Mobile Home question - Posted by Tom

Posted by Robert McNeely on March 10, 2000 at 09:44:37:

All parks are not the same, you really just have to get to know the managers. They will typically have written policies and rules for how the park is operated. Some parks may have an age limit on older homes no mater what the condition. I will be looking at 7 Vindale Mobile homes later this morning in great condition. Their problem? over 20 years old! I have a park that has 5 empty spaces and would love to have me move in 5 of them. There can be a silver lining to these situtations, as the prices on these homes are much lower because they have to be moved. When you rent a lot that the home is setting on, you are in a lease arrangement, and the owner has the right to regain his property with the proper notice. If you have developed a good relationship with the manager, you should not get stuck. Ask for a year lease if you think it is necessary. Keep in mind that many managers do not own the parks they manage and owners could make " negative" policy changes beyond the control of the manager. So say you sell a 25 year old home, a year later you end up with it back. If the policy has been changed you may have to move the home. This should be looked at as part of the reason we get +60% yealds on most of our sales, and not as a reason for not doing the deals. There is no sure thing in this business. Good luck, and good investing.

Mobile Home question - Posted by Tom

Posted by Tom on March 10, 2000 at 08:44:03:

There has been talk recently about MHP managers forcing you to move your mobile home out of the park with 30 days notice. Is it unheard of that when you buy the mobile home, that you have the PM sign a contract of sorts that states that as long as the MH remains in good condition and lot rents remains current that he cannot force you to move your MH? These are just two conditions that came to me as I was writing thiws questions. I assume that you could include additional provisions. What type of incentive could you provide the PM to sign such an agreement?

I was just wandering if this protection of your investment was legit…



Check this out!!! - Posted by Paul_NY

Posted by Paul_NY on March 11, 2000 at 01:20:48:

Just finished both of Lonnies books. I decided to drive thru and find some mh’s for sale in a local park. There was only two, one at 13k and one at 26k. I thought, forget that. I want to learn on a $500 home first. So, as I was leaving the park, I stopped at the park store to check the classified bulletin board. There were 3 homes ‘available’. After asking the store clerk about them, she told me the owners of the park had the info on them and she directed me to the owner. I immediately went.
Well, the 3 mh’s were the owners rental units. After talking with the owners, I discovered they are not interested in landlording any more than three! (I see a possible sale here down the road).
After discussing what I’d like to do (described the Lonnie situations), the owners loved the idea. “Fill all of our spots!” they said!

After I told them what my price range is, they refered me to a person with 2 mh’s on private land. I called that owner and he wants $1000 and $2500 for the homes and he will allow them to stay on the land for $125 per month! But thats another story.

I called the owner of that 26k trailer and he’s willing to let the right person take over the payments. The trailer has been vacant since August of '99 and get this…
The owners of the mh park are waiving the rent on the lot until it sells! Can you believe that? These are some really top notch nice people!

All said and done, the owners like my ideas and are willing to work with me. It paid off meeting with the owners and explaining what I’d like to do and being able to handle some of their objections. It was good practice!!!

Unfortunately, I moving from the area. I’m hoping my next experience will be as pleasant.

Just thought I’d share this with all of you.

Happy Investing!

Re: Mobile Home question - Posted by LAURE

Posted by LAURE on March 11, 2000 at 24:10:35:

Even if you did get them to sign an agreement, the term “in good condition” is subjective and up to the park manager’s description of “good condition”… so you still lose !

Laure :slight_smile:

Difference between theory and real life - Posted by Jacob

Posted by Jacob on March 10, 2000 at 16:47:41:

Hi Tom,

You are to be commended for your line of thinking. The fact that you are cautious enough to develop these ideas sets you apart from the pack.

Now, I have to rain on your parade just a bit. The day you ever get a Park Manager to put something like that in writing will be a special one indeed. Be sure to play Powerball or something that very same day. I assume you get my point, it won’t happen.

Calling a park manager an employee is akin to calling a mh a trailer. It’s a bit condescending, in my view. Most people are an employee of some sorts. The park manager is there for their interests only. If your interests don’t coincide with theirs, you are out of luck. The trick really is to discover a way to get them to realize you are all on the same page.

That is why relationship building is SO key in this. IF you develop a good relationship, they will not screw with you. If you don’t take the time to do so, they will cut you off, so to speak. Find excuses to pop in the office every couple of days. My wife is a Mary Kay consultant, so if there are women in the office, I bring them samples on occasion. I buy the handymen gift certificates ot the local grocery store. I might bring in a gift basket on rare occasions. Yeah, it costs money. I make 100 times more money because of the relationships I have built.

Best of luck to you,

Park Managers are employees… - Posted by Blane (MI)

Posted by Blane (MI) on March 10, 2000 at 09:59:15:

I’m not an expert (yet), but I doubt you could get a PM to contractually obligate the park to anything. Only the owners could do that, and no amount of incentive to the PM can change that. And should the owners change the policy (i.e. decide to have older homes removed), the PM has no choice no matter what he/she signed.

It’s my guess you’d have to have a very, very good relationship with a PM to even ask such a thing, and even then I doubt they would. However, said good relationship could alert you to problems like that down the road.

Best of luck,