How do YOU find parks to purchase?

Question

I would like to purchase a MHP in the near future but there arent any listed for sale near me. So my question is a simple one. How do you find MHP for sale when none are listed?

Thank you in advance

Travis

Belinda Lopez · Answer

I'm a Mobile Home Park Wholesaler in Texas.  I've been told recently that I'm one of the few that is out there specifically working this niche.  The great thing about Wholesaling is that you get the deal first!  I'm not in a position to buy my first park yet but will be soon and already have my eye on a certain one in my area.

We just wholesaled two large RV parks, one small MHP and have four more MHPs in the pipeline in the greater Houston area.  We use direct mail but I'm also actively networking and seeking out just these types of properties.  Most are not categorized correctly and many times the owners do not have or need permits if they are outside city limits but in certain Counties.  I've also seen many MLS listing that give no indication that the property is a MHP but lists the owner's residence as a single family home for sale. . .  and oh, btw, there are 15 mobile homes in the back yard!  They don't realize the value is in the park, not the SFH!

We now also have a good Bird Dog system who are actively finding us great leads from Mom & Pop owners but most leads are direct mail driven.

The other part of the equation is actually getting a park funded and getting the owner's what they want in terms of Terms and sales price.  Most older owners don't need a million dollars to put in a CD or Savings account, they want a guaranteed income stream. Some we are now offering 1031 exchanges so they can get a newer, low maintenance living situation, closer to family.

On the Buyer's side, they need access to either owner financing with good terms or a lender who knows the value in these properties and can work with the handwritten financials from owners who often do all their rentals in cash.  You can't take someone's word to the bank that the park is pulling in $10k/month but you can work with a commercial or private lender who understands the value of the property.  Owner's realize their own bad recordkeeping is what keeps them from getting top retail dollar and are much more willing to stand behind their park through owner financing if you explain that to them and let them know the buyer will then start keeping their own good records and easily refinance in a relatively short time (two years minimum).  You need to make sure both sides of the equation are getting what they need and you'll start seeing some great deals coming your way.

Good luck and email me if you want on my buyer's list so you can start to see what is out there in the Wholesale market.  Loopnet and the Mobilehome store have retail listings and check your local MLS listings for those 'hidden' parks disguised as Single Family Homes with acreage.

Matt B. · Answer

Ditto what everyone else said. Get on the mhp brokers mailing lists. If you have cash and can perform, let the brokers know that you are not going to waste their time. Brokers love serious buyers. On the flip side if you are looking for a no money down deal, don't bother them.

For smaller local parks have a real estate agent search the MLS. A lot of mom and pop parks get sold on the MLS.

If you are interested in particular parks near you, a direct mail campaign can work, but don't expect immediate results.

Edward Hamill · Answer

Another great way is to be around dealers and communities...Join their association (http://www.mtmhrv.org/) and put the word out that you are a buyer.

Pocket listings are very popular in this industry.  In my experience, an owner would tell me (the manufacturer / dealer) long before telling his realtor or attorney!  That is why getting in with the Association is always a great way to start (and learn a ton about what you will/are up against in your State)

Troy Knight · Answer

If anyone is interested in a smaller park 8-9 homes in the Charlotte, NC region with a 25% cap rate, I have a lead on a great one. There is a lot of rehabbing to do, but it will be well worth it in the end. Requires purchasing existing park for 75k then investing 80-100k in 8 new homes and fixing the road system with new gravel. Would then have a potential sell price of 300-400k or rental income of $4,800/mo

Dev Horn · Answer

Maybe the guys at www.MobileHomeParkConsultants.com - aka RLM Properties - could point you in the right direction.  They were at the REI Expo conference here in Dallas last week.  I'm not associated with them; but they are all about how to buy MHPs, so I'm just passing along their contact info....

Ken Rishel · Answer

I get daily emails from over 30 brokers of parks for sale. If you have a fixed area you are interested in, try contacting brokers that handle the sizes you are interested in and work in the locations you are interested in.

Most of the larger operators have people calling, emailing, and visiting current park owners for a shot at buying their parks before they become publicly for sale.

Travis Elliott · Answer

Sean I sent you a PM

Sean Moen · Answer

Hi Travis,

As a BP member on the same path as you - looking to buy a MHP in 2014 - I can only speak on what I've read and experienced.  MHPs in CA suffer the "sexy coast" effect - High price expectations from seller but low CAP calculations - so I have to look outside of my area.

I've discovered 3-5 different sites that list MHP for sale (PM and I can provide names) and constantly am looking to identify one and run numbers on.  Most of the brokers I've emailed to request more information have been responsive enough and provided it along with answering any questions.

I am coming to terms with "A deal is a deal is a deal" regardless of geography as long as I account for what it will take to invest from afar.  Put systems in place to double check and audit onsite managers (BP podcasts have been great for these ideas), systems to handle any evictions, systems to reconcile rent, etc...

The one strategy that I have not done in my local market is to get information on the local parks.  Find out which ones are still "mom & pop" owned and get to know them.

Knowing absolutely nothing about Montana, that strategy might not work for you but I have been amazed at how many MHP I have discovered are in my county that I never knew were there until I started to go down this path.

Hope that helped a little.

How do YOU find parks to purchase?

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