How To Deal With PM ..... Part 2 :) - Posted by Rainy

Posted by Paul NM on January 04, 2001 at 12:55:35:

Hi Rainy,

Interesting posts; I hadn’t thought about the conflict of interest concerns of a PM.

One thing this forum demonstrates is the variation in circumstances between markets and how that effects “Right” and “Wrong” ways to do things.

My market is so slow, with so many vacencies, the parks are rumored to buy older homes to prevent pullouts and help hide just how serious the problem is. It is hard for me to even imagine a market where a dealer would buy an old one just to get access to a space; yet I know it is true.

The point I am trying to make is that markets change over time and this forum makes a good place to learn about strategies that work under different circumstances.

Paul NM

How To Deal With PM … Part 2 :slight_smile: - Posted by Rainy

Posted by Rainy on January 04, 2001 at 01:44:37:

Please read the first post…

Once you have your application and list of items required for Park Approval, fill out the application completely. Make sure you put your full mailing address including the zip code on the application. Make copies of everything you will need to submit with the application. Stuff everything in one of those BIG Orange Envelopes :slight_smile:
Wait two or three days and drop it off at the PM office
(after office hours) in the night slot. :slight_smile:
Again, after office hours, call the PM and leave a message. Tell the PM you were in the area and dropped off the application at his/her office. Please contact you if he/she should need anything else just in case you forgot something. Remind the PM to let you know when you are approved. Be nice and thank the PM for their time and effort. :slight_smile: Screen all calls.
Try to never talk to the PM on the phone or in person until it is necessary. Sometimes, it may never be necessary. :slight_smile:
Do the Phone Tag thing! :slight_smile: You should receive a letter of approval signed by the PM within 15 days by mail.

Now here is the clincher! :slight_smile:
Once you have Park Approval, you have “Park Approval.” You have not specified any particular home you plan to purchase or space you intend to lease. Even if you did specify a specific home or space, that does not mean you can’t buy more than one home. Once you have Park Approval, you are not required to even lease a space or buy a home. You dont even have to have Park Approval to buy a home in a Park. This is a free country and you can buy anything you want anywhere you want. After all, it is not the PM or Park Owners place to feel they can “LORD” over any sale of any private home from seller to buyer. PM and Park Owners are just leasing spaces! You want to get Park Approval to keep down the problems and idol threats! :slight_smile:

JOE BLOW: Your Honor, I do have Park Approval… :slight_smile: :slight_smile: :slight_smile:

There are times it is required to HAVE Park Approval…
When you plan to lease the space and live in the home or you are trying to keep an old junker in the Park.
When the PM threatens grandmas’ old junker and requires the home to be removed from the Park upon the sell to a new buyer, you can fight the system, but it’s not worth the effort. Believe me. This is not a hassle for the PM to do. One phone call and petty cash will get an inspection. Besides, do you really want to pay the space rent while you wait and wait for the inspection? NO YOU DON’T.
So buy grandmas’ old junker for $1000 and sell to a broker/dealer for $2,500 who will pull the home out of the Park. Be sure to have a few broker/dealer friends to accomplish this one! :slight_smile: The broker/dealer wants the space, not the junker. Unless broker/dealer has a place to set up the home in another Park for sale. Besides, a good broker/dealer can pull the home from the space and sell the home to cover the cost of moving and still pocket a several hundred bucks or more. Then, broker/dealer can put a new home on the space for sale. Most Parks give concessions on space rents, incentives for new homes. :slight_smile:

And by the way… I read a posting here where a PM was inspecting the interior of a home and having the owner put in new carpet and have it painted, etc. before the PM would give Approval of a sale to a new buyer.
The next time this happens, have the PM put all those requirements in writting and sign his/her name. :slight_smile:
DAHHHHHHHHHHHHHHHHHHHH I bet the PM won’t do that!
write a certified letter to the PM and
The Park Owner and/or Management Co. and ask questions.
Will you please send me a copy of the “rule” or “law” that gives the PM, Owner, Management CO. the right to request these requirements before the sell of the home or approval to a new buyer?
Don’t forget to CC: Name of your Attorney on those letters.
If I am wrong, someone please point it out to me.
The PM only has the right to inspect the exterior of the home and the space which may require certian repairs.
The PM has the right to have the home inspected for Health and Safety at the Park Owners expense. Health and Safety could cost you more in wait time in space rent than the home is worth.

Please feel free to educate me on any issue if I should be wrong. :slight_smile: Knowledge is Power!



Posted by Blane (MI) on January 04, 2001 at 08:30:32:

Hi Rainy,

I’m the lucky soul who had the problem with the park and the inside inspection. I could have taken the route you suggest, with probably disastrous results. I had a decent relationship going with the PM and park inspector, but they treated me the same as everyone else. The home inspector, PM and owner are all on board with this policy. The original repair list was in writing. So what? She just came in later and said, “oh, I missed it. Fix it or no OK.” It’s the way it is in that park. My MH broker salesman friend hates that park. He warned me, so I have noone to blame but myself.

To send a certified letter with a lawyer’s name on it to anyone could have been disastrous. By the 3rd inspection I’d already decided to stay away from this park. I already had some wonderful buyers who were thrilled to buy the home. It was easier to bite the bullet, dye the carpet, fix the floor spot and be done with it and get out of the park. Resolve the problem and move on. I still made a nice yield on the home (almost 100% annual).

There is some sort of guideline in Michigan that allows parks to have policies like that, but don’t quote me on it. The owner of that park is a top dog of some sort with the Michigan Manufactured Housing Association, so I’d bet he knows what he can get away with. Another park in my area is now requiring all sellers to vinyl side their home before selling if they don’t already have it. Once a park has more than 50% of homes with vinyl siding, the park can require all subsequent sellers to do same. Pain? Yes. Legal? Also yes, apparently in Michigan anyways.


Re: How To Deal With PM … Part 2 :slight_smile: - Posted by Tony_VA

Posted by Tony_VA on January 04, 2001 at 07:23:41:

Hi Rainy, as always, you have an interesting perspective. It is good to have your input here that shows how PM’s work.

I would have to politely differ on the approach to the PM, as an investor.

Many new investors are nervous about dealing with park managers initially. Your suggested method would certainly keep things informal and distant enough to remain comfortable for the new investor.

Why I differ is this. As an investor, we need the park manager as an allie, not just a mechanism in the machine. As a Lonnie style investor, I value the park managers very highly. I would hazard a guess that 90% of my buyers and sellers come as the result of park manager referrals. If I were to remain a night drop applicant, I would never have received these referrals.

This business is a people business and unless I can establish a rapport with the manager in the park, my deals are done there. Yes, your method would get me permission to buy homes in the park but it would not get me the referrals to the motivated sellers necessary for my business to prosper.

I need to locate motivated sellers. I need to help my parks get rid of tennants who are constant slow pays and bad neighbors. I need to be one the park calls when they end up with a home they do not want. I need to be the one the park refers people to when their court date is tomorrow and they will lose their home and have no money to move with etc. The point is, I need the park mangers trust that I CAN and WILL solve problems for them and their tennants and assist in bringing in new tennants that the park manager approves.

Your suggested method of buying homes for a grand and selling them to a broker for $2500 may have it’s merits but it is not the investment I prefer. To each his own right! Actually it would seem to me that your method would be a good side business for a park manager. You know which homes need to go. You have contacts with brokers all the time and know which brokers and dealers need lot space and when. You would have little holding costs because you could sell before you buy. The average Joe could buy the home and offer it to a Broker but there is not guarantee it will close quickly and lot rents may eat it up profit fast. In my area dealers are hesitant to purchase homes in this fasion because they may not be able to sell quickly due to the financing cut backs in the market. The dealers don’t want to fork out $3k for an older home and have to move it (usually to the dump). Now I could see Conseco looking for such an arrangement with parks to market their huge inventory of repo’s in hopes that local Brokers can sell the homes. But let’s face it, if Conseco, or a dealer, brings a newer home into a park to market, they are going to want concessions from the park in regards to lot rent. They would need to deal directly with you, not a middleman investor. If they cannot get the concessions from you they need, the deal is off and the investor is stuck with an older home that you, the pm, may or may not let stay in the park. Since you don’t know this investor, other than from his application, you have not rapport to go on and little reason to look out for his business interests.

So long story short, I still recommend that new investors establish a rapport with a park manager over time and use this relationship to benefit both parties. As you have proven, we can learn a lot from park mangers.

Best Wishes,



Posted by Rainy on January 04, 2001 at 14:54:56:

Hi Blane,
You would be suprised of how things work out with the CC: Your Attorney Name on a certified letter. It works here in LA County. :slight_smile: A phone call from an Attorney works great also.
HCD is also a valuable resource.
No one wants a hassle. Usually issues will take care of themselves with a little push.
Depends on your investment.

Re: How To Deal With PM … Part 2 :slight_smile: - Posted by Rainy

Posted by Rainy on January 04, 2001 at 09:52:51:

Hi Tony :slight_smile:
I really love your prospective and agree with you 100%!
New investors would do well following your advice.
However, being on the other side of the tracks, I do not find establishing a rapport with PM “over time” a fast and easy thing to do. I have tried this approach.
As a PM myself, I never invest in the Park I manage. This would be a conflict of interest. I never except referral $$$ from brokers/dealers/agents/ or private investors when it comes to dealing with homes in the Park I manage. I know that 99% of the PM I know do except $$$ for referrals, but I would never allow anyone to put me in their back pocket and hold my job or reputation over my head. I try to work with and help everyone who comes to my Park to do business. I keep a list of agents/brokers/dealers/private investors at my desk.
When I know of homes for sale or pull-outs in my Park, I give free refferals to everyone on my list. When people call my office looking for homes to buy, I always give this info to the seller, be it agent/broker/dealer or private investor. I realize I could be making extra $$$ for this, but it is not enough $$$ involved to have me jeopardize my job or reputation.
I find that most agents/brokers/dealers and private investors respect my working philosophy. Some hate me for it! :slight_smile: :slight_smile: :slight_smile: Hey, that’s ok.
This gives everyone an equal opportunity to do business. It keeps me fair and honest. If any deals go down that I feel is questionable, I have whoever seek approval from the Park Supervisor. The Park Supervisor has to approve whatever in writing before I will approve. It takes me out of the picture and keeps me out of trouble. It’s called CYA policy! :slight_smile:
I try to establish a good rapport and working relationship with everyone.
However, that does not mean I will bend the rules. Friends do not use friends for gain. I always let my “friends” know up front, business is business.
If you want to do business in my Park, great! However, this does not mean because we are “friends” I will do favors or bend the rules. After all, I have nothing to gain from any business anyone may do in my Park.
As a private investor, I have found most PM to be difficult. This could be due to the fact I know up front when a PM is jerking me around. I never inform PM that I am a PM myself. Maybe I should! :slight_smile:
I have never tried that approach. I guess it “freaks” the PM out when I know laws and ask questions when I realize the PM is trying to jerk me around. This is why I have a different approach as a private investor.
I always try to buy homes I know will be allowed to stay in the Park, a 1975 or newer. I always work through an agent to do the foot work for me. Not only do I pay the sellers commission to the broker, which also pays the agent a percentage. I always pay extra $$$ to the agent after the sell. :slight_smile: I always make sure the agent makes more money working for me than they earn on the sells commission working for the broker! :slight_smile: It keeps me out of Parks and keeps me from dealing with Park Managers. The agent will fight like a mad dog to buy and sell that home! :slight_smile:
If the agent does not have a buyer for the home before I buy the home, then I don’t buy. The agent must have a qualified buyer, who is Park approved before I buy and sell.
Anyone feel free to teach me something!
I always try to keep an open mind! If I do something wrong, I like to learn from my mistakes.
The easy way hopefully! :slight_smile:
Any hints, sugesstions, or networking :slight_smile: :slight_smile: :slight_smile:
Feel free to ask/advise or network!

your reputation… - Posted by David S

Posted by David S on January 06, 2001 at 08:52:05:

Hi Rainy,

It appears that you have set a double standard here.

One one hand, you think that your reputation/job (may) be at risk if you were to accept any type of “fee” from anyone, buyer or seller.

On the other hand, you state in this post; “I always pay extra $$$ to the agent after the sell. I always make sure the agent makes more money working for me than they earn on sells commission working for the broker.”

In effect, you want this person in your “back pocket”.

Interesting topic. Care to teach me something here?

David S