All Forum Posts by: Perri Weber

Hi Chad! Welcome to the investment world! I just finished reading “set for life” by Scott trench and I think you will find a lot of value in the steps he outlines in the book. Personally, I would hold off from any purchases unless you have found an incredible return and all the numbers work out. The market is showing signs of a downturn and it could possibly be one of the worst times to try and flip a house. Focus on cutting expenses and saving a down payment for when a great deal shows up, you may be in a better position for it in the long run. Hope this helps! 

Hi Chad! Welcome to the investment world! I just finished reading “set for life” by Scott trench and I think you will find a lot of value in the steps he outlines in the book. Personally, I would hold off from any purchases unless you have found an incredible return and all the numbers work out. The market is showing signs of a downturn and it could possibly be one of the worst times to try and flip a house. Focus on cutting expenses and saving a down payment for when a great deal shows up, you may be in a better position for it in the long run. Hope this helps! 

I do see the need for real estate agents, even with the technology out there. I believe this is a largely because of the knowledge and experience we can bring to transactions. However, I speak from the perspective of a commercial broker, who sells Mobile Home Parks, I am not sure of the outlook of agents in the residential route.  

People can and do purchase commercial real estate that have been studying and analyzing the market, but I would say the majority of people need the support and the in depth knowledge to feel peace of mind about their purchase.

I work alongside my dad who has 30+ years experience in the field and see this knowledge piece as invaluable to customers looking to buy/sell. He/we have saved so many people money (and made people very wealthy!) simply because of his experience. 

With that being said if you are looking to get into the field, I would be especially selective of which firm you start off with. Their experience is something you can tag along with. It is a powerful statement to be able to say "Hi I am ______! I work with Columbia Equity Advisors, we have 30+ years experience in the Mobile home Park industry, closed 5 parks last year and are closing a 98 space park 1/2 mile away from your park! We have a buyer looking to do a 1031 exchange are you interested in entertaining an offer?" 

Lastly, I would say that in this field I think it goes with out saying that you need to hustle every day. Imagine first day and they put you in a empty room and say ok go for it! Find a MHP for us to sell. Hopefully they wouldn't do that, but you get the idea ;) 

Overall, if you have the time and are interested in real estate then I say go for it! Downside you might lose 600 bucks on study material and fees, upside is potential to earn six figures. Once you get into the study material you might find that you love it or simply don't have the motivation even to study/pass a test. 

DM if you need help with the process of becoming an agent.. there were some really helpful videos, study material, etc. that I used that may be helpful to you too! Best of luck!

I just finishing reading "set for life" and I think you would find a lot of value in the book given your situation. If I were in your shoes I would do everything possible to 1) save a emergency fund by living as frugal as possible 2) Save up and purchase a car- If transportation is a need then purchase something cheap and reliable 3) save for a house down payment. After all of these steps I am sure the market will hit a big dip and it will be a good time to act on purchasing a house that has some upside and that can be house hacked. Just the fact that you are seeking advice shows your willingness to take the right steps, way to get after it! 

Love the lessons learned along the way, great job!

Perri Weber 

Hi There! Congrats on saving a little nest egg! I am a Commercial Broker in the MHP world and from where I stand, it is an asset class that is near recession proof. We still have such a high demand from our buyers and are constantly searching for park sellers. When we have a seller it typically doesn’t hit market before it is sold. I personally feel that if you can find one that is with the right cap rate, not over priced (nothing on loopnet) and a decent cash on cash return, than you should snatch it up! 

Perri Weber

Hi Nicholas!

It is hard to tell without any more information, but what I would do is go to the county assessors webpage, type in the address and see what other homes are going for in the same park. I would also just call the owner and have an honest conversation with them. If the owner has lived their for a long time will know that place in and out and you will be able to find their motivation and much more by just listening. Their home might be a good deal but their space rent might be too high for the area, forcing them out and making it difficult to sell. Hope this helps!

Hi April!

The majority of our MHPs don't even hit market before they are sold. Most brokers have buyers lists and send it directly to their buyer's list and will have multiple offers on the park. The majority of items on market are because brokers want to push the cap rate a little bit and see if they could get more. With that being said, you could reach out to local commercial realtors and send over your marketing material for distribution. Aside from that I would try loopnet, CREXI, zillow (for smaller park), craigslist and FB market place.

Side Note: Zillow is a great option as it feeds your listing to all major realtor sites...realtor.com, trulia.com, hotpads.com etc. 

Lastly, you can look up other people who own RV parks near yours, they are most likely looking to acquire more and would be an ideal buyer. 

Hope this helps!

Perri Weber 

Hi April!

I am a commercial broker at Columbia Equity Advisors. I work alongside my dad Jim, who has 30 yrs. experience in the multi-family real estate world. We specialize in Mobile Home Park world; closed 5 parks last year and are in the process of closing a 98 space park.

There are people out there who are much more knowledgeable than I am in this subject (experts please chime in if I am wrong below), but here are my thoughts on wholesalers:

A wholesaler is reaching out because they feel that they have found a “good deal.” Common items that wholesalers look for are:

1.) Seller Motivation: What is the reason? How quickly are you looking to sell the property? What is your ideal closing? What are your plans if it doesn’t sell? They are looking for an angle.

2.) Equity/upside: if there is equity there is room for negotiation. If there is upside there is a way to market the property.

If they are looking to pursue the deal. I would take a moment to analyze if you have the right value on your property. I have seen so many transactions where people want to save money by not using a broker and get taken advantage of and/or under value their property. However, a commercial broker is not necessary if you do know what you are doing and know that the value is right.

In that case, here are a couple common items that I would look out for:

Licensing Issues:

-Ensure you understand the Rules & Procedures Governing Real Estate Transactions. Many states have unique laws, forms or disclosures requirements for real estate purchase transactions. Not following these rules that are specific to your state, could cause legal issues down the road. The end buyer (not the wholesaler) could come back later and raise an issue with the transaction, which could have been avoided if the proper procedures were followed.

Disclosures:

-Just as an FYI: You will see in the contract “a unilateral right to assign without requiring the consent of the homeowner,” this is not common language in a transaction, but they will throw something in the contract to that affect

-The contract should spell out in detail where all the obligations are. It is better to have these in detail rather than leave it open (Running title? Inspections? At what point is the earnest money refunded/non-refundable? Etc.)

-Make sure they are not requiring you to run a extended title report (“ATLA”could cost you $3k more than a standard)

-Attorney fee clause- if there is legal action to enforce you should reserve the right to have attorney fees covered

Overall, I would say if you are confident on the price, cover yourself legally, and the wholesaler shows their seriousness with an earnest money than you could move forward cautiously.

However, I personally would not work with a wholesaler if it was my property.

I hope this helps and feel free to reach out to me directly if you want any help reviewing your numbers and ensuring you have the right price. Just direct message me and I would be happy to help!

Perri Weber 

Hi Everyone!

My brother-in-law has a tiny home business. I am a commercial broker specializing in the MHP world (closed 5 parks last year!). We started discussing collaborating on building a Tiny Home Community (when the timing is right). From my little research it seems to be treated in the same class as trailers, essentially developing an RV park.

However, I believe if done right it could be 1.) A more affordable entry than the MHP world (can buy a MHP cheaper than building) 2.) better asset class than the RV world (more stability and pride in ownership). I am curious has anyone done any research on developing a Tiny Home Community?

Specifically, I am curious about:

1. Any potential known permitting issues with having 15-30 tiny homes on one lot? (I am in central CA)
2. Would you approach it the same way as developing a RV/Trailer site?
3. Problems with this model that you would anticipate? (Aside from a ton more of work researching/analyzing to be done..) 

I appreciate your contribution as I am the first to say that I am not an expert in this, but willing to research, work hard and learn from others. Thank you everyone!!!