Hi MHP champs,
I have a special request for wholesalers, cold callers, and other investors. A close friend is doing a 1031 exchange and will soon need to place $5M in cash. I would like to help him get into a mobile home park.
If any of you have deals that are too large or too complicated and would like a healthy wholesale fee, please let me know.
Always fun on the forum, hope everyone is having a good 2018. Will
Hi Will - I’m currently evaluating a 41 lot MHP in Northern Indiana and may be willing to wholesale.
Apologies - missed the 1031 portion. You are probably looking for a much larger park 
Thanks jmurph,
Yes, we’re looking for a much larger park but in my regular line of business we purchase all shapes and sizes. I have a park in Northern Indiana already so would love to take a look at your deal if you do decide to wholesale it. Can you send the details to my email address? Noel@elkhorngroup.org. Thanks! Will
Wilbus,
Chalk up another investor innocently snared in the 1031 timing trap.
That’s not a small amount of $$$ to place in a short period of time.
45 days to identify their new property and 180 days to close. BTW, the 180-day clock starts the same day as the 45-day one.
As mentioned in other posts, the solution is to NOT close on the existing property, but to give the buyer of the relinquished property the OPTION to buy it. The timing of the closing/sale will make it much easier to make your upleg purchase.
No time pressure if the clock never starts.
We’ve all seen deals fall apart in the due diligence period. Also title issues crop up. Environmental problems can also delay or make properties worthless.
All these can/will kill your 1031 exchange.
I always have some properties tied up via options so that my 1031 exchange contacts have a place to place their funds. Even if its just for a short period of time.
This is more cash than I normally can place at once, but contact me as things constantly change.
Thanks for listening.
Keep us posted,
Mike
Hi Mike,
This deal is, of course, complicated. We have to sell now and would like a clean sale. If that means that we have to pay taxes and hold cash for the coming market doom that will be fine.
That being said, if something changes and you have an opportunity come up I’d love to take a look at it and compensate you in whatever way you see fit.
Thanks for the thoughts. Will
Mike,
When doing a 1031 exchange it is best to alert mobile home park brokers specializing in the areas you would like to purchase your upleg in. Being in a 1031 exchange often means you will get first look at properties that brokers have available. Since there are risks as mentioned by mhmike it is important to identify (the allowed) 3 properties you may exchange into.
Andrew Warner
NAI Horizon
Oh save it bro - the guy needs to place 5 mil he needs to place 5 mil - not a know-it-all lecture reminding him what everybody already knows - 1031’s are a pressure cooker, sh*t happens and 5 mil is a lot to place on the clock. You’re not doing anything but making him feel bad.
Ivan_ilych,
“Everyone already knows” – that’s assuming everyone does.
Ivan, my post was not meant to make him feel bad. Maybe HE knows it.
I don’t know.
It certainly was meant for those who may not.
thanks,
Mike