All Forum Posts by: Ryan Groene

Check into state law and with the state MHA. It really depends on thag

Yes they answered a ton of questions. It’s a good way to start but it is not an answer to everything. What they teach today is a starter. Def worth it as a start

@Grant Rothenburger not in person. But on conference calls and podcast. I’ve read their book...trailer cash as well. 

@Grant Rothenburger Yes, Ryan and Jamie Smith are awesome and have a lot of experience in the industry.  They head up a couple of funds that focus on Mobile home parks, aka Manufactured housing communities and self storage

The industry is heading towards more POH's.  In certain markets selling off POH's is easy to do and can be done relatively quickly with some decent focus from either a good sales manager or someone with those skills that you higher.

Valuing a park w/ all POH's can be tricky and @Bill F. stated valuing it can be tricky and its like running an apartment.

Dependent upon on what market lot rent is, you could reset everyone whom converts to that market lot rent and the valuation on what they have given for a price may still workout.  All hypothetical scenarios don't always transition to real life situations.  

Florida overall, depending on markets, your normally going to pay a more premium on price because of the location...

To value this property properly you will need to establish the lot rent that you will set all of the POH's at when you sell them off.  Please keep in mind that it can be seen as a good thing because you can reset the lot rent to what the market is or close to or whatever you like.

also, selling off POH's can be more difficult as the tenant that is in the rental is there for a reason normally, they want to rent.  One way to off set this is to charge more for the rental if they don't want to do some sore of rent credit/rent to own sort of thing.  

Your expenses for a park that has city water/sewer that the park pays will be in the 40% expense range or higher based on how small this park is.  unless lot rents are really high($400), smaller parks have a higher expense ratio with utilities that aren't direct billed because you don't have enough gross to cover the fixed/variable cost of the operations.  Percentages for operations are normally same up until about 40-50 lots, that is where you can start to get some better margins.  

You also have some additional value in submetering water and sewer, which you should budget to only collect about 70-80% of it from your tenants.

If you have number of occupied lots x lot rent x .6=Net operating income(NOI)

if It’s a true 10 cap. That’s a good deal based on that in today market. What are some other factors. Lot rent. Number of spaces. Owner finance if you can. But If not getting a loan will be a smaller commercial loan with a local bank. Tie it up and buy it. 

MHU university bootcamp--frank rolfe and dave reynolds..couple times a year

MHU academy--virtual and great content kevin bupp and charles dehart

Tons of books out there, podcast and other sites for this info.

you could hire a city lawyer and check out the law more. If your grandfathered in he city has no right to determine what homes you bring in...this isn’t legal advice. But what @Gulliver R.said is crucial to a deal

Mobile Home Park investor based in Cleveland Ohio.  We look for parks nationwide, and our more cashflow/opportunity driven, that way we don't limit ourselves to only certain markets and miss out on a very good deal.  Its works for us at the moment, and the ever dwindling inventory and Mom and Pop owners, i believe everyone should be focusing their efforts on doing this as well.  Start small and have a team that you can dedicate to certain areas of the country.  Then the deals will flow from there and properties will get tied up and acquired.