Due Diligence Questions?

mobile home university
#1

Good Morning:

I’m going through the details of a possible deal in Ohio. Starting to look at financials. A couple of the sites have old frames on them from homes that were removed. What is the typical cost per site to remove the frames?

Is it a cost savings to the leave frames on site or just no desire to finish the job?

I would want to clean up the park with desire to fill up so this park has a few lots with frames, some that are truly empty lots and some with empty trailers (one abandoned title issue).

Also, the waste is on public sewer. Based on my research the government handles the lines, but owners are responsible for laterals from home to the main line. I will confirm this with a phone call or email. Is it normally suggested to spend the money on checking out the laterals to make sure no pipe issues are present? Example, camera inspection?

#2

Find a scrapper to haul off the metal frames for free. Yes, inspect the lateral lines with a camera.

1 Like
#3

Scrapper will take the frames. If you have other junk around the park (even if it isn’t metal) sometimes you can get them to take that too since they’re getting the frames free.

#4

If scrappers take the metal why would a park owner leave a park looking like a mess?

#5

Sounded to me like you have a turnaround park, that’s all, maybe I misunderstood. I was just saying I’ve had luck in the past getting “value” out of the scrappers taking junk out — asking if they’d take a junk shed, etc as well

#6

The park is permitted for 33 lots, two lots with frames, 3 with trailers that need rehab ( one abandoned , no title,) and the balance are empty. Trying to tie in numbers as we speak.

#7

There is usually a lot of history that leads up to what you are seeing. Ask the seller to see if you can get as much context as you can. Once under contract the remaining tenants will tell you the rest.

#8

Deal fell apart. Wholesaler had a cash offer come in so I’m searching again.

#9

We give away the frames for free. Put an ad on craigslist that says Free Steel Scrap Mobile Home Frame, and somebody will put hours of labor into it for free to cut it in small pieces and haul it away to recycle.

#10

Deal fell apart so we will see if this becomes an issue with the park we eventually buy.