100K for 100 MHs. - Posted by Todd

Posted by Todd on February 03, 2001 at 18:58:49:

Thanks Jim for the valuable input. It is not either of those parks you mentioned. When I inquired if they would have to be moved he implied that he did not want them to be and they can stay. What do you and the other experts think about a longterm space lease (at a discount, of course) and stating in it the mobil there stays for the duration of the lease? Thanks again.

100K for 100 MHs. - Posted by Todd

Posted by Todd on February 03, 2001 at 15:23:17:

I need the experts advice on this possible deal. Just talked to a owner of several large parks in Boise who says he owns approx. 1700 mobils and the parks they are in He wants to sell 100 units for 100K. Units are currently rentals. Age range from early 60’s to mid to late 70’s. He would sign agreement that they do not have to be moved. He needs all cash and will not carry any portion. The space rent is 275/mo. Rents range from 400 to 450 per unit. To me this looks like 15k to 17.5k per mo cash flow. At that rate I could afford a full time handyman to handle the day to day maintenance. My thought was to keep them as rentals until they became vacant and then do Lonnie deals on them. So tell me guys, is this something worth pursuing and how can I find financing on this? Thanks in advance.

Re: 100K for 100 MHs. - Posted by JohnBoy

Posted by JohnBoy on February 11, 2001 at 04:41:27:

What about when you go to inspect each home you get with each one of the tenants and see if they would be interested in owning the home vs. renting it if they could come up with a $1000? For each tenant that would be interested you would be getting that home for FREE since you would be using their money to pay the seller for that home. In the end you end up with a bunch of FREE MH’s and sack full of MH Paper that you would be collecting income on. You could even sell off some of that paper as a portfolio of notes to get the cash to pay for the homes the tenants can’t come up with a $1000 down or want to own them!

If you get enough tenants to buy with a $1000 down you can make this deal happen without using any of your own money or even having to get any financing!!!

You end up with a bunch of notes paying you a nice income stream! Or you could sell off all the paper and settle for a nice payday up front!

Re: 100K for 100 MHs. - Posted by Jim in Alabama

Posted by Jim in Alabama on February 03, 2001 at 23:41:37:

Check the condition of the homes very carefully. I had a similar situation that got me really excited. It turned out that the homes were totally trashed. Ask yourself this question “why does this guy want to sell me this particular 100 homes?” If he is desperate for cash he would be glad to let you pick the homes you wanted to buy. Good luck.

Re: 100K for 100 MHs. - Posted by Jim

Posted by Jim on February 03, 2001 at 17:04:01:

I would exercise EXTREME caution. This deal – in our market – sounds a little too good to be true. As a former park owner and former manager of multiple parks, I speak from experience when I say that some of these park owners are real snakes in the grass. They may in fact transfer ownership to you for the amount advertised and then jerk you around 14 ways to Sunday with “mandatory exterior visual upgrades” or requirements to “pre-qualify any new tenants” or you name it. If your prospective seller has anything to do with Blue Lake (or is it Blue Valley . . . I believe his first name is Steve . . . former or current attorney who LOVES to seperate “investors” from their money) or has anything to do with Indian Creek MHP in Nampa (near Boise), my advice would be to RUN as fast as you can and do NOT look back. On the other hand, if you’re able to devise a contract that can successfully protect you from these wolves in sheep’s attire, I’d love to read it. Never forget: whoever owns a home on a rented site is at the complete and total daily MERCY of whoever owns the park. As a manager, I evicted numerous landlords who had rental homes in my parks and thought they were safe. I speak from direct personal experience. Good Luck! JIM - Boise, ID