Talking to MHP Managers - How to do it?

Question

Hi. When Lonnie Scruggs talks to MHP managers he often claims heis trying to help a young couple buy a home; I'm not comfortable with that. Eventually, the odds are that the manager will find out that you lied and what does that make you in his/her eyes?

What's wrong with being upfront right from the beginning, stating that you desire to purchase older homes for cash and intend to keep them in the park. Then, telling him/her that you will "spruce up" some and sell others "as is." Then, simply say that you will bring in buyers (that must "pass" the application process).

I will be using retirement money in the Fall to start my business. In the meantime, I want to talk to as many managers as possible. I simply want to build trust and feel that Lonnie's story is not a good way for me.

Thanks,

Philip

Loc R. · Answer

First, be sure to bring coffee & donuts to the manager.  Coffee & donuts are universally accepted.

Second, just tell them that you're an investor, and that you're going to need their help.  In return, you will help them by keeping their parks full of lot-rent paying customers.  Win-win.

Marc Faulkner · Answer

My park manager friends would kill me if there were to stumble on this thread and they might!  To be sure-they are not all cut from the same cloth but, I have noticed a common theme amongst many over the years.

I used to like to stop in and say I am offering financing on mobile homes and, this would usually get me to the owner since financing is hard to come by.  Since the SAFE ACT has come into play, I am no longer using that one:)  Actually, I am not doing many Lonnie Deals right now as I live in Michigan and we can buy stick built homes for what I was paying for mobiles, 5 years ago.  Also-I already know all the managers in my area, so I am not courting them any more.

The first thing I did when I put down Lonnie's books was to call the state manufactured housing association and ask them what it took/takes to become a dealer.  They ended up sending me a nice package and a list of all the members along with contact information.  Most of the members are park owners, dealers and service providers.  This can be a valuable list of contacts and help you figure out what is really going on and who the players are locally.  I would first try to approach the owners directly.

If I was approaching park managers today with the intentions of getting to the owner, I would probably put together a proposal that involved bringing in homes and helping the park, fill empty lots.  In my area there are lots of empty lots!  This gets attention right away.  I would leave some basic information that reads something like "Fill Vacant Lots at No Cost to Your Company-Call: XXX-XXXX."  Make sure that you are looking good and that your materials look good.  Sure donuts would be a great ice breaker but, I would not spend to much time with the managers at the beginning unless you are "feeling it."  The idea is to let them know you have something exciting to offer the owner, unless the manager is one of the ones that get's it.  You guys know who you are!!!  I would then see if the owner would arrange to meet me at the property-or have the manager give me a tour.

If you can get them both to be on the tour at the same time you will have the best luck but, you are certainly in the drivers seat, if the owner arranges for the manager to give you the tour and rundown on the park-oops-community.

Take notes on the tour of lot rent amounts, # of vacant spaces, # of vacant, park owned homes assuming you are in an area that has these types of problems.  I would ask to take a look at the park owned homes (if any) and find out how long they have been vacant and for sale.  I would then make a suggestion that you work together in selling some of the park owned inventory, to test the waters, before you can make a decision to bring in any homes.  See what you can work out by working together and take it slow.  Find the pain and heal the wounds!  Good luck out there.

Philip Bourdon · Answer

Thanks, mark for that feedback. I have read many of your forum comments and appreciate your insight and experience.

How does one find the owners outside of asking the managers who they are?

Yes, I wanted to offer at least $100 to the managers since money motivates.

Your perspective on the managers does make sense. I realize that all are not the same, but at least if I have that awareness of the way many are, it can only help.

Thanks again for the thoughtful comments and taking the time; I appreciate it.

Philip Bourdon · Answer

Coffee and donuts is an intelligent approach. Thanks for that.

Philip Bourdon · Answer

Yes, I will.

Marc Faulkner · Answer

I like your idea of being honest but, you have to understand that park managers are a breed out their own.  Most of them were promoted from among the tenants and have no clue about this business of operating or keeping a park full.  They will look at you as competition a lot of times.  If you sell more homes and do more good for the park then they are, how does that make them look to the boss.  I suggest focusing in on the owners and forget about trying to explain your investment strategy to managers for the most part as it won't get you far in most cases as the manager is just going to have to get approval from the owner anyhow.  If you let them explain your plan to the owner they will almost always lose something in the translation.  Go for the owners / decision makers.  Now with that said-as soon as you are in with the owner you should become as friendly as possible with the manager and let them know what's in it for them.  They typically won't care if another lot gets full or they get another lease signed if they have no incentive to do so, it is only more work.  Make it worth while for them to send deals your way-both buyers and sellers.  Most are low paid so a couple of hundy goes a long ways.

Tod R. · Answer

Hi Philip,

It's been a while since I've read Lonnie's book but don't you explain that you are not renting but in fact providing financing?

Talking to MHP Managers - How to do it?

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