All Forum Posts by: Joseph Young

My biggest interest right now with this lead is to gain some experience and make some contacts, so thanks for your input. 

As I study the issue, I realize that the owners can make money because they own it outright.  But financing it the way I need to will not give me the profit I need.  They have let the park get bad, but don't have the energy to make it any better.  They have milked it for all they can, but also don't have the energy or vision to take it where it needs to go.  They don't want to see their life's work turn into a large apartment complex, but the market has it's demands.  

Jill, Thanks for the tip, I will check them out.

It's annexed into a city and most definitely makes for a good development site.  In fact it may not cash flow as an RV park (if financed) because the value of the property is too high.  An RV park may not be the best use for this land.  

Currently the park seems to be full of druggies, and the managers are trying to get a couple of renters out of the park unsuccessfully.  They seem fed up.

I have found a mom and pop owned RV park that is willing to sell.  It is located near Portland, Oregon.  I don't even know where to begin.  

My experience;

My wife and I managed a 16 unit apartment complex for three years.

The park;

about 50 units, 385 per space, 4 park owned homes (2 double wides, 2 single wides) most of the rest are RVs.  Long term renters, just under 10 acres of property. Located on a main road.

City water, city sewer, (don't know right now if it is all separately metered)

WIth some of the formulas I have seen thrown around

lotsxrentx12x0.7 operating expense/0.1caprate= rough ask price

50x385x12x0.7/0.1= 1,617,000

Does that seem right?

I approached my lenders, but with my lack of experience in mobile home parks, they said NO.

I didn't exactly give them the best presentation regarding the opportunity, but I thought I would post today and see what suggestions some of you may have.

Thanks,

Joe Young

You learned your lesson.
She is brave to push you like that when you have more power in this relationship in the long run.
Put some sod in, do the math on that.
Even if it is only a small patch of sod, it could meet the definition described in the email.  She is holding you to your word, play off that.  Do the math on putting in fake grass for a few months.

What a good story, and you have learned a lot.  
This is where your life splits in two... your personal life and professional life.  It's hard to keep them separate when you live next to your renters.

can you get financing for lots? Without an immediate plan to build?

I have tried to pretend to be "just the manager" and not the owner, but I am a terrible liar.  As my wife and I own the properties together, I just say my wife is in charge, and she says the same thing about me, that buys us time.