All Forum Posts by: Account Closed

@Scott Schaar  I havent done it but quoted from my electrician the cost to add the 50 and 30 amp pedestals seemed insignificant.

I forgot one other thing we did, if a salesperson referred us a customer, we paid for a catered lunch to the dealership ( up to $250 dollars) .  So then everyone at the store knows about it and maybe we catch another one from it.  

Im thinking we would have received the referral regardless but we formalized it. 

Oh yes, in our metro, we also went around to say about 10 stores with a box of donuts and a nice flyer with all the info on our park in English and Spanish, meeting all the stores, sales people etc.  Dealers in markets where there are dealers happening need to know where to be able to place homes.  This changes so you want to periodically keep them updated. Also do you have a doubewide space ? Might be great especially in an area that doesnt have them.  

@Jacob Brattain

While the idea of giving the homes to the renters sounds logical turning them into owners at lot lease rates, the problem  is that you just took renters and calling them owners.  Owners are different in the MH space.  My guess is that you will get most of them or a good chunk of them back over time ( this is my pessimistic caution) and they will be in terrible shape.  Though i would also guess, there are a handful of people in there that may be great for owners and would probably fix up the home, make it theirs, etc.  What is the metro look like in terms of size?  What is average house price in the town along with the average 2 bedroom rent?  

What are the conditions of the 2 homes? do they require fix up?  

This has a lot of stuff going for it, i would definitely inquire more but the market is going to have to check out .  Also the 250-300 for a lot rent makes me believe the market might have some merit.  What do the other parks in town or close by look like in terms of occupancy. 

Especially if you can lock up some attractive owner financing might be icing on the cake.  

Also will be relevant any capX coming up or evaluating the deferred maintenance on the POH. 

@Ricky Bass This is incorrect.  

In the state of TX mobile homes can be Real property OR personal property.  This is determined when filling an SOO ( statement of ownership- formerly statement of location) . 

So in a park , you will have the park owner who has the land and the homes will typically be personal property.  Then on land, if the homeowner has elected it as real property, i believe, it will show that way on the tax bill or if separate ( personal property) , you will have separate accounts ( though you may be able to consolidate the taxes on the same account ( not sure on this ) but it comes down on how you have elected it.  My experience is solely in keeping homes in personal property as i primarily deal in parks but this is my understanding. 

I see your in Magnolia, if you come across any park deals in the greater houston area , keep me in mind here, actively looking for the next deal and am an active MHP investor in the area and looking to keep growing. 

@Scott Schaar  Looks like from the other post you closed the deal , congrats. 

Here is what i have done this year. 

Offer to pay utility hookups and 6 months free rent ( ask that you stay in park 6 years) . I have had success on this with new and used customers. 
Buy a new home to fill a lot. 

Work with a dealer to bring in a home for them to sell.  If you can get away with them paying the utility hookups on their dime even better .  We dont charge lot rent until it sells and be proactive in helping any way we can. 

This will all be market specific . 

You can also look at RVs for income in the interim if your park or spacing allows it.  Be sure to let all your current residents know you have promos in case they have someone that might want to live by family /friends . 

@Jesus Peralta

Texas is the bomb for homes, parks, processes etc.  

The first question i would ask is this a home you want or has value? 

If you evict the guy and he cant move the home , you will have to take it via abandonment ( about a 6 month process all in ) look up Texas Department of Housing and community Affairs Manufactured Housing Division, you will find a form and process that addresses this.  It will even wipe away the taxes but you get the home.  So now that you have it, if it is worth something you can fix it, sell it, whatever.  But if you dont, now you are spent with a couple thousand clean up bill for tearing it down etc.  So if this is how it plays out, heck, you might be better off paying the few hundred in back taxes ( if that is it...) and send the guy on his way.  Will be situation specific .  But also you will have a lot not generating income  etc so just look at the sum of all pieces how this effects your investment. 

Im active in the greater Houston area looking for parks so keep me in mind if you come across anything  - incidentally i get stuck needing a home here and there as well :(  as will anyone in the park business. 

@Lance Hummel Good advice on figuring the demand.  Whats the backstory, has the park ever been filled?   What are the utilities like?  Does the city acknowledge being able to bring homes back into the spaces. 

Other comments deal specific, will be very capital intensive, are you ready for this?  Dont go into this beast without being undercapitalized , it can give you a whooping 

My other comments is is it on the market? I just ask because this wont be absolute but if its been sitting on the market where other savvy investors have passed it up there might be something they know that you dont ( but dont take this as absolute) .  

Keep digging as if you would buy it and if nothing more, will make you a smarter more well equipped purchaser for the next deal that you do pull the pin on. 

@Courtney Johnson That will depend on you, your risk tolerance, available capital , partners, available time, upside of the deal, future goals etc, market 

You have to weight the specific situation. Can you buy a 10 space park local to you, all tenant owned homes , upside in rents, city utilities, at a reasonable valuation? 

Will you buy a 30 space park, all park owned homes, private utilities thats a 3 hour drive away? 

As was mentioned on here, use the MHU diligence guide to walk through the purchase.  Do the bootcamp if you can . I personally think from watching the market, its getting tricker to buy larger deals at reasonable valuations unless you are able to get the one at a reasonable valuation or upside etc. 

Smaller deals i feel are more bountiful, while they may not trade at as low of a cap rate, it can be a great spot to start. Especially if it works out and then in 5 years you can say you have your 60 space park and propelled your RE investing career.   

I would rather take a great 20 space park rather than an average 80 space.  That being said, id rather take a great 80 versus an average 20.  I try to find the deal moreso and then pursue that but you just have to account for ability raising capital, patterning, your capacity etc. 

I think what @Celeste Fackrell is gold. Not something you will hear often but he said sell twice for what he paid for it, that is huge when you go to factor a deal. Might not be a billion dollars but on a return basis numbers like that you typically can't pull in SFH ( depending on what he put into the deals ) .

I also like @Scott Schaar s deal.  It sounds like a real solid deal with upside that he can learn a lot on .  I would take that any day of the week ! Scott, i looked at a couple real small parks in Evansville, they were dirt cheap you can still probably get a hold of the owner if he didn't sell them. I just didn't like the market but if i was local would probably buy them.  At the time was too much of a distance for me with too little upside but i think there are some deals in that area of the state as well if you know your market and understand where it may be going. 

From memory 

In a handful of houses Here in TX outside. In IL handful of houses inside. 

I know someone recently tried to Relocate one to a mobile home closet and inspector said panel not supposed to be in a closet for what that’s worth. 

@Chris Nowlin Maybe repost this in the note forum if its still something you are working on. 

@Joseph Anderson i am an active mobile home park investor in the Houston Metro   , just wrapped up a turn around and looking and for the next deal. I sent you a message, give me a call.Let me know which park it is .  Id be interested in it or can tell you if its a deal or walk you through it if you don't want to part with it.  Thanks