Sound’s like a great topic for the CRE convention and the dealmakers forum. If you haven’t been, they present deals and get suggestions from people that have done what you’re trying to do. Also, I’m guessing Ed Garcia’s course would be extremely helpful for you right now. You’ve done an amazing job on your own without getting banks involved, but he could show you how to get the help from the banks.
What you’ve done is outstanding, like Marty said, keep us posted and start working on the conventional side for financing.
Posted by trailermonkey on March 22, 2006 at 19:03:55:
I live in Austin Tx. There has been a change in ownership in a large community where I have 65 late model upper end mobile homes. About half are singlewide and half are doublewide. Most are 2000 model, with some being 1998-1999 model. All have either vinyl or hardboard siding and composition shingle roofs. 60 of the 65 units are under lease purchase. I have a great group of tennants. A few are habitually delinquent 30-60 day, but most pay like clockwork! This community may require these residents to relocate their homes, due to the possibility of selling this property to a developer who wants to build track homes on this property!! I have the option of offering my customers the option of having their homes moved to a couple of different communities withen the area where the expense of relocating these homes will be absorbed by the communitites, but, I see this as a potential opportunity to purchase a park of my own. I could buy or build a 75-100 space community, and fill it instantly. What would you guys do in this situation? Thanks ahead of time for your replies or suggestions.
I saw a guy a few posts back who can help - Posted by Marty (MO)
Posted by Marty (MO) on March 22, 2006 at 19:32:06:
he has “texas size balls” and has bought properties from “10.00 to 1,000,000,000,000,000,000.00”…
I love how you’re looking at this as an opportunity instead of stressing out! I would be looking for a park, too- you have a key ingredient with all these homes. many people who buy parks only have enough money to get the park, but they don’t have enough reserves to turn the park around by acquiring new homes. Something you might consider is buying a big piece of ground and parceling it out to your buyers. You could carry the note on the home and the ground…
I haven’t been in this situation, but I’m excited for you. 65 late model deals? how’d you structure your deals to get these homes?
Re: I saw a guy a few posts back who can help - Posted by trailermonkey
Posted by trailermonkey on March 22, 2006 at 21:57:18:
I have definetly thought of buying enough land to do .5 to 1 acre lots and converting these customers to land/home notes. If I could stay within a reasonable distance of the community, I would venture to guess that that I would have close to a 100% success rate converting my customers to to “land owners” versus leasing a 60x100 park space. All of my customers had to be convinced to rent their spaces instead of buying their own land. Most just did not qualify for an outright mortgage at the time, so they settled for buying their home and renting their space. I would welcome the opportunity to turn these 65 notes into 130 notes by financing their land for them. I would prefer to continue to finance this package especially if I owned the land also. The problem is, I lack the experience in gathering the neccessary capitol neccessary to fund such a venture, and have 1 year or less to complete the project. I would either have to locate a project that is already in place whereby the current developer was worn out trying to sell and wait on sometime for some outside lender to fund his sale, or be able to develop in a hurry. I have found in the past that buying someone elses “problem” is much more cost effective than starting from scratch. I have 25 years worth of experience in the manufactured housing industry with an outstanding track record, but am ignorant on securing financing for such a purchase or developement. These 65 units are only a fraction of the actual homes that I currently own and finance, and I did this with my own capitol. I am note/asset rich-cash poor! Every time My cash has built up, I have gone and purchased more units or individual MH property. I never fund theseloans through a bank by choice, so it gets a little cash poor at times! I do have EXCELLENT credit and an extensive, and extremely successful track record in the industry. Im just not sure how to best put this together quickly. I sure need any helpfull info anyone may have. If I did do these as land and home notes, I should be able to season the notes and sell them on the secondary market should the need arise. THANKS FOR ANY AND ALL SUGGESTIONS
I can help with the financing on a MHP if you want to go that route. I would suggest a search of existing MHPs within you area and deal directly with the owner to consumate a deal. The land/home is doable, its just a matter of putting it togather and finding the right property. Let me know if I can assist. Happy Hunting.