All Forum Posts by: Dan R.

Thank you everyone for all the feedback. I live in a rural area so our attorneys around here don't get these types of questions very often. I thoroughly believe in strong legal advice and will find it before I proceed. Thank you again.

Thank you Tom and Anthony. I really appreciate the feedback.

Does anyone have any advice on the pros/cons of providing seller financing via a contract for deed vs a deed of trust? I've purchased property with seller financing using a deed of trust, but I may want to use a contract for deed as a seller. I'm interested in minimizing time and expense in the event of buyer non-performance. How should I have the buyer insure my equity with property insurance....is additional insured the correct route?

Thank you.

I've seen canopies built over MHs to address this issue. Typically 4"x4" posts are placed on 8' centers and connected with girts and trusses. Metal roofing is then placed over the entire structure. Imagine a barn being built over the entire MH...that's the basic idea. You could probably market this a solar canopy and make it sound real good.

Sam,
In my former corporate career I worked for a large luxury apartment development company in N VA. I would recommend you reach out to Steve Horne at Elm Street Development and Eliot Powell at Whitehall Development. Both are very experienced in that market, and can give you an honest assessment of your dirt. I would strongly suggest you consider selling the land outright and using the proceeds to invest in more predictable income property. I've seen development pro formas go upside down and it's not fun for anyone involved. Contact me offline anytime if you'd like additional development contacts.

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.

Sorry Bryan but I've never attended a Frank and Dave bootcamp. They are thought-leaders of the industry, so I'd bet long on the quality of the event.

For MHPs, I'd recommend Ray Alcorn's "Dealmaker's Guide". He's the real deal.

Bryan,
I hope all is well over in Willow Spring. I'm under contract on MHP deals 2 and 3 now, and have found all of them by driving and looking and using GIS to locate the owner. My strategy has been looking for off-the-path parks, but you need to be comfortable in off-the-path neighborhoods as well. I always discuss seller financing, and have had success so far. These owners are sharp, and know they have limited options if they ever want to really trade the thing. I have approached 5-6 banks with deals, and none of them care to understand the asset class. They have to stay within their box of vanilla loans. My deals are all park-owned homes, with rents of $450-550. My unleveraged basis is less than $20k/home, so the cash-flow is healthy. I manage myself and would highly recommend Mr. Landlord's bootcamps and training for setting up your system. Also, never miss the opportunity to talk shop with the park managers and new homes sales folks either. Ask if they know of any sellers. I'm very bullish on this asset class, and would suggest you go find yourself one. Let me know if I can help at all.

I'm a bit of a contrarian on park-owned homes. In my case, they are very accretive to my goals. Cashflow, not appreciation is my primary goal. I would suggest the maintenance is no more or less than other low-income housing product. The repairs are usually very simple and inexpensive (i.e., no drywall, simple plumbing, plenty of ground clearance underneath, access underneath at any point by removing skirting, window a/c, simple electric furnace). Most importantly, the widget we are all selling is a roof over a family's head, not a lot. Only POHs can provide this. I would suggest a Craigslist ad to test demand in your market. Keep it generic if you prefer. Demand for a $500 roof may leave you shocked. Good luck!