finding out the steps to fix that so incase I come across this problem again I will know how to fix it quick and CLOSE THE DEAL!