All Forum Posts by: Samuel Coronado

 What companies do you use? I have 5 cards over 20k that could be rented as tradelines. 

 Do you have someone who can finance the creation of a new park? Roughly $500,000

NOI does not consider financing. It's all the expenses minus financing. :)

Where are you getting the valuation from? Is it a multiple of the NOI?

 This is my story in Alabama. Unfortunately it's been very hard to attract investors with such low rental rates and the cost of construction being the same whether you build affordable housing, market housing, or upper middle class. They're all within pretty reasonable jumps, but the margins that attract investors are a bit higher. 

I love this post. I am going to do a similar one on the mobile home park I bought in October to lay out all the numbers for the last 12 months. 

 Frank is the de facto master behind Sam Zelle when it comes to mobile home park knowledge. There are a couple of the things that comes to mind when he says not to build a new park. 

One, he's at a 9-figure level with lots of investors and lenders to answer to. He has to hit certain markers that small mom and pops will never have to address in terms of yield. As someone who has been a general partner in an LP before, I can tell you investors never like to pay down debt early. It cuts down on the CoC and IRR markers they are monitoring. The expectation is that once a real estate project is up and running it should remain profitable for the lifetime of the project. Although bigger is normally better in real estate, there are benefits to being a smaller investor (as Chad Carson points out in his book.)

Two, he has a vested interest in not wanting other people to develop their own parks as there is a bit of supply and demand at play there. What if someone opened up a park next to his within those same good school areas he mentions in the podcast? In some cities, we're seeing what happens when apartments are overdeveloped (lower rents). In a similar vein, many park owners lobby local governments to stop the expansion or new development of parks in the name of progress. Their appeal is partly that it devalues the community but I think rampant homelessness devalues it more. Check out Colorado for a great example of a state that has hindered develop not just on MHPs but every imaginable type of real estate development. Homelessness and higher rents follow due to the restricted supply making things worse. 

I think there is a case for developing new ones. This commercial real estate sector will continue to rise. Septics, land, and utility installation will not get cheaper. When we look for land today, there's always a premium on those plots that already have utilities and septics installed. As much as a $60k difference on half an acre sometimes. 

 Thank you very much for that link! 

Is it possible to put a mobile home on there?

If you come across anything in north Alabama, I always looking for deals on MHPs whether POH or TOH there. Experienced end buyer.