All Forum Posts by: Account Closed

Hi @Jeremiah Grant,

This park has crushed gravel, the park owns 6 homes out of the 29 occupied but they are not factored into the purchase price. The park is @ 80% occupied  and I would like to put 20% down. 

Thanks,

Ken

I have a mobile home park under contract in Kansas and am looking for a Broker or Institute that is interested in these types of loans. Price $250,000

hey how's it going. I've been looking at parks for about a year and have talked to a lot of large portfolio owners. 

Basically you're going to become a dealer to buy homes new because it's difficult to buy that many quality used ones. You're looking at approx 25k x 130 = over 3 million even over time.  

As far as the current park owned homes, people who don't put their own blood and sweat into maintenance average somewhere about 50% expenses with insurance ect. I talked to another guy who said 30% once you get your contractors worked out and do some yourself. That's the main reason I believe a lot of investors put zero value on the rental income above the lot rent. 

The expense ratio on a park only 20% full will be quite a bit higher than when at 75% as well. 

If it's a hot market, great location and you have tons of capital available then it might be for you, however I would get more educated on specific due diligence first. 

It's a great industry that I hope to do full time and meet with other smarter park owners on a regular basis but it can also hurt you if your not sure what angle to tilt your head to really see the beast.  :)

It depends on the deal. You must be able to estimate repairs accurately and also market value once fixed. If not, you will not be able to find an investor to take it and/or you will lose all credibility. You run the risk of wasting the sellers time and bringing a bad name to the industry if you bail on the contract. Many say don't tie it up unless you can close. I agree with this unless you are skilled and well networked. I believe the basic formula is .7 of the after repair value minus repair costs, minus your desired profit.

this one was purchased with an existing lease option where the tenant is responsible for all maintenance issues other than tax and insurance. I'll only hold it for about 18 months and then sell for a moderate profit unless the tenant defaults and then it will turn into a long term rental. 

Originally posted by @Mark Ferguson:

Originally posted by @Account Closed:

Congrats, I just closed on my first sfh. Hoping I can keep the momentum going.

Congrats on your first purchase! Will it be a rental?

Congrats, I just closed on my first sfh. Hoping I can keep the momentum going.