All Forum Posts by: Ian McClure

As I understand he is maintaining the landscape for the whole park. Can you explain a bit further on how third party owners would have "leverage". Do you think someone would pull that many homes at 4-5K per move over 20$ per month lot increase? Why would they not screen tenants, they are risking their home so that wouldn't make to much sense. 

@Thomas S. thanks for the reply. It seems to me that one owner owning that many units means I only have to go to one person to chase down a lot payment. What would be the negative in your opinion? Also the other two lots rent for 175$ as well. 200$ lot rental seems to be the market average in that area. He charges 300$ for the RV lot because it is a much bigger lot. 

BTW those expenses were directly from him. I would obviously price in more capital expenditures before I would make any kind of offer.

So I came across a unlisted mobile home park 3 1/4 acre with 13 lots, 100% occupied and none of the homes are park owned. The park is 5 miles from a super Walmart.

Wondering what would you guys personally pay for a deal like this? I'll tell you what he is asking after I get some answers as I don't want to influence anyone on price. 

Owner is selling because of retirement.

There is a Husband & Wife that owns 11 of the 13 total mobile homes on the lot rentals that makes a monthly deposit, and the other (2) lot renter's also deposit at the same bank.

The 4th renter rents a 1/4 acre RV lot at the rear right corner of the park that sits behind the 13 mobile homes and pays $300.00 per month lot rent.

You only have (4) renters to collect from each month and you don't even have to go personally collect yourself or hire someone to collect on your behalf.

According to the seller, rental payments have always been made on time which is on or before the 10th of each month for the past (46 month's) that I have owned the park.

Expenses:

2016 Property Tax was $620.68

(4) septic tanks pumped out at a cost of $1,000.00 aprprox. every 3 years. (Averages out to $333.00 per year)

Lawn Mowing & Trimming during the cutting season (7 month's) is at a cost of $270.00 per month or ($1,890.00 per year) which includes being cut & trimmed twice a month (every 2 weeks).

Liability Insurance cost is $302.00 for a year for a Three Million Coverage.

Electric for the well and night lights is $73.00 per month or ($876.00 per year)

All renters take their garbage to a County owned dumpster so there is no garbage or trash bill.

The gravel road is so compacted it only takes a few shovel's of gravel per year to fill a few dips.

Gross Income:

13 lot rentals x $175.00 each per month = $2,275.00 x 12 month's = $27,300.00 yearly gross income.

1 RV lot rental x $300.00 per month = $300.00 x 12 month's = $3,600.00 yearly gross

$30,900.00 (gross yearly income) minus $4,021.68 (yearly expenses) = $26,878.32 (net yearly income)

There are (4) septic tanks and (1) well for the lot's that convey with the park and "all renters" pay their own electric bill.

Without reading all the posts, good wholesalers are hard to find because everyone and their mother thinks they can jump into it. The truth is, wholesaling is the hardest thing for newbies to do. You have to be able to not only generate leads better than other investors and realtors but you have to be able to negotiate WAAAAY better too. That leads to one of two things. They either fudge numbers thinking investors won't figure it out (they do) or they just have no clue how to calculate repair costs. It's the lack of a moat that increases the supply of clown wholesalers. That's why even though I do sell some deals that I can't do, I refuse to ever call myself a "wholesaler".

Im all for "hands on learning" but not at the expense of homeowners who are likely already in a stressful situation. As stated, this type of action what gives "wholesaling" a bad name. I hope for everyones sake, you find a buyer ASAP. 

My first question would be, do you truly believe you have maxed out your success in your area? If not, why focus on areas you can't physically see? Too much risk of lost opportunity cost if you ask me. Then again, I have never even attempted virtual wholesaling so what do I know?

Assignments make everyone in the deal squirm, its sloppy and at minimum frowned at. I would rather pay the extra costs for a double close and actually close with the seller. No one gets but hurt and you can keep new buyer relationships in tact. You avoid a lot of stress with a double close if done properly. 

Wow nice. Sounds like just getting the equity loan would be much less stressful. You could always try to find a seller financed deal. 

Time  to pick up some Credit Default Swaps lol. Seriously though, this kind of thing breaks my heart. Financial illiteracy mixed with trying to keep up with the Kardashians. Like @Greg Rutkowski said, "This is not going to end well...".

Never really understood wholesaling. Why not just get your license? You have so many more benefits.