All Forum Posts by: Reid Hanley

I am buying and renovating a double wide mobile home as an investment rental. I came across the home style loan online. Has anybody used this loan product to renovate a mobile home? Curious what parameters they have for DIY repair as well as how they determine ARV and LTV. Any input is greatly appreciated! Thanks BP!

I am about to start interior demolition on a house we are buying to renovate and BRRR. I am planning on hiring some college kids to help with the labor of tearing out walls, subfloors,...etc. With doing this I realize that I am taking on the risk that one of them could get hurt and this could potentially be very expensive for me. I'm planning on having them all sign a Volunteer Liability Waiver, absolving me of any responsibility should they get injured. However since I intend to pay them for their time I believe they would be 'employees' of mine while doing this work which could negate the 'volunteer' waiver.

Does anyone have any experience with this?  I didn't see any Waiver Forms uploaded on the File Sharing forum.  Any input is greatly appreciated!

Thanks BP! 

We are taking over ownership of our 1st park in 2 weeks. We are having the seller give each tenant a transition letter introducing them to our company and spelling out the following:

1. All tenants in good standing are welcome to remain but are required to sign a new 12 month lease. This is leveraged investment for us so we want the stabilized income to document to the bank.

2. How and where they are now to pay rent. That there will be no more on site collecting of the rent by us or our park maintenance man.   

3. We are implementing an increase in rent rates and are providing 90 days advanced notice on this transition letter.  

4. We are  giving them notice that we have park improvements  planned. We are not committing to  specifics or dates, but we are trying to provide some value add for the upcoming rent rate increase.

This park has been owned by the same family for 25 years. Rent rates are well below market and we don't expect much loss of tenants. There really is nowhere else for them to go at the price point we are raising to. 

Good luck!

I completely agree with @Hai Loc.  The cost to move the trailers plus the risk to them that the tenants would want to move to the new location mean that it is not likely the block owner would do anything.  I would do two things...get it under contract and then go talk to the block owner during DD.  Tell them you plan to get your lot rents in line with market rents and see what they say.  Depending on the uptick in rent to market levels, maybe offer him small volume discount to keep him below market if they keep all the homes there.  I don't see how he has any potential to be in control of your community.  

Any update on this MHP @JohnKim?  That last post is a real cliff hanger!

Just found these guys on Youtube.  Seem legit.  Was wondering if anyone has used them and thought the service was worth the cost? 

https://www.duediligencepartners.com/

I just went through this with a smaller MH property I bought with three homes.  All tenants were previously paying cash to the prior owner who would stop by each month to collect rent.  I had the tenants all sign my lease form and included a separate page detailing that rent now had to be paid via check or money order and mailed to my PO Box.   About a week before first rents were due to me I sent them all a reminder letter of the change in method of payment and who to make the payment out to.

Worked great!...all three tenants complied.  On a bigger park I'm sure it will take a little more effort, but same system should work.

What @RyanGroene said!  I'd also send that town rep a follow up email asking him to verify what he told you and also to confirm that the park would be allowed to continue to operate as is.  You can keep that for any legal fight that arises.  The reality is they aren't likely to come upend your property unless you give them a reason to, like getting behind on taxes, etc. or if you're in the path of development.  Check the future land use indication for you land.  If it is going to remain residential it's not likely it's on anybody's radar.

Good luck!

By Designated Forrest land does that mean it can't be improved or developed further?  Regardless, if they originally borrowed $110K on it, someone saw that much value it in.  I would go back to that source first.  If they won't lend again I would try every smaller regional and local bank in the area.  They are able to make local lending decisions and often see the value in a property that big banks won't.

This is a topic on my mind also and I hope some experience MHP investors will chime in.  The park I have under contract has a MH that has got to go.  No rehab possible unfortunately.  I am going to be calling scrap dealers and putting the FREE Mobile Home listing on Craigslist as soon as we close.  But please anyone who has dealt with this situation chime in on how you managed to get rid of an unusable MH.

Thanks BP.