Mobile Home Park

[Whitney McNair]

Investment Info:

Mobile home commercial investment investment.

Purchase price: $124,200
Cash invested: $24,280

Purchased 9 lots, all homes are tenant owned. 14% COC return.

What made you interested in investing in this type of deal?

I've taken a lot of multifamily/syndication training and I'm a General Partner on a syndication team.

How did you find this deal and how did you negotiate it?

It was on the MLS

How did you finance this deal?

I negotiated a seller finance deal

How did you add value to the deal?

Increased rents

What was the outcome?

Really great returns.

Lessons learned? Challenges?

Evicting tenants when they own their own homes is difficult.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm the Real Estate agent who brokered the deal.

[Whitney McNair]

@Logan M. and @Samuel Coronado-It's not super easy. You would go to court for a normal eviction process to take over control of the lot. Since mobile homes fall under a motor vehicle category MHP operators would need to check the rules in their state of the entity that handles motor vehicles, titles, etc. Here that entity is service Oklahoma and they have a process I can follow. I can basically put a storage lien on the tenants property. Then if they don't move after a period of time I can file to foreclose and hold a public auction which must be published. I can even buy the trailer and gain a trailer if I want. Here it's called a Title 1042 Foreclosure. Process varies per state. The key is checking with the entity that regulates motor vehicles, tag agencies, etc.