All Forum Posts by: Nate Pattee

I'm working on a 100+ space MHP deal and the park has about 25 vacant pads.  I'm considering a couple different strategies to fill up the vacant pads and park owned homes but thought I'd take a pulse from the BP community and get some opinions.   Consider this is a lower level 2-3 star park.

1.  Buy used units and fill with the rent to own strategy.  If this is a descent strategy what should I be looking out for?

2.  I'm also considering buying new homes or pulling in a model on site and having prospects buy through the dealer.  But I am having a hard time determining if the park can support new home prices.  What can I use to get an idea if new home sales would be a viable option?

3.  With 1 & 2 considered, which one offers the best way to fill the vacant pads with the least out of pocket cost?  

4.  On a similar note, if the park comes with a few park owned homes, what's a couple good strategies I can use to get them sold?  

Any AZ investors/owners want to meet for coffee/lunch, let me know - would love to connect!

A sincere thank you for all who contributed, really appreciate your opinions.  My original question was about how to get an investor out of the deal before a 10 year horizon.  

Here's what grabbed me from our conversation:
- Find investors that are aligned with my model's capital expectations and I've found my answer 
- Help investors understand that getting out of the deal before 10 years is possible, but likely will be at a cost/discount
- Keep the option open for a refinance mid project but leave that decision to me 

Thanks All!
Have a great week - Nate

Thanks Scott - I was hoping to avoid increasing my basis by way of a refinance.  I also want to consider an option that doesn't rely on the lending environment or marketability of the deal for sale.

Thanks for the feedback though!

Thanks Joel for the feedback.  

I'll check Brian out.

Officially my first BP post. Really hoping not to get booed off stage…

My experience to date at acquiring large multifamily properties, raising private equity, executing asset management strategies, then exiting the deals as expected, has been better than I could have hoped.

The challenge with every one of those deals is that they were short 12 - 24 month deals, a model I’m changing moving forward.

My new model will have me acquiring the same type of deals but holding them for 10 years.

During a few initial conversations with investors, the first question I get is a relatively new one (compared to raising equity for short term deals), which is “how do I get my money out before the 10-year deal horizon?” Makes sense. 10 years is a commitment and I’ve got to recognize investor’s needs.

I want to avoid a forced liquidity event (sale or refi) in an effort to keep my basis low in the deal.

So, what are a few options I could consider that would give investors a way out before the end of my 10-year deal? What challenges will I run into down the road with those options?

Boo if you must, I can handle it.  Thanks, Nate!