All Forum Posts by: Mark Rickert

Hi Ian,

Location of course plays a huge part in your demographic criteria. Rural? Growth market? How easily can you sell homes? Upside on rents with a house payment on top of it if you have LTO homes. Has electric to pads been completed yet by previous owner? Newer homes are wider and need more power. How deep and wide are the lots? City water/sewer? paved roads? In good shape? Ahhhh, the trees..yes beautiful trees with destructive roots on sewer lines. Check the trees and below. Zoning? Zoned MHP? if not, what happens to zoning upon sale and new buyer? On, and on. This is just the beginning. My best to you in your dilligence. Look for reasons NOT to purchase and no emotion in the purchase. Numbers have to work. CAP rate? NOI? CoC returns look acceptable to you?

Hi Josh,

Complete your own diligence on the financial model, demographic model, and physical model of the park, and your idea.  You are placing a lot of your investment control in the hands of a current park owner.  If he/she has a park on the downstroke, where nobody wants to live you are stuck with homes with no renters.  Also, do you want to be in the rental business or the park business?  High risk for low returns.  Just my humble opinion.  

Look to buy a park with upside and low levels of park owned homes in a growth area.  A class C park you can build equity in.  Purchase from a Mom and Pop.  25 spaces or higher.  No wells, no septics.

Good luck

Mark Rickert

Family park or 55+? 

Hi Steven,

1. Join your local Manufactured Housing Association and get to know park owners by networking
2. Go to networking events with commercial real estate brokers
3. Offer to sponsor a light breakfast at one of the commercial broker meetings and let them know what you are looking for, that you have capital and ready to close on a deal. Be very organized and knowledgeable with the Cap rates you are looking for, CoC returns, types of parks, utilities and how many POH"s, etc.
4.  Develop a list of parks via county assessors website 
5. Keep sending your mailers and change them up by adding value or just sending a, Happy New Year letter, special postcard, let them know what you are doing.  Personalize it.
6. If you have visited their park make sure you let them know and the things you like/d about it.
7. The brokers are going to feed their best deals to people they know, AND who can deliver the cash/closings on the deals the engage on.  

The two approaches are to find, "off market" deals by using some of the methods above.  The, "on market" deals are not normally good and have been picked over.  You want parks that have not hit the public, scrapyard.  This is not always the case but much of the time.  Develop relationships with the commercial, LISTING brokers and let them know you are serious.  Make sure you have at least a decent website to drive people and that your profiles are all up-to-date.   Also, to get to know the, "Mom and Pop" owner market.  

Good luck and hope this helps some.  Let me know if I can help you further in any way.  

Mark  

We are bullish on MHP's and I would advise on starting in multi-family, specifically MHP's.  The more spaces the better.  After having grown up in the business I am biased though.  :)

Hi Bryan,

Great questions and I might point you to an article titled, "Why you should never build a mobile home park" by Frank Rolfe. There is also a VERY detailed podcast out there, (can't recall the name though) where I think Frank goes through the step-by-step math of what it takes to build a park, the length of time and money it takes, IF you can get zoning, etc. vs. purchasing a turnaround park. We look for underperforming parks with upside, and immediate cash flow whereby we can increase NOI and lower expenses.

Good luck!

Mark Rickert 

Hi Ray,

My wife and I are  licensed realtors and mobile home park investors from Albuquerque.  Welcome to BP and the investment workd.  Let me know if I can ever be of assistance.

Regards,

Mark Rickert

Rickert Property Group

Hi Jack,

Thanks for the mention and hope 2017 is one of your best years ever!  :)

Find an investor agent that you can work with.  Bring loyalty to the relationship and get knowledgeable.  Use him/her to help you find deals and save $$$$.  Costs you $0 to use services of a broker unless you are selling.

I think your strategy concept is outstanding.  Unfortunately, not sure how to guide you.  I know in the Real Estate industry there are big data companies like SmartZip to forecast who in an area is highly likely to sell their residence.  MHP industry, not sure what is out there.  Wish I could be more helpful but great questions.