All Forum Posts by: Michael Dorgan

That low? Seperate meters for all units, no grounds keeping, insurance and such at very, very low numbers? I understand that most of your money is just renting dirt, but 10% expenses is not realistic. If it were, then your formula could be fairly close. Again, you need to do some research for prices in your area.

Also remember this, your broker doesn't get paid a dime unless you SELL, SELL. Also, extra land doesn't earn income. A MHP is an investment vehicle and will be priced almost exclusively on Net Operating Income.

That sounds like poor advice. Keep in mind, if you are personally responsible for a lawsuit/injury, no entity is going to protect you. But, if an employee or contractor causes the issue, then the LLC can be of some use. Umbrella insurance is your friend here.

Just to be sure here, what does your friend owe, what is the property worth, and what do you plan to do with it? Rental, he lives there and pays rent, etc.?

I wouldn't be selling a MHP now unless someone came to me and made an offer I couldn't refuse.

Your numbers are trying to sell, if you had no other expensees, at a cap of 10%. In reality, I'm guessing your expenses are around 1/2 your income with would mean a cap of 5 or so - which isn't going to happen unless you get a very motivated buyer with cash. Look on loopnet or wherever else and see what prices people are selling for against what type of net operating income. This will ballpark it for you.

Honestly, if you are looking to sell a park and are not sure of its worth, hire a very experienced broker.

Ok, gotta chime in here. I had only heard of NR in passing from another website. I had heard both good and bad as in all things. I went to a local REI meeting the other day for the first time in a while and behold, a large NR display and the only person at the meeting dressed in a shark suit (full on biz suit where everyone else was in shorts and tees) running the booth. Red flag #1, but I'm a trusting guy. After networking with a dozen or so people and telling them what I do and what I'm looking for (mobiles and small bank references at the moment), I drift over to the group that he is currently holding sway over. I politely listen then put in my hello, here's what I do talk, followed by the inevitable 5 minute explanation of how in the world I can make money selling tin cans. After we drift apart, he follows me away and starts heaping on the praise about how well I was able to explain my business and such. He then goes to explain how I can help sell the NR business to other investors and keep a large portion of their payment for myself. I said, like a MLM? And he says, no, we're not a mlm... and some other stuff. At this point, I lost interest and said thanks and walked.

He seemed at least moderately knowledgable and claimed to hold 50 or so properties as a full-time investor, but he said he made much more money doing this. Felt just like my first Amway pitch from oh so long ago :)

Go online to the state's site and look is the best answer I can give there - others here may know off the top of their heads.

But will that down payment really protect you? When I did my Lease Option spree a couple years ago (did 3), all 3 defaulted with 1 trashing the house badly. The option payment basically covered either the repairs or the holding costs, but not both. As long as you can get back out from under these property's quickly, you'll probably be fine (had to say in this market huh?), but make sure you have RESERVES a plenty for when things do go wrong.

If your biz has been around for at least 2 years (preferably 3), if you have good personal credit, and you have decent personal assets, many of the big box banks (BoA, WF, WM, etc) will grant LOCs up to around 50k with fairly minimal hassle and negligable fees (I believe WM charges me $40 a year for my 50k LOC.) Home Dopey and Lowes will also give decent sized LOCs, perhaps even without a PG, to said businesses as well qhich really helps out on the fixing up side of things. This also starts building up your business's tradeline history and makes it easier to get some larger LOCs in the future.

The above is from my own experience over the last few years, some of this may have recently changed with the recent credit crunch as it is...

Yep. Some states will charge extra taxes/fees though to 'alien entities.'

On the pull out the equity and re-invest idea: You are mortgaged up to your eye-balls for quite a long time until the property's equity starts catching up. An economic slow-down, a lost job, anything really, and the house of cards comes a tumblin down and you lose everything.

BTW, I have the book in question and will check it out to see how the formula works. But even if the math is 'fuzzy', the idea of investing over time with saved money is sound advice.