So let's hear it - how'd you find your best, average and worst mobile home park deals?
I have found several for sale in my area. There are 32 parks in my county alone. The biggest challenge I have is finding investors who are comfortable with septic tank systems being 15 years old and working with someone who hasnt bought a park before. I recently found 19 pads, all utilities, inside the city limits of a small town, $89K, I thought it was a very good buy but I frankly I dont know how to put it all together for someone to make a decision. That has been my experience so far.
@Rick Fagan - Septic tanks and private utilities are so common at MHPs that I'm surprised your investors aren't comfortable with the possibility (unless those tanks are steel in which case they're probably rusted out...).
The 19 pad park sounds like it might be a good deal assuming its in decent condition. That park actually personifies the biggest challenge I've seen, which is trying to find a balance between having enough pads, getting the right price and acquiring one in a good enough location. From the deals I've seen, tertiary markets can work surprisingly well with mobile parks. You probably just need to put together a small one pager showing what the deal is with the basics of the property and the surrounding area for your investor.
From the window shopping and research I've done, the best deals seem to be the fresh ones on Loopnet, whereas the worst (or at least the sketchiest) are usually the ones on craigslist. MHBay has a decent selection but when I try to get in touch with sellers they never respond. I've mostly just been looking on the east coast to get a sense of what's going on in nearby markets.
If you are searching on market properties , watch loopnet and mobilehomeparkstore real close. Learn to identify good deals and bad deals. Good deals to periodically make their way on those sites but they go quick so be sure to be signed up for your alerts.
Talking with Mom and Pop owners has worked well for me. After establishing a relationship I've found they want me to do well and will help out however they can.
Rick Fagan I know that park you are talking about...it isn't as good as it appears.
Have you thought about trying to do an owner finance deal for the purchase of that park?
We own over 170 parks and our best park came from a broker (bought it for around $9.5 million and sold it less than three years later for around $19 million), our average park comes from a combination of brokers, on-line listings, cold calls and direct mail, and our worst park deal came from an REO foreclosure sale. The whole key is volume. The more offers you make, the more deals you find, and some percentage of those end up under contract and surviving due diligence.
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