Hi all, hope your year is going well. I’ve been lurking on the forum for a few days and am excited to learn more re MHP investing/ owning… I’m very impressed with the upside potential vs that of other investment RE avenues. I’m a mental health counselor for individuals and families… I love the work and the awesome outcomes that transpire when people take hold of their lives. That being said, I’ve gotta get my ducks in a row and begin thinking long term for our finances. I digress…!
I’m getting familiar with this forum/ website as well as the trainings and hopefully soon the boot camp… When money will allow!
What do you guys suggest for someone starting out without a lot of cash flow/ cash to put down? I’m seeing many parks with owner financing, but it’s the down payment amounts that are difficult. For downs, do you’ll utilize bank financing then owner finance the remainder?
There’s a local park for sale that I’ve talked with the owner of 28 years who is selling due to health/ age. Probably out of my financial range… But am trying to build a relationship with the current owner who is still very involved with the park. Regardless I’m enjoying looking at it, getting valuations, etc., hoping that I at least can learn something from the owner even though he’s pretty hesitant to give me much of his time… Hasn’t told me to stop calling him yet though! What do you think? FYI- this is his word of mouth info…
76 space with 74 occupied, $380-410 lot rent, no park owned homes, utilities paid by residents, nice maintained area, paved streets, metropolitan area within range to malls, walmarts, grocery, etc… Owner reports $28-30,000 monthly in rents and $4-5,000 monthly expenses. Asking $2,900,000 ( talked something about some existing water rights that would take price to $2,800,000? Not sure what he was meaning), asking $500,000 down with remainder amount on a 30yr note.
What do you’ll think… Expenses seem too low, pertaining to what I’ve seen on the forum examples? This may very well be out of my league starting out, but I am at least looking to build a relationship with an experienced owner… Hopefully honest, AND if he’ll have an adopted son… Ha ha.
Any direction, experience, advice from you’ll is appreciated. I’m a BIG believer in mentorship, and owe a lot to many of the “fathers” in my life for where I’m at. Blessings to you all… I look forward to learning! Wow, sorry for long first post…
Priority #1: Purchase the MHP Study Course and attend the Bootcamp within the next 6 months. You will get all the answers to your questions and its a seriously good value for the amount of money you will spend. Besides that, you do not want to venture into purchasing your first park without having the education and knowledge as a foundation.
Priority #2: Look at every deal you think is interesting at first glance and evaluate it. What’s good about the park, what’s bad? How’s the market? You’ll find after looking over 100 deals or more that you will become really good at seeing the good deals from the bad. And if you feel confident enough, make offers on some deals. Tie them up and then see if you can assign the deal for a fee. This would help you build up towards a down payment on a park you can purchase yourself.
But everyone on this forum will tell you - educate yourself first. That’s the key.
The reality is that if you chose to get into income investment properties you will need one of two things, either a partner with money or money of your own. You will also need a good steady income to support your investment initially.
The old saying that you have to have money to make money is on the money.
We spend about $300,000 per year in assignment fees – basically buying an assignment of a contract you have with a seller on a park. They average 5% to 10% of purchase price. If you can find great deals – even if you have zero money – you can make money with that. We have several people who own no parks but simply sell us assignments of deals on a continual basis. Finding great deals is the key to this business. If you can find a great deal, things will always work out one way of the other.
Wow guys, thanks for all the direction and advice. Definitely have some reading to do! I’ll be looking to get involved in a boot camp asap as well as the home study course… My wife will love our car radio time
Frank, re the assignment fees… I’d definitely want some more on this. How can I find out more? Re the park that I had asked about in my initial post, the current owner is requesting that the new buyer(s) be resident(s) of the state the MHP is in. Do you’ll see many sellers request this… What’s the reason(s)?
Sellers sometimes make outrageous requests like that. They do that because they’re uncomfortable with trusting people and think that if someone is local somehow they can go over and grab them if something goes wrong and shake them violently or something. You can overcome this by “bonding” with the seller – spending time on the phone or in person just to establish a rapport and discuss each other’s life stories. If they remain convinced that you have to be a state resident, tell them that you’re going to move there after you buy the park. Then, after closing, tell them that you can’t sell your current house in this bad economy, but as soon as you do, you’re going to move. After closing, they’ll completely lose interest in the whole stupid concept, and it will never come up again.
