All Forum Posts by: Belinda Lopez

I might be able to help you.  I have my own AirBNB in Galveston, TX.

Be absolutely sure you do a Phase 1 environmental survey!  Auto shops are notorious for disposing of stuff on site so if you ever sell the property and don't have a clean Phase 1 you can be held liable for ever!  

Simply bring in a JV partner, setup an LLP and the partner brings in the cash for the equity you need to get the loan. Talk to Patricia Simon at Zeus Lending in Houston and she can give you assistance on more creative ways to structure your financing.

And join the RICH Club and come meet other like-minded investors!

I'd take the deal at $500k or less.  37 lots @ $250/month with a 50% expense ratio.  Homes are valued at $1 each. Not what they want to hear but with those financials you can't get bank financing so it's either cash or hard money.  Unless they are willing to show Tax returns that support their stated income/expenses.  Note their expenses show $0 for mowing, repairs, appliances, make ready, mgmgnt time  - Nada!  That stuff alone is a good $40-$50k.

Offer to do a Master Lease Purchase option.  You lease the property for two years, create bank ready financials and then exercise your purchase option with a sales price of $800k.  Within that time you can sell all the home via owner financing, raise lots, fill the vacancies and have a decent cash flowing property.

Send me an NDA/NC and we can talk more about some options if you'd like.  I'm interested in parks like this for the right price.

Why are they selling the park?  Do they think the $1.5mm will set them up for retirement?  do they realize what their tax bill will be on that amount?  If they owner financed or did the lease purchase option they can almost eliminate taxes and get a much higher return than if they put that money in a bank.

So the NOI is $110,750- does that include management expenses for the Mom & Pop owners? At $110k NOI/$1.5mm asking price = 7.4% Cap Rate. That's not a great deal unless they are owner financing at 4% or lower. We like to buy at 10% Cap Rates or higher.

The 27 owned properties - are these RVs or Mobile Homes?  Park owned units and renting is a tough business model as your maintenance costs will be very high.  What is the base lot rent not including the home rents?

Sounds like it might a very tight deal.  Could cash flow okay but what are your long-term plans for the park?  sell or just hold for cashflow?  Unless there is some sort of population growth on the horizon, I'd stay away from anything other than a decent cash flow opportunity.  Renting mobile homes is a tough road b/c they don't hold as well to tenants who tend to be harder on the homes.

Here are a few ideas you might think about:

• Owner finance out the MHs instead of renting-that shifts all maintenance to owner
• Buy a few more MHs and owner finance them out
• Try to add non-rent revenue -vending machines, even at small parks can add a thousand or so each month
• Lot rent increase

What is the current lot rent?  is there any room to push it up a bit?  That is the most common play in these type parks.  It's such a small park and your population is small so unless the park is just a steal and you can manage yourself it will be hard to grow it much.  

I've got an eBook on building MHPs and RV Parks that better outline some of the issues in trying to build or expand parks.

Really Amit?  Because Mobile Homes and parks are some of the highest returning investments in all of real estate! That is why Sam Zell & Warren Buffet are two of the biggest home and park owners on the planet.  Buffet even owns Clayton homes.  Check out John Fedro's blogs and site here on BP. His model is perfect for those with little cash to get started.  

Amit, please keep scaring folks away from MHPs b/c we're buying and they are the golden needle in the haystack!

There are several ways to find these.  Do you have more time or money to throw at your lead generation?

If time-you can look through court filings, contact the attorneys handling the estates,etc.

If more money simply subscribe to a service that sends them right to your email.

Linda Muscarello does a tour of the auction facility and process each month at the foreclosure auctions. You should check it out.  She's been doing this for over 20 years.

Are you simply looking to become licensed agent b/c you can take the course for about $189 online.  Or are you really wanting to learn how to be a real estate investor? Agents/brokers work for others and it's just another job.  Investors build portfolios of investments so working is optional.

Also, whenever I see someone looking for free knowledge/training, I try to remind them that there needs to be an equal exchange of value/time on both sides.  What are you bringing that is valuable to them?