Posted by John Merchant on September 15, 2004 at 20:37:21:
Well, ah’ll sure take your word for that…all I know is the old folks’ deals didn’t fit my plans as well as my current game plan.
Guess I was trying to run the ball when I should have been passing it.
John Merchant
Adult Parks- As Good As Family Parks? - Posted by Richard
Posted by Richard on September 15, 2004 at 10:02:13:
Just wondered if one can make as much money and turnover in adult parks as in family parks. In Arizona and it seems mobiles in adult parks sit there longer (more money) than the cheapies in family parks. I would like to work adult parks if possible since they are cleaner and better clientel on the buying and selling side. Appreciate your input and comments. Thank you.
Re: Adult Parks- As Good As Family Parks? - Posted by Steve-WA
Posted by Steve-WA on September 15, 2004 at 22:56:32:
buy right, or better yet - option out and sell before you buy. That’s my preference, especially with buying park-owned homes. 55+ or family, for that matter.
If you buy cheaply enough to absorb a couple months holding costs, its OK. Cash buyers are more likely, but they’re not the only orange in the apple barrel.
Re-post: 55+ parks - Posted by Lin (OR)
Posted by Lin (OR) on September 15, 2004 at 22:29:30:
Richard,
The first deal I ever did was in a 55+ park. It took me three (sleepless) months to sell, but I sold it to a cash buyer and made a profit of $2700. (Bot $2300 + fix-up of paint and carpet + holding costs, sold for $7900.)
The next time I bought in a 55+ park it took me 6 1/2 months to sell, but again, I found a cash buyer and made $3500 profit. (Bot $3400 + no fix-up + lots of holding costs, sold for $10,500.) This time I slept reasonably well.
Here?s what my experience leads me to believe about the buyers in senior parks:
1.) They?re pickier about the condition of the unit ? they don?t want to do fix-up, which is understandable.
2.) They?re pickier about the quality of the park, and the affordability of lot rent.
3.) There is very little interest when it?s cold and rainy. Be prepared to wait it out, if applicable.
4.) They tend to have cash, and the ones who don?t and need financing didn?t meet my park?s income requirements, reducing my qualified buyer pool even further.
So yes, your pool of qualified buyers is reduced, but you can still make money even if you overpay, like I did, and are a slacker about marketing, like I was. I had ads in the paper, but did nothing else.
If I were to continue to do deals in senior parks I would be VERY particular about the quality of the park and the condition of the home. I was make sure I got a great deal on the purchase, because I can count on 3-7 months of holding costs, and more if I buy during fall/winter.
Search the archives for posts by Chuck in Arizona ? his earlier posts were a little meatier than they are these days, but I still appreciate his experience, if not his tone! 
Hope that helps.
Lin
Re: Adult Parks- As Good As Family Parks? - Posted by John Merchant
Posted by John Merchant on September 15, 2004 at 16:49:02:
Although there are, apparently, a buch of posts on this topic in Archives, I’ll give you the benefit of my own poor experiences in a 55+ MHP.
I found, in Seattle/Tacoma area that Srs. are for most part not interested in financing, shop the heck outa prices, and don’t move nearly as fast as I wanted.
So I made myself a promise that I’d stay outa Sr. MHPs & only get involved as the lender, if & when I got a call re the buyer needing financing…which is basically how I approach the MH business.
Re: Adult Parks- As Good As Family Parks? - Posted by The55+GuyFromAZ
Posted by The55+GuyFromAZ on September 15, 2004 at 12:58:19:
This has been done to death already… search the archives for the following.
“The55+GuyFromAZ” (over 400 postings)
“Chuck” (over 2500 postings)
“Senior Parks” (over 80 postings)
“Adult Parks” (about 50 postings)
Yea, they’re all mine.
a little more detail - Posted by Steve-WA
Posted by Steve-WA on September 16, 2004 at 11:03:26:
Dick asks for a little more detail, so here is a little.
55+ or family park: If a park has title, or rights to title, and they ask me to sell because all they want is the income stream of lot rent, not the hassle of carrying-the-note, then I will negotiate to a verbal agreement of ?I pay no lot rent, new tenant/buyer will pay when they are signed. Upon my closing the deal with a new tenant/buyer, and the park providing me clear title (or the paper trail to establish clear title), then I will pay the park X amount for the MH.?
I use a tweaked version of Ernest Tew?s option form ? ernesttew.com has it as a free download, but read it carefully ? it says ?Florida? and his business name in a couple of hidden spots! Generally, it is pretty straightforward; you could probably nuke one out for yourself without too much trouble. You want to remember that your sign stays, PM refers buyers to you, and remember transfer fees when negotiating, and that back taxes are likely. I will often offer to pay any necessary state or county required monies, but I am hesitant to offer, or acquiesce to, back rent. Not my problem. And if it was truly a problem that the park wanted corrected, they would have sold or given the home away to a qualified resident long before now.
True nirvana, is selling-before-you-buy. Especially if your downpayment received covers the cost of your purchase. I don?t really push too hard for that, because I am satisfied with a contractual commitment ? if I can get $500 down, and a note for 200 x 48, I will pay the park their $2K, because I know that it will be coming, and soon (8 months ? then 40 months of free money). Straight cashflow is more important to me than yield right now.
This is really an advantage in 55+, where your target market is narrower, and it can mean longer hold time.
But what do I know? It don?t work where I live!!
Re: Adult Parks- As Good As Family Parks? - Posted by The55+GuyFromAZ
Posted by The55+GuyFromAZ on September 15, 2004 at 23:07:43:
Good point… it was toted in, it can probably be toted out too.
( and the “collective” slaps themselves on the forehead and says … doh! )
Re: Re-post: 55+ parks - Posted by The55+GuyFromAZ
Posted by The55+GuyFromAZ on September 15, 2004 at 22:58:53:
One of these days, I’ll have to pen a book on this topic.
The55+GuyFromAZ
(aka - Chuck in Arizona)
Re: Adult Parks- As Good As Family Parks? - Posted by The55+GuyFromAZ
Posted by The55+GuyFromAZ on September 15, 2004 at 18:05:33:
Chinese (Mobile Home Dealer) Proverb…
You slice an apple, but you peel an orange.
Re: Adult Parks- As Good As Family Parks? - Posted by John Merchant
Posted by John Merchant on September 15, 2004 at 19:56:29:
OK, so…?
Re: Adult Parks - As Good As Family Parks? - Posted by The55+GuyFromAZ
Posted by The55+GuyFromAZ on September 15, 2004 at 20:20:48:
Apples - family park buyers
Oranges - senior park buyers
“You slice an apple, but you peel an orange”.
Both are considered “fruit”, but you don’t eat both in the same manner. By the same token, you shouldn’t a senior park buyer to respond to the same sales approach that you would use on a family park buyer.
So, in the same way that you need to know your “market” you also need to know your “customer”. You didn’t make the necessary “adjustments” in your sales tactics and that’s why it left a bad taste in your mouth.
I own a 55+ park and I’ll take one over the family park I use to manage (on my way up) any day of the week.