Screening buyers - Posted by Eddie-MI

Posted by Mr. C on August 12, 2003 at 11:29:14:

Actually, no.

All monies are deposited into a Tucson bank account. I have a debit card that I can draw against and checks I can write… as well as electronic bill-pay.

Vacancies only occur due to the passing of a tenant, and their survivors usually step in, passing the home to another family member who meets the age requirement.

There have only been 2 exceptions to this in the last 2 years, where the home was sold to a non-family member (thru real estate listing to the public).

Lot rent is currently $225/month, there are 70-spaces, no park-owned units or rentals. There is a 1800sf clubhouse with office area and a 30ft pool. The streets are paved and lighted with alot of tree cover (something of a rarely in Tucson). Utilites are master metered and billed back to the tenants (take the bills, total them and divide by 70).

Maintenance in the park is handled by a private contractor that I have under exclusive contract in return for a 15% discount in his standard rate. This contractor is also the park’s preferred referral repairman should the tenants need something done on their home. He passes the 15% discount on to the homeowner as apart of our arrangement… so it’s a good deal for all concerned.

Occupancy has been at 100% since September of 2001. Vacancies rarely last more than 30 days, and the family always makes the lot rent when due.

We had one lady pass on us, and her 3 sons flew in to handle her affairs. The one from Alaska, was especially concerned that his mother was current in her obligations to the park, and he pre-paid the next 3 months from his own pocket to ensure that the home and the family’s standing with the park remained untarnished.

We use a program called Rent Manager to keep track of things. The PM sends me the data file monthly via overnight mail, along with copies of all the bills and correspondance that pass thru the office.

It’s about as close to a NNN-type investment as a MHP can get.

The manager is the key to this working properly. She was already fimilar with the park (had previously been a manager there) prior to when I bought it. It only took a couple of days to convert her over to my way of doing things.

This method obviously raises the questions of confidence and trust. I personally spoke with each tenant to get their feedback on her past tenature as manager. I also provided each tenant with my voicemail number and asked them to call if they had any problems or concerns that I needed to be aware of.

This works as a check/double check to the PM’s performance. I can also call any tenant and get a current viewpoint of the situtation if need be… and the PM knows this.

Remote management is possible, if you cover all the bases and concerns… have the right people in the job and a good relationship with the tenants.

These are just a few of the reasons that I love 55+.


Screening buyers - Posted by Eddie-MI

Posted by Eddie-MI on August 10, 2003 at 11:55:39:

I am gonna throw out some information and would appreciate if this lady would be turned down or accepted by you.

2 bedroom 1972 mobile home. Good condition home- has a carport and a huge corner lot. This lady has 3 kids (2 boys and 1 girl) and is recently divorced. I dont know the ages of the children yet. She claims this big 4 bedroom house she currently lives in is too big and it scares her to be alone in such a big house. She is currently renting-to-own the house. She wants a 1 story unit.

She can come up with 1000 down and I would be happy to accept 500 down. I am gonna give her an application and see what is going on. Are there enuf red flags here to just turn her down? She has been through the unit and wants to give me 1000 dollars right now.

Re: Screening buyers - Posted by Blane (MI)

Posted by Blane (MI) on August 11, 2003 at 14:21:05:


How old is the girl? I could be wrong, but it seems like above a certain age a girl had to have her own room. If so, and that was a state law, this might automatically disqualify them. Could this have been just a rule some parks use though? I don’t remember.


Re: Screening buyers - Posted by Mr. C

Posted by Mr. C on August 10, 2003 at 13:33:19:

I don’t see any red flags… what I do see is a senerio that makes no logical sense.

Sit down and talk to her… 3 kids (2 boys and 1 girl) into 2 bedrooms won’t work.

Re: Screening buyers - Posted by Eddie-MI

Posted by Eddie-MI on August 10, 2003 at 15:49:24:

Thats the first thing I talked to her about, she insists the unit is big enough for her. Maybe she likes being cramped or something.

I know that creates additional wear and tear on a unit, I will increase the monthly payments a few bucks to compensate.

I would rather get a widow or a young couple with no kids. I own the park so I gotta be a little more picky. It seems you would turn her down.

Re: Screening buyers - Posted by Mr. C

Posted by Mr. C on August 10, 2003 at 16:00:10:

To be honest, I think I would (turn her down). Not because of money/credit… but because of the logistics of putting 4 people (herself and 3 kids - 2 boys and a girl) into 2 bedrooms.

Sounds like a receipe for trouble.

Re: Screening buyers - Posted by Eddie-MI

Posted by Eddie-MI on August 11, 2003 at 12:18:58:

Mr C,

Would you buy a park with mostly 50 and 60 foot deep lots if the price and terms were right in a city with a decent rental market?

If i remember right, you own a park with smaller lots.

Re: Screening buyers - Posted by Mr. C

Posted by Mr. C on August 11, 2003 at 12:36:25:

Yes… but it’s a 55+ park (in Tucson), and all the homes are tenant owned.

It started out as a RV park and was converted over to MH’s prior to when I bought it. There’s a clubhouse, pool, etc… it’s small (70 spaces) but it’s nice.

I personally wouldn’t own a rental park… they’re management intensive.

I haven’t set foot in the park mentioned above since September of '01. One of the previous managers was still a resident there, so I hired her for free lot rent to oversee the place.

Re: Screening buyers - Posted by Lyal

Posted by Lyal on August 12, 2003 at 07:30:10:

Wow, you mean you have to actually cash the check each month!! No way, too much work.
PS: Yeah I’m jealous!