Mobile Home Parks and Limited Money

[Amy Diaz]

Hello Everyone,

New to Bigger Pockets and researching Mobile Home Parks. After listening to pod casts and reading a ton on the web as well as a couple books, I was considering going to the Mobile Home University Conference at Pittsburgh PA in July. However, I have run into a few sources stating that it is no longer a viable option for those with limited money. I could only put 100k to 200k on a property and that appears to not be enough for a profitable park. I have found an offer of syndication for 100k, but that is a shorter term investment. Is it possible to get a "reasonable" park for limited money. Or do I hold off until I have a larger chunk of money? I would appreciate any advice you have.

Amy

[Frank Rolfe]

Not sure who is giving you that information, but you can definitely buy a good park with $100,000 to $200,000. If you had $100,000 for a down payment, that will buy you about a $500,000 park. A $500,000 park in turn-around mode would be about $1 million when completed. On the purchase your loan options would be seller financing or bank debt. On the sale, you would gain the additional option of CMBS conduit debt. If you put down $200,000, then those numbers double.

On top of that, there are still some deal constructions you can do with zero down, namely contract assignments and master lease with options. And there are also people with capital looking for operators with deals. 

The bottom line is that no decent deal ever gets dropped due to lack of capital or debt in the mobile home sector at the current moment. Capital and debt are plentiful. And you certainly can buy good parks with $100K to $200K of down -- or zero for that matter.

Not sure who told you otherwise, but they are an idiot.