So a weird situation but kind of lost on what direction to take.
I recently became a partial owner of a trailer park. I got into it for close to nothing and I would like to try the brrrr strategy to try to obtain another park in a year or less. The problem lies in the other owner. He has a different mindset and ideas on the direction of the park. Much more of the build up slowly over 5 years and avoid debt. I on the opposite end of the spectrum, want to bring in investors or cash and bring up the properties value.
How should I proceed from here? We both own 50% so nothing can be done without the others agreement.
For some specifics on the park to give idea of what’s on the table. The park is 66 lots with 19 lots currently having trailers on it. We have 24 units each renting for an average of $500 a month. 2 of the units don’t collect rent due to the property manager and maintenance guy occupying those units in exchange for partial-payment. Our expenses are less than $2000 a month with the net income per month being closer to $5500.
Hope this wasn’t to hard to follow. That being said..Any input, recommendations, or ideas would be appreciated. Thank you.
If you don't mind my asking, how did you become a partial owner for close to nothing down?
@Shawn Ziegaus if you and your partner don’t agree can you either let him run it and you just take distributions or sell your equity in the property? I’m sure there are plenty of people so would pay well for $2500/mo in cash flow with significant upside potential. Or you could ask your partner if he would like Distributions or to sell his position. Alternatively you could spend $5500 towards marketing to tenants who would bring their own mobile home and just pay lot rent.
@Zeeshan Mallick my dad owned a percentage and in his passing I was the beneficiary of his shares
@John Powell lot rent is where I would like to see it go. Definitely don’t want to get out of this property. Just looking at ways of buying out other owner or move forward. Getting out of the property is something I don’t want to complete disregard as an option. Would prefer to try to bring up the value of the park, sell of the existing trailers
It sounds like you have some decent equity already. (?) Offer to buy out the partner and then refinance the place to do it and possibly pull cash out for the improvements.