Posted by Karl on January 28, 2000 at 01:21:42:
David C.
Thanks for this post, and especially the offline info earlier today. This down home park seems suitable to some of your suggestions. Although a Confederate flag may be more appropriate, this park is in the middle of KKK Kountry (yeah, they’re even up in Ohio). I appreciate your advice.
Karl
got dissed by park manager - Posted by Karl
Posted by Karl on January 27, 2000 at 16:53:37:
I found a real nice park out in the country with about 200 homes, really nice area. I spoke with the PM about 2 weeks ago, told her I was trying to find a nice home for a young couple, I’d buy it, maybe fix it up, guarantee lot rent, owners would hold title. She didn’t quite understand what I was doing, but said as long as it was owner occupied and the park approves them, she didn’t care. She was more worried about the home being vandalized while it was empty, looking out for me.
So I been looking at some FSBO homes, found several motivated sellers, ready to buy a couple of them, got buyers lined up, etc. I even found a nice home I wanted to move into that park.
I call the PM today, she says she talked to the owner, he doesn’t like the idea, I can’t work that park. OUCH! He had a whole list of reasons why it would cause problems, he just wants to do it the old fashion way.
So I ask her if it would be okay for me to send some buyers out to look at the homes, I wouldn’t ever own the home. I’d just collect a finders fee. (I didn’t tell her that). That would be okay. (Gee, thanks!)
I would like to show my face in this park, try to get to know the owner, eventually get him to come around to working with me, build some trust, if possible.
In the mean time, I’ve got a few cash buyers (supposedly) who like that area, if I can’t Lonnie Deal them, I want to at least collect a finders fee.
Dirk, was that you who said the other day that buying them and selling them was the easy part? Working with the PM was where the trick was. I see what you mean. I thought this was looking too good to be true! I wanted to bring the PM along slowly, didn’t want to lay it all out the first time I met, but this time it didn’t work.
Any advice on trying to win the owner over? He shows up at the park now and then, would be tough to know when to catch him.
I’ll move on to other parks, but boy I liked this one!
Karl (OH)
Re: I’ve got a better way. - Posted by Bill K. - FL
Posted by Bill K. - FL on January 28, 2000 at 14:40:11:
Karl,
In the fourth paragraph of your post you gave yourself a hint about the answer to your problem. And here is the earth shattering news. You don’t have to buy to do Lonnie Deals.Heck, You don’t even have to sell for that matter. Let me ask all the experts. Why would you want to be responsible for lot rent, insurance, liability,qualifying to buy when you don’t plan to live there? Doesn’t make sense to me. And hey, If I don’t buy and sell the homes I guess I’m not dealing and don’t need a license do I? Guess I just took away alot of excuses people were having not to get into this business. Think about the essence of the deal and what you are trying to accomplish and remove the unnecessary BS. Refine it down to it’s simplest form and you will see what I mean.
Been there done that…TWICE - Posted by JHyre in OH
Posted by JHyre in OH on January 28, 2000 at 09:30:55:
Got in both times. First time- Manager was OK but wanted to check with owner. He said no. I asked manager if I might plead my case- she gave me the owner’s number. We talked. I took my time…and explained that the MH in question might not otherwise sell, as it had sat for quite some time. I made VERY clear that my buyer would have to go through his manager first and would also get title to the home. He came around. Jeff-OH- that’s Malvern I’m talking about!
Second time the park said no: I said, well, it’d be ashame to have to move the home, but the price was so low that I’d gladly do it. This is like pulling a gun- don’t do it unless you WILL shoot. The manager changed her mind immediately- to my sorrow. That park has been the worst of all the ones I’ve dealt with. Once that home sells, I’m GONE.
Now I have something I didn’t have then- references. In particular, the manager of those five parks in Marysville/Bellfountine is willing to give a good word to non-competing parks…I do what I say I’ll do, I pay lot rent, I fill up spaces, fix MH’s etc. One reference like that should count for more than all the sweet-talk in the world.
John Hyre
The Park Manager Courtship… - Posted by Dirk Roach
Posted by Dirk Roach on January 27, 2000 at 22:01:54:
Hi Karl,
One of the most challenging part of the Lonnie Deal is getting in good with a new Park Manager.
I’m not trying to be a know it all, but I do see a few issues in the above post. Anyhow this is how we learn, so here are a few of my observations.
1st. Two weeks is way too long a time to be out of touch with a new Park that you are selling yourself to. These PM’s like someone who bugs them to death. They want to talk about their world (the park). When approaching a new park, I am literally there everyday for about a week. I stop in the office and say hi, and often times come early in the morning with a dozen donuts. (believe me, everyone likes donuts). I don’t just give them to them, I eat one or too myself. Very important negotiating key. You want to physcologically be on the same level.
Also something I have found is that PM’s (and the majority of folks) like to talk about their favorite subject…themselves. So let them. You will get more USEFUL info than you would believe. To effectively sell yourself, you DO NOT want to go in, and dazzle them with your financial prowess. Turn it around on them and let them sell themselves to you.
Also learn how to mirror people. Match body language, rate of speech, interests etc. Any good negotiations book should have tips on how to do this very effective technique.
2nd. One of the most effective tools that a Park OWNER has is a good Park MANAGER. It sounds that this is the case here. The last thing a Park Owner wants to waste time over is little you or me and our great scheme.
However your manger gave you a very good solution to your dilemma. Phil and others here have pointed this out.
"Well, Mrs. Jones, the old fashioned way is EXACTLY what I’m talking about. Because that IS THE BEST Way.
I am just like Green tree Credit, whom I’m sure that you and the park owner are familiar with."blah. blah, blah.
“You know I must not have explained what I do (not plan on doing but WHAT YOU DO), Would it be possible to sit down with you both, and go over What I do?”
3rd. Spend a little a money. A lunch is cheap, heck your going anyhow, take along the PM. “Hey Mrs. Smith, It’s going on lunch, I’m kind of hungry, where do like to get lunch around here?” “Well that sounds good, why don’t you come with me, my treat, you seem to know a lot about mobile homes, and if you don’t mind, I would certainly like to learn as much as can, especially from someone who knows what they’re talking about” blah, blah, blah.
Outside of the office environment, and you will know when to play the trump card. The finders fee (Or reward fee). Mention that you are always looking for help, on either finding deals, or buyers. And of course you would love to give a little something for that help.
You will have to judge how to play this, because it will vary from individual to individual and situation to situation.
Also Important thing to remember, never fall in love with only one park. If you can’t make it happen in that park, why waste a bunch of time? Go down the road and find one you can do business in.
Anyhow hope that helps, Good luck
Dirk
Re: got dissed by park manager - Posted by David Alexander
Posted by David Alexander on January 27, 2000 at 20:00:40:
Guess we all see it different. If you go around that park manager and arent careful you’ll create an animosity with the PM. That is never good. Tough call depending on how much management the PM had control over I might go around them, on the other hand there are alot of parks out there and PM that like $100 referral fees.
David Alexander
Re: got dissed by park manager - Posted by phil fernandez
Posted by phil fernandez on January 27, 2000 at 18:13:41:
Karl,
If you think you would like to work this park contact the owner and bring him out to lunch and explain what you do. You are a small finance company, who is financing people to buy homes in his park.
For all you know, the park manager never got back to the owner and is just telling you that you can’t do business in the park. Go around the park manager to the owner.
Re: I’ve got a better way. - Posted by Karl (Oh)
Posted by Karl (Oh) on January 30, 2000 at 14:52:59:
I believe you’re refering to being a broker? Or do you mean getting an assignable purchase agreement, then selling it to another buyer for whatever the market will bear?
I’ve “brokered” one deal in the past week, just because I found a home and a cash buyer at the same time, and could throw them together for a fast $1k, and didn’t know the PM in that park yet (PM is also the park realtor). That seems to be the going flat rate that realtor’s charge sellers here. But I want to make more than that on each deal. What I’m trying to accomplish is make the most money with the least effort, AND have everyone walk away happy.
I’ve found a nice home I can buy cheap, I have about 3 weeks before the seller is leaving, plenty of time to find a buyer. This is in the park that doesn’t want me to be the buyer. I’ll hunt down the owner and try to win him over, in the mean time, perhaps a purchase agreement I can sell to an owner occupant buyer?
What is the essence of the deal? I bring value by getting a buyer and a seller together and making the deal possible. I do that for a profit. I don’t care what my exact role in each deal is as I get started here, as long as I’m making deals and learning from each one. In time I’ll figure out whats working best, for now I’m willing to try a little bit of everthing.
Re: Been there done that…TWICE - Posted by Karl
Posted by Karl on January 28, 2000 at 20:40:35:
Hi John, thanks for the advice.
I got the attachments you sent, thanks again.
Remember that park owner I told you about that had a few empty lots, was looking for some cheap, older, smaller homes to stick on them? Today he told me theres one spot left for a 14X70, he has his hands full, the spots mine if I promise to put a home there, he’ll give me 6 months lot rent free. The catch is he insisted that I sell the home on a note (versus renting it out). Well, if that’s how its got to be…
As far as references, over the past 30 years this guy has owned several bigger parks in town, is friends with many other park owners. He’s retiring down to Florida soon. I’m going to bust my rear to impress this guy. (The fact that I always call him back exactly when I say I’m going to thrills him.)
I’ll be coming up to Flag City in a couple weeks to see my parents, lets plan on getting together for a beer. I’ll be in touch.
Re: The Park Manager Courtship… - Posted by Karl (Oh)
Posted by Karl (Oh) on January 28, 2000 at 08:25:03:
Last night at one in the morning I quickly read your post, wrote a quick reply, went to bed.
This morning I’ve re-read your post over a cup of coffee with a clearer, calmer head.
Thanks for the 3 observations. Your advice is sinking into my thick head better now that I’ve read it a second time. I’ll follow your suggestions, will let you know how it works out.
Re: got dissed by park manager - Posted by Karl (Oh)
Posted by Karl (Oh) on January 28, 2000 at 01:28:14:
By the way, this PM stated that they have a rule that any financing must be done by a REAL finance company, because the big companies guarantee the lot rent if someone splits. How about that for a reason not to let an individual create a note?
This park may never be profitable, but it will be an education.
Karl
Re: got dissed by park manager - Posted by Tony-VA
Posted by Tony-VA on January 27, 2000 at 20:44:40:
I agree with Phil. Chances are that the PM, who didn’t understand the deal to begin with, did a poor job of explaining lonnie deals to the owner. Take the owner to lumch or at least meet with the owner to explain it better.
A confused mind will answer “no”. The PM was confused and likely compounded the problem.
Tony-VA
Re: got dissed by park manager - Posted by Skip (CA)
Posted by Skip (CA) on January 27, 2000 at 18:32:21:
Karl:
If you do set up an appointment with the park owner I would explain it as Phil has stated, but I would also let him/her know that your meeting was to insure that he/she clearly understood what you were trying to do. I would not imply or insinuate that the PM wasn’t doing her job as you will have to work with her on a case by case basis and have your potential buyers approved by her in the future. I believe Phil would agree with this. Just my .02. Success to you!
Skip
Re: I’ve got a better way. - Posted by Bill K. - FL
Posted by Bill K. - FL on January 30, 2000 at 16:53:03:
In my state being a broker requires a license. I was not referring to that. I was refering to Lonnie type deals. Have you read his material? If you have ask yourself the question, “What do I end up with after each deal?” Is it cash in your pocket or a note? If its a note then you don’t need to actually buy and assume responsibility for the home do you?
Re: got dissed by park manager - Posted by David C
Posted by David C on January 27, 2000 at 22:11:53:
Greetings!
I also work very hard at keeping outstanding relationships with the pms’ in my neck of the woods. Lunchs, thank you cards, stopping by to say hi, birthday cards, anniversary cards, easter cards, valentine day cards, dropping a U.S. flag off on July 3rd (just in case they need one,) helps to insure that I am a part of their family. For the ones I can’t seem to get to see things my way, thats ok. The turn over for pm’s is generally very high, and in all likely hood, some one else will have that job in 6 months or so. Keep your eye and some efforts in the park you like. Things will change!
Peace and profits,
David C
Re: I’ve got a better way. - Posted by FJW
Posted by FJW on January 31, 2000 at 12:18:08:
Bill
Interesting.
So then, are you buying the note after you help them sell the mh via owner finance? Using the same basic Lonnie parameters?
Thank you.
FJW
p.s. I’m also in FL. Tampa Bay area. There are low-priced mh’s all over the place here, but I’ve been reluctant to pursue further after my intitial investigation of the mkt. Over-abundance of 55+ parks.