Re: 55+ parks- stay away? - Posted by Lin
Posted by Lin on July 08, 2003 at 17:04:07:
My first deal was done in a 55+ park. I bought in January 'cause I was trying to start the new year off with a bang. I re-carpeted and painted the entire interior. I spent about $1300 on clean-up. The place sat empty for nearly 3 months. I had ads in the paper non-stop, and I changed the copy frequently. I only showed it three times between January and March. I had about $5300 into it, after fix-up and three months of lot rent. I didn’t sleep very well.
My third prospect came in, liked it, and bought for $7750 cash. $2450 was enough profit to send me to the CREONLINE convention in Atlanta and buy myself a couple new courses while I was there. Definitely go to the Convention, if you get a chance.
Find out what the slow months are and time your purchases to take advantage of them. Park managers can tell you this. My seller had tried to sell since early fall. By January he was desperate and hadn’t showed it in quite awhile. Things start to pick up in March here in Oregon. Rain keeps people indoors. And I’ve heard, though I haven’t substantiated this, that April and May are pretty good because lots of people are getting tax refunds.
I got dozens of calls, and only 10% were qualified seniors. It was frustrating to let interested, and qualified folks get put on a buyer list while I waited for that puppy to sell. I didn’t want to have two homes at the same time when I was just starting out.
Would I seek out 55+ parks? I guess not, though I loved getting cash, and the wait was worth it. I haven’t done any more deals in that park. The market just isn’t that good for 55+ here. Check the demographics in your area. That’ll give you an idea about whether there’s a strong market.