Next MOM?


#1

area and will be co-hosted by Karl Warner who lives there and owns a KILLER MHP. We are gonna tour his Park on Jan 26,07 (feels weird to type that 07) and have a GREAT meeting on Sturday the 27th. Have asked Karl, Anne, Ryan Needler, and have 2 more in mind( but haven’t asked Steve Case and Jim and Ellen Breen yet, cuz I don’t want to add pressure to their decision LOL!)

I have a great investor that helps folks on a room or ??? so being broke is no excuse not to attend. I was broke at my first one, had to put the meeting room and snacks on a credit card…it didn’t stop me and shouldn’t stop you!!

We will have some hotel info in Oct. to put here for your convenience.

I can’t wait to see all my friends again!!!

Greg Meade


#2

No pressure, Greg, we would be happy to help out at MOM, as always! It is such a great meeting, and has been since the very first one. No one should ever leave there, (or MHM for that matter) not having met very involved people who are always willing to help and having more new ideas than they know what to do with.

Jim and I left the last MOM headed for a park that we looked at and actually attempted to put under contract with others that were there, but that one did not happen. The park we bought was on Loopnet, listed for much more than we ended up paying. Apparently the owner had previously turned down higher offers than we made, but was more motivated at the time we were making ours!

I am sure we will have lots to tell. In the meantime, Jim picked up our new sign yesterday and has begun park cleanup. Most of the excess cars are now gone, and most are now parking off the grass. We have bought some repo units that were in the park and are getting these ready to sell along with some rental units the previous owner had. We have learned that the bank we are doing business with in Alabama will put a hold on checks we deposit (investment funds) over $2,000, but I can walk into the same bank down here and deposit without a hold. That keeps our cash flowing smoothly for purchases.

Unfortunately, one of our best tenants moved his home out of the park this week because he had bought property to put it on, and another good one has told us she plans to move hers out by the beginning of the year. The one who moved out was our resident cop, so that makes it even worse.

In the meantime, back here in Florida, I am struggling with people who have bought homes from us here and are having financial difficulties. We have actually recontracted two of our customers who were paying well and all of a sudden were not paying at all. Apparently the major increase in prices are making even low-cost housing more than they can afford. Electric bills have skyrocketed this summer and as we all know gas has increased as well. The lowest lot rents in this area are $326 per month, their insurance on the home is $30 per month and the $250 payments have now been lowered to $200. Of course, this will add a lot more payments on the end.

Also, in our opinion, this park (that we have several homes in) has deteriorated over the last year, with the new company that bought it bringing in old dogs from closed parks to the south, setting them, and selling or renting as is. We have a home in there that our buyer left and has now been for sale for a month, longer than we have ever held one before. One of the major issues on this is that the park is charging $75 for each adult for the credit check and is taking a week to get it back. I have had potential buyers flat out say the $75 is more than they are willing to pay, and the $150 for a couple breaks the bank.

Are others running into this, or is this specific to our area? Although Greg and I are both in Florida, we have totally different markets. The other thing that I am seeing on this coast is the single family home rentals are abundant and rental prices are actually decreasing although insurance costs and taxes are increasing. (Taxes are going up about $500 on our lower priced SF houses this year!) The reason IMHO is that so many “investors” (speculators?) got involved with new constuction and have not been able to sell the home so are renting it at or a little above their interest only mortgage. I have actually had potential renters tell me they could rent a new house for less rent than I am asking on one we have had for several years and had no problem getting the rent previously. (This might not work for them too much longer, either, since they recently got their TRIM notices, but if they are tied into a lease they will now lose money.) We just sold a house that appraised for $285,000 for $246,000, but had a lot of room to move and still make money.

I see more and more potential for true investors as dominos start tumbling for those who entered the speculator market as well as for those people who jumped for the low-price adjustable rate mortgages or interest-only mortgages as homeowners, and will be unable to make their payments when they adjust. Those people will become mobile home customers in the future, I think. As Greg said in another post, when one door closes another opens. If we are ready, we can help people and make money at the same time.


#3

I got a sneaky suspicion that MOM 2008 will be in Alabama! :slight_smile: By 2008, Ellen and Jim will have their new “baby” looking like a country club! :slight_smile:

Ellen, Thanks for the detailed post. It is amazing how we are in all different geographic regions but it is the same story! :slight_smile: We are seeing in California a lot of people that are on the verge of feeling a lot of pain from using their home as an ATM machine. They have been spending as if they are millionares even though they make $50k/year. Their house has allowed them to do this!

We have also experienced a lot of people opting to buy a mobile home on a piece of land due to the exotic and crazy financing! This is all about to be a thing of the past! This will be VERY good for all of us with mobile home parks.

Please say hi to Jim. He is really one great guy! I need to test drive that monster truck of his one day! That truck is bigger than a semi! :slight_smile:

Corey


#4

Greg,

I put the MOM meeting on my calendar several months ago…you can bet all your “puffs” that I will be there. I’m a very lucky person to have partners like Jim, Ellen and Fred. It’s such fun to sit back and watch them grow their parks into money making machines.

You see, most people don’t understand the importance of attending events like MOM or MHM. Without these type of scheduled events I’m sure I would still be in the single-family housing market fighting the majority of investors in my area for deals. The networking and eventual friendships that are made are, as the commercial goes…are priceless.

MOM seems to give us “old heads” a renewed desire to get busy. This year has been the busiest year of my investing career, but I’m loving this business more and more.

Greg, I know you feel the same way…it’s so cool to see someone take the leap in this business and make things happen.

I look forward to seeing everyone again.

Steve


#5

Greg, Ellen, Corey & Steve,

I second all that you’ve said about the tremendous value of attending these events. Any chance to network with fellow investors has more than paid me back in investing opportunities, social and financial networks, good advice and good friendships. I’m really looking forward to MOM and MHM.

Ellen and Jim- I’m really looking forward to your blog (no pressure!).

All the best, Anne


#6

Corey,

The same story every where just tonight on the national news was a leading subject about the billions of dollars that was going to be needed to refi all the variable mort. that were coming due real soon. Here in the North East its the same thing, to much credit has been given out and now that the housing market is collapsing No one can sell there homes and they can’t afford to stay in the home they have because of the rate increases that are coming, Not to mention that our electric bills have double from last year.


#7

Corey,

I just finished listening to your teleseminar with Fred, that was AWESOME!! what a great story. Being a newbie can you please tell me what MOM is and if the date & location has been set? as I would love to attend.Thanks so much to yourself & Steve for all of your efforts in making this site such a GREAT resource of information and fellowship.


#8

Bruce,

You are completely welcome! Fred is an outstanding person and is an inspiration to us all. With knowledge, hard work, and a great support system, anybody can be SUPER successful in this business!

MOM (Meeting of the Minds). This is an event that was created by Greg Meade (another person that has been so giving of his time and energy to help others). The date is January 26th/27th in Daytona Beach, Florida. This is a great event to attend. You will meet some of the greatest people in the industry. The friendships you will create will be priceless.

MOM is all about education, networking, in a FUN environment! I will let Greg expand more on MOM. :slight_smile:

Corey


#9

Where in Alabama Corey? This state is ripe for profits, as many large parks have empty spaces galore for 75 to 100 dollars. This leaves plenty of room for amortizing RTO contracts or notes, and cheap rentals that have been made livable. With Alabama become’n a retirement destination for a fact now, from Florida and the north, and internaltionally, the field is ready for a great harvest. Yall Come!!! grin


#10

The Brenn’s new park is in Troy!

Corey