All Forum Posts by: Dustin Wiskes

@Mike Rios I might call around to a few banks. I'm a big fan of HELOCs and I was able to get one 90% LTV. Not saying you should always use the full amount, but it might be nice have access to an extra $30k in your scenario.

@Sean Trily I have the same setup at my park. The only way the local utility provider will take ownership of the electrical infrastructure and meter readings is if I re-wire and install new meter pedestals for each home. Estimate is around $1500 per pad, so not an easy cost to swallow, but I still plan to do the upgrade this year. I view it as a reduction in liability if something was to go wrong with the system and I get the added benefit of eliminating the meter reading situation.

In the meantime, my park manager reads the meters and I bill back residents.

Dustin

@Mike B. Yes sir! 29 pads in Amery, WI. Currently 21 occupied lots at $300/mn with mostly tenant-owned homes. A little room to increase rents, but the biggest value-add will come from filling all the lots and getting the water sub-metered and billed back to tenants.

@Mike B. I’m currently pursuing mobile home parks. Just put my first under contract last week. Great asset class from my research. Might be worth checking out!

@Phil Shearcroft bootcamp grad here. There is definitely some of the same info between the bootcamp and the podcast, but I still think the bootcamp was worth it since it went into far more depth on many subjects. With the bootcamp you also get all sorts of good info to reference back to like the due diligence manual, countless forms, a list of all 40k+ parks in the US. I actually tried to make a small video series on some of the things I learned each day while taking the course (feel free to DM me and I can send you that link if you’re interested), but to be honest it proved quite difficult because of how much info was covered. I would take it again. Just my $0.02

Dustin

@Michael Baradell I’ve traditionally seen an on site manager getting free lot rent plus about $10/pad/month. Probably will vary based on how much they are doing day to day, but this is a good starting point. $700/month seems large to me with the low occupancy. I would try to drop that down (maybe free lot rent and $150/mn) and then pay them a bonus for each of your vacant units that they help sell or rent.

@Andy Brohard I am on the hunt for MHPs in Wisconsin! Any size. City water and sewer only. Small towns are ok, but ideally there would be a Super Walmart in the metro.

-Dustin

@Marcus Auerbach I hear what you’re saying! I would much prefer the seller give me a number, but unfortunately he made it clear that he is in no rush to sell. As a result he gave me the classic “throw a number at me” line.

Hello Everyone,

I am looking to make an offer on an off-market MHP in Wisconsin and would love some help on what CAP rate would be appropriate to use for pricing. I know rates will vary widely based upon park location, size, infrastructure, etc., but I'd love to understand what other folks are using today when making an initial offer to purchase. Here are some details on the specific park:

40 pads, 100% occupied, all TOHs, avg lot rent $250, CSW metered, town size of 5000 (no metro unfortunately, but town does have a Super Walmart about 2 miles from park and a test ad indicated a high demand). What CAP rate would be appropriate to use based on this information?

Thank you for any help!

Dustin

@Arthur P. Here is the letter that I recently sent to my tenants in hopes of helping them pay rent if they run into financial hardship.

RENT:

Rent is still due as usual on the first of the month; however, if you are experiencing a financial hardship, please review the temporary options below to assist you.

FINANCIAL HARDSHIP PAYMENT OPTIONS:

1) Please make every effort possible to make alternate arrangements – family, friends, deferring other expenses – to ensure you can still pay rent on the first of the month. As part of this, I will be paying close attention to government and local programs that may offer financial aid and will let you know as soon as possible if I become aware of any of these programs. Please also be on the lookout for any of these programs that you may qualify for. One example of this is the ability to defer federal student loan payments for a short time if you have any.

2) If Option 1 is not possible, you have the option on Cozy to pay with a credit card. They do charge a fee, but I WILL REIMBURSE YOU for this if you need to use this option. Please let me know if you choose to use this option and I will credit your online account.

3) If the above options are not possible, I am willing to offer a grace period, which will allow you to make a rent payment no later than the 10th of the month. There will be no late fee charged if you pay by the 10th. Please understand that this is not preferred and should be one of your last resorts. In this case, your payment will need to be in the form of a cashiers check or money order. Please let me know if you need to use this option no later than the last day of the month before rent is due.

4) Lastly, if none of these options are possible, please reach out to me so that we can discuss your individual situation and develop an emergency plan.