Things to Consider in DD Walks

[Ian Tudor]

I've connected with a few owners who are open to idea of selling their mobile home park in the near future. 

I'm interested to hear what you all are looking for when meeting them in person. I got the obvious structure down.

Any thoughts and tips would be helpful.

Ian

[Ken Rishel]

One of the things that make this business interesting is that we all have different ideas of what is important.

My checklist is 14 pages long.

I like natural gas, but hate septics and private water. Others obviously feel differently.

I want lots that can take a 16 wide because any replacement homes I'm going to do are going to be new 16 wides or, in some cases, multi sections. Others prefer used homes and think 14 wides are a better deal because you can get more homes per acre. We are all different.

I have someone interview every single tenant when we are really serious and the interview form is two pages long. I don't know very many others who go to that expense, and know quite a few that think we are crazy to do it. On the other hand I had a friend who bought a park where he was told all the homes were owner occupied and they were all rentals so the lot rent showed very high. The really bad issue is that no one - including the park - had clear titles to the homes.

We always check all the mechanicals and service. I once saved a buddy from buying a park where the sanitaries ran up hill in a major part of a park. Someone else bought it and spent very big money on lift stations. They also spent big money on replacing the concrete under the homes because it was crumbling. That because the original developer shorted the mix.

Lots to think about, lots to inspect.