All Forum Posts by: Mike G.

@Courtney Johnson

all great comments from everyone here, i would say that starting out the number of pads is an arbitrary number in that its a relative to the deal and the numbers behind each individual park. What makes sense for one investor may not make sense for another. Everyone has different business models and different exit strategies. 

If you want a small park and feel comfortable with that, then go get a small park, get your feet wet, make your mistakes and learn and grow from there. 

@Lance Hummel

@Jack Martin 

Lance, Jack put it to you exactly how its done to figure out the supply/ demand issue. Run that test ad on craigslist for a tenant buyer and see how many replies you get. Jack is spot on with calling the surrounding apartment buildings and see what the rent comps are for 2/2 or 3/2 apartments. If there is a gap between the market rents for a apartment or comparable size to what you know you could do in the park then you have more spread to play with than Rams fans do right now!!!

@Michael Warinner

good for you, im going to go out on the limb here like @Frank Wong

By the sheer fact that you had the balls to make a decision like that and follow it tells me right away that you have what it takes to succeed in life, whether its real estate or any other business. 

You cant teach someone to have balls, 

you cant teach confidence and the ability to make decision and act on that decision

those qualities are not taught in school and you're either born with those traits or your not. 

Drive, the ability to take action, dedication, wit, commitment, people skills to talk and build relationships

these are skills that are required to be successful in life and real estate, school will never teach you any of these, so good for you. 

I dont know about the rest of you on here, but I respect and tend to gravitate to a person who is eager to learn and has that fire and is hungry and has a CAN DO attitude over a person who has excuses and is educated and has a CANT DO attitude or may do things but not with the same passion or drive. 

To each their own but you know its real when you see it in someone else and it cant be faked or reproduced. its genuine and real or its not there at all. 

@Jay Hinrichs

thanks Jay, 12-15 cap range justifies all the direct mail sent. . . heh

@Ricky Bass

in the state of Texas mobile homes are taxed as real property and will be added to your real property tax account. How mobile homes are taxed in other states maybe different.

thank you for the explanation on that fact of mobiles in the state of Texas. 

@Drake Ivy

as @Patrick McKenna echoed i would offer the same advice. Now here is my disclosure, im not from Texas and every state is different in how they enforce laws regarding this subject. Granted the Dodd-Frank is a national governing act but each state has its own policies and requirements that you need to become familiar with. 

The long and short is. . . . . . .

to play it safe and do owner financing of mobile homes, ( aka Lonnie Dealer) you will be best to get with a mobile home dealer who is licensed and a plus if he is also a licensed Loan Origination broker/officer. This will allow you to legally do Lonnie Deals and operate within the lines of the law. 

In some states, there are government agencies that go after investors who do owner financing in the mobile home space and Texas happens to be one of these states so check these links and do some research. Texas Manufactured Housing Division

Also refer to this page as well Consumer Protection in Texas

From the aforementioned site you will find what the legalities that you will need to stay within to operate your business model in Texas, also for further information and a more detailed clarification i would pass the mic over the @Ken Rishel as his knowledge and insight on this topic makes him an expert on this subject in my opinion. 

@Chris Ebert 

I completely agree with you, there are a ton of parks in that lot rent range and to be completely honest I would be missing out on a large pool of potential assets. I guess I forgot to mention that low lot rents in that range are ok if the population in the area supports. I wasn’t specific enough. 

@Casey Powers

I know a lot of property managers around the country and these are the states where the PMs talk about their landlord-friendly laws. Especially when it comes to evictions.

this is good info to be aware of Casey. Unfortunately for us NV is definitely not one of those states.  

@Terrell Garren

thanks for the links to these resource sites. what a load of great info. I appreciate your contribution.

@Chris Ebert Lot rents in the 100's range are risky. Seller is claiming long term tenants?

Ask to see the trailing 12, or 24 or 36. Trust but Verify

Only homes that are beat up from the 1970s the shell value on this is virtually nothing, in fact it may be negative if you have to renovate them because of SC laws with moving homes off the site. Not super familiar with SC laws regarding parks and mh's but i know laws like exist. 

lot rents in the 100's pose a risk because that's literally 1 disaster away from being homeless. The tenants of this park this is their last stop before being on the street. 

That tenant base at that price point is not worth it to me, so i would pass. As far as the seller asking $175k, not knowing very much about the park infrastructure and other metrics that price is a pipe dream to say the least. I saw someone up above mention 90k. I think even that would be too much. I wouldn't make an offer because this is a hard pass for my criteria.