How to deal with Park Managers

Question

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

Dale Osborn · Answer

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.

Marc Faulkner · Answer

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.

Joseph Ziolkowski · Answer

Man I can't wait to get that confident! Thanks :)

Marc Faulkner · Answer

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....

Marc Faulkner · Answer

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.

Dale Osborn · Answer

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.

Terry Drake · Answer

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.

Joseph Ziolkowski · Answer

And what kind of credit do you normally need to get approved? I told Terry in a pm that before I got into REI (not so very long ago) I was a laid off construction worker. I'm back on my feet now, and moving ahead, but my credit won't be good again regardless for some time. I have the cash, just not the credit right now. Is this not for me? I was really excited to get started, so I hope this isn't the case.

Terry Drake · Answer

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.

Joseph Ziolkowski · Answer

Terry, have you found it necessary to get approved at all of the parks that you deal in, or was that just a tactic that you used to grease the wheels with the park managers?

How to deal with Park Managers

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