Posted by Mark(SDCA) on July 25, 2002 at 12:33:53:
Ray,
I have been trying to reach you. Can you shoot me an email? I have a couple of quick questions for you…
Thanks,
Mark
MOBILE HOME PARK DEAL IN TEXAS - Posted by cj
Posted by cj on July 18, 2002 at 21:29:10:
I need some advice/help. Well, to be honest, more along the lines of help…
I have found a mobile home park/residential home for sale by owner in Texas, my home state. I saw the FSBO sign when I was out of town on business. This is the first “problem” - I live about 6 driving hours from this place. The second problem is that I am having trouble determining what the place is worth. They are asking $600,000.00 for a house that the owners of the park live in (3br/2ba) along with the trailers and all the underlying land. The 3br/2ba house is right next to the trailer park. The entire complex, including the owner’s home, sits on approximately 3 acres. Now for the trailers…
There are 25 trailers in all (there is no room for any more) and the total rents for them are $10,810.00 per month. This amount includes $50.00 for garbage pickup and sewage. It turns out that the owner picks up the garbage himself and throws it in a big dumpster that he has rented. An onsite maintenance man does all of the mowing and yard keep up, and the tenants pay all utilities (water, electric, cable, phone, and gas). The units come fully furnished right down to the pictures on the walls - everything except pots, pans, TV’s (which can be rented for $1 per day if the tenants want), microwaves, and linens. All the trailers are on cement runners with cement porches, and are on what the owner calls “high and dry” lots. She says that the place has been specially graded and engineered to avoid flooding, and therefore never has flooded. They said that they wanted all cash for this deal. When I pressed a them, they said that they may be willing to carry “a little” of the financing back.
I need help in determing the value of trailer parks, and which is the best way to do this deal. In fact, I am so inexperienced that I may need help in countless other areas and not even know it.
I thought about trying to buy the whole place, and somehow finance the down payment through the selling of the house (and its underlying land) and just the trailers. I would keep the land underneath the trailers , sell the trailers through financing and small down payments, and then charge lot rent on that land underneath them. This would help me avoid management headaches in that I live so far away.
Do you think this would work? I desperately need any help/advice that you or anyone that you know could give me. Thank you for reading this long post, and thank you in advance for your help.
Re: MOBILE HOME PARK DEAL IN TEXAS - Posted by deedee
Posted by deedee on July 19, 2002 at 10:50:49:
What part of Texas?
Re: MOBILE HOME PARK DEAL IN TEXAS - Posted by ray@lcorn
Posted by ray@lcorn on July 19, 2002 at 10:30:35:
cj,
The first step in determining value is to get the actual operating numbers. I like to see three years of operating data. Without that info you are completely in the dark as to what you’re buying.
You may want to read my article on performing due diligence in the how-to articles section of the site. the direct link is http://www.creonline.com/art-148.html
ray