I reviewed the MobileHomer eManual in detail, and I realize it is a work in progress, but I have questions that I hope the authors can address. I apologize for hitting you with so much at once.
Here goes:
(Q1)
Page 14:
“A sample of this proposed park owner agreement is attached as one of the downloadable files.”
A sample park owner agreement would be helpful, but I don’t find it attached to the eManual, or in any of the download sections of the MobileHomer web site. Will it be made available soon?
(Q2)
Page 19:
I don’t understand the concept of a provisionary rent credit as described. Perhaps an example with numbers would help.
(Q3)
Page 40:
Turning a Lonnie Dealer into a Park Owner is an interesting concept, and one I may want to participate in. However, I was unable to verify your Internal Rate of Return. Using your Example 1 on page 40:
MOBILE HOME NOTE:
PV = 14,400
%I = 10
N = 60
Solve for PMT = 305.96
CALCULATE ROI FOR MOBILE HOME NOTE ONLY:
PV = 12,400 (cash invested)
Solve for %I = 16.67 ROI
IF WE ADD THE 50% LOT RENT:
$305.96 PMT + $97.50 ($1170/12) SHARED LOT RENT
PMT = 403.46
Solve for %I = 30.30 ROI
Now, here is where I’m tripped up. How did you place a ROI value of 8.36% (38.66 - 30.30) on the $11,700 Investor buy-out 5 years later at zero interest? If you can show the numbers you plugged into your financial calculator to arrive at 38.66% ROI, that would help me to buy into this idea.
(Q4)
Page 51:
“we… will be putting together some case studies of what is working the best”
Maybe it’s too early, but I’d like to know if you have any case studies to publish yet?
(Q5)
Page 51:
“We… will be creating a place for both the park owners and mobile home investors to share ideas”
Is it your intention to create a new forum for this, or have you decided to just use the MobileHomeParkStore.com forum?
(Q6)
Page 80:
“Be sure to look thoroughly at the condition of the home using our spreadsheet. Make sure you’ve put all the correct numbers in for repairs.”
This sounds like a very helpful spreadsheet we can use to estimate our repair costs. I was not able to find this on the MobileHomer web site or in the Download section(s). Will this be made available to us on the MobileHomer web site?
(Q7)
Page 39:
“This program (turning Lonnie Dealers into Park Owners) will be tested on a few of our mobile home parks that we own as well as a few parks that are owned by other investors.”
Page 90:
“We are putting our own mobile home parks into the program and will set a standard of how aggressive the park owner can be in working with the mobile home investor.”
In the MobileHomer’s list of MHP Owners, none of the park owners have included this part of the program as part of their Incentives. When will your own parks set the example and begin to offer this option? (I’m not trying to be ugly here - I just want to know if this part of the program will be started soon.)
(Q8)
In the following pages, you included some very helpful repair costs. However, there were a number of them where you mentioned only the cost of materials, and did not include the labor. It would be helpful if you could say how much the typical labor cost is for these items. I know it varies, but averages would be helpful. I’ll list them here.
Page 106: Seal a roof (mats = $60-120. labor= ?)
Page 125: Standard window replacement (mats = $50. Labor = ?)
Page 129: Front/back door replacement (mats = $125. Labor = ?)
Page 148: Kitchen counter replacement (mats = $100+. Labor = ?)
Page 148: Bathroom counter replacement (mats = $50+. Labor = ?)
Page 157: Window heat/air unit installation (mats = $300-$400. Labor = ?)
Page 181: Tub/shower enclosure kit replacement (mats = $300. Labor = ?)
Page 185: Sink replacement (mats = $40. Labor = ?)
Page 185: Faucet & handle replacement (mats = $20. Labor = ?)
Page 186: Fireplace removal (mats = $?. Labor = ?)
MANY THANKS to Dave & Frank for your efforts to get the MobileHomer program off the ground. It appears to be a giant step in the right direction.
Best regards, Mike