Debra, This (the park itself)doesn’t sound like a very good or even a half good deal. I don’t care to invest in war zones. They’re OK for some people, but I will spend my time and money elsewhere. Too dangerous and besides, it wears on you mentally and physically dealing with the negatives associated with these types of areas. If you’re at all inclined, just try to put a deal together and let an investor put up the money. If no investor will make the deal, then you have your answer. You could put in your efforts to locate the park and possibly market it as a potential turnaround situation, but the details and the work are better left to professionals who have done these before. If you find someone who can and will turn this around, just watch and learn. Take a small percentage for yourself and learn. In the meantime, look for properties in good parks with people that have a problem.
Good luck. BillW.
Gurus…I’m not sure what to do… - Posted by DebraSC
Posted by DebraSC on January 17, 2001 at 08:18:08:
Hi,
I am a newbie with 2 mh deals under my belt(I like to do net leases and Lonnie deals). I mhp owner told a seller about me. Seller has 14 x 80 Fleetwood, 4bd/2ba, good condition, but the park is getting junky (no paved streets, children that tear up empty homes, a few suspicious-looking characters walking the street, etc). A mh deal friend of mine said the mh was worth about 9k. This seller owes 12k. She is really a nice lady and I told her I wasn’t sure what I could do with the home. She has no problem with paying the lot fee, loan payment and insurance to see if I could bet someone in it, but, should I even try? I can’t sell the home for 12k can I? My understanding is that when the buyer tries to get financing, they won’t do it because the price I am charging is too high, or am I wrong about this? I would really like to help this lady out. Please give me some advice.
Posted by David S on January 20, 2001 at 16:07:55:
how many sites in this park?
have you asked the seller if she will accept anything less than the payoff? Some will, and fast!
are there any other vacant mh’s that you could buy for pennies on the dollar?
Parks like this can be a goldmine IF you can get enough of the right things going in the right direction.
ex: Go door to door to see if some of the residents know anyone that may want to own their own home. You may be surprised at how many family members of the residents would jump at the chance to live in one of these “worthless” homes for about 150 per month plus site rent. This is a great way to sell/finance and clean up the area in one shot.
Never give up on a (possible) opportunity until you have explored every avenue.
Debra, Why not consider buying the entire mobil hopme park. It looks like a turnaround possibility if you can do the right things. I’d consider passing on this mobil. When the loan payoff is more than the value it’s just too hard to do the deal. Look for a better deal.
BillW.
I would be very weary of purchasing in a runn down park unless you have someone to occupy the home quickly.I am giving 10 to 13K for repo double wides in a repo lot.The only alternative would be to buy it and put some libility insurance on it ,that way if it gets trashed the insurance co could help you pay down that 12K note.
Posted by JHyre in Ohio on January 17, 2001 at 08:48:43:
You could make some money on it by L/Oing from seller and L/Oing to buyer at better (for you) rates…but it’s probably too low a spread with too much potential liability. Use your time and money to find a better deal…upside-down homes (debt > FMV) are common, but you work way too hard for your money on those deals. Lazy people like me prefer to buy much lower and resell…less hassle, less risk, more profit- win, win, win!
Posted by Debra-SC on January 23, 2001 at 22:02:19:
Sorry I took so long to reply David. That’s a good idea. I don’t think the seller would mind my doing a little survey. BTW, she has had this mhp a long time. there may not even BE much of a payment to assume.
I have been considering that but… - Posted by DebraSC
Posted by DebraSC on January 18, 2001 at 08:24:36:
my only concern about buying the park is that she is asking too much (329k, which I could probably pay less) and that the mobile home is located 2 blocks off the main road that has nice brick homes on it with a block-long of old frame houses. Some of them are burned, some falling down, etc. I am agraid this bad area between the mhp and the main road will not attract people who really want something nice, as apposed to just needing something to live in and don’t have much $$ to spend. I think the park can be turned around, but that area of deterioration has me worried.
What are your thoughts?