Looking for suggestions. There is a local Land Owner who has an old MHP with all Vacant Lots. The MHP was in working condition, 6 months ago. The New Owner was not interested in having the older model mobile homes on the property. He tore down all mobiles. He has contacted me to see if I am interested in forming a Partnership with him to work toward filling his Park. Of course, he does not have time or MHP experience. Does anyone have any ideas? Thanks in advance.
Will the infrastructure support the new power requirements and larger size homes? or will you have to basically rebuild?
The Electrical Infrastructure will have to be upgraded to 200 amp service. The water needs to be submetered. The Septic System is in good working order.
The owner said he would be interested in allowing me a 30 to 50 % partnership. According to how much money, I am willing to invest. I am not comfortable with putting alot of time or money in the project, and then be pushed to the side when the Park value increases and he decides to sell at a major profit. I know I will be the one with the sweat in the project. If I can decide how I can make a nice profit for several years, I have no problem with putting the time in. I’ve even thought about bringing in MH’s and financing them. But, I am concerned that he might decide to clear the mh’s and sell the property for residential stick built homes.
Any advise is welcome.
Thanks,
DK
DK,
If I were to be putting that much time & money into a park, I would want to at LEAST control it with a lease option, for all of the reasons that you mention & any others that you can imagine, but it needs to be air tight on your side. Maybe you can get the owner to sell. That is alot of work to build someone elses property value.
Rick
I agree. That is the reason I am so hesitant. I was hoping someone in the forum would have a creative way to profit. I have never been involved in any type partnership. If I am unable to purchase or handle something on my own, I let it pass.
Thank You so very much for your feed back.
DK
I agree with l/o also. You maybe offer to buy with owner finance(0% interest no/low payment til 6 mo etc.) with the sell price close to the value of the land since MHP is pretty vacant. It seems like the seller has no desire to do any improvement with it so he might be very motivated to make $$ instead of nothing.
How many spaces, and market rents? Do you have enough capital to fill the park before making $$ from new home rental?
The Owner is a local real estate investor. He recently purchased the property. It borders property, he already owns. He is not interested in selling the property.
From the feedback, you guys are giving, you are taking me back to my initial answer; turn away.
The Park has 30 lots. All vacant. I do have some revenue for purchasing homes. The Owner is also open to purchasing homes, while I provide the MH knowledge.
Thanks Again.
DK
I would also find out if the park can still be used as a park after sitting vacant for six months. I looked at a park here in Ohio, not too long ago and it only had 2 homes occupied. Everything else had been torn down and removed, or needed to be, but because those two homes were sitting there and paying lot rent then they considered the park still up and running. I was told that if the park shut down for over six months, the land could not be used as a MHP anymore.
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I appreciate the input. It can continue doing business as a MHP.
Thanks,
DK