Locating the best investments

mobile home university
1

Now is a great time for mobile home investors to expand their monthly income. Pre-owned homes installed on private lots are selling at the lowest prices in 10 years (or more in some markets). I’m many parts of the country, home owners in parks are selling homes for next to nothing to get out of the monthly rent obligation.

I’m interested to learn how others are locating the best investment purchases in their markets?

Post Edited (01-03-10 14:25)

2

First you must know your market. Then let everyone know you are in the business and that you have the ability to close deals/ cash / write checks/ show them the money. I show them bank statements with the money I need to do deals.

  1. I tell local dealers

  2. I may tell a real estate agent ( if I meet one that knows the business )

  3. I look at local MLS

  4. I look at Loop Net

  5. I look at the MHPS web site

  6. I watch properties that have been listed for awhile. Then I look to see if the business model they are using is crumbling. This is the vulture in the sky method. This method is very time consuming and takes major patience.

I personally am looking for a trophy property which takes more time and patience than I have somedays.

Post Edited (01-06-10 17:42)

3

Rick

You state that you are looking for “a trophy property”. I would love to know what characteristics would be required to make a park a 'trophy"? What size, location, occupancy, age etc etc would be acceptable?

Just curious------and if I come across one I will let you know.

Darrel

4

There can be small variances, but

  1. All city services

  2. 55+ community

  3. Developed within the last 10 years

  4. Upside with - rent increases, management clean up, or infill

  5. Location ?? I would love to have a property in CA, AZ, but I am open to good demographics.

  6. Initial true cap rate minimum 7-8

  7. Investment amount - I think I could come up with a down payment of $3 mil

5

Take a look at this listing

Looks like this park is about 11 years old, has lots of expansion space and a great location

6

Great properties. I have talked to the brokers before. This brokerage company is getting several REO MHPs also. I will continue to watch these properties, because the cap rates are still too low for me.

Thanks I appreciate the info.

Rick