Filling a park--fast. - Posted by Trish

Posted by Ernest Tew on July 30, 2001 at 09:05:34:

The article, “Roth IRA Explained,” is being sent to you by e-mail.

Ernest Tew

Filling a park–fast. - Posted by Trish

Posted by Trish on July 10, 2001 at 14:11:35:

I am buying a MHP, 5 spaces are ready, 5 more could be ready fairly soon, as they don’t need much preparation. This is a 150-space park within a city. City has looked at proposals and site plans and has approved it and it is zoned MHP now. Hopefully, everything is in place in that respect. The catch is, it’s a 23 acre, 150-space park and the remaining 140 spaces are yet to be “developed”. So, this is my job for the next year or so.

I need those 10 spaces rented asap so that it will pay for itself while I spend my cash on developing the rest of the park. My question is, how can I get those spaces rented fast? There are no MH’s in the park at all now, so it’s just vacant land with spaces and electric poles and a road that I’ll re-gravel as the main entrance. There is no sign so I’ll do that, and YP advertising, of course, but I need to get results quickly. Any suggestions?

I bought the park from an out of state owner who had a partner locally. They had planned to develop it themselves, and they had done alot of prep work and legal stuff to get this going, but the local guy is not in good health and has had serious set backs, so they decided to let it go. The out of state owner happens to also be a relative, so he’s helping me with this to some degree. The price is good, payments reasonable, etc. So I’m convinced it is a good investment. The site itself is beautiful. It is in a growing area, and only 18 miles from a city of 75,000, 30 miles from another city of 75,000.

Thanks in advance!
Trish

Re: Filling a park–fast. - Posted by Ernest Tew

Posted by Ernest Tew on July 12, 2001 at 07:03:46:

Trish, you can get a lot of valuable information from Ray Alcorn and Lonnie Scruggs. Here is another observation that you and others might benefit from.

When you own your own mobile home park there can be four sources of profit.

  1. Profit on the sale of the home: Lonnie?s books are excellent for showing you how to buy and sell at a profit. I believe Lonnie sells most of his homes in ?as is? condition. But, if you own your own park, you may want to refurbish many of the used homes?not because you will make any more profit on the homes?but because you will be able to get more qualified people in your park. In a “turn-around” park we usually need to upgrade the people and the property.

  2. Interest earned when financing the home: Over the long run, the interest you earn on the financing is often greater than the profit you will make on the sale.

Let?s take a typical example: Suppose you buy a home for $10,000 cash (including a little fix-up work) and resell it on easy terms for $15,000. You have a gross profit of $5,000 when you sell the home.

You get $1,000 down and finance $14,000 at 14.5% interest (which is our standard rate). After deducting the $1,000 down payment, you have $9,000 of your money left in the home?but you receive 14.5% interest on $14,000. That?s a return of about 23% on your investment.

But, what if you had borrowed $8,000 of the $10,000 needed and agreed to pay the lender 10% on their money? You would collect 14.5% on $14,000 while paying 10% on $8,000. The annual return on the $1,000 of the money you have left in the home would be about $1,230 or 123%.

If you can buy and sell one home a month, its like getting a salary increase every month.

Lonnie?s books and my manual show you a lot of financial strategies that can be used to buy and sell the homes and earn enormous returns in the form of interest.

When you own the park with lots of vacancies, there are two additional profits that can be added:

  1. Each time you sell a home you also rent the lot it occupies. That, of course, results in additional lot rent while holding the park.

  2. Increase in property value: This is where the really big profits could come from. Good management, upgrading, and increased lot rent all work hand-in-hand to increase in the market value of the property.

One more observation: Had you leased the park with an option to buy, you could have arranged to have a Roth IRA buy the option for a small amount of money. Then, when you sell the park at a large profit in the future, all the gain would be tax-free.

Re: Filling a park–fast. - Posted by Lonnie

Posted by Lonnie on July 11, 2001 at 20:07:39:

Hi Trish,

Here’s a couple ideas you may want to consider. I’ve seen this technique work very well to fill vacant lots. In fact, I funded the cost of one home myself. If you have my course, this strategy is covered in detail on of the tapes.

#1. This was a park with some 25 empty lots. The park owner found investors who would fund the cost of the home? some new, some used. (Guess which one I did.) These were the numbers at the time (from memory). Adjust for today’s prices to fit the deal.

At the time, you could get a new 14 x 70, 3/2 from the factory, dropped on your lot for $16,000. Park owner paid for set-up. The investor would take a note for $16,000, 12-15% for 10-12 years. The park owner would lease/option the home to a tenant/buyer for the amount of the MH payment, plus lot rent, for the same period as the note. T/B would need to come up with $1,000 option consideration, plus first month payment. (More if you can get it). T/B also pays all taxes and insurance, and is responsible for all up-keep. This would be a triple net lease, (Ernest Tew is the expert using this strategy. Call him if you want more info).

Suppose the investor’s payment was $250, and the lot rent was $250. T/B would pay $500 per month for an option to purchase home any time within the 10-12 year period. It’s doubtful that 1 out of 25 would stay there 10 years, and exercise their option. But who cares? During the time they’re there, they are no more than a tenant with the right to buy the home if they fulfil the terms of the option agreement. If and when they leave, all payments are considered as rent only. Then the home is L/O again, hopefully at better prices.

Or, you could structure your investor’s note for a shorter pay-back period, like 5-7 years. Whatever makes the deal fly.

Now, lets suppose that somewhere between 5-10 years, the home is paid off, and none of the T/B’s exercise their option. Guess who has a free MH? If that should happen, and it will, you have collected lot rent all those years, plus having an investor who puts up the money for the home. Now the home is paid off, and you get to keep all the payments . And you didn’t have to use any of your money to get your park filled.

#2. This is pretty much the same concept, except the park owner rented the homes, instead of doing a lease/option. Some of the homes were new $16,000 homes, and some were used. The agreement was that the park owner would rent the lot and the home. The lot with the new homes rented for $385 (includes both lot & home). Lot rent was $100, which park owner keeps. Investor’s $16,000 is paid back at $285 monthly, 15%, until paid. Once the home is paid off, the lot rent is split 50-50 from then on. Or, until one buys the other’s interest.

Now, I’ll go over my deal. Tell me which of these two you prefer. I paid $8,000 for a nice used home 14 x 70, 3/2. My used home rented for $325, $50 less than the new home. Park owner gets $100, so I get $225 on a $8,000 investment with same pay-back terms as the guy with the new home. Crunch the numbers and tell me who gets the best rate of return. What if I put up $16,000 and did 2 deals. What would my ROI be.

If you don’t want to be a dealer, do as one of these park owners did?pay a dealer to rubber stamp the transaction. $500 was the going price at the time. At factory prices, you can well afford to.

Best wishes, and congratulations on getting into the “gold mine” business. Keep us posted,

Lonnie

Chuck, John, Joe… - Posted by Trish

Posted by Trish on July 11, 2001 at 17:12:10:

Hey guys!

Whew, you are helping alot here. Maybe I won’t pass out from sheer fear after all.

John…$450/month?!! I’m getting dizzy here. Chuck wants me to put in a clubhouse and pool…so who knows, maybe I can get more than I think if I do this right.

Chuck…Does Arizona even get snow?..LOL. Thank so much for the step by step ideas here. I’ll be emailing you with more info/questions as things ‘develop’ (I HOPE!)

Do any of you think it will be a problem getting in the first house? I’m concerned about that. Of course I could put one there myself but if I want to do a “nice” park I’d have to sink alot of money into it and I wouldn’t want to do that since I need to put money into developing the first street and sewer/water lines for spaces 6-10 so they’ll be ready when people start beating a path you know. I need landscaping, sign, privacy fence to block a neighbors junky property, too.

Joe…thanks for the idea of being a dealer, I’ll think on that.

What I can’t figure out is why/how this thing just fell out of the sky and landed in my lap. All I did was call an ad…long-distance, two states away, and discovered the guy and I were related, so next time he’s in this area we meet to close a deal on a 2-acre lake lot and I mention I want to put MH’s on it an owner finance and WHAM! He’s got this park that I need to look at. So I did…and here I am.

He and his partner (who is local) had done all the work on site planning and getting zoning changed, etc. and had phenominal plans for developing this, then local partner had serious health probs and is home-bound now, so they decided they’d have to let it go and let someone else develop this. He’s sick about losing this opportunity, but he is too established with properties in his state/area to move here to get this thing going. So that’s why he had a park for sale. Weird.

Anyway, I would appreciate anyone’s input here on how I can make this work and any ideas for faster income/profits.

Thanks in advance.
Trish

Re: Filling a park–fast. - Posted by ray@lcorn

Posted by ray@lcorn on July 11, 2001 at 11:43:41:

Trish,

If your goal is to fill the park as fast as possible, then I will have to respectfully disagree with the advice below to cut a deal with a dealer for a model home. My experience has been a little different.

We (my family business) spent many years building new parks, filling them, then selling out. We did this for many years all over the southeast states. In the best of the go-go years we were also a large, multi-state dealer, and owned two manufacturing plants. Our business model allowed us to profit from every step of the process. But even with those advantages, we learned some lessons along the way were both expensive and lasting.

In our experience, model homes in parks are a two edged sword. If you rely solely on the sales from one dealer to fill your park, be prepared to wait a while. We found this to be true with our own parks and sales centers where we owned both operations, and manufactured the homes and controlled the financing. Model homes do have a place in the marketing and profit picture of a park, but should be used as one element in an overall plan.

The reason is simple… it’s a numbers game. There are a finite number of people in any market that buy mobile homes in any given year. Of that universe of people, a certain percentage of them will be trading in another home and putting the new home in the space it occupied. People are creatures of habit… few like the idea of changing neighborhoods unless they gain something in the process. Unless you can convince them to move to your park with superior amenities, incentives or location advantages, that eliminates them from your prospect pool. Just for discussion, let’s say that 25% of the buyers in the market are replacing an existing home, and for whatever reason do not want to change locations. One note here… if there are one or more run down parks in the market area, that is the best audience you can reach. Target marketing is a very effective tool in this business.

Another percentage of the buyer universe will place the new home on private land. In most cases, this buyer isn’t even a prospect for a park because they have land. Depending on zoning restrictions, this can be as many as 50% of buyers in some markets, or less than 10% in others. For discussion, let’s assume your market places 25% of new home sales on private land.

That leaves about 50% of the total number of mobile home buyers in your market as a prospect pool. (By the way, you can develop these numbers for your specific market using information from your local planning department.) These folks will be made up of newlyweds, empty-nesters, apartment dwellers, new move-ins, divorcees, widows/widowers, etc., etc. In most markets this is more than enough to draw from, but it becomes critical that you understand how to reach the right audience with your marketing message.

Obviously, in order to reach the 50% that are true prospects, it would make sense to target your message to 100% of the buyer universe. Is there one place that 100% of these buyers can be found?

Yes, there is. They will all visit, not just one, but most if not all of the dealers in the market. Understand something about being a mobile home dealer… it is a very competitive business. Rarely will you find one dealer in a market with more than a 25% market share, and the average is about 15%. Using the breakdown developed above, that means that any one dealer can only steer at most about 12.5%, and more likely less than 10%, of the total prospect pool your way. An in-park sales operation usually fares even worse, because the park is not generally situated in a commercial area or near “dealer row”, and suffers the added burden of becoming a competitor to all other dealers rather than a partner in making deals happen. We found that in those instances we wanted to fill a park in fastest manner possible, it was imperative that we worked with ALL the dealers to get the maximum exposure to the total market.

We experienced the best results when we gave incentives to the dealers to fill our spaces. Specifically, we found that by directly compensating the dealer’s salespeople for new tenants we could get the biggest bang for the buck. Mobile home salespeople are commissioned employees, and as such will listen intently to a proposition that will put immediate cash in their pockets. We typically paid one to two months space rent to the salesperson as a commission for securing a tenant. Some dealers allowed the salesperson to keep all of the commission, some did some sort of split. We tried to encourage giving at least 75% to the salesperson, but it was ultimately the dealer’s call. (Don’t try to do this behind the dealer’s back. Turnover of sales people is about 75%, so the long term relationship is with the dealer.) Usually the dealer is receptive to anything that motivates his salespeople without costing him money.

So where do model homes fit into the picture?

If you follow the advice above and work with all the dealers, then in-park sales are a problem, whether they are your homes or one of the dealers. When the salesperson at the dealership sends the prospect out to look at your park he has to worry about losing the deal to one of the in-park homes. That is a major disincentive to the marketing effort. With one exception, we have found no compromise solution that allows us to work with the dealers and do in-park sales. It’s a trade off… time for money. You can either fill the park fast by exposing the park to the total market, or control the sales (and profits) for a slower fill rate.

In those cases where we utilized in-park sales, we preferred to deal directly with a manufacturer (not always our own) rather than a dealer. We had the most success in setting up homes with landscaping, amenities and options as you would a spec house. That means you sell the home they are looking at, rather than holding it as a model. For the buyer that wants to special order a home they can still do that. The manufacturer will supply you with all the brochures and samples needed to order retail sales. (The Florida market was an exception to this strategy and we used models there, as we sold almost all special order homes.) Staffing an in-park sales model is another issue, and can be a problem. Generally in-park sales do not draw enough traffic to justify full time salespeople, and the resulting part time hours often hurt business more than if there were no model there.

I mentioned an exception… There is a way to get the best of both worlds. Our best project was one where we were able to phase in the spaces in groups of twenty-five or so spaces (less than one year’s absorption). In the initial phases we worked with the dealers in the market as related above, but filled the latter phases exclusively with our own homes. The phasing kept our carrying costs down on the development side. We developed great relations with the dealers in the open phases, and then created an “exclusivity” marketing cachet for the in-park sales phases. This particular project was 200 spaces built out over a seven-year period, and was one of our most profitable ventures.

There is one wild card in all this… space availability in the market. If yours is a tight market for spaces, then you will have tighter control of whatever deal you make.

An extreme example: I helped a park owner structure a deal a couple of years ago in NC where over 50% of the available spaces in the market had been condemned as a result of massive flooding. His park was unaffected by the flooding, and he had just finished emptying the park of trashy homes. He had 200 empty spaces, and was under incredible pressure to cut a deal with FEMA to provide emergency housing. We were able to partner with a manufacturer, who agreed to set up an in-park sales operation, coupled with an agreement to pay the rent for certain number of spaces to be held in reserve for the sales. This was the best of all worlds, and the result was a great deal for everyone involved.

This should give you plenty to think about, and feel free to follow up with any further details of your park you may want to share.

ray

Re: Filling a park–fast. - Posted by Joe C.

Posted by Joe C. on July 10, 2001 at 23:01:29:

Trish,
Like the others, I envy your position. I’ve had a small park for several years. The advice you’ve gotten is great. I’d just like to add another thought. Keep your options with the dealers open and short term. I read Lonnie saying somewhere that he couldn’t understand the PM’s letting the dealers make all the profit on the homes being moved into a park. a great way to finance your development is from the profit of new home sales. When you are financially able, I suggest that you become the dealer selling new home exclusively in your park. You can refuse to let any home come into your park that you don’t sell just by pacing the development according to sales. If you keep your park highly desirable as Chuck suggested, you can command premium pricing on the homes just for the opportunity to live there.

You don’t say where you are, but if the market is reasonably active, you should have a gold mine there.
Best of luck.

Just my .02
Joe C.

Re: Filling a park–fast. - Posted by Chuck (AZ)

Posted by Chuck (AZ) on July 10, 2001 at 14:42:17:

Trish,

First of all, congrats!! This is one hell of an opportunity!! I’m hot just thinking about it.

:wink:

Your in the highly unlikely, and very fortunate position of being able to determine every facet of this park from the word “go”.

One word of caution however, make sure that the local housing authorities have green lighted it before you dump alot of cash. CYA.

Having said that, let’s fill the park!!

Contact all of the mobile home dealers in both of the towns you mentioned. Get them to place a model home or two, with full landscaping, furnishings, etc. Have their salespeople deal with the home, you can start collecting lot rent as soon as the buyer signs on the dotted line.

This will have several benefits…

  1. Your not out any cash… so you can use what you’ve got, or can borrow, to develop the park and it’s anemities.

  2. You start off with nice homes, not used mobiles. IF the dealer/dealers have something used that’s really nice you could also have those placed to shorten the turn-around time. Emphesis on NICE.

  3. Keep in mind that you might want to get a few model homes yourself, at near cost to resell. This is totally optional of course… but would add greatly to the bottom line.

  4. Lonnie-deals… personally starting where you are, I’d avoid this like the plague. If you get someone who wants to relocate their home, you have the right to refuse based upon a visual inspection of the home. If it doesn’t meet your min. standards… don’t!!

  5. I mentioned amenities… start thinking about a clubhouse/pool, etc… this is a MUST DO item!! Get a few homes in to cover expenses, develop the amenities, and then stand back… it’ll fill faster than snow melts in Arizona!!

If you do this as I’ve outlined it, you’ll have a 5-star park when your done. I don’t need to tell you what that’s worth. Drop me a line if you need to bounce ideas around.

Way to go girl!!

Roth Q - Posted by roundhouse

Posted by roundhouse on July 14, 2001 at 20:39:39:

I have been following this thread because i have just started looking at a park that is half empty (or half full) but regarding the Roth, if you paid for the option with Roth money then resold the park, you said the profit is tax free, but wouldnt all the profit have to go back in the Roth? Where I cant spend it until I am old and near death.?

Re: Filling a park–fast. - Posted by Trish

Posted by Trish on July 12, 2001 at 17:17:10:

>Then, when you sell the park at a large profit in the future, all the gain would be tax-free.

Okay, so Ernest,…this is the only part I didn’t understand. Why would I ever dream of selling this thing if it’s making more money than I can count, and I’ll never have to work again, and I’ll be retired by age uh…46 probably (4 years), and well, I’m having trouble thinking beyond that right now so I’ll leave it at that…why would I ever sell? I’ll have managers to deal with it, maintenance people to keep the grounds and equipment, over time lot rents and appreciation of the property will only go “up”, my only job will be cashing the checks and spending the money…so…sorry, I just can’t see ever letting go of this thing.

You mentioned “at large profit”, yeah well, I still can’t see selling it. That’s like cooking the goose that lays your golden eggs for dinner cuz you decided you wanted a taste of meat instead of the gold to buy meat or anything else you wanted.

Seriously…Thanks for the insights! There is alot to absorb from you guys, so since this thing is keeping me awake nights, I’m using that time pondering all the advice.

Trish

Re: Filling a park–fast. - Posted by Trish

Posted by Trish on July 12, 2001 at 17:41:59:

Will do Lonnie. Thanks for the advice. Will be absorbing it over the weekend.

Btw, I’ll be offline till Monday since I have to go out of town. I’ll catch up on posts when I return.

Trish

Re: Chuck, John, Joe… - Posted by Chuck (AZ)

Posted by Chuck (AZ) on July 12, 2001 at 01:32:56:

Trish,

Yes, Arizona does get snow. In fact we have every climate known to man here… desert, mountains, farm land, green lands, lakes, etc… it just depends upon what part of the state your in, and the time of year.

The one thing we don’t have is rivers… well we do, at least that’s what they’re called, but there isn’t any water in 90% of them. One of the running jokes among the locals, is that out-of-state visitors always question the names of our dry creek beds… “why do they call it a river when there’s no water in it?”.

The answer of course is only apparent once you’ve lived here thru the monsoon season… you can lock in the hubs, and go 4-wheeling on the 6 lane. I personally enjoy chasing blue-haired old ladies in my Suburban, to the more common practice of trying to figure out if I’m still on the road.

:wink:

Anyway, Lonnie posted some good ideas… they were on my list for discussion with you, along with a few others. I’ll mention them in my next e-mail.

I do want to touch on what Joe said. $450 a month is attainable… but the park has to support that thru appearance and amenities, balanced by the market. This is the reason I pushed building the amenities early. If the park looks like something out of “Homes and Gardens” (or that it will be when it’s finished), you can pretty much charge whatever people will pay, and get away with it. It’s about as close to printing money as you’ll legally get.

The appearance of a park creates a “pride of living there” attitude among it’s tenants. The lots are always full, the homes are always neat, the rent is always on time… with very few exceptions.

I was kidding about the blue-haired old ladies.

Maybe.

Re: Filling a park–fast. - Posted by Eric C

Posted by Eric C on July 11, 2001 at 12:23:10:

Hi Ray -

I remember that NC deal!

Your point about the model homes is a good one. While I can’t speak to MHs,
I’ve found that (in general)it’s far easier for me to sell the home folks are
actually looking at, rather than wait for a custom. I also think that has
something to do with the price point (folks with more dollars to spend
usually have longer timeframes).

In any case, we still do some models, but far less than we once did. Instead,
we sell more full dressed specs (landscaping, amenities, etc). We’ve even
experimented a little with providing the entire package including decorating
and furniture. Turn key. It worked pretty well at the high end, but it was
too much work for me. Read that as I can make more money is less time doing
something else.

Yours,

Eric C

PS - and I am not frequenting any “fern bars”, thank you. JHyre just missed his smoking buddy, that’s all. See you.

Hey,you’re not doing any deals with Silverman’s bunch (cendant) are you?

Re: Filling a park–fast. - Posted by Trish

Posted by Trish on July 11, 2001 at 16:52:23:

Me? A new MH Dealer? Eeesh, what a thought, but if I only buy one or two, place them on my property and sell them on my property, I guess it sounds good. Okay, so maybe after the pool goes in I’ll do that.

Thanks for the thought, seriously. One question though…if I did that, how much would I stand to make on the homes…I mean, how much do dealers make per home (and I mean cost vs. sales price…I can calculate interest on MH financing and understand the profits there, so that’s not what I want to know.)

Thanks for the input Joe!

Trish

Re: Roth Q - Posted by Ernest Tew

Posted by Ernest Tew on July 15, 2001 at 06:02:13:

Yes, the gain would normally be tax-free if it is earned by (and stays in) the Roth IRA. Unless you are determined to spend everything right away, I know of no better place to have money than in a Roth IRA where it is protected from lawsuits and can compound, tax-free, as long as you choose.

First of all, there are ways of getting money out of a Roth IRA if you feel it is necessary.

Having past the age of 59 1/2 several years ago, I can tell you from experience that it doesn’t necessarily mean “near death” and that money will still be needed.

If you would like to learn more about the greatest tax strategy available, please let me know and I will e-mail an article I have just written about the Roth IRA.

Re: Reselling - Posted by Ernest Tew

Posted by Ernest Tew on July 15, 2001 at 06:06:33:

Trish:

One never knows when circumstances will change. Most people do eventually sell their property. Even in times when loans are not available, you could sell with a lease-back and an option to purchase. By doing so, you could pull cash out and still maintain possession.

Regardless the reason for selling, the gain can be tax-free if you (or some other entity) have a lease and your Roth IRA has the option (which it could sell). Selling an option at a profit is an excellent way to get money into a Roth IRA where it can compound, tax-free.

If you would like to learn more, please let me know and I will send you an article I am writing that will explain more of the details.

Ernest Tew

Okay, so can you all tell me more… - Posted by Trish

Posted by Trish on July 12, 2001 at 17:36:14:

about this building the intangible feeling of community/home? I know what you are saying and in thinking a few months ago about someday owning a small park I thought that would be something to strive for, so I’ve thought some about it. But now here I have this monster in my lap and I need more specifics. What does it take to do this?

Someone mentioned donuts and bingo, okay, that’s no sweat, and I will do a clubhouse & pool once I can afford to do that (which will depend on how fast it fills, etc), I’m even thinking of a “handyman” for the residents to call on when their car needs a jump and they are late to work or the sink is overflowing and some blue-haired old lady has no clue how to stop it, or for even minor stuff if they want to pay, but the handyman won’t do anything for free but it will be reasonable and a nice service for the residents if they should need it. Handyman could be my maintenance guy who will enjoy helping the residents and, you know, the friendly wave as they pass each other on the street thing. Just a thought anyway.

Okay, so there will be the clubhouse with the space for group gatherings, maybe I could do something on a regular basis to get them there like for a Saturday night gathering (in addition to the bingo and donuts times), barbeques and such, but…

any other ideas to create this invisible thing we are talking about?

Hey…a thought just occurred to me…what about a playground area for kids with swings, slide and all that stuff??? Is that a desirable ammenity for a park or is it too much of a liabilty?

What about a small lake or pond, perfectly landscaped, with sitting areas around it, so people can feed the ducks or whatever?? Or is it foolish to sacrifice the spaces to put that in?

Darn! Now I’m sure I won’t sleep tonight either…(pool or playground or pond…bingo or shuffleboard?) …sigh …oh well, it’s a good problem to have eh?

Thanks!!
Trish

Re: Filling a park–fast. - Posted by ray@lcorn

Posted by ray@lcorn on July 11, 2001 at 20:31:23:

Eric,

You reminded me of a promotion we did once called the “honeymoon special.” We furnished some single wides with everything, furniture, dishes, stereo (complete with 8 track tape!), TV, silverware, sheets, spices in the kitchen… you get the picture. We advertised like crazy to first time home buyers, with the tagline “all you need to bring is your toothbrush.”, and at closing we gave them $100 gift certificates for a local grocery store. We sold a bunch of them… (some of them twice, if you get my meaning), got a lot of publicity, and we ran that promotion into the ground!

We got away from models when business resurrected in the early eighties… we were so busy trying to fill the backlogged demand we couldn’t get far enough ahead to complete a model… it kept selling before we could finish. Then we just never did go back to it… learned to sell off paper and paint with dreams.

Re: P.S. I didn’t think you were the fern bar type… my faith in true Texans is restored!

Cendant has everyone in the hotel biz on their ear over their planned acquisition of Galileo (one of the major GDS booking engines). Talk of anti-trust action is flying, and of course Cendant says they’ll operate Galileo with a firewall to prevent any collusion… guess how that’s going over? They took a run at Choice last year, but that didn’t get very far due to certain majority shareholder positions and restrictions. I did have one of their franchises for a short while… long enough to know they run a tight ship. They’re not cutting edge, but make up for it in efficiency and scale. Still keep a close eye on them… their size and diversity demands that.

ray

Re: Roth Q - Posted by Ozzie

Posted by Ozzie on August 04, 2001 at 14:40:13:

Ernest,
Will you please email the Roth IRA to me? Thanks a lot!

Re: Roth Q - Posted by Doris - Va.

Posted by Doris - Va. on July 15, 2001 at 15:54:54:

Hi Mr. Tew -

I have a Roth IRA question. Can business partners who are unrelated have their park (or other real estate holdings) in a Roth IRA jointly? Or is a Roth IRA specifically for an individual? How would this work if a joint setup is possible?

Also would a Roth IRA preclude the necessity for an LLC for a MHPark?

Your reply is sincerely appreciated.

Doris

P. S. I have purchased your manual “Getting Rich Helping Others” and found it very helpful.