All Forum Posts by: Matt P.

I'll see you there, Brad!

Thanks so much for the feedback! We will definitely look into these suggestions. While the deal should go off very well based off of the rental income on the lots alone, I'm hoping that we can get some of our capital out quickly through the sale of the MHs. I will look into working with a dealer for individual sales and the local MH Association about a quick portfolio sale. 

I have an opportunity to invest in a 25 lot mobile home park with public infrastructure in a good area at a very attractive price. The owner is a motivated seller who wants to retire and move out of the area, so I was able to negotiate some favorable terms. My issue is that he owns most of the MHs on the lots and leases them to residents. Given that I live over an hour away from the project, I was hoping to hold on to the lots and avoid becoming a landlord that has to deal with the day to day of leasing MHs. I am considering selling the trailers to the residents, but as parks are my main investment focus, I do not have a dealer's license to handle all of the transactions. Does anyone know if it would be legal to sell them in bulk without a dealer's license, or would I need to obtain one in order to make the deal work?

Thanks Marc! I appreciate the feedback!

Has anyone had any experience with buying a mobile home via Vanderbilt Mortgage and Finance's auction option? If so, can you provide some commentary on it? I have found a home close to my park that I want to make an offer on, but it is in pretty bad shape and will need to be moved at a cost that could eat up  my returns if I don't cut the price of my bid to well below the list price for on the website. The property has no back taxes and is on private land that is not being sold along with the trailer, so anyone competing against me will also need to move it. 

Welcome to Charlotte, Mike! Glad to have you down here. As you mentioned, Charlotte is a pretty hot market right now, but there are definitely some deals to be found. Looking forward to seeing you at one of Troy's BP meetups here soon!

Sorry to have missed this one! Is the video posted anywhere? 

Dawn, you didn't do the math wrong, just used the wrong inputs. Current occupied lots = 52, down from 55. There were a few older homes on lots that were vacated over the past few years and they were disassembled and hauled off to the dump since the county forbids moving homes over 25 years old. 

Thank you for the advice, Jefferson and Aaron. I continued to perform due diligence as suggested and have the following to add to my original post:

1) $86K NOI comes from $125K gross revenues minus $39K park operating expenses, verified through company prepared financial statements and annual tax returns.

2) Homes that are between 10 and 20 years old in the market are currently running at an ask of $10-13K, which is what we will be targeting per Jefferson's advice. Our test ads produced 13 calls in the first day, which we took as a sign that market demand is very high. 

3) Electricity and gas are submetered, whereas water is master metered. We think we are looking at about $25K in CAPEX to get it submetered.

4) Review of county DOT records show that there is a new freeway under construction that will have an exit two stoplights away from our park when construction is complete at the end of next year. This will make our park much more accessible to the larger MSA, which is currently 20-25 minutes away by country roads.

I appreciate your guidance on the transaction! We continue to be optimistic that this will be a great opportunity for us. 

Mobile home parks with 50+ spaces. Typically, the sorts of deals that I'm looking at have a value add component to them.