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All Forum Posts by: Paul Stout

Paul Stout has started 38 posts and replied 250 times.

Post: MBS/ FNMA Lender Resources

Paul StoutPosted
  • Mobile Home Park Investor / Licensed Indiana Real Estate Broker
  • Chicago Area, IL
  • Posts 262
  • Votes 135

I recently worked with Mike Polencheck at Bellwether. I have no complaints with him. To qualify for agency or CMBS debt the vacancy has to be roughly 15% or less with some exceptions. There are other requirements as well. They will not really look at anything under $1M loan value. I have heard that there are plans in the works to lower that. There are some advantages. For example, this is non-recourse debt. Most small banks will not offer that though some might. The rates are only slightly lower than your typical portfolio debt. The terms are similar depending on what portfolio lenders you find. Some small banks offer better terms but it takes a lot of work and time to find them. Amortization can be a bit longer on agency/CMBS debt which is nice for cashflow. One downfall is the upfront cost and another is the fact that there are substantial prepays. Overall it is a good option if you plan to keep the property at least 10 years.

Post: Sub-metering Mobile Home Park

Paul StoutPosted
  • Mobile Home Park Investor / Licensed Indiana Real Estate Broker
  • Chicago Area, IL
  • Posts 262
  • Votes 135

@Kyle

@Kyle Grimm I have a park in Indiana and I use Universal Utilities.  I looked into ABT as well prior to hiring Universal.  I don't recall the exact reasons I did not like ABT but there were numerous issues I had with their costs and services.  I priced meters prior to talking to Universal and when I received their pricing to install meters it was roughly the same price I would pay for just the meter itself.  My guess is they get volume discounts and they don't gouge you on the install labor.  Depending on what type of meter you get they run about $250 installed.  The best part is that Universal reads, bills, collects, and performs shut off/on service all for the state allowed fee.  My park in Illinois is direct billed so I don't know what Illinois' fee is but in Indiana it is $4 per tenant and is paid by the tenant.   So, you are getting installed meters for the price that you would pay to buy the meters, and someone is reading them and billing/collecting on them and sending you a check.  You pay exactly $0 for the billing/collection service.  I have no idea why anyone would even consider doing their own billing when services like this exist. There are numerous dangers in self-billing.  For instance, you could face major legal issues if you accidentally (ignorance is poor defense, especially in the Peoples Republic of Illinois) charge a tenant more than what you were charged plus the state allowed fee.  That is not a hard thing to do.  You also have the liability of your manager running around peoples yards once a month.  Tripping hazards, snow, dogs, etc. can wreak havoc on that situation.  I know many people want their manager rummaging around so they can look at potential issue but there are easier ways to get that done.  The meter readers you would have to buy to do it yourself cost about $1200 for the cheap ones and twice that for the better ones.    I cannot say for sure but I would think universal works in the Quincy area.  I know they work in Indiana, Michigan, and Ohio.   If you use Rent Manager, Paylease also has a meter reading service that integrates into your Rent Manager software.

Post: Mobile Home Park Investing Home Study Course w/ Bonus

Paul StoutPosted
  • Mobile Home Park Investor / Licensed Indiana Real Estate Broker
  • Chicago Area, IL
  • Posts 262
  • Votes 135

For sale I have a brand new Mobile Home University Home Study Course which typically sells for $597.  Included is a bonus publication that you cannot buy in stores or on-line.  This study course was developed by Frank Rolfe and Dave Reynolds and includes the manual and 24 hours worth of audio.  Frank and Dave are the 5th largest mobile home park owners in the world owning over 30,000 lots.  This is by far the best and most comprehensive home study course available for those looking to get into the lucrative niche of mobile home park investing.  Please PM me if you are interested.  

Asking $400

Post: Park owned homes and billing water bills

Paul StoutPosted
  • Mobile Home Park Investor / Licensed Indiana Real Estate Broker
  • Chicago Area, IL
  • Posts 262
  • Votes 135

@Gulliver R. I would recommend going with the meters and letting a third party handle everything.  That keeps the liability off of your plate more than any other option.  Having them read the meters also keeps the manager from playing favorites.

Post: Investor Seeks Help in the Central Indiana Area

Paul StoutPosted
  • Mobile Home Park Investor / Licensed Indiana Real Estate Broker
  • Chicago Area, IL
  • Posts 262
  • Votes 135

 I may be able to help.  Feel free to PM me.

@Grant Gaunt

Post: Mobile Home Park Syndications for non accredited investors

Paul StoutPosted
  • Mobile Home Park Investor / Licensed Indiana Real Estate Broker
  • Chicago Area, IL
  • Posts 262
  • Votes 135

@Tony Xu As stated before, lots of great info regarding syndications.  My thinking is in line with @Ken Rishel.  I think you may do well with a partnership vs a syndication.  Of course, this cannot be a passive endeavor if it is to stay within the confines of the law.  I do not currently know of anyone doing a (B) syndication on MHP's right now.  I have spoken to a couple of SEWC attorneys regarding these and it seems that this type of syndication is quickly falling out of favor so I am not sure that they will be easy to find.  Not to mention the whole prior relationship thing.  Active involvement may not be as labor intensive as it sounds.  There are lots of park investors looking for partners to close deals.  How easy it is to find the right investor and the right deal will depend on the amount of capital you have to deploy amongst other things.

Post: Park owned homes and billing water bills

Paul StoutPosted
  • Mobile Home Park Investor / Licensed Indiana Real Estate Broker
  • Chicago Area, IL
  • Posts 262
  • Votes 135

If the surrounding parks charge higher rents and do not include water then you should be fine.  Even if its comparable or slightly less, you should still be fine.  MHP tenants tend to complain and threaten to leave but they never seem to actually leave, even the POH tenants.  You can even send a list of the area rates and what they include with a phone number so they can verify for themselves.  Of course most of them will never call.  The list itself will cool them down.  They have friends in these parks. They know they should be paying water.  If area parks don't currently charge for water, they likely soon will.  

As far as meters go, I would highly recommend hiring a service that installs the meters, reads them, and bills.  I have sub-metered water in one of my parks and thats how I do it.  Its a breeze.  It costs me nothing.  I just get the check every month.  The company I use will install the meters for about the same price I can buy just the meter and they will read the meters and bill the tenants the maximum service charge.  Thats their pay.  I pay them nothing.  They also handle off/on services if tenants don't pay.  I'm not sure why anyone would do anything different.  Let them choose the meters they want to install.  I use http://universalutilities.com.  

If you decide to go the flat fee route, be careful.  Check your local and state laws.  You may be able to use a Ratio Utility Billing System (RUB).  Just be sure to do it fairly and treat everyone the same under the RUB rules you establish.  One thing you never want to do is make money on water/sewer bill backs.  

Post: Dohardmoney.com, Anyone Use Them? Good/Bad?

Paul StoutPosted
  • Mobile Home Park Investor / Licensed Indiana Real Estate Broker
  • Chicago Area, IL
  • Posts 262
  • Votes 135

Has anyone used this service?  How did it go?  Would you use them again?  Would you recommend them to your mother?  Please let me know what your experience was and what you used them on.  Thanks!

Post: Become a Licensed Real Estate Broker Using my Money.

Paul StoutPosted
  • Mobile Home Park Investor / Licensed Indiana Real Estate Broker
  • Chicago Area, IL
  • Posts 262
  • Votes 135

Request accepted! @Sarah Bojorquez

Post: Become a Licensed Real Estate Broker Using my Money.

Paul StoutPosted
  • Mobile Home Park Investor / Licensed Indiana Real Estate Broker
  • Chicago Area, IL
  • Posts 262
  • Votes 135

Have you decided that becoming a real estate agent will help your investing career?   Have you realized the potential for networking that being an agent will provide?  Have you realized how valuable the tools you will have at your disposal as an agent will be to your real estate investing?  If so, I would like to offer to pay for you to get your license.  

This is not a scam or a joke.  It's just an offer that will help me build a team of qualified, investment minded agents to better serve my clients.  Believe it or not, there are very few agents who know the first thing about investing.  There are plenty of clients looking for these agents.  I want to offer qualified individuals with the right mindset and knowledge base the opportunity to join my team and I will pay for you to get your license.  If you are interested, PM me and I will send you my contact info.  Already have your license?  Contact me and we can discuss the benefits of joining our team.