Re: MH Park Rehab - Posted by ray@lcorn
Posted by ray@lcorn on December 30, 2000 at 21:42:31:
You may not believe this, but your situation is one that I search for in my own market. I’d like to help you to analyze your options, but I need more information.
First, you didn’t mention the amount of existing debt owned on the property. The amount, terms of repayment, rate, type of lender (i.e. bank, an individual or a finance company) etc. will be necessary to evaluate the total project.
Next is the existing cash flow. Obviously there is some revenue being generated. I need an idea of the gross income and the expenses. Please try to be accurate as possible in both. I am especially interested in utility costs.
Next is market information. What is your market like? What do competing parks charge for lot rent and what services and amenities are included? What is the average occupancy of the competing parks? What is the deamnd for spaces? How do new home dealers place homes when they sell them?
Finally I need to know a little about your personal situation. How much cash do you have to work with? How is your credit? How much other debt do you have? Is the park your only source of income?
With the above information we can begin to get a picture of how we can structure a turnaround of your park. This may sound far-fetched, but I’ve seen worse situations turn into high quality investments with nothing more than a change in thinking. Sometimes an outsider can see things that you are just too close to the situation to see.
We (Lonnie, Terry and I) had a man come to the “Making Money with Mobile Homes” seminar in 1999 with a 275 space park, and 225 vacancies. He was out of money, out of credit, and was in an area that had just seen the worst flooding in 100 years. We spent a few hours talking about the same type of information I just asked you for, and were able to put together a game plan that he then went back home and put into motion. The last time I talked to him, he had a manufacturer putting new homes in with an in-park sales operation, and he was well on his way to creating a great investment. The same type of turnaround can happen for you.
Look forward to hearing from you.