All Forum Posts by: Steven J.

Greetings all,

I've nearly got under contract my first mobile home park in central Illinois and I feel at a good price - where I'm unsure is some of the projected expenses that aren't necessarily accounted for or broken down by the current owner. I.E. telephone and advertising costs haven't been accounted for and all the management, payroll, and all types of repairs and improvements are lumped as one sum. 

I've prepared a break down of what the projected expenses would be.

Any input would be widely appreciated! Where this deal shines is that lot rents are about $75 below market and the park has some vacancies, both pads and homes, that once filled up will bump this NOI higher.

If you see expenditures I'm missing, or seem unrealistic let me know! Be my extra set of eyes.

Thank you!

Awesome! I'm excited to check this out this weekend! Thanks for posting!

Welcome to BP @Ryan Chen. Its a great resource. Sounds like you've got some opportunities to start networking in the area. 

Check out Meetup.com for different groups in the area as well.

Greetings all,

Since BP is such a fantastic resource I figured I'd come here for some advertising.

Nearly under contract, (waiting on signature of a LOI from seller) is a mobile home park in Central, IL. Once under contract I'd be happy to share more information with interested lending parties. Plenty of opportunity to improve this property.

This park is 40 lots of which 9 are empty. Current lot rent is up to $75 under market rent for the area. Property has 5 tenant owned homes and 25 park owned homes which bring in just over $10k a month and my projected operating costs (no financing) put the park at $50k+ cash flow per year. 

• Gross Income -     $124,000
• Expenses -             $71,000
• NOI - $53,000
• Cap Rate -              15%
• Purchase Price -   $350,000.

I'm looking for a private lender to assist in the purchase of this property. If you have any interest, or suggestions, or want to discuss please follow up with me.

Steve Johnson
240-394-5733
[email protected]

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Welcome to the group of BP! 

Some key take aways I've gotten dealing with mobile homes is that the market doesn't work the same as stick built. Sellers who want cash sales are hard pressed because if their price is too high people who do have that much money use it as a down payment on a stick built. At the same time, if the price isn't high enough most banks won't want to finance it. Under 50k loans just isn't worth the risk for most banking institutions. This means that homes may sit on the market longer, even if they are in great shape and priced right, and then end up being sold at a big discount or being sold on payments.

My gut reaction is that this is not a discounted deal at all. For a home that old I'm paying a few thousand maybe. Unless this is a super fancy home in a highly desirable resort area I don't see how these numbers can make sense.

I'm very analytical and I've had to combat that with real estate. In the back of my mind, and I've been this way growing up, I wanted all the information, I wanted the perfect system in place, I wanted to have things run as efficiently as possible. I still get caught in that trap and now I at least recognize it (sometimes) and tell myself to just push through regardless of how prepared I am. For example, I'm creating my own CRM software in Excel customized to what I want. This has involved learning a lot of advanced information about excel I won't use ever again, or very sparingly. I've spent hours trying to understand the coding and although I don't have it operating perfectly and isn't perfect for every situation I'm pushing ahead. I've got to make phone calls and track leads and that brings in the deals, not learning visual basic coding.

Keep in mind, sometimes its Ready, Fire, Aim where you aim towards a destination when you're already moving. Many feel that once you start moving in a direction you gain momentum and that keeps you pushing forward.

Ask yourself 'is what I'm doing helping to bring in profit in the long run, or is it just busy work I've given myself to make me 'feel' more comfortable?"

An issue with Cozy, a reason why I didn't use it in a lower income building I managed, was that it requires a tenants email to set up an account. Many in this building didn't have an email and at the time I seem to recall cozy wasn't set up to manually enter payments.

i don't think you can do that legally if you knowingly do that. I believe it falls under the term of mortgage fraud because most mortgages require that the down payment is not another debt. You may be able to find banks that allow it once you've built up a reputation but generally its not a good idea for the bank to do it. They have no way of knowing if that down payment lender has a higher position lien on the property already, etc.