Posted by T on August 29, 2006 at 11:36:20:
twice!
secured MHP, then lost my apartment - Posted by Timothy
Posted by Timothy on August 29, 2006 at 09:47:11:
In a turn of events much like I’ve read happen to others…My wife and I were able to secure control of a basically abandoned park that was in her family. About five years ago when we returned to Arkansas from school in Texas, we were given the task of shutting down the park. No one had paid rent in months, water and sewage were leaking, electricity was ferocious, we called the sherrif on a meth lab, and the list goes on. This baby was negative cashflow in the 1-2000 range! Well at the time, CRE was not even on my radar…so we shut it down completely. Years later I find myself immersed in the subject. For my birthday I purchased some courses, then more books, then more… I think many of you know what I am saying. Then came CREOnline, and for me, a 28 year old living in a very rural area, this website became my mentor, needless to say I can’t get enough. This was only about a year ago, now I have discovered Deals on Wheels. I ordered both of Lonnie Scruggs books, and read them in two nights! I am hooked, you will never hear me say “this won’t work in my area”
Anyway…the small park came back on radar. For the past two weeks we have done so much clean up it is unreal. The water hasn’t been on in years so we are digging up water lines and so many other things at once… There are two mobiles one is a 2/2 and one is a 1/1 We are thinking rehab and rent. There is room for perhaps 2 or 3 more short singlewides like the 2/2 but we are little stumped, most of the sites are for RV’s and camping… I certainly would take comments and will likely create a new string later with a question or two, but my real dillema is I just lost the apartment we were living in(I know, renting not owning!!!)There is a decent spot so I went to a dealer and tried to buy a doublewide. My loan was not approved. My credit has been bad, but we fixed it and that takes time to show, my wife and I take home $3000 a month from jobs we have had for years, but the banks won’t lend, and the dealers won’t lend, I am stumped again. I have two kids so the mobiles on the park are too small, I am looking at realestate but still think a doublewide would be better…any suggestions on how to get financing.We do not own the park…only control it. Half is for sale and we thought perhaps buying…but my family needs a home yesterday!
Re: secured MHP, then lost my apartment - Posted by Berno
Posted by Berno on August 29, 2006 at 11:25:35:
Steve-WA has some good advice, as usual. One concern that I have is the actual ownership of the park. Who actually has title to the land? Do you control it with an option or how do you control it? It would really suck to put all that work into it or move a DW there for your family only to have the park yanked out from under you. Just wanted to make sure that was addressed.
Good luck!
-Berno
Re: secured MHP, then lost my apartment - Posted by Steve-WA
Posted by Steve-WA on August 29, 2006 at 10:09:45:
I believe you are right in thinking that a DW inthe park you are rehabbing is the best and most efficient housing for you right now. Try looking at ads in the local free ad rag, also try calling movers from the yellow pages; they ALWAYS have a line on a free or cheap MH, sometimes it can be had for the price of paying them to move it.
Making 3K monthly - do you have any cashola set aside? You need to - set a budget, and start saving. With 5K or so, you should be able to move a DW in that you get for nothing, or can make payments on.
Where are you living now? Actually, your family’s needs are your number one concern (or should be) - get them safe & secure, then go looking.
You need a Lonnie Dealer - to get a home from, and as a partner to get units in the park. There’s one park owner on here from Ark - but I dont recall seeing posts from LDers - give us a better location, and shout out for help from this board - there ios likely to be SOMEONE nearby who can meet with you, or email, who can help you come up with a win-win.
You are taking the right steps - keep going.
Re: secured MHP, then lost my apartment - Posted by Timothy
Posted by Timothy on August 29, 2006 at 11:35:09:
Perhaps control was a strong word. The owner, my wifes father, wants little if nothing to do with the park. I have bought the mobiles and will pay VERY low lot rents, everthing is on seperate meters, and the bills come to my PO Box. I can fill all the sites I want. Half of the MHP(the RV park side)has been offered to us for sale. 6 acres 14 water/electric sites, no septic, 55K, owner carries approx 50% @ 0%. I am crunching numbers and brainstorming. Any ideas?
Re: secured MHP, then lost my apartment - Posted by Timothy
Posted by Timothy on August 29, 2006 at 11:25:26:
Thanks for your insight and support, I am thankful for all the posts you and the others have made here a CREOnline. Your suggestions will come in handy when i am making calls today gathering info. I do have savings of around $5,000, we learned hard core budgeting skills while repairing our credit via a Debt Managment Program thru a local non-profit (I highly reccommend this). When fresh out of school we amassed alot of useless stuff on credit we thought we needed to jumpstsrt a new life, well… that new life didn’t start quick enough for the bills. It took five years but we paid off $15,000 is bad debt. (Ahhh… can’t help but breath deep and have a little pride!)
My family and I have moved into our Travel Trailer(which we own free and clear[could be used as leverage])We are set up on the MHP. So we have bought a little time…winter coming, might move into rehabbed 2/2 short term, it is bigger than my RV.
I am located in Eureka Springs, AR the very NW corner of the state about 10 min. to Missouri and around 45 min to Fayetteville(metro area[future investing grounds!]lots o MHPs) Any one around my area want to talk business?
The seller of the MHP, my wifes father(don’t worry evreything will be in writing), will carry perhaps 50% of the financing interest free, the sale price is around 55K for 6 acres, 14 water and electric sites, no septic. Borrowing the rest, I was wondering if this is favorable with the banks(since they have first position)? I thought I could rock in the bottom of a doublewide, thus creating real estate and refi using conventional to pay in-law in-full, dig septic, and cash out very little at the same time to keep up the investing perhaps putting 1 or 2 park owned homes on the sites. I don’t want to come off completely helpless, I will find solutions and a plan a continue on, I just need the alterior points of view offered on this board. Including those of you who think I am off base. Let me know.
Re: secured MHP, then lost my apartment - Posted by rise2it (VA)
Posted by rise2it (VA) on August 29, 2006 at 20:20:12:
Okay, the dude is your father in law and only wants to carry 50%? That seems a bit low. He should be bending over backwards for all the work you are doing.
I’d finance 50% of anything for anyone that could come up with rest. There’s no risk.
My opinion - dealing with family in business is a big no-no…I simply don’t need the potential problems and hard feelings.
If you choose to go this route, get EVERYTHING in writing, and don’t fall for the ‘trust me’ stuff.
It’s business. There is no ‘trust’, there are no ‘my word’ and ‘handshakes’. Get it in writing. That’s what business is, and this IS a business. You need to treat it as such.
If he doesn’t want to do so, I’d sugget thanking him and moving on. Don’t put yourself in potentially bad situations.
Re: secured MHP, then lost my apartment - Posted by Gary
Posted by Gary on August 29, 2006 at 19:00:45:
Would your property possibly be better utilized as an RV park? If recreation is nearby you might get into seasonal rental sites renting that weekend spot to folks from Fayetteville. Then you could sell your travel trailer using that cash to get your doublewide deal done. Go to some RV dealers and try to help them sell some units by you having the spot to put it year round.
Re: secured MHP, then lost my apartment - Posted by Michael(KCMO)
Posted by Michael(KCMO) on August 29, 2006 at 14:13:48:
Search the archives for Phillip(MO) or Phillip-MO or some variation of that name. He used to post here a lot although I haven’t heard anything from him in a while. He’s from SW part of MO, but I don’t know if he’s still active or not. If you can find one of his old posts, you might email him & see what’s up.
Just a thought.
Best of luck,
Michael(KCMO)
Re: secured MHP, then lost my apartment - Posted by Berno
Posted by Berno on August 29, 2006 at 11:28:19:
Looks like you answered my other question 6 seconds before I asked it!
-Berno