All Forum Posts by: Travis Elliott

 Thank you.. I will give them a try.

You need to call Mobile Insurance, ask for Patsy who is their senior commercial specialist.  They offer extremely competitive coverage in most states across the country.  They're based out of Texas, give them a Google.  There are so many variations nationwide I don't know if I can state a price that would be close to accurate.

Good luck!

private reply via bigger pockets. you could also look at my profile.

Michael Rogers of Chandler Properties provided the following Excel Worksheet for BiggerPockets to share with all of our members.

REI Property Analyzer

We hope you all find it comes in handy.

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Travis - Since I believe this park is in the Dakotas, I worry that my experience is not terribly extensive although I did partner on a park development (since sold) several years ago during the shale oil boom.

There are many parts of the country where local ordinances and zoning are nightmares but have almost no trouble filling at sizable lot rents and other parts of the country where the local authorities and zoning is little or no problem but the owner has to work harder for residents.

Before I did much more in any direction, I would invest some time and money in a true market analysis. If you don't have a good idea how to do that, send me an email directly so I can send you a long PDF attachment that will help.

I have yet to run into a situation personally where there weren't pretty good solutions for but, you need to know your true potential market before jumping in with advertising and sales efforts, or even buying additional homes. Certainly the 40K stick built adds to the challenge, but I believe it can be overcome.

The only way to sell homes without a lending license or some joint venture relationship is for cash.

Good Luck!

Some random thoughts to consider:

I always try to separate the park from the homes and negotiate them separately. 

Your goal is ALWAYS to turn rental homes into tenant-owned homes, through rent-to-own arrangements or selling them on contracts. (Must meet Dodd-Frank and CFPB rules!) 

I think that, on the quality of homes you are talking about, if I can get 36 mos. of home rent from folks, and make them responsible for repairs and maintenance, I'd just give them the trailer at the end. Their value right now is 36 x rent, at the most. 

I would want to put the homes in their own LLC and value them at no more than rent x 36 mos...and that's if I'm being really negotiable with the seller. I wouldn't try to value them based on cash flow or cap rate; that's what the Seller wants, though. (They are a LIABILITY, not an asset, because they cost money to remove.)

What's the park worth if you removed every rental home, based on, say, a 10% cap rate? Negotiate from there. 

Personally, this project sounds like a HUGE headache, and I would need some phenomenal rate of return to make it worth my while.