All Forum Posts by: John Arendsen

So glad to hear all the good news! It's great to be vested in a community that welcomes you; especially since/cents you're going to bring improvements and upward mobility.

Contact @Ken Rishel on this platform.

Contact @Ken Rishel on this platform. I'm sure he can help you.

@John Powell so are you saying you've recently sold a MHC in the past 45 days or so? What are you qualifying as a viable 1031X? Just curious. Perhaps 1031's are different in FL than in Cali.

First thing I'd do is some real good DD. Florida is notorious for condemning and rezoning MHC's for higher and better use. Tread lightly until you get some real strong answers.

Actually @Ken Rishel you read my mind. I was planning to do just that. I think it's good fodder for a post and surely something that folks interested in investing in MHC's need to know about. I could probably write a pretty eye opening book about some of the cases I've been involved with over the years.

That stated, just to be clear, I'm not an advocate as many EW's are. I've been very open and objective about the cases I've been retained on. I've been all over the charts from representing manufacturers, dealers, contractors, MHC owners, homeowners/tenants, albeit most of them are pro bono. I just don't feel right about taking a chunk of $$$ from an 80 year old widow in a wheel chair or an old feller on an oxygen tank.

On another note do you work with investors on your MHC acquisitions? If not are there any viable and successful REITs that portfolio MHC's?

Not to argue or contradict @Ken Rishel as I respect his knowledge, expertise, experience and obvious success in the MH Industry, however, one thing I've personally experienced over the years as a General and Manufactured Contractor, Manufactured Home Dealer, Real Estate Broker, Developer, investor and property manager (my own portfolio) is that in park sales personnel, be they the manager or an in park sales dept., is that it can be construed as somewhat of a conflict of interest to residents wanting to sell their homes if they feel they are obliged to list their home with an in park employee vs a RE professional or MH dealer of their choice.

There are a few MHC's in my neck of the woods who have done and some that still do this and the homeowners/tenants really resent it and often opt seek their own representation. I've actually been retained as an expert witness to testify against MHC's who have all but threatened their residents and tried to ban outside sales of new and existing homes, require homeowners/tenants to go through their in house sales staff and contractors. Guess what? They lost in every instance. Bottom line America isn't a dictatorship. It's a free enterprise and capitalistic system and no one is allowed to restrain free trade. At least not yet.

I have a friendly competitor who lives in a very upscale MHC in a very popular coastal community. His MHC is in a rather messy lawsuit because they threatened to evict him if he kept selling and/or installing MH's. This community owner and management team have set up their own in house sales and construction team and have attempted to refuse any outside competition. 

It's not going to end well for them. In fact if it goes to trial by jury the plaintiff could be awarded some pretty hefty punitive damages at the end of the day. I've actually been involved with cases where the punitive damages actually forced the MHC owner/s into bankruptcy and lose their investment altogether because they couldn't pay the punitive award which to my knowledge is not covered by most insurance companies under their personal liability policy. 

Just a thought. 

Contact @Ken Rishel on this platform.

Any education can better prepare you make wiser decisions.

Due diligence is critical.

• Is the MHC in THE PATH of PROGRESS? Most important is the neighborhood history. Is it in a blighted area? Or is it in decline?
• Vacancy rates
• Age of homes
• Condition of the homes
• How many homes does management own and rent out?
• Sewer or septic
• Well or City water
• Condition of electrical
• Condition of gas or propane lines
  
• Type of residents
• Is the MHC a senior or family park?
• Asking price
• Rent
• Cap rate
• Is the MHC under rent control.

You might also reach out to @Ken Rishel. on this platform. He is a book of knowledge and experience on this and may even know of some MHC's for sale.