NC MHP investor

[Dan R.]

I've been following the forums daily for months, but just posted my first topic yesterday. Thank you all the helpful feedback and info. My background is in apartment development, but I recently struck out on my own as a sole prop pursuing MHPs in NC. It looks like I'm heading to closing next week on my first deal. It's a 9-lot park with all park-owned homes. Any advice for someone about to inherit in-place residents would be greatly appreciated.
Thanks.
Dan

[Dan R.]

If a couple pounds of $50's is an option for you, I'd definitely go with that first. Seriously though, listed MHPs in your desired market will be rare, and if that happens it will almost surely be overpriced by a broker who probably doesn't own any rental property, let alone a MHP. So that leaves unlisted deals. I target 10-20 lot deals, which stereotypically means a small/long-term/multi-generational owner. Lack of curb appeal is a good sign of a tired owner who's ready to trade the asset. You may need a tough gut and a hidden sidearm to feel compelled to visit some of these. Talk to any residents you can find and build rapport to get insight on the park. Most will be very friendly after you break ice. Also use GIS and whitepages.com to locate the owners. Then call and ask to meet at the park to introduce yourself. I always call (vs yellow letters) or just stop by their house if I can't find the number. Then it's just sales...ask them about how they got into the business, what are the biggest headaches, would they do it again, etc. I would highly recommend looking like you could live at the park, not like you are on the way to the country club. I wouldn't be in any rush to make an offer, just build rapport and try to learn from them for the first meeting or two.