All Forum Posts by: Ryan Groene

depends on your investment criteria.  public utilities are easy to mantain and less risky for most investors.  Private utilities are most costly, but can work and still make your MHP profitable...just due extra diligence and buyer beware in this one. Always get an expert on private systems

And yes for the most POH's are more management intensive and do cost more to upkeep...but some people find this appealing and prefer this way...i don't and most people in the industry don't.

Your cost will also be insurance, some general area potential electricity, cell phone/office supplies for manager maybe, reserves, bank fees, legal fees, accounting fees, software fees.  Trying to give you more line item approach

general rule of thumb for most parks are lot rent * # of occupied lots * 12(annualize)=Annual Gross revenue

then multiply that by .6(if park pays water/sewer) or .7(if tenants pay water/sewer) to establish you NOI(net operating income). .6 and .7 are for 40% or 30% operating expenses.

Then divide that number by your cap rate you want, most people use 10% cap rate so .10 and you get your purchase price.

Finding a park anywhere in the country right now is becoming more difficult as a lot of attention is being put on the industry and there is only a limited number of parks out there.  so therefore driving up prices everywhere more than ever for things that come onto the market.  don't get me wrong, there are still plenty of good deals out there.  

it just depends on the type of property that you are looking at and getting going.  If its a huge turnaround it may take longer to get it stabilized. If you have something that  needs a little bit of work, then you could refinance fairly quickly if its stabilized and just needs some clean up.  Its definitely going to be a slower process for sure, that's just how commercial multifamily normally works. as there are multi units and things going on vs just one house.  

Definitely the refi strategy still applies, just a longer time horizon to do so.

I don't know what your looking at to determine if you are looking at something to large and i don't know what type of capital you have

awesome. Don’t complicate the MHP to much. It is the same as any other form of real estate in terms of how to find, acquire and finance other properties. The process is the same. If you have money for a down payment somewhere then yes you don’t have to partner or take a hard money loan or private lender. 

Just be cautious that running them are a little different of a beast and you can’t just put in a propert management company and get away with it because there aren’t really any out there

attend the MHU bootcamp, listen to other podcast such as kevin bupps, jefferson lilly's, read other post about MHP's.

Many people take on a partner or two for the equity portion w/ some or all owner financing.  If larger than a $1mm purchase price, could be possible to do an actual syndication, or others have a fund that they started

brokers are the avenue right now, while off market deals still happen, they take a little longer and a lot of mailers to get there attention

how many unite? This type of turnaround is the hardest type of turnaround you can do. If the trailers are salvageable then they are easy to turn. But you either have to pay in cash or owner has to carry with nothing paid the first year or two as it sounds like the property  doesn’t have any income. Also unless you have lots of capital it could be worth it if you can get good terms. All the best of luck. Make sure to pick up at the minimum the due diligence Manuel from frank and Dave. 

@Grant Rothenburger....that is correct...for the most part, if the contractor is worth anything theyll be able to figure it out.  But if you just call some MHP's and ask around they should know someone.  

call the local mobile home parks and see whom they use 

Mobile home parks and RV's are technically different classes of zoning and Tiny houses are deemed as RV designations becuase they don't have a HUD seal and aren't meant to be lived in full time. Not my rules, just the governments.

Still worth it if you can get something in a hip area...do you diligence and see if it works.

If you have had it under contract and you have a due diligence clause(hopefully you do) and it is apart of your diligence list items that you have financials, then they are legally obligated to give it to you otherwise theoretically your contract should have never started therefore you have until forever until it begins. Of course this is if your contact reads that way. 

Another way to convince them is that if you have it under contract you need that to close the property and therefore they can sell it. There probably getting a little sellers remorse and thinking they could get more than what you have tied it up for. Not sure though. 

Also you could just have an open conversation with them and be like what is the deal...if you have it under contract your not going to blow up the deal because it’s your right to purchase it. Just be very open you want to close and be like cut the ********. What’s the deal. Maybe phrase it in a nicer way but this happen more than you would think. 

And if all else fails...play hardball and tell them you’ll tie up forever and they’ll never  be able to sell it because you’ll just sue, blah blah blah....etc

This is all assuming you have it under contract