First time deal - Posted by Sue

import · February 25, 2002, 1:45pm

Posted by Jacque - WA on February 25, 2002 at 16:43:03:

Hi Sue,

You pose some questions that only you can answer. Are you too far away to make this work? Probably ?. I, as many investors have found, Lonnie deal notes themselves can be high maintenance let alone trying to develop out a park… .

Sue, if this is something you want to do then I am sure that it can be done and I am sure that someone out there has probably done this very thing.

However, I would be more interested in knowing ?Why? this park is vacant, how long it?s been vacant and many more questions come to mind.

From phone calls I have received of people wanting to sell their parks to rumors of parks being ?obsolete? in Texas and Oklahoma - I have heard that there are currently numerous parks available for sale in Texas and Oklahoma. Yet, no matter healthy markets will generally support a wide range of houses and will continue to be a viable source of housing and sometimes these are the golden opportunities that investors wait for and do quite well for themselves. We all know that Mobile Home Parks are on the rise versus becoming “obsolete.”

I would think that initially your key to finding out if this park is even feasible ? especially since it is vacant (which doesn?t have to be a bad thing?) is to develop and learn some market strategy. For example, I would be seeking out community information such as other parks in the area, number of spaces, normal occupancy rates, rent amounts, amenities, the local population data including growth, check out the employment statistics, median income. I would also call some of the mobile home dealers and talk to them about the local market. You can even check out apartment statistics, supply and demand of the ?rental? market, etc?Lastly, don?t forget to talk to and get a copy of the zoning ordinances and talk to local planning officials ? they are a wealth of information. This is a just a small list of things you need to be looking at and for in this deal.

After I had all of that information then I would take a look to see the market can support the mobiles as well as what you would be paying for the park to include construction costs if your still interested…

Good Luck with this one and let us know how it goes.

Jacque - WA

import · February 25, 2002, 1:45pm

First time deal - Posted by Sue

Posted by Sue on February 25, 2002 at 14:45:33:

We have found a park for sale in oklahoma. We live in Nebraska. This would be our first deal. The park has 10 vacant homes around the late 70’s on it 6 that could be fixed and rented or sold and 4 that need to be removed. There also is a 1,000 sq ft old house that is vacant. The homes sit on approx 2 acres. There is a total of 9 acres for sale the land has been plotted for a total of 42 mh including the 10 there. The sewer is in for and additional 10 units the water is stubbed in at the edge where the additional 10 units will be placed. The lot rent in the other park in town is at $90.00 per mo this includes water and sewer. If we wanted to rent the mh the rent amount was $200.00 to $250.00. The asking price is $65,000. Are we too far away to make this work? What would we need to do to develope the remaining 32 lots.

import · February 26, 2002, 11:57am

Re: First time deal - Posted by Tony (Ga)

Posted by Tony (Ga) on February 26, 2002 at 12:57:29:

You may have found a small diamond in the rough; however, Jacque is quite correct in suggesting that much further investigation is needed. I would suggest an weekend trip to conduct the required research and face to face questions that need to be answered. Expensive trip - possibly; but not nearly as expensive as buying your way into a potential $65,000 hole. Also, read the articles in “money-making” on turning a trailer park into a community. The information is priceless for a potential MHP investor.