Posted by Fran on May 01, 2001 at 18:54:26:
I am interested in putting in a mobil home park or buying an existing on and I would like to know more about it.
mobil home park - Posted by Chris Flynn
Posted by Chris Flynn on February 13, 2001 at 18:42:14:
Hi everyone,
I’ve been reading posts for two weeks and have finished both of Lonnie’s books and started reading them again. My husband and I came across a mobile home park for sale. The park has a 3 bedroom house with 6 lots (4 vacant). The price is $49,000 for the house, park and two trailers. We are real newbies, but this sounds interesting. Any suggestions for questions we need to ask would be greatly appreciated. Thanks for this great message board-and Lonnie thanks for turning the “light switch” on!
Re: mobil home park - Posted by Ernest Tew
Posted by Ernest Tew on February 14, 2001 at 04:40:17:
Hi Chris:
It sounds like a low price for a house, two mobile homes and six lots. Here are a few questions you might want to ask yourself and a few for the owner:
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Is the property close enough for you to manage and maintain it personally, assuming you have the time and the desire to do so?
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Is it in a bad location or “war zone” where you would have crime problems and not be able to attract responsible residents? You could check with the police department to see if they have had problems with park residents.
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Why are 4 of the 6 lots vacant?
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Are the lots large enough to accommodate today’s larger homes, assuming you would want to upgrade to increase the value of the property?
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Check with the local city or county to verify that there are no health, zoning, or other violations.
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I would discuss with owners why they want to sell.
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Could you sell the two homes on terms? If all these things check out, could you buy late-model homes, set them up on the vacant lots, and sell them on terms.
If so, there are four sources of profit: A profit on the sale of the homes, the financing you provide, the additional income from lot rent, and an increase in the value of the property.
If you plan to acquire a park and feel you could use more help, you may want to pick up a copy of my manual through Creative Real Estate, ?How To Get Rich Helping Others.? It discusses several examples of how we have acquired parks, turned them around, and sold for huge profits–much of which was tax-free.