All Forum Posts by: Shweta Patel

Date is listed incorrectly- it is THIS SATURDAY, July 20th 2019!!

I just wanted to update everyone on the details of this weekends event.

It will be at Barley & Hops in Windermere ( 7782 Winter Garden Vineland Rd, Windermere FL 34786) at 6pm-8pm.

Ask for BP MCO's event when you arrive

There will be complimentary appetizers and drink specials and lots of networking opportunities.

We hope to see you there!

Don't miss this unique opportunity to mingle with some of the brightest real estate minds in our area!

Join us as we kick off this FREE EVENT: with complimentary appetizers and drink specials all night!

You may be a beginner looking to learn the basics of how to get started with your own investments. Or an accredited investor wanting to expand your network, or already have deals under your belt and are ready for the next big step- BP MCO will have you throwing back pints with the right people! 

@Mauricio Quintana Have you checked out Kevin Bupp or Frank Rolfes pod casts? They are VERY helpful and were basically my 101 to MHC's. They also have "university" sites with lots of information to peruse. As far as the key analytics here are mine:

1. Location- Make sure that they are in an area that has an economy of some sort to support the need for affordable housing. As well as the median home and rent costs being > than the average rent of a MH or lot rent by enough to warrant living in a park versus just buying or renting a standard home or apt.

2. Utilities: City water and sewer require the lease amount of maintenance vs. septic/well/lagoons.

3. Park owned vs Tenant owned: Park owned is more like when you have a apartment building- you are responsible for the maintenance of everything. The rent is higher, but the banks or financers wont really count that as income like they would in an apartment building when computing the value of the park. Tenant owned means you are renting them the parking spot and only are not responsible for the home itself. Lower rent because it is just lot rent, but less involvement.

4. The expenses usually are taxes, utilities ( sometimes they are paid for by the tenants, others they are by the owner), insurance, legal fees for the LLC/inc/permits and such, landscaping, any well/septic treatments, and then capital expenses/maintenance on homes.

5. The cap rate is more frequently used in this asset class than COCR to assess how good the deal is. And the rents are more an indication of the location, comps, and what is included vs. the 1% rule like in apartment buildings.

6. You are not responsible for paying for the moving of the home when you evict them. They are. And if they cant, they abandon it and in that scenario, you could file to take it over given that it is on your property. If not, then yes, you would have to pay to have it removed.

Best!

Hi Jacob, where are these properties located? What is the cap on the MHP?

I think bigger pockets is a great place when looking specifically to offload a contract.

Offmarket just means the broker has not been guaranteed a commission or the seller hasn't " signed" yet with a specific broker. Its working off the unspoken rule that you wont go behind the broker that gave you the offmarket deal and contact the seller on y our own. Doesn't mean it does not happen. Sometimes, if you have signed with the broker as a buyer, and they have an offmarket deal, if the seller declines to pay the broker, they can actually come to you for payment based on their agreement with you ( so be careful).

@Dominick Dahmen : often sellers will list a cap rate that is not accurate. A true cap rate in the MHC class is based off of Lot rent only.

If they are listing a NOI of 100K and selling the property at 1M, that would only be a 10% cap if the 100K is entirely made of lot rent.

Most just give you the total NOI ( Including rents received from park owned homes that are higher than just the lot rent).

Don't get me wrong, its still the best performing asset class out there. But the numbers you are stating sound like a pink unicorn. And I would make sure to perform very strong DD on the property because there might be some deferred maintenance that is down the road that they want to off load onto you by selling at a lower price.

If it is truly based on lot rents only, and the property is truly " turn Key" , please reach out to me, and id be happy to help you scoop up as many as you can find. ( hah!)

I would agree with accounting for more communal spaces. Particularly if you are hoping to attract a higher end clientele/microhousing/small carbon footprint trenders. They gravitate towards places with built in socializing areas - play area will also help keep down lawn clutter in the forms of swing sets and trampolines. Dog park/run takes very little maintenance and again appeals to the right kind of pet owners. A central laundry facility could serve to be very profitable. Good luck!

Thank you @Bill F. @Anthony Dooley @Jay Hinrichs @Wayne Brooks ! Appreciate the help!

I would imagine if the price of the trailers that are park owned in included in the sale price, than so should their deposits as the deposits are not their as income but security in case these tenants decide to leave their contracts.

If they aren't included in the price, than the previous owner intends to have property in my park and rent the lots from me, in which case they would be " tenant owned homes" , just that the tenant would be the previous park owner. In which case the deposits would stay with the previous owner.

Question is- which is better?