All Forum Posts by: Jefferson Lilly

Can you explain the low density?  (21+13=) 34 homesites / 20 acres =~ 1.5 homes/acre.  Typical density is 10 homes/acre.  Are the homes 'all together' on ~3 acres with the remaining 17 acres wild?  Or are the homes spread out across that much acreage?  In which case it sounds like the mowing cost of $200/month for ~7 acres of grass is not possible.  

Thanks,

-jl-

What are the seller's reasons for not agreeing to give you your money back?

I suspect you'll need to go to court.  The title company will be able to give you some advice on how to do that.

-jl-

When it comes to MHPs, just stay away from LA, MS, AL and most all of the southeast.  Also, it does not make financial sense to build a MHP; buying one already cash flowing is the far better option.  Read here: http://www.mobilehomeuniversity.com/articles/why-y...

Attend your local REIA meetings, find a capital partner, and go into this business together.

Good luck to you,

-jl-

Stay away from RUBS.  It only angers tenants.  One guy only showers 1x/week, and he looks across the street at the guy who washes his 3 cars 2x/week each and knows he's subsidizing that guy.  You want to encourage each household to conserve, and the only way to do that is to bill each tenant.  You'll find water usage drops by approximately 1/3rd.

We use Minomess 130 meters, but many are similar and probably equally as good.  We like this model because it has the unalterable manual meter in-line (usually under the house), but also comes with an 8' wire and remote reader to mount on the side of the house to make for easy readings.

And that other website is www.mobilehomeuniversity.com.

Good luck to you,

-jl-

No rules.  It's just what you can negotiate.  That said, I know one investor and 'laborer' who worked out an even 50%/50% split of all profits.  Profits are any rents plus any capital gain.  (e.g. if the property was sold at the price they paid for no gain, then the investor got his money back; that part was not split 50%/50%).

Good luck to you!

-jl-

@Eric F. -

Congrats on getting a response to your mailer!

Focus on purchasing a park that has city water and city sewer.  Stay away from well and/or septic - unless the water and sewer run immediately infront of the park.  Don't buy a 'stranded' park on private utilities with no easy way to connect to the city utilities.  Also, run test ads on CraigsList.  If you don't receive at least 20 responses/week, then walk away; the economy is too weak.  A small park like yours is an ideal candidate for seller-financing; it'll be difficult (but not impossible) to find a local bank to finance it.

My 2 cent's worth,

-jl-

(removed)

No solicitations in the forum please.

To your continued success,

-Jefferson-

Sun (NYSE:SUI) has a RTO program, but the monthly rent payments are good for any mobile home. The program is very similar to airlines' frequent flyer programs. The airlines give their customers credits they can redeem on any flight. Similarly Sun's program gives their customers credits they can redeem on any home. Thus the paperwork does not attach to any specific collateral. It is even farther from a 'mortgage' than just a regular RTO program, which is itself an option to buy a house, not an obligation. Rent Credit (RC) programs are, SUN and many of the rest of us in the business believes, exempt from Dodd Frank. But not even RTO agreements have ever been tried in court. So nobody knows for certain.

As regards managing a MHP, you need to get to MHU's Bootcamp and learn about the business.  Property management companies are notoriously awful MHP managers.  Stay away.  You want to hire a resident in your MHP to manage it - whomever in has the nicest house.  Their nice house indicates they care and are responsible people and are more likely to work out well as your manager.

To your continued success,

-Jefferson-

Mobile home parks are always more valuable than a comparable RV park.  Recreational Vehicles have engines in them.  That means your cash flow drives off.  

Mobile homes are not actually that mobile.  Best industry estimates are that mobile homes stay in parks for 40+ years.  Your cash flow stays if it is tied-down to the land with permanent utility connections.

Best,

-Jefferson

Mark -

My partner and I do this for a living.  We are open to partnering - especially with a partner who puts up all the capital.  I'll give you a ring this week.

Best,

-Jefferson-