Posted by SusanL.–FL on December 02, 1999 at 13:56:04:
The family park that I was investigating also requests ‘proof of auto insurance’, (in addition to the proof of income/driver’s lic., and cc: of SS# card).
Good luck, John.
Question about dealing with MH park management - Posted by Blane (MI)
Posted by Blane (MI) on December 01, 1999 at 21:20:39:
I’m working my way toward my 1st Lonnie deal, and my question concerns the “reasonableness” of park management requirements in order to be able to buy and resell MH’s. At the park in question, I’ve been told that I have to apply just as if I were going to live there; that is, along with verifying my identity I must provide proof of current income, a copy of last year’s tax return since I am currently contracting out my services, have a credit report run on me, and go to the local police to have them run a check on me. In addition, along with the $20 app. fee I would also have to pay a $400 security deposit when I buy a home.
Is this unusual? It seems to be a bit more than what Lonnie goes into in his book (an excellent one by the way). Plus, this park is nothing special, OK at best I’d say. If this is not uncommon, fine, otherwise I’ll move on to other parks (which I’ll do anyway) and tell the sellers of the MH forget it. This would be unfortunate, as Lonnie’s techniques for getting sellers to lower their price is so far working beautifully.
Any and all thoughts about parks and park management would be greatly appreciated.
Happy holidays,
Blane (MI)
My current problem - Posted by John (WA)
Posted by John (WA) on December 02, 1999 at 10:57:40:
Interesting that you bring this up. A week or two ago I posted on my current experience with a PM. I have now had two buyers rejected by the park and am not sure what or who suits their fancy. I am certainly questioning “reasonableness”. This guy is slow. My last buyer took him 10 days to reject. I turned off my ad a couple of weeks ago because the park will not process multiple applications. Besides, since there is a $48 dollar app fee, it would be unfair to other would-be purchasers. I am now into Dec. and things are not looking good. This park is way too picky for me and so far they are not willing to entertain the idea of me guaranteeing the lot rent. I won’t do business with this park again.
This park is clean but it is solely a single wide park with mostly older homes. Yet they still seem to expect A credit and totally stable individuals. I WILL get this home sold, move on and learn from this but I will also be more careful about discerning “reasonableness” on the part of the park.
If the park is being stringent with you then they will likely be that way (and possibly more so) with your purchasers. Realize that the people you are selling to are essentially renters. You will be offering terms that are competitive with the rental market and the low end of the market at that. This is Dec. and things are a bit slower. Be sure you build into your offer price extra carrying costs and plenty of advertizing expenses in case your park becomes real conservative on your buyers.
My park requires two months lot rent as deposit and first months rent to move in. That is $825. When you throw on a small down payment, insurance, tax and title transfer my buyer needs quite a bit of up front money. Consider these factors before you buy.
In spite of all the encouragement and warnings to get on good terms with the PM, I underestimated the value of that little detail. Don’t make the same mistake. Make sure they perceive you as an ally and a benefit to them. I can’t help but feel right now that since I am on the hook to pay the lot rent, they could care less if I ever sell.
Re: Question about dealing with MH park management - Posted by lyal
Posted by lyal on December 02, 1999 at 09:25:17:
Blane, I think the "nothing special parks is right where you want to be for Lonnie deals. I’ve worked in 5 different parks so far and application, background check and deposit was the norm in all of them. In one park I just stopped in and talked to the couple running the place and put in a application “just in case” they ran across something I might be interested in (I did also mention “Oh by the way I pay cash FINDER’S FEES to anyone that points me to a good deal”). I’m approved ahead of time to work there and “help them improve the place”.
In 2 parks now where my “good track record” is established, I come and go / buy and sell as I please.
Keep in mind, these people deal with sly dogs and deadbeats all the time (the ones who give the honest park residents a bad name) and are conditioned to be suspicious.
The rule is to remember that its their park and you should be as compliant as necessary so they can get comfortable with you. It’ll pay big dividends down the road.
Good luck, Lyal
Re: Question about dealing with MH park management - Posted by SL-VA
Posted by SL-VA on December 01, 1999 at 21:45:42:
I can only share with the one park that I work with.
As long as I am not responsible for the lot rent, I do not need to “apply” as a would-be resident. However, if I cannot sell the home before the next lot rent is due, then I’d have to. So far that hasn’t happened.
As for the application, it involves confirming with my current employer, checking my last 3-year resident history, and credit report. Mine requires the 3-year resident history check, yours doesn’t. Yours requires criminal check, mine doesn’t.
Mine doesn’t require the security deposit, at least the PM hasn’t mentioned it.
With no experience with other parks, I can’t really say whether the requirement of the park you work with is reasonable or not. Yours does seem pretty similar to the park I work with.
Remember that there’s always room for negotiation. Go over the benefits for the MHP by having you doing business there, such as helping the park to buy homes from deliquent residents and pay the debt to the MHP, and being responsible for the lot rent if your buyers deliquent. Also remind them that your plan is to keep doing business at the park. Anytime you’ve failed to keep your promises, the park can simply deny you from doing business there. Also, since you’ll be doing business with more than one home, the PM will receive more than one referral fee.
Have fun.