All Forum Posts by: Matt Boettinger

I think this is the Frank and Dave fund.  I don't invest in it but know 2 people who do.  So far both are happy.  One invested 2 years ago.  The other was one of their first investors and is very happy.  You can go to their bootcamps and find many of the attendees are also investors.

@Roland Brown You can skip the SFH route and go straight to a mobile home park IMO....if you have educated yourself on this niche. I would run the numbers by someone with MHP experience to confirm that it is a deal. Feel free to PM me if you want me to look at the numbers with you.

@Cindrell Harry - Congrats!  What area in Atlanta is your current vacation rental?  What location are the others you are converting?

I'll be there.  Thanks.

I think your response should be:  As much as I feel for the situation you are in, you are making making me lose money month after month.  I can't afford to pay the mortgage on the property that you rent from me.  I need someone in there that can pay the rent.  Otherwise the bank will foreclose eventually.

Maybe she needs to understand your perspective.

Great job!

Hi Jaquita - I can probably answer your questions regarding this.  Feel free to post your specific questions here or PM me.

I agree with @Aaron Mazzrillo on this.  I don't think this would have been a good deal.  But it is still good to go through the exercise of the analysis.  Regarding the other expenses that I mention above, you should include those expenses when you make an offer and outline to the broker/agent why you are offering at that price.  You should review with them what they left off the P&L.  This also adds credibility to you in the eyes of the owner and broker/agent.

Hi Gulliver - Thanks for putting your analysis in your post.  It makes it 100 times easier to do the analysis and to offer help.  I don't see where you are getting your 40% expense ratio.  This calculation should be based on lot rent (not lot + home rent IMO).  If lot rent is 295/mth and you have 8 paying tenants over 12 months that equals 28,320.  

I'm looking at year 2017.  I see expenses at 5k.  I would estimate expenses at 10-11K.  Do you know if the tenants pay for there water?  If they pay their own water you may lower this a bit.

IMO you will want to break out your expenses more.  By lumping them all together you will miss some things.  

Is there any lawns or yard maintenance that you will pay?  

Who is currently collecting rent and managing the tenants?  I noticed you are out of town so you will need to think about that process.  That will cost.

I don't see property taxes as an expense.  You will want to include it in your expenses.  It will go up from what the current owner pays.  You can go to the local tax assessor website and they will usually provide a calculation.

How are the current POHs?  Are they in good shape?  Do you see any rehab costs coming up?  Home rent should cover this.

The issue is that an experienced broker that specializes in MHPs already has a list of buyers that have closed with them on previous deals.  These customers will usually get first look and if it is a good deal they will offer.  As long as the broker has customers like these there is no incentive to take a chance on a new buyer with no track record of closing.

If you are looking to create a relationship with an MHP broker I would suggest calling up the most junior broker on the team and meeting with him/her.  This broker has the most incentive to build a buyers list.  In a lot of cases this broker may not even have listings. But the broker can talk other brokers on the team into sharing private listings and split commissions.

I have been successful getting access to some deals with this strategy but the deals were never good enough to close.