All Forum Posts by: Account Closed

Honestly, at this time I would concentrate on building my credit. Parental help can often become a crutch and a poor substitute for learning to do it on your own. When I was younger my parents were generous in their financial support and I was very appreciative but it kept me from finding ways to do it on my own. Parental help will be multiplied exponentially when you have acquired the other skills to go with it.

@Bryan Knight my point regarding financing was directed toward retail buyers. 15-20 years ago credit was very lax in the industry and huge numbers of homes were sold but a few years later defaults soared. Lenders withdrew from the industry and it crashed. 10 years ago repos were plentiful an low prices. Eventually they were absorbed but is the last 15 years very few single wides have been manufactured in comparison. Park owners are wearing out the roads searching for trailers to fill their parks with. If I was looking to buy a park right now I would be very concerned with the age and quality of the existing units and their ability to continue producing lot rents for many more years

Why can't you inspect the home? Is it occupied?

2016 F-250. I have worked long enough and hard enough to no longer drive worn out junk.

Bryan, I think the biggest roadblock you will face in starting a new park is the availability of homes. The industry has undergone a tremendous change in the last 15 years. The manufacture of single wide homes has plummeted. Financing has almost dried up for single wides and lenders only want to lend on homes attached to land. Quality single wides are getting rare and bringing a premium price. These older parks were built using homes that were placed there by dealers who would in turn sell them. Some dealers recommended parks to their buyers. The financing was available. As I see it, a mobile home park's value is based upon the ability to get units on lots and keep them there.

Just a word of caution to keep in the back of your mind when dealing with elderly sellers. It is good to make sure that their children are aware of their plans to sell and about what they are selling for. I have seen people even at age 90 with minds as sharp as a tack but I don't want to run the risk of being accused of taking advantage of the elderly.

I have had good luck purchasing ready to assemble cabinets thru the Internet. I first used them in my private home a few years ago and I was really pleased with the quality. They are cheaper than Kraft Maid and much cheaper than custom cabinets they come with plywood backs and sides. Of course this all depends upon your budget. I buy most all of my materials from Lowes because there is always one nearby and it's just one stop for many items. When I first started in construction many years ago I was obsessed with finding "deals" on materials and eventually found that what ever I might have saved I ended up spending it in gas and time. 

Your numbers on this deal concern me a bit. You have a fairly wide variation in potential sale price as well as renovation costs. At the potential worst you are looking at 100k profit IF your numbers are right. I know you are a realtor and you have family in real estate but realtor fees must be calculated anyway. Cost of a hard money loan figuring a six month holding period and points could run up to 50k. A lender would also want to see you with skin in the game so you might need to pony up 50k. After you consider all of this, the deal may not be so great. You really need to get your estimates firmed up before further considering this deal.

On the surface the numbers look workable. When you are talking about replacing windows and working on baths and a kitchen, 12k can go fast. Are you solid on your repair numbers as well as your sales price?

Unfortunately, in my experience, I have found a tremendous number of agents that are incompetent. Your agent sounds not only unmotivated but incompetent. Fortunately in my area I have found an agent that is actually the listing agent for most HUD foreclosures. He is professional, prompt and well organized. I encountered him after my realtor, with over 20 years experience, never took the initiative to get a NAID number! A good realtor can be one the most important tools in your bag. Not all realtors are pros. Choose accordingly.