All Forum Posts by: Ryan Groene

check local ordinance laws/hire an attorney to do the first eviction, then get the process done for the local jurisdiction and you may have to have a lawyer represent everytime...

also you could donate the homes to a local charity who then make sure the tenants still meet requirements and then you fill it in and get a tax write off. 

Or you can sell it for a $1 literally

Just check state laws on how many you can sell or give Away before you need a dealer license

lot rent, occupied lots, number of park owned homes, utilities set up, private or public water and sewer.  Purchase price. 

just go buy a Mobile home in the park 

see if there are companies that will come in and put in them for you and run/operate those...that way you give them a positive for tenants but you dont necessarily have the difficulties/cost to run them...you will have to pay for water/sewer probably though

apartment owners do this form time to time i know of

Small local bank, or all cash are best on deals like this, depends on price. private lender is potential as well.  your going to be looking at 5-6% for smaller banks as well w/ 5-7 year balloon, maybe 20 year amortization as well.

 smaller parks like this are not going to run that clean of expenses unless the utilities are all direct billed? which is doesn't sound like they are???

don't forget about mowing, snow plow/salt, some turnover, taxes for your manager/workers comp, free lot rent, money for your management time, accounting software, LLC set up cost

Your going to have more of a greeter in a park like this, which would be free lot rent only and maybe $5 a lot...smaller parks have really thin margins...if you have 2 tenants move out, die, leave town, get arrested, whatever, you then lose 14% of your tenant base and monthly income for the property, get to 5 tenants and your at 40% which could throw your loan into nonperforming very quickly unless your willing to come out of pocket on something like this

just to show your top gross revenue will never equal 40,000(210*14*12=35,280)

just do your diligence and i wouldn't pay more than 200k for something like this...and thats a stretch or if there willing to carry some of the paper

something this small, don't turnover to a property management company because they don't know what their doing normally with a park like this and their going to charge 10% of revenue probably. which eats into your budget big time

If you buy a park that is vacant, there is an underlying reason on why  it is really vacant...it could be as simple as the owner literally turns people away and says no...normally not the reason

A few vacancies normally is the reason for this, not a totally empty park

It is either location, terrible park(crime, drugs, etc), bad management, failing utilities(private water/sewer) and some other reasons why as well.

It can be worth it to fill in the park, if you have the capital and the demand is there.  Do extensive diligence on this before you move forward, also make sure the park is making some money,

Questions to ask, how do you plan on filling the vacant lots...organic moves in are likely, but you will have to pay for the tenants move and I don't recommend stealing from other parks as this could not farewell if your trying to fill in your park.  

If you plan on using the Cash program...there a few caveat's to this method and you will want to do your research on those...it is a great program and is helping the industry a good amount as well

Filling w/ repo and used homes takes a lot of time and is harder to do at the moment because homes are getting harder to find in certain  markets.

new homes can be very capital intensive and your capital could earn higher returns placed elsewhere.

Mainly parks w/ high vacancies(greater than 50%) normally are priced w/ potential like you said therefore are harder to infill.

Some people put $0 on a vacant pad, but other puts at least some portion to it in order to get to the number works.

In essense that vacant pad will cost you money because you have to mow, prep for site move in, etc.

Yea there is a lot that could go wrong from the standpoint of a smaller mobile home park.  MHP's are not like apartments where you just turn the management over to a property manager and just kinda manage them and the numbers work. MHP's require a little more management in terms of the property manager, whom normally lives on site for smaller parks and is either retired or has another jobs.

They normally are compensated free lot rent, and $10-15$ an occupied lot

Water/sewer will be your biggest line item.  If its direct billed to tenants then congrats you have found the golden nuggets of parks, otherwise youll have to submeter or do some kind of RUBS system to collect for water/sewer.  

Ask for utiliity bills for last 3 years to see if there is any leaks, looks for sharp increases, etc.

MHP's are a great place to park money for sure as your going to normally get 15-20% return on your cash invested when done correctly.

Smaller parks(25 spaces andbelow) are going to operate a little higher expense ratio than traditional becuase you don't have more to spread out the fixed and variable cost per unit.

reach out if you have questions

if you really wanna be in the real estate game. Take their offer. If you can see yourself working with them. They are giving you a good deal because then you become an actual owner and doer. Not a talker or wanna be.  You are an owner/investor at that point 

It equals roughly  438 a month per unit.  438*8*12=42,000....it could be all lot renters or it could and probably just rent...

it could be decent deal depends on the utilities set up, but what is upside, going to be a lot more time/money due to owning all the homes, and what is your exit strartegy...normally this small of a deal is better off being all rentals due to the smaller amount of revenue that it produces...it just depends on how close you live.

best of luck