Need to catch up!

mobile home university
1

hey everyone,

I have been away from the forum for about 3 years now. I used to read all the time, i also have the course as well. While i was away i was able to make some money in another business. I am looking to jump into the mobile home park game again. Need some advice on what you would do if you were me. I’m 30, live in north carolina, i have about 300k saved up for long term investments. My business does very well, but i want to diversify and eventually just do mobile home investments. What would you do if you were me?

  1. Since I bought the course 3 years ago, is there any updated information i need?

  2. are banks financing parks at this time? what are the down payment requirements etc?

  3. Would you pay cash for a park to get started that way im not strapped with a payment? or use leverage and buy bigger park with cash as a down payment?

  4. what can you expect to get as a net return if i paid cash for a park?

  5. is it still possible to retire off just one park? i am debt free. i know it depends on your lifestyle. but what can you realistically make off one park?

  6. Frank, how many hrs do you work a week from owning all these parks? if i owned just one park how many hrs a week would i need to work in order to make sure the park is running smoothly?

  7. when is the next bootcamp and where?

thanks for the help!

2

  1. Updates over past 3 years:

    a. SAFE Act. Search this forum for ‘SAFE Act’ and ‘Rent Credit’ and you’ll get up to speed on the only new stuff over the past 3 years.

    b. Legacy’s MH financing program. Search this forum for ‘Legacy’ and you’ll get up to speed.

  2. Yes. 25% downpayment.

  3. I would buy larger. With $300k cash I might put down $200k, borrow $600k ($800k total purchase price), keep $100k cash for buying and bringing in new/used mobile homes and/or rehabbing POHs.

  4. You should be able to purchase a park with no POHs that will yield 10% - 12% (or 12% - 20% with a lot of POHs). If you really want to be debt-free, then you’ll be buying a much smaller park ($300k), these should definitely yield 12% ($36k/year income for you) because there are not many buyers for small ‘sub-scale’ MHPs.

  5. Do the math. You should have an NOI of 10% - 12% on the land only. Read Frank & Dave’s ‘10/20 Investment System’ book for ideas on how to turn a 10% return into a 20% return.

  6. Frank will chime in on his experience, but it depends on the number of POHs. The fewer, the fewer hours you’ll spend managing the property. If you really want to have a trouble-free park, buy one with no POHs in a very strong economy. There may be less upside, and you may be paying a 8%-10%-cap, but you get what you pay for.

  7. Bootcamp is today in L.A. Brandon or Frank will respond with when the next one is.

Good luck,

-jl-

3

Definitely go the the boot camp. I can’t think of a $2k expense that has brought me more positive returns that I’ve made in the last 5 years than that.

In my opinion, the Due Diligence book is the most important thing they have written, and is the best one on any class of RE (and I have read them all.)