Posted by Tony Colella on January 01, 2005 at 09:58:48:
Sure, Ray’s article is in the “How To Section” on the second page. Try this link.
http://www.creonline.com/articles/art-148.html
Tony
MHP purchase not as sweet as hoped - Posted by Rob-Mo
Posted by Rob-Mo on December 17, 2004 at 24:39:31:
I bought a park recently. The numbers aren’t as I was told. No, I didn’t back myself up with the numbers being in writing. Any legal ideas?
Re: MHP purchase not as sweet as hoped - Posted by rise2it
Posted by rise2it on December 21, 2004 at 09:01:49:
Buy Ray Alcorn’s book. After you’re done kicking yourself for not buying it earlier, it’ll help you figure out what you did wrong. Then you can work on fixing it.
I’m also the new owner of a small park. It’s got some problems, but they’re being corrected. I bought his book, learned from it, and renegotiated my deal before closing. Saved me thousands, and also gave me some basic tips for managing this thing.
First rule of business - any business: Go find people who have more experience, and learn from them. You’re here, so that’s a good start.
Sorry if it sounds like a ‘sales pitch’ for buying his book, but keep in mind ‘I’ don’t make a dime if you do.
Invest in YOUR education…
Re: MHP purchase not as sweet as hoped - Posted by Steve-MO
Posted by Steve-MO on December 18, 2004 at 13:31:21:
Rob,
Everyone has given some very good advice and since I am in Missouri, I would like to offer some assistance if you want it. If you would like to retain ownership, I may be able to help you work through whatever the problems are and turn your situation around. If you are not interested in retaining ownership, depending on the location of the park, I may be interested or know of someone interested in purchasing the park. Send me a note and I would be glad to give you my phone number so we can discuss it.
Re: MHP purchase not as sweet as hoped - Posted by Tony Colella
Posted by Tony Colella on December 17, 2004 at 09:39:31:
Rob, sorry to hear that your deal did not work out as you had hoped.
Unfortunately you got the lesson the hard way instead of asking, reading and learning first from the experience and materials of others. How much could have been saved by protecting yourself before you bought through the use of a course like Ray Alcorn’s course about buying mobile home parks?
The first rule in investing is to make your money going into the deal. Sellers of parks and their brokers almost always tell you pro form, “you can in a perfect world” type numbers so as to justify a higher price. They are trying to charge you for the opportunity to spend your money turning the park around (because they didn’t) and raising rents and kicking out bad tenants etc.
Protecting yourself from such an error is known as doing your Due Diligence. Ray even wrote a free “How To Article” here that contains a due diligence checklist for buying mobile home parks. Not all the items apply to each park purchase but it will help you create your own.
What you are seeking now is to close the barn door after all the critters have fled.
I do not like to see people painfully regret a purchase but like others here who have responded we can’t help but realize that is the reason we spend so much time here learning so as to best protect ourselves and make better deals.
How you save this deal is up to you. Perhaps the turnaround will work out but just not as lucrative as you had hoped. It might still be a base hit, just not a home run.
What you learn from this deal will be invaluable but ONLY if you apply it to future deals. If you let it defeat you now then the money is lost forever.
Unfortunately you motivation as a buyer prompted you to pay for your education in very harsh terms. But it is still an education so long as you don’t quit on future application of that hard earned knowledge.
I don’t intend for this post to come across as kicking you when you are down. We have all made mistakes. No one is better and no one is pointing fingers. I only encourage you to persevere.
Tony
Re: MHP purchase not as sweet as hoped - Posted by Bill
Posted by Bill on December 31, 2004 at 17:33:59:
Hi Tony,
I just purchased your book and looking forward to reading it.
Can you point me to the article Ray wrote with the checklist for buying MHPs? Hopefully I’m going to be looking at one in the next few weeks.