All Forum Posts by: Ryan Groene

I believe they used a combination of seller financing, his money, his partners Mindy and Ryan's money, and bank financing for their deal in Maine.  

Some examples of what you can do is similiar to what they have done.  Your capital stack is what brings the total capital to the purchase of the assets.

The capital stack can make up a number of different portions. In essence your only going to have 2 parts of that equation. your going to have debt and equity piece. Equity can be anything from your cash, partners cash, investor cash, or wherever you get the actual cash...could even be a hard money loan you take or HELOC you take from your personal residence.

The debt piece can be seller financing a portion, bank loan, private money loan from a wealth individual, life insurance company loan, anything that has interest payment is consider the debt portion of the capital stack.

hope this helps

So this is going to be a  hard deal to undertake on your first investment.  If they are all Park owned homes, just make sure you are aware that it is going to be more costly to run this property and more time intensive as your basically buying a 75 unit horizontal apartment.

Am i understanding this correctly? or are they all rent to own units?

Im not a lawyer but i believe he wont be able to role his money into SFR's because it isn't a like assets. so you may be able to get some seller financing to lessen his tax bill....

lol no...but ill take that as a compliment because who wouldn't want to be jason bourne like lol...@Derek Robinson

depending on the nature of your park, your park manager is the most important person for that park.  They can often make or break a park.  depending on how close you are to your park.  

@Derek Robinson...ive thought the same thing but it isn't worth the cost to do so.  

Rent just aren't there yet for this to be managed efficiently enough.  

Self storage managers from large institution often make great managers for mobile home parks becuase they are trained well on systems and are used to living on site. 

study everything you can on how to buy them and manage them....but there aren't any management companies out there that are really worth it...one is because it isn't cost prohbitive to pay a property management company when you can have a manager on site and pay them.  there much easier to manage once youve already done the heavy lifting and have it running more like a turn key operations.  Just depends on where the park is in the country and the type of park you have

I like b.  

What about ozark Hills mobile home park

Frank's number are based a certain set of standard to do a back of the napkin type calcualtion to see if your pruchase price is around the same as what the owners is stating how the property runs. If within 10-15% of the sellers price, then you may have a deal.  

Cap rate is a good place to start, but based on sellers numbers, most people technically overpay for stuff just based on that.  Opportunity is seen in the asset based on the operator/investor and how they would run it.  

Alway's do your own pro forma, but I don't even don't that unless we have a deal under contract...that is when you starting doing you modeling and underwriting more extensively.

You can do it on the front end and see what the property runs like based on teh sellers numbers...but normally you are going to run it differently.

It also depends on the type of park you are buying and what that specific deal has going and not going for itself.  Every deal is different.

Franks evaluation is basically industry standard and will get you to where you need to go when doing quick evaluations.  I prefer to be a little more conservative when running that 60 or 70 number...and do more like 55 or 65 and sometime even 50 if it a small property.

This method holds true is most of the USA and most parks. Where it starts to not hold true is where lots rents are really high, and/or you have a smaller park or a lot of POH's in that park. Also it doesn't always hold true in really nice parks and/or California, florida, or east coast as those parks tend to trade at a higher price and lower cap rate per se. Also depends on the deferred maintenance and what type of Capex your going to do on that park.

that could be a good park to start with...especially if there aren't a lot of rentals and you can pick it up for a good price

Private message me and we can talk about this is more detail.  Im interested in learning more

What is the lot rent, number of occupied lots, number of POH's, that rent amount....what is the water and sewer set up...is it private or public

Who pays water and sewer.  tenants or the park.

Ryan