Am I buying a Mobile Home Park or a J.O.B. ? - Posted by Leigh, Fl.

import · April 29, 1999, 8:59pm

Posted by Matthew Chan on April 30, 1999 at 11:24:09:

That was a great reply. I was hoping you would respond. I can see where tired people would want to get out of a MH park. You brought a lot of good valid points that I intend to keep in the back of my mind.

import · April 29, 1999, 8:59pm

Posted by Leigh, Fl. on April 29, 1999 at 20:59:32:

Hello to all,

I would like to purchase a MHP under 100 units in Florida or lower Georgia. In doing my research I’m finding desperate sellers in rental parks, who had no idea of the J.O.B. that came along with the purchase of their park.

It apppears these motivated park sellers were intending to supplement their retirement income, and live in a warmer climate. Some were factory workers with handyman experience, and had placed their life savings into these parks.

One guy I talked to in Alabama bought a rental park with 50K down and seller finance. He told me horrid war stories about his rental park, actually talked me out of pursuing a purchase. Of course, he wanted his 50K out.

Most state the reason for selling is due to health problems. I suspect they didn’t have sufficient working capital, nor did they consider continous park improvements. The main improvement would be replacing older mobile homes, easing out the rentals, and then doing Lonnie deals. The results would be a higher income type buyer. I do understand renters do not take care of the property like owners.

It’s been said, to find a queen bee who lives in the park. This person would take the lot rents and oversee the management responsibilities in return for free or discount rent. As owner, it wouldn’t be necessary for me to live in the park watching the grass grow. My presence would only be necessary if there were problems. Well, what about a handyman?

I’m not a passive investor and feel these sellers became motivated because of the above reasons and lack of management. On the other hand, I certainly don’t want to buy myself a J.O.B.

All input is greatly appreciated. Also, any ideas in locating these parks for sale. It has been like finding a needle in a haystack.

Thank you.

Leigh, Fl.

import · April 30, 1999, 7:29am

Re: Am I buying a Mobile Home Park or a J.O.B. ? - Posted by Lonnie

Posted by Lonnie on April 30, 1999 at 07:29:29:

Hello Leigh,

If I were looking for a park to buy, I would look for the exact type sellers you mentioned…the ones with the horror stories, no management skills and who never should have bought a park to begin with. You should be able to “steal” the park from someone like that. It takes a lot more than a factory worker with handyman experience to be able to run a business.

Like all businesses, a mobile home park is a “people business” If you can?t manage people, you can?t manage any business successfully. I don?t know of any business I would rather own and manage more than a MH park. A park will produce more income, with less hassle and problems than any business I know of, IF you have management skills and know what you?re doing. If not, then you will be another park owner with horror stories.

Lets do some “supposing”. Suppose you bought a 100 unit park. The tenants own the MH?s, so you have no management or maintenance problems concerning the homes. If the pipes freeze, or the appliances die , it?s the tenants problem, not yours. You rent the dirt space to the tenant. How much trouble can dirt cause?

If you have a tenant who doesn?t pay the rent, or causes problems, evict them. When they move, they have to take their home with them. If they trash the home, so what, it?s their home. You have total control over that tenant. Now you have a vacant lot that you can place a nice used home on, sell the home and create a note. Now you have two checks coming in…one from the MH and one from the dirt. And you?ve eliminated at least 95% of the landlord problems you have with typical rental properties.

I would find the most reliable and worthy tenant I could and give them a break on the rent, or pay them a salary to oversee the park, do odd jobs and keep me advised of any problems. The rents would be mailed to my PO Box, not collected by any manager. I would have an unlisted phone # and the only way the tenants would be able to contact me would be through my manager, or a letter to my PO Box . I would have the park in a Corp, LLC or whatever, and the tenants would not even know I was the owner. If a tenant saw me in the park, I would simply be the hired help checking out a problem.

It may take some time to get a park up and running like you want, but once you do, and you have good tenants, you should not have to spend a lot of time, or have a lot of problems with the park. But again, you must be able to manage people and manage your business. If you?re not willing to learn how to do that, my advice is stay away from buying a park, or any business. Before you undertake buying and operating a park, study some good books/material on property management, dealing with tenants etc. You?ll be glad you did.

Mobile home parks are “gold mines” if you know how to extract the gold. Otherwise, you only wind up with the dirt, a tired back, and horror stories.

Good luck,

Lonnie

import · April 30, 1999, 12:11am

Re: Am I buying a Mobile Home Park or a J.O.B. ? - Posted by Mark, Dallas

Posted by Mark, Dallas on April 30, 1999 at 24:11:30:

I am also interested in buying mobile home parks,
Keep me posted
I have one I am working on right now, I need to raise $60,000 for a down payment, anyone have any suggestions? Thanks

import · April 29, 1999, 9:09pm

Re: Set up a new system that works for you. - Posted by Millie I.

Posted by Millie I. on April 29, 1999 at 21:09:25:

Leigh,

Keep me posted, I am looking into MHP also. Haven’t found anything interesting yet. Actually too busy renovating right now to do too much running around, but I would appreciate if you would share your new found knowledge with me. Email me on your progress, I will cheer for you.

Thanks, your friend,
Millie I.

import · April 30, 1999, 7:01pm

Re: Am I buying a Mobile Home Park or a J.O.B. ? - Posted by Leigh, Fl.

Posted by Leigh, Fl. on April 30, 1999 at 19:01:51:

Hi Lonnie,

I’ll bet those motivated park owners without management skills didn’t even consider eliminating the rentals and doing a park turnaround. But then, they don’t know about creative online, seminars, and great mentors like Lonnie Scrugg’s.

The lot rent for the MHP in Alabama was $65.00. The tenants work construction for 5-6 bucks an hour, and probably would never be able to afford the purchase of their home. My mind is boggled down with facts to consider before a MHP purchase.

I will continue with my due diligence, hoping a sweet deal like Janet’s MHP turns up. Man, such a sweet deal, and it was right underneath your nose, Lonnie! LOL

I sincerely appreciate your input. I will keep you posted on my progress.

~Leigh~

import · April 30, 1999, 7:01pm