All Forum Posts by: Logan M.

…just curious @Logan M., are you still ‘missing it’? These are tough times for agents & brokerages and exp Realty is still leading the way. Profitable. Proven Business Model. Publicly Traded. How much monthly passive income have you made from Re/Max outside of commissions? How much stock has Re/Max awarded you for selling real estate? Just curious what your current brokerage is offering…. Genuinely interested in what am “I missing “?

Our brokerage setup is a little different than most others. We own a title company, lending, and insurance so we get paid dividends on all of the auxiliary companies. We have to buy the stock similar to EXP but we are paid about 20% per year on our money invested.

So I am making about 20-30k per year just doing my normal business.

One of my close friends built his downline to over 3000 agents with EXP and has done incredibly well.

1 Vote

I have recently been working to figure out how to make certain park purchases with a lot of Park Owned Homes (POHs). More often than not the owners are overvaluing the park because they are giving value to the homes.

The two ways that those come to create value are renting them for money over the lot rent and selling the homes. I have sold multiple homes in my communities and gotten to the point where I am buying the communities for very high returns once I sell the POHs.

I believe that someone willing to purchase a park and sell the homes can put themselves in a much better position as a community, for the long run and the short run. Don't be scared by POHs, learn how to use them to create value.

0 Votes

Quote from @Jordan Moorhead:

Quote from @Sean Chua:

Quote from @Jordan Moorhead:

Quote from @Sean Chua:

Hi all,

Im buying a mobile home park in Macon, Georgia and am trying to find inspectors who specialize in parks. Does anyone have any recommendations? The seller is saying that there are 34 total lots, but I believe there can be more. Who would be able to help me confirm this? Appreciate any advice on this!

I've heard a lot of people say that, but not seen as many get it done.

Interesting, what were some of the main reasons they weren't able to get it done?

Getting the city to give them the permits

I would call Planning and Zoning

0 Votes

Atlanta, Georgia

Quote from @Dominic Richardson:

I am looking at a mobile home park that has (5) mobile homes on it.

Current cash flow is $557/MO - Cap Rate 6.9% and COC 18%.

Does this sound like a great opportunity? Looking for some feedback and thoughts. Thank you in advance.

I am worried that it is too small of a park to be worth it for you. What are the terms of the purchase?

0 Votes

Yesterday, I had the opportunity to drive through a potential community with my parents. One of the regular comments was about the condition of the park and how badly it needed to be cleaned up.

This is the point, if you as an investor are not the one to do it, who will?

Will the next buyer make the community safer and a place that shows respect for those living there. I know that these communities are not all Class A but these communities look bad because of bad management just as much as unaccountable tenants. I often think about the kids living in the communities and how it will positively change their childhoods.

In one community we put in a new road and the kids started using their scooters the same day, before we did that they were riding on dirt roads with Razor Scooters, yikes.

3 Votes

Quote from @Cameron Rieman:

Hello! I am newer to mobile home park investing and I just put one under contract because I was thinking about purchasing it but the more I do research, it seems like a bad idea. It's difficult to discern the value of a MHP when there are so many variables involved I was hoping to talk to someone to see if this would be a worthwhile investment!

Think worse case scenario

0 Votes

Quote from @Dave Rav:

I think a major component of influence here are the listing brokers. No doubt, after the park owner meets with them, their opinion of value and asking price increases. After all, it is in the broker's best interest for the price to go up isn't it?

And they often fail to give creedence to the #1 component and reason anyone wants to buy = profitability. If we cant make money (for us, relatively early on please!), then we dont want what you're selling. Period.

They always to mention the "upside" and "value-add" as well as under-market rents, etc. These are all codewords for delayed cashflow, heightened management burden early-on, and potential significant repairs. I like to says it's akin to asking the agent to 1) wait on their commission or 2) doing MORE work or being hassled for said commission. How is it any different?

They are codewords and swear words haha

1 Vote

Quote from @Sean Chua:

Call the city or county about expansion and see what they say.

0 Votes

Atlanta, Georgia

I have been amazed by how much community owners will ask for parks that are posted for sale.

We had a community for sale in Orem Utah, about 200 spaces asking $40,000,000.

It is not unusual to see Parks that are right in the middle of the city asking $100,000 per space but that would mean CAP rates are down to the sub 5's. In more Rural markets it is not unusual to be between $20,000-$40,000 per space, with a CAP closer to 10%.

My point of this is to show the disparity of on and off-market communities and when you get to a certain size then you start seeing Institutional money.

2 Votes

Quote from @Roger D Jones:

We have used third party payers in the past. Usually tenant has something unfortunate happen financially and needs some 'bridge' support to get through the crisis. A lot of hard working people out there living day to day financially. Where we have had literally zero success has been when we rent to Section 8 recipients. Always single females with children. State pays fairly and checks come consistently but it always breaks down due to 'the boyfriend'- past, current or future. Tenant starts sneaking them in, broken down cars start showing up, they stop paying their meager portion of the rent, houses get trashed. Everytime... I am like 0 for 5 on these situations. Really a shame as they call on listings saying they have been looking for months, living out of a tent somewhere with their toddlers... you want to help but it always ends the same way. Unfortunate.

Back to the original question though I think the number one way to lose money in a mobile home park is simply buying the wrong park. We all have had success to certain degrees in our investing and I think that can cause us to be either over confident or too over eager. We get lucky sometimes in our investments and then we forget that and attribute it to our own skillfulness.

My wife is an accountant and business consultant and not to say she knows more about the MHP industry than I do but she is the final decision maker. When I find a park I literally have to make a formal financial presentation to her showing all my research, park's financial history, cash flows and anticipated proforma (and that had better be accurate and conservative or everyone in the room catches hell- including the dogs). My numbers had better be accurate or me and dogs get sent out of the office with all our tails between our legs. Anyway... having the ice cold steely eyed final arbiter has been beneficial in keeping my over enthusiasm from creating financial loss.

Great input

0 Votes

All Forum Posts by: Logan M.

Logan M. has started 136 posts and replied 728 times.

Post: Why are agents going to EXP and REAL, is there really that good of money?

Post: One HUGE opportunity in Manufactured Home Communities POHs

Post: Mobile Home Park: Looking for Inspector, Insurance, and Lender

Post: Is this a good opportunity or no?

Post: It may not be a popular bragging point but it is needed

Post: Valuations of On-Market vs. Off Market Mobile Home Communities

Post: Valuations of On-Market vs. Off Market Mobile Home Communities

Post: Mobile Home Park: Looking for Inspector, Insurance, and Lender

Post: Valuations of On-Market vs. Off Market Mobile Home Communities

Post: Four ways I have lost money investing in mobile home parks