All Forum Posts by: James Jordan

I don't think this is still clearly explained. I am not sure about the last sentence , "...unless Broker currently has or enters into an agency or Transaction-Brokerage relationship with the seller, in which case Broker must act as a Transaction-Broker."

If I have a broker representing me and we come across a seller that has does not have representation, my broker can all of a sudden change from having a responsibility to me to a responsibility equal with seller. Does it not mean that?

I've got a possible answer....

If you've been paying for their water without reimbursement, the sooner the better you install the meters. Now guessing that you bill back a percent (or it's included in rent) to each home instead of absorbing the cost yourself I would think to myself, why pay for metering unless your park is losing water somehow. If lot/rent stays the same you might be suspiciously increasing the value of the MHP :)

Could you just bill back water if you're taking it out of lot rent and say it's either new metering or else raise rent? Or is that considered a messy way to do it?

I'd like to hear what the considerations are and costs.

PS. I'm not a MHP owner yet.

I'm pretty sure there's more management in park owned homes than land leased ones so you probably know that. I've never purchased a park but I like to analyze them for the one day I plan to buy one or three.

I'm guessing the record keeping isn't very good. I would use all the categories that fall into the expense category and ask the seller if he can give you his tax return so you can use accurate data if he has no other records. That might be a fat chance answer but it's what you could use if he'll give it to you. Otherwise, the book I read says 40% of the gross receipts is considered an avg amount of expenses and 50% for park-owned homes. If you present that information to the park owner along with your offer (which I bet will be much lower than the asking price) I bet if you say this is the best you can do based on the available information you might be able to get the owner to help a little better with what the actual expenses are.

I was looking at county assessor information for a property and don't know exactly what this means. Here's the result I found:

I'm reading about the problems MHPs have in Denver because of land use issues and whatever else planners see in MHP. I found this company, ROC USA, that looks like they're "helping" MHPs become resident owned. Now how can I be a MHP owner if cities don't want them and companies are selling to the residents?

Does anyone know about ROC USA?

I drove through a park that had a sign at the entrance that said Bayshore Home Sales. I went to the office and was met by a new employee who didn't have much information about how the park worked. I took some brochures that makes me think that Bayshore just buys homes from tenants to resell them again. And Bayshore is doing that in a lot of parks around the US.

Does anyone know if I got that right?

Does Bayshore have any ownership in the park itself or is just a management company that also facilitates home sales in parks?

An interesting thing I just read/realized, if the property taxes increase when you purchase by, ex. $5K, then with a cap rate of 10, the NOI lowers by that amount and thus the offer should be reduced by $50K. I don't know how detailed an explanation a seller needs or wants for why your offer is your offer but that's something to note.

Can you call an appraiser and see what they think the cap rate might be? I hate to paraphrase and bring up the book I'm reading (it's all I got to go by) but it says REIT's will accept lower cap rates but generally it's on properties with 200 units or more. Yours isn't 200, I know, and I'm not suggesting that Jonathon was using an REIT cap rate mindset. But before speculating on that number I think someone should look at comps and/or get another person's opinion (broker or appraiser).

I've read that park owned means 50% expense, maybe. Why are you guys using 40%?

And I see the $1.1M possibility but not anything more.

I'd make an offer and walk away not worrying about it.

I'd just a newbie reading Mobile Home Park books

I should have read a few pages further, thanks for your response Rachel.