All Forum Posts by: Rick K.

Hi all. I have got a 1400 sq ft. mobile on 3/4 acre in a subdivision. The price is $27,000. Potential rental at $700-750 per month. The home requires mimnimal repair. Financing is tough right now.
Is this a good deal? Any finance suggestions please.

I do not know if this topic has come up before but I am putting it out here anyway. What would the big outcome be if Iran did mine the straits of Hormuz?
Would oil then become unobtainable at any price? Would housing plummet or skyrocket? Could we find alternative energy sources before the economic falilure? Just some thoughts.
Rick

Finding a good mover who is on time and dependable to accomplish the move professionnaly is very hard. I have 2 in my area that I keep in contact with and throw business to as often as I can to let them know I am looking out for them. They in turn look out for me.

How to find these people? Well call around to the mobile home park management and ask for referrals. In this economy with no new homes being sold it is tough to stay in the moving business, so the used homes is where the movers are making it. Mobile home park owners and managers usally know the good movers.

"Congrats Rick! What interest rate? Fixed?

What kind of things did the bank want to see that you felt were onerous?" Jon Klaus


The interest rate is 7% fixed.
I guess the biggest thing was that I have never been subjected to a phase 1 enviromental or a commercial appraisal. These two things gave me a lot of stress ( probably undue stress). Also the fact that it is a $1.5 mil loan warrents the bank doing its due dilligence. Now that God has gotten me through this one the next one will be more relaxed. Also I had been turned down so many times by other banks and private lenders. I should also say that this refi paid off an owner financed note.
The former owner and I will now partner to develop another property of 16 acres ajacent to this one as a 100 space MHP with all park rentals. We are working to bring in city sewage with our own lift station. We will then be able to sell the lift station services to surrounding communities at a nice fee per lot each month. I hope to have more than 500 connections. Water and sewer combined at $50-$75 per month. We need that to pay for the lift station.

I have been searching for 2 years for refinancing for this property. First national bank came thur for me.
Details:
40 year old park
36 acres
185 spaces
150 filled
42 park owned homes
Appraised value = 2.1 million
42 homes value = 309,000
noi = 209,000
cap rate = 8.4 %
Payment = 12,175.00 per month $2,000.00 less than last month
20 year am with a 5 year call in. Don't like this part but that is the best I have found out there.
This deal coming thru has to be a GOD thing!
The worst part of this more than 3 month ordeal was the complete stripping away of my financtial life by the bank. I feel violated because of all the info the bank required to close this loan. I have never been scrutinized to this extent in all of 26 years in borrowing money.

Well this deal is done, now to work on the refi for 2014. Gotta start now and really make this park look sweet for the bank. Rick

I started not to post but I changed my mind and came back to tell my short story on background checks. My parents and I purchased a mobile home park 10 yrs ago that had an operating gang and a murder with the body dumped into our dumpster the night before we took over. Once my dad removed the gangbangers and we did our own brand of background checks things turned around. Now I took over a few yrs ago and did official background checks over the net. I now have been told and recognized by the county police as having the safest MHP in the county. Good apps and background checks, and building relationships with the tenants pays off with peace and safety. Rick

I have owned a lot of different brands and ages here in south Ga. The best I have come across are Cavalier and Palm Harbor, also the most expensive. They do hold value better than others. The worst are champion, & bellcrest. I would not ever own or keep another of theirs. I hope this helps and is not region only.

Thank you so much Jim for the info. I can really see how this idea would fare better in a resort type area which I am not in. I am going to have to look to a different exit game plan for the future.
Again thanks.

I use a VA called my secretary and she screens a lot of time wasting calls that I do not want to deal with. In this case a VA is worth their wait in gold.

My worse two months in business of 24 yrs has been the last 2months. But the problem is not vacancies but nonpayment of the rent has led to more evicts than I have ever done. I agree that the quality of applicants has gone down a ways and I rent what is considered the bottom of the barrel trailerpark homes. I may go broke but I still will not rent to criminals or previous evicts. Therefore I have the safest community in the county I am located in.