All Forum Posts by: Tim Cornwell

@Boris Harhaji Great question. This was actually a major game changer for us. We found a company called PEP Lending that loans on used trailers. That way we didn't have to finance the trailers and we got cashed out at the time of sale. The only downside was we had to personally guarantee each loan so if the borrower defaults, we buy the trailer back. This has happened a few times and we've gone in and cleaned up the trailer and ended up selling if for more than the last tenant paid.

Investment Info:

Other fix & flip investment in Etna Green.

Purchase price: $700,000
Sale price: $1,340,000

Bought a 52 pad park with private money 100% financing at 12% interest only payments. There were several park owned homes in the park that we quickly sold to tenants for $1. There were about 10 - 12 vacant pads. We put new park rules in place, raised rents 3 times, started bringing in used trailers to the park in an effort to fill it up.

What made you interested in investing in this type of deal?

Curious about the MHP model and wanted to try it

How did you find this deal and how did you negotiate it?

Online, internet search and writing letters

How did you finance this deal?

Private money

How did you add value to the deal?

Raised rents, implemented park rules, hired a new manager, brought in more trailers

What was the outcome?

$600k profit in 3 years

Lessons learned? Challenges?

Definitely benefitted from the MHP University from Frank Rolfe and Dave

@Holly Arroyo give me a call and I might be able to help. I'm in whatcom county

Why not hire an agent? In my opinion it will save you a lot of risk and time. Ask the agent to explain the process and maybe you'll be ready to do it on your own next time. Maybe the seller would even agree to pay the commission.

How many partners do you have? Several for different acquisitions and purposes

How did you find your partner? How long had you known one another? Friends, acquaintances, co-workers

What kind of partnership was it? LLC

Tell us about the property: Mobile home parks, Real Estate Brokerage, Apartment

How did you decide on tasks and delegation?  Operating agreement and meeting minutes after discussion

What worked? meeting frequently

What didn't work? When trust is broken

What REALLY didn't work? When confronting distrust and lack of resolution

What was the outcome of your partnership? Greater results than if I tried to do it alone.

Any other thoughts?

Join us as we celebrate the opening of our new office in Fairhaven!

Matt,

I'm a real estate agent and RE investor located in Bellingham. Grew up in Mt. Vernon. Happy to be a resource. Reach out anytime.

Tim

Definitely come check out Bellingham! It will be worth your time.

Brett,

I'm here in Bellingham and am familiar with the market. I'm a real estate investor and a real estate agent. I have bought, sold, rehabbed, owned and developed land in Bellingham. I currently own and manage a 6-plex on D St. Happy to share a cup of coffee w/ you to talk it through. I'm a good listener and sometimes just thinking out loud opens a pathway to the solution.

Tim

excellent analysis Mary Kay!