All Forum Posts by: Account Closed

The problem in developing the park is really in bringing the homes in. Back in the 70's, when many of the existing parks were developed, trailer owners were looking for lots to rent and often the new unit was moved from the dealership right to the new park and it has remained there since. Often dealers would place new units in parks and sell them in place. The single wide industry collapsed about 15 years ago because financing dissapeared. There are probably less than 10% the number of singlewides produced today than there was 20 years ago. If you develop a new park right now you need to be prepared to buy all new units yourself to stock the park. I would guess on a park that size you would have a minimum investment of 10 million and that may not even touch it. Add in the more challenging management aspects and financing challenges as well as rapidly depreciating assets and it's often not worth it.

I doubt many new parks are being developed. The business model has been broken.

I have a crazy idea.  Why don't you line up your money/investor before you make an offer?

Find a house that you are really interested and hire an inspector BEFORE you enter into contract. Offer to pay him a few hundred more than his standard fee for some extra time and hand holding and go on the inspection with him. Ask a lot of questions. Ask about things that aren't defective just to learn how they work and why it's done that way. Then read books on construction. To be successful in this business you have to immerse yourself into it. Make it your goal to know as much or more than the inspector. Eventually you will find out that some inspectors spew bs when they are inspecting for the retail buyer.

I always enjoyed how they ended up paying more for the house than their target amount. They then proceed to end up with 50k in unexpected expenses and end up having as much in their expenses as their original target selling price. Magically the market has increased overnight and Tarek has found a comp for 25k higher. Naturally their house is always superior so he prices theirs 25k over the highest comp. a bidding war ensues and they end up selling for 100k over their initial target price. So, I have discovered the secret to success. Move to southern California, get an Escalade, a smokin hot wife, and go around with a bewildered, confused look on my face.

How in the world could you not walk into the house and not realize that 25% of it was missing? That's like 3 bedrooms! I may be a dumb old country boy but when it comes to my money, I never rely on anyone else's word. I do my own due diligence that includes using a 6 dollar tape. I am busting your chops here but this was so far off that you should have caught it on your own if you had been paying attention. I bet you won't make this mistake again.

@Ben Silone, honestly I will give an answer that may not be politically correct but one of the best hedges against inflation and instability is firearms. Quality firearms are always easy to buy and sell and not only retain value but appreciate.

Gold is a terrible investment unless you time the market perfectly. The only thing keeping the price where it is now it the people stubbornly holding on that bought it at 1600. Look at historical prices and gold had miserable performance for many years. Gold is a panic investment. If our financial markets imploded chaos would ensue and out society would melt down. The mist valuable thing then would be a loaf of bread, a roll of toilet paper and ammunition. Gold can neither protect you or feed you.

Perhaps since you see a bear market, how about selling your over inflated real estate then using the money to short stocks? Then you can have a bundle to buy new properties with at half price?

if water is included in the current lot rent then you will get a backlash from tenants when they suddenly have to start paying for this. As an option you can submeter  the lots yourself at a significant savings and bill the tenants for their water usage. I don't know what water and sewer rates are in your area but the cost of this for 7 units could easily run 4-5k a year. Lastly, how old are the homes on the rented lots. This could be more of an issue than you might think.