How 5 of us bought a $1.1M 48 pad park 2 weeks ago

[Curt Smith]

Hi Folks,

Tersely: how I and 4 other GaREIA (http://gareia.org) members bought a $1.1M mobile home park 2 weeks ago

I'm wanting to share in as few as steps as possible on how anyone of you can do this too. Yes I'm certain anyone of you can realistically can do this. Especially if you reach out to other folks who already have bought commercial property.   And here's the key: with out a lot of cash yourself.   Yes yes a lot of cash was raised but if you have a good deal it's easy to find folks with cash but no time, or cash and without their own knowledge to do the deal or a combination of both.

As I do more deals the more I believe that knowledge (and networking) is 100x more important than ones own cash. One can be a part of a deal without any of their own cash,,,, if they have an abundance of the other ingredients; knowledge, hard work, desire to succeed, a big network... I've found it's a teeter tauter, have more cash you'll need less of the other ingredients, less to no cash you'll need alot of knowledge and hard work and a big network etc.

How did 5 GaREIA members buy a $1.1M mobile home park down near Gulf Shores AL (a nice beach / tourist town)???

- choose a goal like:  Buy an apartment building, strip mall, mobile home park, etc What ever your passion is.

- Educate the heck out of yourself. 3 of us went to a mobile home park boot camp, $1500 each plus travel and hotel.  mobilehomeuniversity.com

- Hook up with every commercial broker in the SE and prove we are credible. Give our proof of funds letter etc.

- Make offers on almost every deal. Talk to sellers, drive parks. This impresses the brokers so they'll give you the good deals.

- Network with other buyers of parks.

- Sooner or later you'll be tipped some park that no one has offered on, you get to know the seller via phone calling, a meet up at the park...

- Make more offers, negotiate with sellers and brokers.

- In the mean time in parallel be soliciting for partners to join in on buying some commercial business.

- POOF you get an offer accepted. Commercial contracts are long and complicated which is why you must go to boot camps for your asset type. I've been to apartment boot camps as well as mobile home boot camps.

- Start looking for financing. The seller has an interest in you succeeding have him refer you and help out. Call / drive all local banks around the deal.

- Finally a bank agrees to finance you. Go through the hoops of getting through under writing.

- Too many due diligence steps to mention.  Go to a boot camp to learn.
- At this point or just prior create a deal description and expected performance. Present to a group of potential investors, the near term, medium term and possible long term out come. Some like the deal and some don't. Hopefully you you'll have attracted enough funding to meet the down payment and expenses needs so you have enough to close. Keep networking the "deal description" if you are short funds.

- Talk to all potential investors and start collecting their pledged funds into the LLC's bank account from which you'll pull closing funds, down payment, pay due diligence costs...

- Many steps left out: due diligence, the million phone calls to the banker, seller, appraisers etc, juggling a dozen things including home, family and jobs and other real estate holdings.

- POOF you've closed finally

Now the real work begins of running the business. Unlike a few SFRs a commercial entity is an all encompassing business. Accounting, tax returns, expenses, employees, an LLC, investors, tenants, houses, infrastructure... A lot of moving parts.

Literally, the above would not have happened unless we where in GaREIA and we networked networked networked together the team that made this happen. You can do this too, I'm certain. You need to be certain too then YOU make it happen.

2 videos I shot driving the park:

https://www.youtube.com/watch?v=XpV_nVtlDPg&feature=em-upload_owner

https://www.youtube.com/watch?v=2XqzNNSWvvg&feature=em-upload_owner

[John Van Uytven]

@Curt Smith

Congratulations on your new investment.

Sounds like you have been working very hard to get to this point.

Keep up the good work and I know you will continue to be successful.