Posted by John M. on September 14, 2004 at 24:01:16:
Brokers will say anything. My sister-in-law is a realtor. Everything is a good deal to her. Everything pencils. She thinks buying properties at market value is a wise thing to do, because she guarantees they’ll all double in 10 years. I smell bankruptcy in her future, because she will buy anything.
Getting Frustrated - Posted by John M
Posted by John M on September 12, 2004 at 21:48:39:
Searching for a park to buy in my area has left me exasperated and frustrated. The problem is, that everything right now is a sellers market. Check this out. A real dumpy park, with 34 spaces, of which 9 are vacant. Space rent is $190 per month. Water, sewer, garbage, taxes, and insurance are around 15 grand per year. The guy wants $525,000 for the place! Another one has 18 spaces with 4 vacant. Similar lot rents, and the guy says he’ll let it go for $450,000!!! These guys are smoking crack! I’m not sure I can find a motivated seller in this market, but I’ll keep searching. Thanks for letting me rant.
John
It could be worse - Posted by Eli
Posted by Eli on September 13, 2004 at 19:52:22:
I know what you mean about finding a deal on a park. I went on a trip to AZ looking for parks last week. I looked at about 5. The worst deal that I looked at was an OLD park, built in the 50’s, old pipes, old sewer lines, 30-50 AMP electric. Small spaces (can only accomidate 45’ trailers, lots of drugs, non paying tenants, tons of junk and they still want about $25,000 a space. The broker said, “oh but it is a great deal, it is a Pro forma cap of 7, forget about the actual cap rate.” Then the broker wanted to argue with me saying that larger homes could fit in the park and that 30-50 amps was plenty.
Its a good thing that we all have a sence of humor.