Posted by Robert (NC) on July 17, 2001 at 17:55:09:
Chuck,
thanks. I found one article, I’ll read those 4.
I’m very leary of the 14 septic systems and think the asking price is way way too much. but I’d like to go ‘check things out’ never know if it might turn into a deal, or so I keep reading in all the articles…
thanks.
Looking at MHP to buy, have many questions… - Posted by Robert (NC)
Posted by Robert (NC) on July 17, 2001 at 16:00:05:
I’ve ordered Ray Alcorns book and am waiting, but in the mean time I"ve already started looking at MHP for sale.
what financial information should I ask.
Monthly Income for last 3 to 5 years ?
Yearly income ?
Monthly expenses by catagory ?
the park I’m looking at is a 42 space park, with 36 units being rental units… I would want to sell these units, not do month to month rental like the current owner.
All homes are on septic systems, as this is out of town with no city sewer, 3 trailers per septic system.
Park is 10 years old… No home in the park is older than 1980. They do have appraisal of all homes, and land and everything together. The other spaces are rented out at 200 a month lot rent. Roads are paved. Have 4 acres undeveloped. Other MHP’s in area are running at 1 to 5% vacancy rate… this park has one open lot.
asking price is 1.2 million, but realtor said that was based on potential. I told her that was way to high, based on current monthly income of 15k (36 homes on month to month rental… )
I would like to know what to ask, so I can put together a very low offer, and try to find financing for it, if offer was accepted. I’m going slowly but want to make sure I ask all right questions. Owner wants to ‘cash out’.
and of course, being new to to this, I have very little money myself (although very good credit and a good paying job).
Any help thoughts ??
I’ve looked for how to articles but havn’t found any on what to look for in parks, just what to look for on the mobile homes themselves…
Robert.
Patience! - Posted by ray@lcorn
Posted by ray@lcorn on July 17, 2001 at 21:52:43:
Robert,
The articles by Doug Ottersberg are a great nuts and bolts primer on how to value a park. Read them and print them out for future reference.
We shipped your copy of “DealMaker’s Guide to Mobile Home Parks” today by USPS Priority mail. You should have it by Thursday, Friday at the latest. You’ll find answers to all of your above questions and more in the book. The section on due diligence is specifically designed to teach you how to evaluate properties.
As you read the material and put it to use in looking at deals, I’m sure you’ll have more questions. Post them here and we’ll all do our best to help.
Best of success to you,
ray
Re: Looking at MHP to buy, have many questions… - Posted by Chuck (AZ)
Posted by Chuck (AZ) on July 17, 2001 at 17:07:56:
Start by reading this 4-part article, it’ll answer alot of questions.
http://www.creonline.com/mm-43.html
http://www.creonline.com/mm-47.html
http://www.creonline.com/mm-49.html
http://www.creonline.com/mm-50.html
Personally, I’d be leary of those 14 seperate septic systems… and I’d work on that asking price.