All Forum Posts by: Howard Abell

@Jae Cunningham your email bounced. Need more than ssa.com it seems.

Thanks Jae, Email sent.

Thanks for your interest. Email and information sent.

Rehabbed 3 bedroom, 2 Bath home located in Lillington Village Mobile Home Community. Would make an excellent investment yielding double digit returns. Park management is friendly to investors and Lonnie Dealers.
email for details-- [email protected]

Can recommend Don Emmet, Entrust Associates in Chapel Hill. Reach out to me via colleague request.

Howard

@Account Closed looking forward to seeing you there as well. The issue of finding the right value is an interesting one. In the last ten years both buyers and sellers have learned much about how to value parks. Even those “Mom and Pops” know how to read and are more sophisticated than given credit for. One thing we don’t take into account is our personal biases, which is a very human condition and colors our analysis. Buyers will always tend to value low and sellers will always value high. Check out Behavioral Economics, which is a new idea (last 30 years) on how our biases and minds tend to form the way we approach markets. However, being aware of this phenomenon does help us to move away from the extremes and find common ground.

Congrats to you @Account Closed. I agree with you that smaller parks have great potential. Maybe because I own one? LOL

Your best opportunity is to look for REITs doing international investing, large institutions such as insurance companies, real estate private equity firms. and large real estate investors.

Good luck! 

Russian roulette is a little strong. If you price out your space to cover most ordinary issues and are within the market than there are one or two things you can do to mitigate some risk. You can put a clause in the lease passing any tax increases above the base year onto the lessee. Taxes are one of those items you don't have much control over. Some people ask lessees to take care of things like HVAC in terms of normal wear and routine issues. Hope this helps.

It does make sense to those investors who can secure money at rates not available to us mere mortals. REITS who might self fund but calculate cost of money in relation to stock valuations, Investment banks who can borrow below 2.5%, etc. It then becomes a matter of what the basis is between cost of money and Cap rate. If they can make 2.5-3% over cost of money they might make the deal.