All Forum Posts by: Paul Moore

Hi Dante,

I agree that if you need to do a syndication, you will need to find a syndication attorney. There are many good ones. Jillian Sidoti spoke at the recent BPCon 2019 in Nashville.  Her partner, Gene Trowbridge, wrote a book on syndication. 

Though I am not an attorney, I agree with Andy. I have heard that for a small raise like this, it is better to form an LLC and not do a full syndication.

And I agree with Taylor that you should avoid the Vegas language when courting investors. Good luck! 

Hi David,

Welcome to BiggerPockets!  I grew up near Cincinnati and I have a fund that invests heavily in self-storage and mobile home parks. It would be great to connect. 

I agree with Ned. Perhaps I would offer $26,000 so they could at least pay the realtor, but do not worry about insulting them.  Land sellers are often desperate to get any offer they can.  Good luck! 

Hi Valerie,

It is possible to sell off a home like this in many cases. The location of the home (hopefully at the edge of the property with road access) will help you in this regard. If it is hard to sell traditionally, based on its location, you may want to consider selling the home as a lease-to-own (could increase the price a bit and give you a different buyer pool). You may also want to see if the home buyer would serve as the park attendant/manager. 

When calculating the value of a MHP, you will use the commercial real estate value formula (Value = NOI/cap rate), but I would take the rental income from this home out of the NOI. Then simply add a discounted value of the home back to the value you calculate.

So for example, if the annual NOI is $30,000, but that includes $5,000 in rental from the home, I would take that $5,000 out and calculate value as $25,000 / .08 (assume 8% cap rate) = $312,500. Then add back a deeply discount value for the home (say $40,000) to come up with a total value of $352,500. Please keep in mind that this is just an example!

I hope this helps! 

@Chad Erickson We have worked with dozens of self-directed IRA companies over the years. Send me a message and I can share the best ones we have worked with. Also, I agree that if you have available cash outside your IRA, you may want to invest that cash into a syndication (and invest IRA money elsewhere) since there are typically tax benefits in syndications. This article is worth reading: https://www.therealestatecrowdfundingreview.com/single-post/2018/02/12/How-to-Invest-in-Passive-Real-Estate-Without-Paying-a-Penny-of-Tax-Legally-Part-2-Defer-Defer-and-Die

Hi @Bernard J Lombard III,

What are your goals with owning a mobile home park? Do you have the property under contract? Do you have experience with mobile home parks? I would recommend doing as much research and learning in the space as possible before jumping into it. Maybe do some training courses. There's a lot out there. Not knowing what you don't know can be a killer. 

Hi @Weina Shi,

I've been investing in real estate for the last 19 years. You do not need real estate licenses in other states to be successful. I don't know of any MHP owners/investors who care to or need to get a real estate license. I just don't think the value is there.

If you plan to be an owner/operator of mobile home parks, I would recommend networking with brokers and building relationships with mom and pop owners of mobile home parks. If you plan on being a passive investor in MHPs through syndication deals, you can leverage the relationships and pipeline the syndicators have in the MHP space. Hope that helps!

@Nathan Burris I would definitely recommend you check out Scott Meyers' content. I've been to a few of his events and they are great. We also created a 26 page educational report on self-storage. Feel free to message me and I'll have our team send it to you.

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