BiggerPockets

Hey Everyone,

I have found a very nice MH with a very motivated buyer. The buyer was at $10K and I ended up being able to talk him down to $1500. He needs to move ASAP.

The problem I have encountered is that the park managers will not allow me to buy the property from this owner and then finance/resell the property. They want a minimum of a year lease from the new owner. The manager did not seem to be too fond of 'the investor'.

Any ideas on how I can proceed with this? I feel like just letting this go is a waste of huge potential to make some money.

Would I be able to find a buyer first then pay the current owner and have my buyer apply with the manager?

Any ideas? Thanks

I agree with Rachel. If they really don't want you there, believe me you don't want to be there either. They could easily suck the 'deal' out of your purchase by not approving anyone for your home leaving you stuck with lot rent. If she won't work with you and you can't salvage a working relationship then IMO you should find another park. There will be parks where the manager appreciates the mutual benefit of you working there.

On the other hand it's hard to leave money on the table and you may be able to talk to him/her and win them over. Not only would that make this deal possible, but you could have found your park.

I would have a friendly sit down with her if possible. Maybe she doesn't fully understand what it is you're doing or how it will be beneficial to her. Maybe they haven't spent enough time talking to you to like you enough. You both have the same goal, keeping those mobile homes filled up and the lot rents coming in every month.

If you plan on doing any cleaning up or fixing of these MH's, make sure you let her know that. The nicer the park is the better they look.

Once you do a few deals you will earn their trust/respect and it makes things much easier.

One last thing I'll throw out there, when I met with the park manager for the first time, I didn't walk in as Mr. Wheeler Dealer. I was just a guy that wanted to buy a mobile home, fix it up some, and sell it to make a little interest on my savings. I also paid the $55 application fee so they could run my credit/background and know they were dealing with a decent guy.

Kudos on your $8,500 negotiation BTW!

Before you buy anything you must be approved by the park. Once they approve you the first time you should be good to go to buy/sell as you see fit. I've applied to only two parks. The first one approved me but I canceled the contract and walked away from that place after what I saw/heard about the park.

The second park is where all my deals come from right now.

It depends on the park. Each park owner/manager will have different requirements. The park where I do my deals they look for something at least 600-625. But more importantly they look to see why your credit is what it is. If it's a foreclosure or medical they overlook it. If it's because your utility companies turned you over for collections and you have judgments against you then you will be denied.

I also know that if someone has bad credit but they want to work with them they work things out like they will hold on to title or if the person has cash and no credit, they will get 6 months up front or collect a deposit.

Open lines of communication are a must. A face-to-face meeting with the manager to explain exactly what you will do to help the MHP overall. If still uncooperative - buy the home and move it to a MHP you have a working relationship in already. Perhaps even mention the pulling of the home when you meet with the first manager. An investor can work both ways - either to help the MHP become more successful or to move homes out leaving the MHP in less of a financially secure position. Most when they realize you can help increase their bottom line will work with you.

I don't check investors credit to do deals in the MHP. I have 2 Lonnie Dealers working on 2 different homes in a senior MHP. What I will do is see which one gets the job done right and gets the cash flowing again for that lot. Whichever one does the better job will get my recommmendation to other MHP Owners I meet with to help fill their parks. Other one just lost an opportunity , unless they both do an excellent job - then will pass both along for others to use.

Show the manager and or the park owner what's in it for them in the terms of more secure lot renters paying lot rent! If you approach them from an investors stand point there should be no reason for them to check your personal credit as you personally will not be the one living in the mobile home It will be your buyers that live there. Make friend with the owners and managers and show them how you can create a win, win situation for all involved.

Everything is negotiable in this business. I try to stay out of the parks where this is not the case and it is rare that I ever pay lot rent when someone skipps town! I let the managers and owners know that I will be happy to sell them the home at a reasonable price or wholesale it to another dealer or park owner that will tow it out of the park if they get nasty with me....

Thank you for the kudos Joseph. I suggest networking with as many dealers (Lonnie and otherwise) and park owners to find out if they buy homes. Make friends with these folks and get a list together of "go to" buyers. This will give you leverage / confidence to still put deals together in situations where a Lonnie deal is not possible. I see nothing wrong with making a quick buck wholesaling one of my deals to another dealer who wants the home more than than the owner of the park where the home is currently situated. I actually prefer these types of deals to Lonnie Deals in this economy. Buy cheap all cash-sell quickly for more cash!!!
Good luck to you in the New Year.