Investing with No Cash?

[James Lee]

How much cash do you typically need to invest in a mobile home park? Are there strategies to invest in mobile parks with no money (using other people’s money)?

[Brad Helmholdt]

One low/no money down strategy is a lease option. A lease option would allow you to have financial / operational control of the park for a defined time period (i.e. 2 years) without actually buying the park from the owner. At the end of the term (2 years in this scenario), you would have the option to buy the park at a price determined at the inception of the lease option. Most owners will want you to put something on the table (e.g. $10k) to show you're serious. These types of deals will be pretty rare; owners will really only use this a last resort if they can't sell their park (because it's extremely distressed, etc.).