In over my head?

Hi Guys,

I’ve found what I feel is a SWEET park with great potential here in Canada, but I MAY be in over my head without the “right” partners to make it happen.

There’s almost 200 acres with local approval “in place” for over 500 units, and part of it is already operational (30 years by the same owner.)

This property is in what’s referred to as “cottage country” up here, close to one of the Great Lakes, and with an 18 hole golf course across the road.

City water, sewer, and electric is available. The owner’s asking price is a little over $1 million, and the stated reason for selling is “health issues.”

I have a “local” source for 16 x80 singles here at a reasonable price.

I have a LOT of people asking me to let them know when these are going to be “available.”

Any ideas/suggestions as to HOW to get the RIGHT people involved with this?




I would network, network, network! Could you potentially partner with the seller and leverage his experience. Are there other MHP owners in your area that might be willing to partner with you on this deal?

It sounds like you have all of the other “pieces” of the equation to have a GREAT mobile home park!


Hi Corey,

That’s MY plan. I’m looking into a possible joint venture with a supplier of

rehabbed homes here in Canada, and I’m tossing a possible joint venture

with the seller as well. I have several ideas rolling around in my thoughts,

one of them being the “tax angle” of NOT taking the full price at the sale

for “obvious” tax reasons. I sure hope his tax advisor is smart enough to

explain it to him.

Looking at it, this is one of those deals that “attracts” the money because

it IS such a sweet deal. But hey. What do “I” know? This is my first one.



Marc Ferrell


Keep us posted as to how this deal turns out! :slight_smile:


I am not sure where you are in Canada, but I have a client who lives in Vancouver. His name is Marcos Ergas. His family has one MHP left here in GA, after selling a couple this past year. They also own and develope commercial buildings. You can reach him at :


Hi guys,

I’m making an offer on the mh park tomorrow( full asking price based on

what I “believe” the park will be worth after development.), and I have a

question as to the “LTV” equation used when lenders consider funding

a project.

By any chance are they talking about an “after the development” value

of the project? While an LTV loan for 60-70 % on the asking price would

leave me well short of the required cash to pull this deal off, 60-70%

of an “after the development” appraisal would give me MORE than enough

to put this deal together, AND fund a good chunk of the infrastructure, etc.,

and breathing room till I can get permanent financing in place.

Any thoughts?


Marc Ferrell

Ontario, Canada

This is turning out to be interesting. The seller has retained a “real estate” broker to act as his sale agent, and he’s trying to sell “real estate”, and I’m trying to buy a “business”.

I am now in the process of forming a limited partnership for the purpose of raising $2 million US to close this deal and get him out of the way. (I already have a Canadian corporation in place.)

$1.7 million will be used to buy the business, and the remaining funds will be used for expenses during the startup phase of the development (design, surveys, environmental, time to arrange permanent financing, etc.)

My attorney has pointed me in this direction using the “instant equity” created by paying all cash to finance the rest of the project through other channels. He said lenders LIKE that I will already have $2 million in equity and permanent financing is a breeze from there.

He also pointed out that there would be certain “tax advantages” available to the “partners” in this venture, not discounting thier R.O.I.

for this project.

I did the math. 500 Additional pads @ $350 a month, PLUS the pads that are ALREADY in place (another 300+), and I can see this is going to be a NICE cash flow machine, and the springboard to other opportunities here in Canada.

I have also asked for “exclusivity” during the initial negotiations and due diligence phase. The realtor is trying to start a “bidding war” I think.

Onward and UPWARD. (From where I’m sitting, the only way to go from HERE is up!)

Marc Ferrell

London, Ontario

Hi guys,

It appears this deal is going to happen. I originally submited an LOI to

the seller for this park. His agent said to put it in writing in the form of

an offer and he’d be happy. So the offer was submitted Monday.

Acording to MY agent, I may be the only offer that came in at the full

asking price. I went to walk the property Monday, and while the place

may be a little scary to look at, the POTENTIAL is there. There is cash

flow already being produced on 350 current lots.

I emailed the local Chamber of Commerce, and they were thrilled that

I am coming to town to turn this park around. The sweet thing about this

deal is that the local nuclear power plant is in a “fire up” phase, and it

takes a ton of people to bring one online. The “opportunity” in this is

that the workers are having a devil of a time finding somewhere to live

in the meantime. Talk about finding your niche! They’re having the same

problem in Alberta with the oil fields, so I MAY be going there next.

Any way, My team is growing daily. My lawyer’s in place, my accountant,

survey company, and my developer came onboard this morning.

The only piece of the puzzle left to put in place is the financing, and that’s

just a matter of time for me.

It’s a good thing I’m too dumb to know I can’t do this. I think a lot of

people allow thier “intelligence” to get in the way. You can’t "know it

all" about something like this, so you just have to jump in where the

water’s deep.

Best wishes to all,

Marc Ferrell

Ontario, Canada


Kudos to you,

You inspire us all to just jump in where the water is deep and swim til you get to that sandy beach and drink an ice cold margarita when you get there. I’ll see you there. :slight_smile:

Good luck to you.


I’d be interested in hearing more with regards to your financing needs, but I don’t think my money will work in Canada. I have a 1031 exchange coming open immediately, but it is my understanding I can’t exchange out of the country. I would be willing to look at a JV with the cash…but I don’t think it works for foreign deals…too bad. I was also hot about some developlment in Mexico. Oh well, I’ll have to keep my eyes and ears open for more here in the states. Good luck.

Hi Ken,

Any “good” tax attorney could tell you “how” to make this work for

you in Canada. My law firm sets things like this up all the time for

people looking to invest in Canada, or vice versa to the U.S.

It’s all a matter of having the right people on your team. I looked

long and hard to find the people I have, from my attorney, to the

developer I’m going to use. I made sure we’re all on the same

page regarding this project. I told them right up front, "I’m looking

for people that can see what I see, and not fee chasers."

This is a niche looking for someone to “make it happen”, and I have

balls the size of small planetoids when it comes to things like this.

If you don’t “ASK” for what you want / need, they can’t say yes / no.

Keep the faith,

Marc Ferrell


I’ve just been catching up on your messages. If you are looking for partner /investor for your canada deal I would be interested in talking to you. I may be of help if you want someone in on the deal with cash on hand. my cell number is 818-481-4109 Jim

I am thinking of putting together a Yahoo Group that allows the guys

here to follow the trail of the park buyout I’m doing.

I will be posting files that contain the initial contact letters, offers,

partner formations, background on my team members, etc.

Waiting for my pics of the park to come back so you can see what I

made an offer on. (Scary to look at, but I was looking at the “potential”

when I mde the offer.) When I get them, I’ll post them to the site.


Marc Ferrell

Affordable Housing Solutions