Posted by Michael(KCMO) on September 14, 2005 at 22:27:08:
Better call on your way, Marty. I might’ve awoken that morning and said, “Hey, I think I’ll throw the canoe on top of the truck and head to the river.” Or, more likely, “Hey, I’d love to go canoeing today, but I better go work on that rehab. Ok, where’s the paint? Sprayer. Rollers. Etc . . . .”
Either way, you’re both welcome to join me. 
Regards,
Michael Stilfield
Buy four mobiles, rental, anyone done this? - Posted by John
Posted by John on September 14, 2005 at 07:24:56:
Dear everyone,
I’ve been given an opportunity that I don’t know about.
Lady who owns park wants me to collect rents and oversee park. In trade I will be able to do four houses. Here’s the deal:
I move out four ‘bad’ houses and move in four good ones that she will let me rent out.
I pay for it all (I’ll have to borrow the money). Moving, etc.
Is this good or is this lady trying to trap me and make me pay for it?
John
Re: Buy four mobiles, rental, anyone done this? - Posted by Marty (MO)
Posted by Marty (MO) on September 14, 2005 at 10:08:44:
how big is the park? is this opening doors for future opportunity (buying the park, getting more homes, etc…)? will you have to pay lot rent on the homes you move in? can you move homes inexpensively? are the 4 “bad” homes occupied? do you have a way to dispose of them?
this may be an opportunity, but it looks like she’s trying to hit a home run right off the bat. If you agree to these terms, you’ve trapped yourself into being her bill collector, trash hauler, etc. build some more benefit into it for you… Maybe she’ll pay you 10% to manage her rents… it’s all negotiations.
the nice thing about having to get 4 homes… the repo companies typically will discount steeper if you buy multiple homes.
some other random questions… have you done any deals yet? do you know your market? how fast can you fill the homes? are you going to sell the homes or rent? are the individual lots deeded?
Michael (KCMO) has done something remotely similar… I’m sure he’ll have more thoughts on this.
you may have a deal, but cover your bases
Marty
Re: Buy four mobiles, rental, anyone done this? - Posted by Michael(KCMO)
Posted by Michael(KCMO) on September 14, 2005 at 10:01:42:
So you get to put up all the money and collect rent on on the MH’s you own? (I’m assuming you’ll still have to pay lot rent for those lots?)
And you also “get” to manage the park for her?
Unless I’m missing something this sounds like an excellent deal . . . for HER.
Michael Stilfield
Re: Buy four mobiles, rental, anyone done this? - Posted by John
Posted by John on September 14, 2005 at 12:54:47:
Marty,
I have done one Lonnie Deal. The houses will sell very quickly. I tested it.
Re: Buy four mobiles, rental, anyone done this? - Posted by Michael(KCMO)
Posted by Michael(KCMO) on September 14, 2005 at 12:52:58:
Marty, I imagine what you’re referring to is my purchase earlier this year of a package of homes from a “retiring” investor. He had acquired about 9 homes over the years and had been renting them all out. At the time I became involved only 4 of those had tenants in them.
None of the homes were owned by the park, I didn’t have to move anything and I only had to manage my own projects. So I’m not sure how similar this would be.
John, as you’ve described the scenario so far I still don’t think it’s worthwhile. Not unless there’s more you haven’t told us yet. It sounds like the owner wants you to manage the park for free and the only thing you get out of it is to do a few deals there (with no concessions on her part).
If you can do as Marty suggested and negotiate something to make it worth your while then it might warrant a second look.
My opinion,
Michael Stilfield
Re: Buy four mobiles, rental, anyone done this? - Posted by Marty (MO)
Posted by Marty (MO) on September 14, 2005 at 14:24:50:
“Unless I’m missing something this sounds like an excellent deal . . . for HER.”
My thoughts, exactly! To me, if this deal ever amounts to something, he’ll have to put in a stout counter-offer and negotiate from there. Maybe he should shoot for modeling his arrangement to mirror Karl’s… If he can convince her that her management headaches will lessen dramatically and all she has to do is move in the homes that he finds and forgive lot rent until he finds the “right” buyers… What’s the formula for valuating a park? Multiply gross rents by 10? If he could show her how much he’d increase the value of the park, that could be a real selling point.
The manager sounds like a classic cheap-skate, wanting free management, her homes hauled off for free, and to have the lots filled, again, for free. He might try demonstrating how this is penny wise and pound foolish…
I couldn’t remember the particulars of your deal, except you bought a bunch and you were renting. Not much similarity…
Did I tell you I’m coming to visit you soon?
Marty
it’s similar! - Posted by Steve-WA
Posted by Steve-WA on September 14, 2005 at 15:26:00:
he has trailers, you have trailers! How much more similar could it be?
I’m with Marty on this one. Well, maybe not.
;-)3
Wanna come out to Seattle? See above
Re: Buy four mobiles, rental, anyone done this? - Posted by Michael(KCMO)
Posted by Michael(KCMO) on September 14, 2005 at 15:19:10:
“Did I tell you I’m coming to visit you soon?”
Yeah, I’ve heard that a coupla different times. 
What’s the newest plan?
Michael
Re: Buy four mobiles, rental, anyone done this? - Posted by Ray (MO)
Posted by Ray (MO) on September 14, 2005 at 16:05:16:
Plan? Marty’s idea of a plan is, “it’s morning I have nothing to do I think I’ll ride my motorcycle to KC” He could show up at your door any time. Be prepared!
Ray