Posted by Rick M on December 18, 2002 at 20:59:07:
I just purchased a MHP that needed some TLC. I feel it was a very good investment. The opportunities it is bringing me is endless… and fun too. I think you should give it a try and at least you will learn the steps of making it a profitable park. go for it…you cant loose…
Dilapidated Trailer Park. Opportunity or Run Away? - Posted by Brett(WI)
Posted by Brett(WI) on December 15, 2002 at 12:39:14:
Well I am sorry first of all for I am not even sure of the numbers on this park. I am wondering, however, if it is even worth the time to talk with the owner.
My great uncle owns a small park in Wisconsin that is in very bad condition. The health department had given him until Nov. 26th to correct a few problems to renew their license and he did not comply. The health department has filed to have the park formally vacated in the spring. There was a large right up in the paper about it, so there has been alot of negative publicity for the park.
Accourding to the paper they were told to remove 4 dilapidated vacant rental homes which were not fit to live in. They have not. They were also told to remove several brush and scrap piles. They have not. Also bad roads with many potholes.
Now all I really know is there are about 24 families in the park right now. My uncle has owned it since the early 90s and my Grandpa thinks there are about 40 spots. Also a good size shop and office.
Ok, so I have been on this site for about 6 months now and am very interested in the mobile home parks. I have bought Deals on Wheels and read it twice, also Get rich helping others which I have read many times. I have been scouring the parks, looked at a few homes, and talked to quite a few sellers. I have managed to put away about $5000 to get started with the Lonnie deals and am excited to get started but not wanting to jump to quick into any bad deals.
That said, what I was thinking was offering a deal that would help my uncle (who is old and doesnt seem to want to spend the time or energy to fix this situation even if it means losing his park), the people living in this park, and of course myself. I was thinking about a master lease for 6 yrs with option to buy at any time during that lease. Of course the numbers would have to be determined once I was to look over the entire situation and see if he is even interested.
Now I would have to talk with the health department also to make sure that if I put the time and energy into cleaning up the park it can stay open.
I am sorry this is so long, but I feel there could be a great opportunity here. I don’t have alot of money, but I do have the time and energy. Any ideas are greatly appreciated.
Thanks and Good Investing,
Brett(WI)
Re: Dilapidated Trailer Park. Opportun/ Run Away? - Posted by Brian, WI
Posted by Brian, WI on December 18, 2002 at 18:47:13:
Hi Brett,
I think we’ve “talked” before via e-mail. If I remember correctly you are in the Tomah area? Anyway, I’m in a 1031 right now and looking for a property to invest in and a Mobile Home Park would be ideal. I my be interested in your uncles park(depending on it’s location) if it’s not something you are going to or can pursue. This could work out for both of us too…I buy the park and allow you to either bring in newer MH’s and/or do Lonnie Deals there to help with the turn around.
I’ll be calling the owner of a MHP later today to see if his is still for sale and will start on that one now and be ordering Ray Alcorns manual on buying MHP’s.
Let me know what you think.
Brian,WI
On that same line of thought… - Posted by Ken
Posted by Ken on December 15, 2002 at 23:37:00:
I am ordering deals on wheels and making money with MH’s tomorrow, so I know nothing. Keep that in mind while reading my post.
I spent the weekend driving around MHP’s to see what was out there, what I found makes me wonder if there is any opportunity in my area (can’t be done here!).
The biggest and nicest MHP has a BIG sign saying Rent to Own (also runs ad in paper), the crappiest dump MHP had a similar sign but it said You Own for $250. down & $250. per month. Found another park which I was almost scared to drive through, half the homes were (or looked like) they were empty. Duct tape holding windows in place, OSB covering windows, storm doors flopping in the wind and so on.
A friend of mine has a HM for sale that is in a MHP that does not allow kids, this is a very small park in a very small town. Is that MH anything to consider or would it sit to long waiting for buyer?
I cant wait to get the books and start reading!
Ken
Re: Dilapidated Trailer Park. - Posted by Tony-VA
Posted by Tony-VA on December 15, 2002 at 13:31:10:
Brett,
You have nothing to lose by going through the motions to solve this problem. Even if you cannot get the health dept or your uncle to go along with your idea, you will learn a tremendous amount about due diligence, park management, dealing with red tape etc.
I think that by employing strategies that do not commit you long term, you can safely make legit offers to the park and health dept to provide for the clean up and operation of the park. Your uncle should like the idea of some income without the headache and the health dept (though it may be a battle) may concede that the park is going to have to be cleaned up anyways so why not allow you an extension to do so and thereby continue to provide housing for all the other families? Heck it is the Christmas season, maybe a desk jockey will be feeling extra nice that day. Either way, you will not know until you try. I say try.
Best Wishes,
Tony-VA
Re: Dilapidated Trailer Park. - Posted by Joe C. (AR)
Posted by Joe C. (AR) on December 15, 2002 at 23:14:13:
I have owned a MHP for nearly 9 years. It was not a “perfect” park when I bought it and still isn’t. In hindsight, it’s the best investment I’ve made to date and would love to find another close by with “problems” that I could buy creatively. If it were me, I’d pursue it and see if it makes financial sense.
Joe C. (AR)