Newbie Question: Working w/Park Mgr and Park Regs - Posted by Van Deventer

import · July 12, 2007, 4:46pm

Posted by Ruben (KCKS) on July 13, 2007 at 08:06:07:

Van,

From reading my original post I see where I was not very clear. I had the same problem in the first park I worked in. To get around it I used this approach. My explanation to the PM was if I bought a home in the park, lived in it for 1 year and then sold it on payments could you tell me what I would have to do at each step. Then once she told me the answer I explained to her that I was going to do the same thing I had explained to her without living in the home for 1 year. Click she got it. You can do the same thing with if I was a dealer and brought a home in what would the process be but most PM’s can not see past the fact you are not bringing a home in so they get confused and then revert back to the rental thing.

When I get the we do not allow rentals I always come back with, “Great I do not like working in parks that allow rentals since they tend to attract a lower class of people and the people I sell to need to be great people who know they are buying their home so they will take care of it which makes my job as the bank and your job as the PM easier”. I do not fully agree with that since a well run rental park with good screening will get you the same or better people in a park but this is what they want to hear so give it to them.

This is what works for me and it is just a sale pitch. It took me a couple of practice parks to get it down and it changes a little bit with each PM I talk to but a variation of this should work for you. If it does not I agree with Anne move on the PM is not real and does not want you to work there they just are too polite to tell you straight out. You do not want to deal in a park like that since it will only turn out bad for you in the end. I have been there and done that and I really suggest you steer clear of doing it yourself.

As far as the application you can go either way just find out what makes the PM comfortable. If they really have been burned in the past having an approved application on the first deal may be the factor that makes her comfortable with you. After you complete one deal I would never do an application for another home in that park since your first application should count forever. Good luck and let us know how it turns out.

Ruben D. Flores

816 918-9041

import · July 12, 2007, 4:46pm

Newbie Question: Working w/Park Mgr and Park Regs - Posted by Van Deventer

Posted by Van Deventer on July 12, 2007 at 16:46:29:

I’m a newbie to mobile homes, though have some experience with real estate. There’s a mobile home park near me, and I’ve been through it every couple of weeks. Always a few homes for sale. They range from old, poor condition, small ones to ones that are quite new, big, and appear in very good condition. The park itself is pretty good–clean, quiet, good location.

So, talked to the park manager. Park itself has one home for sale, in addition to the 3-4 by owners. Pleasant talk, manager seemed nice.

The park has a ban on investors buying homes and renting them out. Fine…no problem. My intent is to do Lonnie deals–buy inexpensively for cash, then resell on terms.

But I kept running into variations from the park manager: If you want to buy, you apply, pay the $35 application fee, produce pay stubs, etc. I explained I was an investor, goal would be to purchase a mobile home, then resell to a buyer…someone who would meet the park’s criteria.

Now, she says that she’s aware of investors in mobile home parks (so I guess she understands the concept), but that not many are active in this one.

Somehow, there was a disconnect. Either I wasn’t clearly explaining what I wanted to do, or she wasn’t getting through to me about the procedure I should follow to keep her and her bosses happy. (The park’s actually managed by a large regional management company.)

One of the requirements of the park from anyone applying as a leasholder there is “Original Certificate of Title for mobile homes that are paid in full or Financing Agreement if title for mobile home is held by the lender.” Fine. In this case, I’d be the lender, right? And if the bank down the road can be the owner of a mobile home, selling it to a leaseholder, isn’t that what I’d be?

So, what am I missing? Are there some “magic words,” some special terminology I should be using to make sure it’s OK…to comply with the park’s requirements…for me to buy mobile homes and then resell them (to people who meet all the park’s requirements for park residents)? Or am I somehow overcomplicating this: Do I just go ahead and buy, then after pre-qualifying a potential purchaser, have that purchaser go through the application parocess with the park?

import · July 13, 2007, 9:43am

One last thing about talking to PM - Posted by Anne_ND

Posted by Anne_ND on July 13, 2007 at 09:43:00:

Van,

In re-reading your post I note that you have RE experience. This is excellent and leads to an opening you can use with future PMs.

When I first approached PMs I told them (and this was true) that I represented a company that purchased houses (I pointed out our “we buy houses” ad in the paper). I rehabbed them, sold them and rented them. I told her that I’d been receiving increasing numbers of calls from sellers of MHs, and I decided to check this out. I told her what I proposed (described the basic Lonnie deal) and asked if she allowed lenders to take payments in her park. The point is, I went in with a background in RE and was looking to do something in her park that would help her. I was upfront about the benefits to her (guaranteed lot rent, referral fees, I would prescreen people so that the only potential tenants who came to see her had been pre-screened according to her criteria).

I never offered my credit, but was able to give her the names of a number of local people (inspections, attorneys, realtors) I had done business with and who would give me glowing reviews.

I never, never let down my PMs, and that kind of reputation travels fast.

So, lean on the RE experience part of your presentation, it will give you credibility in the eyes of the PMs.

good luck,

Anne

import · July 13, 2007, 8:45am

Re: Newbie Question: Working w/Park Mgr and - Posted by Dowdyrich(NC)

Posted by Dowdyrich(NC) on July 13, 2007 at 08:45:49:

Hello Van!

I just thought I would try and help with my two cents… Now I am not a guru, but with the park managers I have talked to, I let them know what I do. “I buy trailers for cash, fix them and sell them to people who can not afford to pay all cash upfront.” Then a usually make a small remark, “You know some people can’t come up with 5k or 10k to just buy
a trailer. I help those people out.” Then let the PM know that if he/she ever has a problem with your tenant to let you know immediately so you can help get the issue resolved or get them out. I think that helps put you on the PM’s side; then you don’t seem like a tenant (no need to apply) but you seem someone trying to help them make more money.

I don’t think there is any “magic words”. I believe that you have to see what the PM’s wants/concerns are and then tell them how what you do is going to help alleviate that problem. Just my two cents. This place is wonderful for any help you need. Full of great people Good investing.

PS

Anne, you make the PM sign an agreement?

Richard

import · July 13, 2007, 6:46am

Working w/Park Mgr and Park Regs - Posted by Anne_ND

Posted by Anne_ND on July 13, 2007 at 06:46:23:

Van,

I’m going to disagree with Ruben and Michael. I do not fill out apps with the PM. First of all you should be doing this as an entity, not an individual- so your personal info is not relevant. I do guarantee lot rent while selling, and if the payor does not pay lot rent (I have the PM sign something saying they have 30 days to notify me of non-payment, so I’m not hit with six months’ worth of lot rent bills if the payor leaves).

I’d say you are dealing with an uncooperative PM, and suggest you look elsewhere, establish yourself with someone who understands what you do, and then come back to this PM. Word will get around that you do as you say you do.

good luck, keep looking,

Anne

import · July 12, 2007, 8:19pm

Make the PM Comfortable with you. - Posted by Ruben (KCKS)

Posted by Ruben (KCKS) on July 12, 2007 at 20:19:11:

Why not just sit down with the PM and explain to her step by step what you are going to do. Make sure to point out all of the perks for her (you are an extra set of eyes for the park, will fix up the exterior of the homes you buy will help fill up lots etc). Then ask her what she sees as the best way for you and her to work together so that the corporate owners of the park will be happy.

If you need to qualify for the park the first time you buy a home no problem pay the $35 for one time to get qualified. It is not uncommon for the park to ask you to qualify to work there the first time.

In the long run this park may be a very good one for you. If you are seen over time as an asset to the park you will have the park all to yourself.

This first deal will really set the tone for your relationship with the PM going forward so bend over backwards to accomidate and make him/her feel comfortable. After all remember if they make a bad choice, let you work in the park and you screw them over they not you have to explain it to their bosses. Since they have been burned before by, “Investors”, you can see why they are a little bit gun shy. After a couple of deals in a park all of those, “rules”, will no longer apply to you. Good luck.

Ruben D. Flores

816 918-9041

import · July 13, 2007, 9:33am

Lender Notification Letter - Posted by Anne_ND

Posted by Anne_ND on July 13, 2007 at 09:33:12:

Richard,

Yes, my attorney used to handle the legal issues for a local MHP, and he told me that the park would routinely sign a document to banks and MH lenders that said (in effect) “if your payor falls behind, we must notify you within 30 days of the payor being late”. So if the payment is due on the first, I had to be notified in writing by 31st.

The PM was delighted to sign this- because it meant that someone in addition to themselves was putting pressure on the tenant (their tenant, my payor) to pay the park. My agreement with the tenant also stipulates that failure to pay the park constitutes default.

I was an even better person to keep happy, because the banks and lenders would NOT guarantee payment of back lot rent, but because I wanted to keep in the park’s good graces, I would do so.

These things vary locally, but any real estate attorney should be able to draw this up for you. Or ask the PM if they will sign their standard lender notification form for you as well.

Anne

import · July 13, 2007, 6:32am

Re: Make the PM Comfortable with you. - Posted by Michael(KCMO)

Posted by Michael(KCMO) on July 13, 2007 at 06:32:24:

“sit down with the PM and explain to her step by step what you are going to do”

From my reading of the original post I think he’s already done that. Given the articulation of the original post I’d say he probably explained it pretty well too.

We’ve often seen this in a park, Van. Many times a PM equates investor to landlord and since they don’t allow rentals, they don’t allow investors. What Ruben said about being burned before by “investors” is often true as well. I agree with Ruben’s advice to go ahead and pay the $35, fill out the park app and go through their approval process. Do one deal, start to finish, making sure you don’t promise or imply anything you don’t actually deliver. Once the PM sees how you operate they often become your best ally and, as Ruben said, the “rules” will no longer apply.

Regards,
Michael(KCMO)