All Forum Posts by: Matt Boettinger

If this property is in Vail my guess is that it would be worth the investment to build out the infrastructure.  We have added sites to our park in AL (septic tanks, water/water meter, electricity).  You could probably finance the build with a construction loan.   You just need to run the numbers and see if it makes sense.

Hi.  I own 3 mobile home parks and have never dealt with foreclosures.  There is a specific property that we know just went into foreclosure and went back to the bank.  Is there a way to find out which bank so we can call?

Thanks,
Matt

Hi Patrick.  We use paylease in one of our parks and are implementing in a second park.  I highly recommend it.  it integrates with Rent Manager so you will know who paid and who didn't.  It is best to get the cash out of the hands of the manager and have a clear electronic record of who pays.

have the dividend amounts decreased or have they maintained the same amount?  If REITs go down in share price it could mean that institutions are selling them to get into more growth oriented stocks since it looks like we are in a recovery.  This is assuming the dividends remain steady or are growing.

@Mike C.  I don't have a lot of experience with industrial/flex space leases it but these leases can be quite complex.  If I were in this position I would use a broker to help walk you through the details of the contract and help negotiate and learn from the broker.  This is just me.  You may have experience with complex contracts and feel comfortable with it.

If the tenant is a local company many times you can negotiate with the broker for them to get their commission over time.  That way if the company goes belly-up the broker doesn't get the commission for the whole sale.

Hi.  In the end it is just a misdemeanor.  We screen out felony drug charges in my parks.  That will keep out the dealers.  The dealers are what you have to worry about in parks.  They will cause others to leave.  A misdemeanor like this is very minor IMO and not worth the paperwork to evict.

Hi Martin. 50/50 deals like this happen with flips in the single family home space. I don't really hear about this in the MHP space. Even with high caliber MHP operators they will give an 8% preferred return then 60% going to the money and 40% going to management. The 8% 60/40 deal though is set up through a "506 Regulation D" organization. I assume that you would just be a money partner in an LLC.

My advice is to look at the current NOI and what improvements in NOI that the partner put in the proforma. If it matches your return goals and you trust the partner then it sounds like a good deal. But given that even the best operators end up giving 60+% you could negotiate for a higher percentage.

I would up the expense ratio to 45% based on the park paying water and sewer.  

-based on 48 lots X 340 X 45% expense ratio it probably produces an NOI of 107K. I am willing to buy at a 9 Cap so I would value the lots at 1.2M

-quadraplex: 4 X 680 (I'm assuming. I don't know the rent on this) X 55% = NOI 11K. 9 cap 120K

-Homes:  28 @ 5k a piece on Avg. 140K.

Total 1.46M.  This is the purchase price I would try to reach.

Are there any P&Ls that give actual expenses? That would help greatly.