All Forum Posts by: Ryan Groene

he bought a apartment in Cincinnati area and a mobile home park in Maine. 

just sent you a request and message with it. Please reach out and we can see what we can do. I live in Ohio. 

What size of a deal is it dollar wise? If it’s over a million you could contact a loan broker and they will be able to get your financing set up for you? 

congrats jack

most markets Craigslist, ad in largest newspaper ad. MHVillage and MHBay. Zillow dependent upon market as well. 

how many spaces? Who pays water and sewer?  And what is utilities private or public?

I've done both. I believe kevin and Charles were only limiting it to a number of students and then we're going to reopen it at other times. I know they have a lot of park closing over the next few months. So I'm not sure if there going to open it again. You can email them at the academy email and figure it out. The university is a great way to meet people in the industry as well. It's awesome as well. Just a lot shorter training period. 

@Kusum Chanrai are you looking to invest in mobile homes or the entire park? Because there is a major difference. Based on your goal I'm going to assume you mean the entire mobile home park you want to buy. Every asset class right now is very competitive for deals that are on market. Mobile home park investing is an entirely different animal than SFR and apartments. First I would get educated on the park investing as much as possible. Listen to podcast, all the traditional stuff on getting educated. Kevin bupp and frank Rolfe have great info. Bigger pockets Ia a great place as well.

Traditionally mobile home parks have cap rates have been around 9-11%. With cash on cash returns around 20% is the standard. So they have better returns than apartments and single family's. Keep in mind that there are only around 40k parks in the United States. While there is well over 500k apartments. So there is a lot less product available.  It does make it a little harder at times. But it makes it attractive because they are not building anymore parks.

If you need help just ask. Ryan  

hi alberto, first, welcome to BP and the world of real estate investing.  As far as mobile home parks go, the first thing is you need to get is a solid understanding of evaluating them.  Questions investors that you would assign this to are what is the lot rent?  How many of the lots are occupied with tenants?---you got 5 of 6 lots answered.  What is the utility set up? public or private water and sewer? and who pays for what? the tenants or the owner of the park?  How many Park owned homes(which are rentals) are there in the park? what is that rent amount if there is any?

Once you get this info you can do a quick calculation to see what the park is worth in today's environment.  Typically parks of this size will have to have a cap rate around 11-15% in order for an investor to consider.  Your main person whom you can whole sale to are two types of investors, investors who own parks in that area already, or someone who lives within 2 hours of the park.  This is because it is so small that unless lot rent is above 500 bucks a month, it is really hard for someone to afford an onsite manager, even if they are part time.  

to evaluate, do the following: (monthly lot rent * number of occupied lots * 12(months to annualize the income)) * .5 (this is a 50% expense ratio because it is a super small park and economies of scale don't kick in until around 25 lots or so...dependent upon lot rent) = you NOI(net operating income) for the park.

Once you have the NOI, you can multiply that by 10(which is a 10% cap rate) and then see if you are getting a good deal and what you could potentially pay for the park.

every deal is different but this is the basics of how to calculate a deal and see if the price is around what someone would pay.  

let me know if you have any questions.