All Forum Posts by: Jesse Martin

Here is another good article worth reading

https://www.oilandgas360.com/the-permian-oil-boom-is-showing-signs-of-overheating-2/

Great thread, I'm working on a deal right now in NM with the same exact situation! Mobile home & RV park. Numbers are ridiculous, CAP rate is high, income is high, and expenses are low. I first looked at this with the "looks to good to be true, probably is". After getting all the data, financials, and doing a lot more deep looking, the numbers are solid, and is an amazing purchase with instant cash flow if there wasn't one HUGE red flag issue...Is this boom going to last a month, or 20 years?
What I have been looking into is what other companies are coming there.  In my research, I'm finding that other companies are building places there that will maintain after the boom.  Will it be as good as now...NO, but can these parks still operate is what my dilemma is now.  I like what Cliff said, it does seem a little like gambling!  I'm projecting that if it stays like this for 5 years, I would be able to pay it off.  These "Man Cams" are definitely designed for the Oil workers, just not sure how sustainable it will be after.  The alternative is the Hotels in this town Run $400 per night if you can even find vacancy.  The RV spots range from $700-$1000 per month, obviously this is the attraction!

The risk is this town is in a current Oil boom that has been going for years.  The question is how many more years?  The numbers are amazing, it's been analyzed and verified multiple times and it is pretty solid.  

Brandon has been talking about Mobile home parks for a little while now.  I have been interested in them for awhile, and have a few possibilities.  Question I have is it better to buy a straight mobile home park, or has anyone had experience with mobile home park and RV spots?  This park is about 60/40.  Good?  Bad?  what is the recommendation?

Thanks for the discussion!

Thanks Wren, I just up the points to 4 on my current analysis I'm doing, definitely want to make sure additional money I hadn't planned on is coming out of my pocket at closing!

Thanks for your input Kevin, we're looking at all the options...

The date above isn't confirmed yet, we are seeing what kind if interest there would be to have a weekly lunch meetup.  Thursday or Friday around Clovis for about an 1 1/2hr.  Respond here, and let's set it up!

What is the best companies to contact if you are wanting to convert an existing building into indoor units, and put in a lot of outdoor units?  Have a great property, great location that I can pick up but want to start building out a cost sheet to put it together to raise the money?

Thanks

Thanks Joel, that's what I was hoping they would probably just do it all.  Curious in your experience, is it more attractive if it's already cleared and ready to go?  

Live in a great town of aprox. 40,000 people.  Have an opportunity to pick up a property that used to be an old restaurant, but has been closed for many years.  it's in "OK" shape but not great.  This property sits in an awesome location right in the center of town next to the mall, restaurants, movie theaters etc...It's on the main road that goes through town with very high traffic.  Sits on just over 1/2 acre with expansion possibilities into a joining parking lot so parking isn't an issue

Ideal situation would be to bring in some sort of franchise, Chick-fil-a or something like that.  Can be any sort of business that would work well in this location.  Looking for ways to get the right person on the phone from a franchise.

The question is when dealing with these franchises, do they typically like to take a property and Ti the building, or is it more attractable to have the building cleared where they can build it however they like...To Demo or Not to Demo?  Do we run into any issues with having to not getting permits if the structure is already there?

In negotiations, and before finalizing wanted to to the leg work of marketing this to the right people.  Able to pick the property up on great terms a lot less than what the asking price was.

Thank You