If you do not swing- you will NEVER have a ball in play

If you do not swing- you will NEVER have a ball in play

Jim JohnsonPro Member
Rental Property Investor · Denver, CO · Member since 2008 · 355 posts · 324 votes

There are so many steps to buying a mobile home park, but there are a few that you must do to move forward. Many people get stuck in the process, and the what if stuff, and never even take the step to make an offer on a park. Break this down a bit- if the park is for sale- it is for sale. So the asking price is not what your looking for- MAKE AN OFFER. I will add- make a intelligent offer. Look at the income, expenses, the local market and the rest of the stuff that is important to you- and make a offer you can support with your data. I have seen parks go under contract for 50% of the asking price. At some point- park owners that are selling just want some action. Maybe the park has been listed for a long time- and they have not had an offer in forever.

live example- today, there are 428 MHP's that are listed on loopnet that have been listed over a year. There are 247 that have been listed over 2 years. There are 52 that are just listed in the wrong part of the MLS- I wonder how much 'action' those parks are getting...

Step 1- find a park and make an offer- step 2, who knows? Maybe the reason the park is not selling is there is bad financing in that area- so they 'solve' you financing issue by doing a owner carry...

my point is- you have zero idea of what your next step is until you 'have a ball in play'. It takes a lot of hits to make a home run...

That is just one place to look- there are many others

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  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    13y

    Good point, this can translate into any type of RE investment vehicle, not just MHP's. So in other words, don't get stuck in the what if rut, complete your DD and make offers!

    Nice post Jim.

  • Landlord · Huntington Beach, CA · Member since 2012 · 23 posts · 5 votes
    13y

    Great post thanks for the info, Jim.

  • John FedroPro Member
    Investor · Austin, TX · Member since 2009 · 413 posts · 295 votes
    13y

    Hi Jim,

    Thank you for the post.

    Is this 400+ MHPs for sale normal inventory? Is it normal for MHP sellers to simply sit and wait for years and years? Your info is appreciated.

    Best,
    John Fedro

  • Jim JohnsonPro Member
    OP
    Rental Property Investor · Denver, CO · Member since 2008 · 355 posts · 324 votes
    13y

    John,
    Like any real estate product, there are people that price way low, and way high. I think for the most pat, many parks are priced by people that just do not understand how pricing works. They say- how much do you bring in each year- and price off the gross number. The owners get attached to a non attainable number, and until they are educated on how, and why, parks are priced the way they are- they sit. Many will not listen to why the park is not priced right. They have the money spent already in their minds- so the thought of repricing crushes dreams. On the other side- many would be owners do not have the skill sets that allow them to walk the seller, and agents, through the process of why the park is not priced right. They just toss out offers (which sometimes works) to see what sticks. Or they just say- your overpriced. In any event- if your going to make an offer- if you can back up the offer with data showing why you are making that offer- your chances go way up in getting the deal.

    Some people also list properties that might have a highest and best use that is not a park, and that kind of developer does not come around every day- so some properties sit for decades...

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