Rumor & misinformation in MH business - Posted by Matthew Chan

import · May 29, 1999, 12:25pm

Posted by Matthew Chan on May 31, 1999 at 03:07:07:

Thanks for the kind words. I wish I could take all the credit but I believed Lonnie Scruggs said that it was highly recommended to make contact with MH management because, in the end, they have to approve keeping the MH in the park. It sounded so logical to me, I am not sure why anyone would bypass that step. It is “pay me now” or “pay me later”. Also, why waste time making offers in a place where you are not welcome? Right? Regarding people being fearful, I am not sure why. It isn’t anything complicated. You just tell them what you want to do, why, and all the benefits. The worst they can say is say NO, or in my case, lie to your face!

You know, I always thought due diligence happened AFTER you made offers, not before. No, I wasn’t discouraged but as most people on this board know, time is very precious which is best spent marketing, looking at properties, making offers, and people networking. It irritates me that I lost time.

I appreciate the feedback. Thanks!

import · May 29, 1999, 12:25pm

Rumor & misinformation in MH business - Posted by Matthew Chan

Posted by Matthew Chan on May 29, 1999 at 12:25:12:

Another story to share. (It seems I keep accumulating “unusual” ones.)

Being fairly new to the county and state I currently live in, it has been an interesting experience starting over learning the values, rents, specific laws, locale of the area. Therefore, I am spend some time on the phone and visiting different offices clarifying things.

However, during my marketing visits with MH park managers, I ran into an assortment of responses.

They do both MH & lot rentals. No owners allowed. (No problem there)
Any homes that transfer title, they wanted it moved out. (This was a real rundown place and I got the feeling it was a way to clear out the old MH’s)
One MH park didnt care. She encouraged me to roam the park and collect phone numbers of the signs posted. (Great response! Will be back!)
I saved the best for last, I believed I was fed a load of bull. To make a long story short, I was told that the county I was in wanted to run mobile home industry out of the county. That the county were implementing certain steps to phase MH out. First, no new approvals for MH parks would be allowed. Second, any MH older than 1990 would have to be moved out of the county. Third, no metal-plated MH’s were allowed into said county. Fourth, there would be more taxes paid in by getting rid of parks., Blah, blah, blah…

Naturally, I was concerned but I had never heard of any such thing. (Then again, I never really cared before…) So it took about a couple of days to check out.

I went to the County Tag Office and the MH rep said they didn’t have problems with title transfers of any age MH as long as all taxes were paid. I spoke to Zoning and they have no problems with MH as long as they are in a MH park. Plus if someone wants to develop a MH park, they would go through an approval process but would not be turned down flat just because it was a MH park. And that impartiality was emphasized during the approval process. Lastly, the Tax Assessors office said they do MH tax assessment but forward the collections to the Tag Office. They also have no such rules concerning the age of MHs. They don’t care if you bring in an older MH into the county as long as you go the registration and the permits procedure.

In each of the cases, I specifically asked if they had heard any rumors of the MH industry trying to be pushed out. In all cases, they thought it was probably some misinformation. I even went back to the park that encouraged me to call their tenants. They had never heard such a thing. They simply wanted good tenants and their lot rent.

Bottom line: I am a little ticked off at this one park and individual spouting off because it wasted my time in trying to confirm all of this. I am not sure if it was intentional or not but this older gentleman seemed to believe it.

The upside is it forced me to really get to know how MH fits into my county from the different depts.

Moral: Don’t assume that all information you get is entirely accurate. Sometimes due diligence is required to clarify these things. If I had taken it at face value, I would have closed off one avenue of opportunity.

import · May 30, 1999, 12:40pm

Mh’s and Park Manager’s - Posted by Dirk Roach

Posted by Dirk Roach on May 30, 1999 at 12:40:05:

Hi Matthew,
You know reading your post I must say Bravo! You are doing what so many people don’t do when getting into Mobile Homes, and that is reconnise (i.e. Talking with Park Managers). For whatever reasons (fear, nervousness etc) so many people tend to skip this step, and waste so much time.
I am going to run down your post by the numbers and offer my advice for any of the other Mh Newbies which might be reading your post.
Okay
#1. They do both MH & lot rentals. No owners allowed. (No problem there)
You are right, in my experience this is a park to pass on for traditional Lonnie Deals. These folks carry their own paper and why would they want you to have they’re product. They are hip to the game. However on a side note, I feel that trying to do Lonnie’s in a park which allows rental’s would be a mistake. Home-buyers do not like to live next to renter’s.

#2. Any homes that transfer title, they wanted it moved out. (This was a real rundown place and I got the feeling it was a way to clear out the old MH’s)

You are correct again, sir. Sometimes parks will enact a ten year rule. There are two reasons that they do this. a.) they want to clear space, once the older homes are out they can bring in space renters with newer homes. Why 10 year limit? Because that is the limit set by traditional MH lenders (Greentree, Green Point, Associates etc) on what they will lend on. b.) Once they (the park) starts getting in all of these nice, clean, newer homes then they can begin to justify space rent increases.

#3 One MH park didn’t care. She encouraged me to roam the park and collect phone numbers of the signs posted. (Great response! Will be back!)
Again Correct!! Check back with this Park often. Bring Donuts on Monday Morning meetings. Ask this Park Manager for advice. Keep in her good graces, as this is a Lonnie Park. Also let the Park Manager know that you of course pay a finder’s fee (or reward however you want to word it) for any leads that you close on. You will make money in this park.

#4. I saved the best for last, I believed I was fed a load of bull. To make a long story short, I was told that the county I was in wanted to run mobile home industry out of the county. That the county were implementing certain steps to phase MH out. First, no new approvals for MH parks would be allowed. Second, any MH older than 1990 would have to be moved out of the county. Third, no metal-plated MH’s were allowed into said county. Fourth, there would be more taxes paid in by getting rid of parks., Blah, blah, blah…

Okay the “Know it all” Park Manager. Sometime you will come across a PM like this. I usually smile and say “thanks for the info” and then go back down the street to your #3 park. These guys n gals, have this little kingdom where they have a need to know it all etc. First of all what has probably happened is that the Park Owner has told them to enact your #1 scenario. In addition to wanting newer homes they want them wood shingled, on the sides. When this is done, the MH’s look super! And the park can justify raising rents. Wood shingle sided homes have become very popular in N. CA, as well as other areas.
As far as counties wanting to run MH’s out, I have only heard of 3 such counties (in the mid-west) passing size laws, or more commonly called eye-sore Laws. Ba

import · May 30, 1999, 12:39am

Re: Rumor & misinformation in MH business - Posted by Millie I.

Posted by Millie I. on May 30, 1999 at 24:39:57:

Matt,

Meet me in Atlanta, Thursday 6:00pm to 7:00pm at the Hotel Main Lobby. A few guys fron the Player’s Club are meeting for dinner. I like you to join us. Like to hear about your MH stories.

Millie I.

import · May 29, 1999, 3:25pm

Re: Rumor & misinformation in MH business - Posted by phil fernandez

Posted by phil fernandez on May 29, 1999 at 15:25:35:

Matthew,

Again you illustrate the importance of doing your due diligence. More people get into trouble in the real estate business by being lazy and not doing their due diligence. Without it you can not make an informed decision.