Newby Questions


#1

Hey everyone, I’m new to MHP investing, and wanted to ask some questions for the experts-

  1. Do you have to live close to the MHP for this to be a successfull investment? I live in the the DC Metro area. No MHPs anyhwere around here. I would have to invest out of state. From the articles I’ve read so far, this looks like a very hands-on investment to be successful.

  2. I currently own apartment buildings. The rule of thumb for buying multi-family is to try to land a 10 cap deal on actual income. Problem is, those ‘10 cap’ deals are in very poor and rough parts of town. And rent collection is typically a problem, along with many other tenant problems.

Do the same problems exist in a MHP bought at a current 10% cap? (i.e. Heavy crime, drugs, shootings, rent collection problems, vandalism, etc).

At what cap rate (if any) do you have to be concerned about that element in a MHP?

  1. Can I buy an existing MHP out of state, and have someone else completely run all operations without my involvment, like in multi-family ownership?

Thanks in advance for all your feedback.


#2

NG -

MHPs are multifamily. They are not a different beast (just a more profitable one). Anything you can do with ‘regular’ multifamily (remote management, out-of-state investing, etc.) you can do with an MHP.

I’d suggest you purchase the ‘Huge Profits…’ book off this website by Tew and Case, as well as ‘How to Buy, Manage, and Sell a Manufactured Home Community’ by Allen (off Amazon.com).

‘Only’ 10% - 20% of MHPs are a bad as you think…(!) Most MHPs are all-ages parks populated by (relatively) regular people with families, and/or seniors, etc. They keep their communities reasonably clean and safe.

Good luck, and I hope to see you at the next Mobile Home Millions seminar,

-Jefferson-

P.S. I’m also a consultant and will be happy to give you some free consulting time if you’d like.


#3

Jefferson, thank you for the information.


#4

HI, Jefferson, I would like to talk to you about some consultant time

latoya


#5

Latoya -

Call me on (650) 281-7778.

Many thanks,

-Jefferson-