Posted by Chuck (AZ) on July 09, 2001 at 10:31:50:
Ah, well… when you put it like that I understand your perspective.
Perhaps my situtation is indeed unique, due the being in Arizona. I can only tell you what has worked for me, and hope perhaps you can benefit from it in some way.
My personal feeling is that cash-limited Senior’s would be prime canidiates for Lonnie-deals, regardless of where they live. Affordable, low maintenance housing is a major concern for them.
As to the lawn ornaments… not in my park. Tho I did see something on tv awhile back, about a fellow who started a business selling pink flamingo’s over the Internet.
My limited experience has led me away from 55+ parks in general, However, the keys seem to be
Is the Lot Rent High ($350+) or affordable (200-300+)
Are Pets allowed?
Park Managers Flexibility.
High Lot Fees + NO PETS + STRICT/Inflexible Park Managers = High Risk/Reward ratio (IMHO)
There does seem to be a Demographic change happening as the 1945+ “Baby Boomers” are now turning 55,56 (Hey Lonnie!) and there is an Army behind them. If a PM will be flexible enough to ‘allow’ 50-55 its an excellent Broadening of our market of potential buyers to possibly make it a worthwhile proposition. (Some PM’s are always “just over the limit” unless its a Park sale and that magic # is a Secret) As much as I disdain seeking the Blessing of the PM, Business Reality tells me that I should, at least I will know where I stand (Which may not be Eye to Eye).
Pets allowed is a big plus, as is A Low Lot Fee. Having recently had the Terrible Trio above I was given a FREE decent MH for the transfer fees and was happy to just break even and get out after 3-4 Months.
Anyhoow, these are based on my perceptions and my experiences in my area of Florida and may not be representative of anyone, anywhere else, at any time (and these are not necessarily the views of the Author, Either…)
Whew! Any thoughts?
Chuck, You keep selling this idea but… sorry I ain’t buying. Park Manager or not, you haven’t made a case to make me feel like I should go take another look at these.
I’ll echo all of Walt’s negatives and tell you flat out that I’m not gonna waste my time in the senior parks with extra rules (just what I need a PM with a longer list of rules) and a clientele limited to a narrow section of the market heading into the time of their lives where their medical expenses will be rising and most times they have fixed incomes. Also, in my area at least I’ll dispute your previous statement that there are more cash buyers and they are never late with payments.
Deal in a park with more rules where you’ll have higher holding costs and a limited market to sell to…nope, can’t be bothered. I’ll go do 2 deals in another park and watch my calculator say “tilt” instead.
All the best, Lyal
Re: 55+ 3 Key Factors? Ok. 4? - Posted by Chuck (AZ)
Posted by Chuck (AZ) on July 09, 2001 at 02:26:46:
Maybe my experience/situtation is unique (as I’m in Arizona, that’s entirely possible)… but I’d like to think it’s not just my charming attitude, that’s making me all this nice green money.
Regarding the “rules” of a 55+…
Yes, there are parks that don’t allow pets.
Yes, some parks have higher rents (usually because of their amenities and living conditions).
Yes, some PM’s are inflexable (or at least appear so).
Of course, these same things can be said about alot of family parks.
Putting all that aside, I can tell you that there is a min. occupancy requirement (regarding age) to maintain a 55+ status. In Arizona, the “magic number” is 80%… meaning that at least 80% of the residents must be age 55 or older.
When I bought my 55+ park, there were 6 homes (of the 60 spaces) that were listed for sale. We sold 2 of them last month for cash ($7k and $9k). Two more homes have Lonnie-deals pending on them ($5k and $6k), the other 2 are still up for grabs. The average lot rent here is $230 a month… we’re master-metered and bill back to the resident at cost.
I don’t know what you mean by “extra rules”, but if you care to elaborate, I’ll try to give you some perspective on it.
In any event, do whatever is best for you personally. Just know that the deals are there… if they are persued.
Chuck,
Been thinking about what the differences might be. It might be something to do with the migration of 55+ers to your area after they retire and cash out the equity in their house. Come into the area flush with cash, looking for cheap living (relatively so compared to what they’ve been spending for the two story in suburbia) and people with like interests ready to begin a new chapter in their lives.
In my area, seniors come here when they get sick and want to come to the Mayo Clinic. They’re beginning the last chapter and like all of us will do anything to stay healthy a while longer. They’re looking for cheap (maybe even temporary…just until they get better) living to conserve funds for medical expenses. But…if the worst happens and they need to shoot their wallet on Dr. bills, they’ll stop paying everyone else first.
Just some morning musings, I appreciate all your posts.
Thanks, Lyal
PS: As far as extra rules, I just meant the 55+ thing although I might ask…is it a requirement in senior parks to have a minimum of 6 lawn ornaments??
B-)
