Question: If an mhp is listing on one of these sites, are they the “runt of the litter”? Is it likely (or practical) to find a great first home on one of these market sites?
It seems like the gems are off market and I need to find someone willing to explore selling. How long can it take to find a good off-market deal?
I took a course that recommended finding an mhp with at least/around 50 pads. Is it practical to find a 50+ pad mhp where the seller will finance someone new in the industry?
Are there places to find lists of mhps in each state? Or should I use Google Maps/searches and call whatever mhps pop up. Was going to start in the Virginia/MD/PA/NC regions first since that’s where I’m located. I have family in Texas so that region caught my eye too. I wouldn’t manage it directly myself and want to rely on a property management team, so I suppose location doesn’t really matter much to me. I want a solid investment for me and a safe/good home for the people living there. I’m excited about a value-add investment.
I’ve read how park owners are getting lots of calls, postcards, etc. so I guess I’m curious what the most effective strategy is to find my first park. I need to start somewhere. Is it worth going after smaller parks to get some properties under my belt? Are they “easier” to get and are they worth it?
There certainly are great deals to be had off-market and you would have to spend a decent amount of time cold calling park by park to see who is willing to sell and for what. I am a mortgage broker so my opinion here might be slightly biased however I do believe using a broker to acquire a property is a great avenue. Off-market deals have the potential to be very lucrative although there is always the potential for headaches that need attention and will have to be sought out when conducting on-site due diligence.
When buying a property through a brokerage, there has already been a level of due diligence that will disclose all aspects of the park, good and bad, as well as have aggregated financial information for buyers to determine whether or not the property is worth purchasing (through underwriting). This greatly reduces the possibility of inaccurate financial information and the propensity for unknown risks regarding the state of the property (Ex: dated water or septic system that is in desperate need of repair)
There are a ton of great brokerage firms (besides mine) that I could point you in the direction of. My email is jhouse@greysteel.com.
I will email you today so we can connect offline. I’d love to chat and pick your brain about this. I’d also love to know if you have any recommended brokers I should connect with.
@sagalinvestor,
Congratulations on starting your search.
Answer: Yes. If a park is listed on Loopnet or MHPstore.com they are likely bad deals.
However, I have bought and sold 4 parks on Loopnet. So not all the deals are bad.
When a park gets listed, the broker likely already passed it around to all his known performing park owners/buyers. If the broker can’t get any takers and the seller is stuck on their price and terms then likely it’s a bad deal.
Now there are exceptions to this. I have dealt with some brokers who had parks that none of their buyers wanted. For example, The park is on well and/or septic.
As a park owner, I get 1-5 postcards a week, 2-5 Calls per week, and unsolicited offers once or twice per year.
I also get emailed 5-10 off-market deals a month.
Side note: There are no “easier” ways. To be successful in anything you must be willing to do what others are not.
@SDGuy I have really thought about your reply over the last few days and want to thank you for this perspective.
As I enter the mhp industry, I created a criteria list for what I’m looking for in my first park/community. As I started to look around, I found myself starting to consider properties that didn’t hit all my musts (for example, POH #s v Tenant owned#s , whether I would consider well water v city etc.)
I actually just hired a VA to make me an excel of all the mhps listed in some online directories located in the states I’m interested in (VA, PA, MD, DE, NC). This way I can target my size and start reaching out one by one.
Honestly the MHPU’s webinar event last week “3,000 Miles & Counting” made me really wonder if I’m already limiting myself, but I need to start somewhere and close to home feels less scary as a first step (and for my first park). I don’t know if I’m right or wrong, but I’m just ready to make some moves and take action.
Do you (or anyone reading this) think it’s worth reaching out to brokers to start a relationship even though I am “small time” and a first-time investor in mhps? Just so they can keep me in mind if a pocket listing ever came up?
I have definitely started to remind myself that finding the RIGHT mhp is better than finding A mhp to purchase since I have very specific personal/financial objectives.
IMO it never hurts to reach out and start making relationships (with brokers, other operators, etc). We are based out of VA so if you happen to come across any deals in the areas that you are talking about that don’t make sense for you, we may be interested ourselves as well.