All Forum Posts by: Mike G.

@Michael Ware

Found a single wide mobile home for sale in a park. Owner has it for sale for 5500 but says she’ll sell to me for 2500. Park fee is 300. Previous owners smokers, ceiling looks rotted and insulation is coming through 3 large spots but she says it’s been repaired. No carpet in master, floor is spongy, and shower walls show rot. Cupboards removed to install large fridge. Hard to find comps but I think arv would be between 7-10k. Should I run away? This is in Anderson ca 96007 flip or possible lease option? I have analysis paralysis.

Michael, there are several things that become very apparent from reading your post and i dont say this in a condescending manner by any means, think of it more as a learning curve because we have all been there, lord knows i have.  Here is the thing....... 

After reading your post all i took in was " I dont know what I dont know!!!"

while that is an awakening for you, its a chance to feed you some knowledge in this January 1, 2019 about mobile homes and the moving parts within them.

1st of all, MHPs in CA are a major pain, and analysis paralysis isnt always a bad thing, 

in this case run from that deal. here is why........

that mobile home is  POS.

2ndly you i can tell from the info you posted that you dont know about Dodd-Frank or the Safe Act of 2009 which is harsh laws that come down on investors carrying financing to unscrupulous low income buyers of would be mobile homes in parks or on land. 

California is very strict and on the renter/tenants side much more than your side any way you slice the pie. Tread very lightly if you decide to purse this however i would not. 

California has a division of government that looks into such deals as your looking at and its just not a win/win especially for you. I would pass. its not worth the headaches. 

this is a classic case of " i dont know what i dont know " that would really hurt you in this deal. 

Yes the barriers of entry ($$$) is low, but regardless of that, your teetering on a slippery slope here my brotha.   a hard PASS. 

For those that invest in Mobile home parks in various states throughout the US what states are the most owner (landlord) friendly. 

In terms of dealing with tenants, evictions, rent raises (on POH) or on space rent, leasing from POH to TOH, I know you go from the worst states for this on the left of the spectrum with California and Oregon etc, some of the best states based on this criteria is TX, FL.  Would love to hear some experiences from park owners or people in this space as it relates to the question posed here. 

Open forum to the floor, fire away.........

@Pratik P. 

There are a number of skip tracing services online. I've used REI Skip which seems to be decent. But now, I use an internal skip tracing service through REI Rail which has given me really good match rates.

Pratik, thanks for the lead to this software, i have never heard of REI Rail but ill be sure to check it out now. what lists are you targeting in your local area that are working for you. happy new year by the way!!

@Sarah Pursell

Tell her there is a big increase in rents coming on the new lease , no extension and to take it or leave it.

@Carson Kesner

No, No and NO!!!!

For all the reasons herein mentioned by other posters, if he goes rouge and you want him out and you have advance money he can decline you returning his money or make it difficult and you will be stuck. Don’t accept it I would pass on this guy all together and find someone else.

The biggest wolves always greet you covered in sheep’s wool and make you feel warm and fuzzy in the beginning.

12k of rent up front sounds great however there is a down side and the downside in this scenario is an unknown risk which you can’t foresee nor calculate so to me again..... It’s a hard NO and a HARD PASS on this prospect.

That’s my .02

@Ryan Nguyen

putting all your faith in a OOS real estate agent that you never met or vetted beyond one phone call or email. 

Hey BP community, i am putting together a direct mail campaign ( my largest to date) and I am seeing if any of you have or know of a resource or list that is just phone numbers to cold call. Some of the lists im about to pull the trigger on dont come with phone records. I have everything else: owner name, address, mailing address, parcel, equity, purchase date, est value, est equity, last sale date, etc. So i could skip trace this list, but is there another option that im unaware of for obtaining the phone numbers to all the owners on these lists?

@Kellen Driscoll

The seller should have 2 P&Ls for this park broken into the lot rent and then one for the rentals themselves. If he does not, and his pro forma expenses are downplayed in any way your expense ratio for this purchase could be much higher than you anticipate even with a WCS in mind. As it was very well explained by @Jack Martin there are absolutely Better deals out there to be bad with much less risk in the POHs scenario. I would pass as I am looking for a park to purchase and have analyzed many deals I’ve tightened up my criteria which slows down the purchase, however a MHP isn’t something I want to rush or have buyers remorse on. Tread lightly with this one if you pursue it further.

@Tie Lasater wow what an inspiring story Tie. Really fires me up to go out and make some massive indiscriminate action in 2019.

What training and or education would you recommend that put you over the top and helped you to make the moves and adjustments that you did? How are you guys sourcing your deals and generating leads? Great stuff congrats.

@David Lecko I will definitely take a look at you software. Is it effective in all lower 48 states?