Getting discouraged Need motivation! - Posted by Rick

Posted by Eddie-Mi on December 14, 2003 at 23:09:43:

I dont feel i have treated you like a piece of crap, but Ok if you want to hold grudges thats fine with me. I just like networking and seeing how others are doing in the park business.

Getting discouraged Need motivation! - Posted by Rick

Posted by Rick on December 12, 2003 at 11:50:46:

I have been looking for deals in parks because I thought that would be the best place to start as a rookie. There are only 4 parks listed in the phonebook but I have managed to find 10 total. I just left the 10th one and was turned down flat (again). All the managers I have talked to were down right beligerent. I have been as nice to them as I possibly can but the minute I try to tell them that I would like to buy a home for my niece and let her pay me back they just shake their head and tell me that’s subletting and they cannot do that. I explain (trying to sound a little naive and as nicely as possible) that I thought it would be the same thing if they got a loan from a bank. I am just the bank. That’s usually about the time they say they have people come there all the time wanting to do that and the answer is definately NO! This last park had about 25% of the spaces empty so I asked about buying a home elsewhere and putting it in to help them collect rent. No! No! NO!
Then the manager says “There is one for sale” I percked up. She explained that a woman had bought a home for her brother who killed himself in it a year ago. She said “The woman is going to sell it and when it’s paid off SHE will own it” I thought I must have misunderstood so I said “The woman who owns it now is going to collect payments and then when it’s paid off, SHE will own it and not the people living in it?” She replied “Yes.” I said “Now THAT sounds like subletting.” She got angry and just said “I’m sorry but I can’t help you” and looked toward the door.
So now I have no parks left to look into that I can find. What would you try next? I thought about land/home deals but 1 acre here costs around 10k, the move, after all inspections, set up etc. could run close to 5k. Assuming I buy a nice repo for 5-7k, I would then have 20-22k invested. Unfortunately, I see ads all the time in my local trade paper for mobiles on one acre for 25-30K so the profit is not worth the effort. I sure would appreciate any advice or suggestions as to which way to go. I have about 20k to work with.
Thanks in advance,

Re: Getting discouraged Need motivation! - Posted by JoeS (FL)

Posted by JoeS (FL) on December 12, 2003 at 17:28:44:

I think you need to change your approach a bit.

I wouldn’t go into a PM’s office and tell him/her that I want to help my niece. I would just tell them like it is. I FINANCE USED MOBILE HOMES. This usually paves the way for all kinds of deals. What I dont tell them (at least not in the first few minutes of the conversation after stating the above) is that I only finance the Mobiles I own or purchase. I let the reaction of the PM dictate what my next few words will be. Usually, the first thing the mention is “So-So in lot #34 has been trying to sell for months but her buyers cant find financing” Ding Ding Ding goes off in my head…Possible motivated seller!. I’ll ask for a contact number of the seller and check it out. The rest is all as per Lonnies book.
What you must remember is some of these PM’s make extra money showing and/or selling these homes for the owners. $500.00 bucks here and there really adds up to these folks. You got to be careful and not let them think you’ll squeeze them out of a deal. Tell them up front you’ll take care of them.
Another point I would like to make is dont try to be naive about the whole process with the PM’s. Just be straight with them. Be confident of your abilities eventhough you may have not done a deal yet. These folks have seen it all. Dont baffle them with BS, dazzle them with brilliance (a bit subdued brilliance =).

With that park that is 25% vacant, I would ask the PM “How can I help you fill up those vacant lots?” He’ll either say I dont need any help or Bring in some mobiles. Find out what the park requieres in the way of set up. Skirting type, size of driveways, carports, etc. That’s where you start negotiating for concessions. Who will pay for the impact fees? Will you allow me to have free lot rent until I get it sold ? What will the park provide? Driveways? You get my drift. Once you have all that worked out (and in writing if possible) price out your costs and see if it is feasible for you to proceed.
About the land/home ads… I see a ton of them for 20-25k but what they dont mention is the age of the home! Probably a pre-hud home on an acre lot. Never assume! Go out and look at some of them. Get a feel for the market based on age of home and locations. You cant go wrong by educating yourself about your local market. Here, a nice late model repo (DW) on an acre lot can be set up for about 32-38k. They’ll sell for 59-79k all day long, depending on the area. It is not uncommon to double you investment in land/home packages.
Ok, enough rambling for know. I hope this helps.
Best Regards,

Re: Getting discouraged Need motivation! - Posted by Briton (IN)

Posted by Briton (IN) on December 12, 2003 at 14:52:53:

Ever look into buying your own park with that 20K? If you are not too old, you may want to look into it. At that point you can make your own rules! 20K could get you into small park ownership. I am about to make an offer on my 2nd park. Some people around here do not aggree with me, but I dont think you can beat these things Lonnie calls gold mines! Briton(IN)

Thank you all - Posted by Rick

Posted by Rick on December 13, 2003 at 10:17:53:

Thank you all for the excellent advice. I knew that you all would re-motivate me. I look at it like a maze: If I hit a wall, I just turn around and look for another way until I reach the goal. Take care and thanks again.

Re: Getting discouraged Need motivation! - Posted by Rick

Posted by Rick on December 12, 2003 at 18:23:18:

Thanks for the advice Joe. The fact is I DO have a niece who is looking for a place. I have talked with her about it and so I have a buyer lined up. The problem is the park managers. It’s like they all went to the same bad managers school or something. I own a liquidation business and cold call on plant managers all the time. But these park managers throw me for a loop. The instant they realize that you want anything other than to rent a lot for yourself, the head starts shaking no and they don’t hear another word you say. The people around here are, shall we say, “a bit rural?” If it’s not the way they’ve “always done it”, forget about it. They won’t even let you try to explain it to them. You’re obviously just trying to scam them. I think I’ll look into the land/home deals a little closer. Where would be the best place to look and see what similar deals have sold for? The courthouse? Thanks again,

Re: Getting discouraged Need motivation! - Posted by Eddie-Mi

Posted by Eddie-Mi on December 13, 2003 at 13:04:52:

What size is the 2nd park your looking to buy?

It looks like your doing good on the 1st one. How are collections and management doing?

Too old? Too old??LOL/ nt - Posted by Greg Meade

Posted by Greg Meade on December 12, 2003 at 21:29:55:


Re: Getting discouraged Need motivation! - Posted by Rick

Posted by Rick on December 12, 2003 at 18:10:03:

Thanks for the suggestion Briton. Maybe when I’m a little more experienced I’ll look into a park but right now I just feel like that would be a bit much for me. I also don’t like the idea of putting all my eggs in one basket. I like to start small and cheap and work my way up. Good luck on your 2nd park. I hope you do very well with it and thanks for responding.

Re: Getting discouraged Need motivation! - Posted by Jay(OR)

Posted by Jay(OR) on December 14, 2003 at 03:53:51:

I’d reconsider selling on credit to your niece. That is, unless you don’t mind GIVING it to her if that’s what it comes to.

Re: Getting discouraged Need motivation! - Posted by gary

Posted by gary on December 12, 2003 at 23:25:53:

Lonnie has written a great book on this business and I am greatful to him. Dale Carniege wrote a great little book once, “How To Win Friends And Influence People”. The rules dont change, drop by Books a Million and pick up a copy of Dale’s book, or better yet get it on tape too and listen to it as you drive around the parks, and put his rules to work, they are simple, easy, and they work like magic. Using Lonnie’s and Dales ideas make this business easier, and more rewarding.

Re: Getting discouraged Need motivation! - Posted by JoeS (FL)

Posted by JoeS (FL) on December 12, 2003 at 19:12:06:

You know, after reading your comments, I think Briton has nailed it. Buy a park.

I think opportunity may be staring you in the face. If the quality and attitude of management is half of what you describe, can you imagine the being the Park owner and have to deal with them? Maybe there is one that is just fed up. Doesnt hurt to try.

Eventhough I dont not own a park (YET!), I would certainly dig a bit more if I were you. If you buy the park right, your concerns as a first time park owner are minimized. Look into purchasing Ray Alcorns book. That book is worth its weight in gold. I think you would be doing yourself a disservice if you dont at least look into the possiblity of purchasing one of these parks on the cheap.
Turn lemons into lemonade.

On the subject of finding sales comparables, ask a RE agent. Find one or two, tell them you are interested in purchasing some lots for land/home packages. Here, one can only place mobiles on land classified as A-1(agricultural), RR1(Rural Residential) and R4 (Mobilehome). Most of the RR1 and R4 land is usually bunched together in subdivisions. Find a couple of subdivision names, go look at them and what the homes are selling for, and then concentrate on just one subdivision. Go to the county tax office and get a map of the subdivision along with all owner info. Become an expert on that subdivision. Look up all the owners of lots in that subdivision that are currently not developed, write them a letter stating you will buy their lot when they are ready to sell and see what happens. Might pick up a few dontwanters. You’re in sales… if you dont ask, you’ll never know.

Best Regards,

Are you kidding? - Posted by Briton (IN)

Posted by Briton (IN) on December 14, 2003 at 14:33:40:

First Eddie i like to be nice. I like when people are nice to me. You have treated me like a pile of shi*t though. Do you have multiple personalities, or are you going to get more info out of me so you can put me down in the future? I mean if you would like to be respectfull to me, I am very happy about that. But based on the way you have treated me on these boards, i have a hard time trusting you…thats just the truth, Briton (IN)

Thank you all - Posted by Rick

Posted by Rick on December 13, 2003 at 10:13:29:

Thanks you all for your excellent advice. I knew if I came here you all would motivate me again. I don’t give up easily. I look at it like a maze: If I hit a wall, I just turn around and try another way until I reach the goal. Take care and thanks again.