All Forum Posts by: Jeffrey H.

The question to ask yourself is can you find other deals like house #4 with fewer burdens attached?  Your time and effort to rehab units and clear tax issues is valuable, and if there are other properties out there easier to make ready at a similar total "ready to rent" price I would pluck those first - even if they are a little more expensive as your holding costs will be lower.

This deal seems like it would also wrap up a lot of cash you could otherwise leverage into several better properties using debt service.

End game is that at the right price this could be a great deal - but remain objective about how this deal compares to other deals out there to determine the best return on your money for the time invested. Compare the pro forma for each property to make a decision using reasonable assumptions.

If you haven't already, I would recommend reading the Mobile Home University Due Diligence Manual - this makes visible all the risks and benefits of MHP purchases.  You've already had a response in this thread from one of the authors - Frank Rolfe.  These guys are one of the largest MHP owners / operators in the country and have been great for helping us to invest in these smartly.

http://www.mobilehomeuniversity.com/mobile-home-park-investing-books-and-courses/mobile-home-park-due-diligence-manual.php

Also check your insurance and general liability policy for the property.  Will it cover a fire due to old wiring or is that an exclusion?

I would do like you said - cover the cost of moving her junk out as part of the offer.  Let her or help her choose how she wants to do this since there is personal stuff there.  She will probably want to oversee the process like most hoarders so you probably are stuck until it warms up.

Mobile Home Parks are a great source of income, but they have a lot of unique characteristics that influence the value of them.  Before anyone buys one of these I would recommend at a bare minimum that you read the Mobile Home University Home Study Course and also their Due Diligence Manual (link below).  These guys wrote the book on buying MHP's, have very sound business and management guidance, and are some of the largest park owners in the country.

http://www.mobilehomeuniversity.com/mobile-home-pa...

Yes these are expensive, and they are also worth every penny.  These come with tons of relevant forms specific to the industry, and amazing support from their forums which are specific to the topic.

Happy hunting!

The idea of being a realtor is like an apprenticeship to prove that you know how to navigate real estate for a certain period of time.  To do this you need Sponsorship by someone who will be your guide and mentor.  This is where the broker comes in - they take a level of accountability for your actions if you screw up with the State's Real Estate Commission.

Even if you have been an investor for 40 years and decided to get your real estate license you have to follow these rules.  After you have met your experience requirement and another test you can become a broker - and then you can have all sorts of realtor newbies at your disposal to help make you money too.

The good news is that you can do all of the things you mentioned above without a license.  You are just an investor who can fill out the same real estate templates that the realtors do.  Yes some commercial realtors have access to expensive software like CoStar, but is that really needed to do what you're talking about?  No.

No.  The IRS cannot dictate what software you use. You can chisel your expenses in stone if you want.  You can use whatever you want so long as you have receipts to back it up in the event of an audit.  Keep everything for 7 years.

Con - I would never need this as an investor since I do deals based on financial performance and / or comparable sales, then work my way backwards to an offer price.

Pro - a (used) mobile home dealer can use NADA as a benchmark for credibility establishing home prices.

I guess the pros and cons will depend on what you plan to do with it.

I forgot to ask - how does the one well service two non contiguous properties?  Is there a deeded easement on all properties between for the water line?

I directly mail property owners and ask if they want to sell.  It costs money but you make it all back and then some when you do the deal without realtors.

Tell us more and we can help.