All Forum Posts by: George N.

As has been mentioned there are a lot of variables based on park size and type. Seller financing is often the best scenario. On larger high quality parks conduit/institutional is often the way to go. But I've found smaller local banks will lend on most anything and can be very flexible/easy to deal with especially when they're familiar with a park in their back yard. 25% is typical but 20% isn't unheard of.  

As was pointed out earlier utilities are huge factor. Assuming you're on city water/sewer and don't own anything but the water lines a good rough number is 30% if water is billed back and 40% if you pay water. Again, that's rough and there are many more variables. For instance, it also assumes you don't own a lot of homes as you mentioned. Every park is a different animal. Amenities can factor a lot too. Is there a pool? A clubhouse? How much land/common area do you need to maintain? Do you have any high risk insurance factors? You're basically running a small city so what kind of city it is matters a lot. One number won't work nearly across the board. 

Road maintenance is another big consideration. Their type and condition factor a lot. Trash removal varies widely from park to park from city pickup to communal dumpster to everything in-between. Tree trimming can bite you if you buy an overgrown park or let it get out of hand. Sewer clogs (Roto-Rooter) are typical no matter what and you will have the occasional higher dollar sewer line collapse/intrusion or water line leak. Of course, depending on age and materials these can be more or less common. 

We move around. We were at Mighty Mo last time. I will remember to make an announcement on BP next time one is happening. 

Hi Auset. You should attend one of our meetings. I forgot to broadcast it out on BP, we got together last week. Its gotten to the point that we informally plan through texts, there's about a dozen of us local investors. 

It's tough out there, lots of there. I don't know anyone who doesn't have the same issue. Might take a recession to get the deal flow going again. 

Most sophisticated park owners would tell you to run the numbers on unoccupied lots only and make sure it works. Then, depending on the market if you have to justify a higher price add a nominal value per empty lot. If you're talking a couple lots in a larger park not a big deal but if you're talking about a lot of lots as a percentage it's a major problem. It costs a fair amount of time and money to fill lots (you will have to bring in the homes 99% of MH tenanats cannot manage it) and the market you're in is important. Is there a lot of demand? Because in a soft market it's a bigger issue than a tight market. It's also important to consider that if there are enough vacant lots (more than 20%) you will have a hard time getting it financed. There is upside with vacant lots but only if you don't pay much for them. Again, in general, I'd make sure the numbers worked for me without the lots full and then pay at most about half of what each vacant lot is worth full. And that would only be in a high demand market on a deal I really wanted.   

I just saw this... Where in Montana? I have a park in MT as well. I have some park model homes I can get pretty cheap. They're small 2 bedrooms,10x40 and really nice. Newer construction (2012 I think), quartz counters, laminate wood floors etc. I actually bought a couple and will have them installed in the spring. I can get another if you're interested. 

Problem with self storage is it is a bit like a business. You have high turnover, I believe the industry average is 10% a month or so. That means you have to have advertising/marketing, someone showing the units all the time, doing leases/paperwork etc. It's not as passive as a park and I'm also not a fan of the fact that any old company can buy a few dozen acres of land just outside town and put up a couple hundred units. Seems like any time demand grows there is a surge of supply. In affordable housing the opposite is true. High demand, low supply with no help on the horizon.  

Buying anything in Bozeman makes no short term sense right now so I agree building is the right angle. But I think Bozeman has plenty of luxury condos on-line right now and will eventually over-build. I think the huge demand is for affordable housing be it affordable SFH or apartments. I'd be interested in something a long those lines.

Size of the town isn't the end all. I own a park in a small town of 7500 but it's about 20 minutes away from a fast growing high cost of livings 100K metro area. Demand is endless. I'd look at the metro within 30 minutes. I'd also focus on the cost of housing and stability of employers. Those factors can offset a small population.  

Generally agree with the above. Only caveat would be if you were in a high cost of living area where mobiles are very expensive and hard to get. Up here in my part of Montana you get a decent amount for even older homes as housing is generally expensive and homes cost a lot to transport this far from where most manufacturers are. But in Indiana... this is likely more of a liability than a profit maker. If you were getting the lot with it that would be something but to have to move it and re-set it... will cost more than the home is worth. 

Hi Matt, I own a park in Livingston. I use Bruce Lay, he is good, though busy/high volume. 

I have a maintenance man and try to avoid GCs but I've worked with Matthew at Stott Brothers and he is a good guy, work is good, and reasonably priced. I have a good electrician and plumber, painter if you need, just hit me up. You'll find it's hard to find good work in town, the good guys are very busy. My father-in law does handy-man work but he also does signs and is very busy as well so he's choosy as to what jobs he takes.