My partner and I have 250k to invest in to starter park (~$1mm of purchasing power). Basic criteria is: City Water/Sewer, <20% Vacancy, <20% POH, 8-12% CAP. (Feel free to advise if we are off base).
We both work full-time so we get to visit parks on the weekends. Over the last 6 months, we have seen a dozen MHPs within 3 hours of driving distance of north NJ, but not a ton that meet our criteria. I see so much more opportunities in the South/Mid-West that meet our criteria, but we are having a hard time engaging brokers as they don’t reply much after distributing the initial OM. How do I convince brokers we are serious for both listed properties and pocket listings. Also at what stage of the purchase should we fly to see the property?
We have scoured Loopnet, Craiglist, and Mobilehomeparkstore. Any other sourcing opportunities we are missing?
Honestly there shouldn’t be too much discussion that isn’t already covered in the marketing package, and if you’re asking lots of questions the brokers might be labeling you a time waster.
Review the broker’s marketing package, ask a small number of succinct questions if anything vital wasn’t covered in the marketing package, do your own market research, and then submit an offer. Serious buyers don’t take up much of the broker’s time, unless the broker is incompetent and failed to include several vital details on the park in the marketing package.
@SteamChasing
You can show proof of funds for a downpayment and anything that indicates you are financeable and/or if either you or your partner have any RE/ MHP experience as a start. Some areas deals might not make sense. Some are better than others. Dont confine yourself to a particular region if the numbers done work.
That being said, if you are going remote, make sure you understand what comes with that, the deal is worth it and supports it, is there a turnaround component and how much at mercy will you be of a manager and does the deal size support it.
One of the hard parts is trying to find deals. There is competition for buyers and established buyers might get first shot at a deal before other deals come up. You can network with others to see if you might be able to find a deal before it hits market or hopefully a brokers pocket listing.
Sounds like you are on a good path, just keep networking, check out those parks so you can really get a handle on valuation , what a good deal looks like and a bad deal looks like. Good luck