Purchase of a park by it's residents - Posted by Joseph Blair

import · October 27, 2001, 2:15pm

Posted by Chuck (AZ) on October 28, 2001 at 21:19:13:

I wouldn’t say it’s that easy… but it’s damm close.

I had a tenant call the cops last weekend because they wanted to evict the troublesome son of another tenant. The cops came out (Sunday afternoon mind you) and we talked. I told them that I had bounced him out previously (via a letter from the office) but that no eviction papers had been filed. It wasn’t necessary, he’d always abided by my wishes. In fact, he was in the park to clean up the back yard on his Dad’s home, which was fair since he’d made the mess there. I was aware of it, and endorced it.

The cops then explain that they have no authority to do anything without legal eviction papers. I said “Hell, don’t you think I know that? I didn’t call you… but I bet I know who did.”

So they leave and go talk to the couple in #18 that called the complaint in. They give them the same line.

Guess who was the “park joke” this past week?

#18.

The whole point being that people tend to find trouble if they go looking for it… or create it upon themselves.

I put it into “the grapevine” that they better start minding their own business… else they might be on the recieving end of some real eviction papers. I turn away at least 3 people a week looking to move in, and I can get a toter for $200 anywhere in Tucson.

I thinking the city limits would be about right.

import · October 27, 2001, 2:15pm

Purchase of a park by it’s residents - Posted by Joseph Blair

Posted by Joseph Blair on October 27, 2001 at 14:15:23:

I’m interested to find out if anyone has any information on how a park with 300 residents could put together a purchase of the land from the Park owner. Could this be done by a homeowners association? I can run the numbers as I am in the real estate business. But I am wanting information about the structure that would be used. This must have occurred before. Also any rule of thumb on expenses for a 300 unit park with paved streets and all utilities metered separately.

import · October 28, 2001, 7:03am

Re: Purchase of a park by it’s residents - Posted by Ernest Tew

Posted by Ernest Tew on October 28, 2001 at 08:03:12:

Joseph, I forgot to answer your question about park operating expenses. On average, they will be about 40% of scheduled rents.

For some reason, my response to your other questionsshowed up in a different place. Please see other posts from me.

import · October 28, 2001, 6:54am

Re: Purchase of a park by it’s residents - Posted by Ernest Tew

Posted by Ernest Tew on October 28, 2001 at 07:54:30:

Joseph:

From your post, it isn’t totally clear that you live in the park. Others who responded assumed that you are a resident who may be disgruntled with the way the park is being managed or the amount of lot rent.

If, however, the park is available for purchase and you are seriously interested in marketing it, there is a way to do it.

I am somehwat familiar with a senior park in Florida that was sold to the residents at a price that was attractive to them, but at a substantial profit to the owner.

The owner went to a local lending institution and negotiated the arrangement for financing the lots. The lender agreed to make a separate loan to each homeowner for the purchase price ($28,000) of the lot occupied by their home. The promissory note was secured by the home and lot. Since most of the residents owned their mobile home debt-free, the loans were typically less than 65% of the total value–a comfortable loan for the lender.

With a lower interest rate, secured by the home and land, and a term of twenty years, the payments were lower than the current rent. The homeowners liked the fact that, unlike rent, the payments were fixed and would never be increased. Moreover, each homeowner was entitled to a $25,000 property tax exemption which drastically reduced property taxes. And, unlike rent, interest on the loan is deductible when computing income taxes.

And, of course, the owners were happy to receive $28,000 cash for lots that were worth about $15,000 based on current rents.

If you would like to discuss this further, please give me a call at (352) 475-1280.

import · October 27, 2001, 3:05pm

Re: Purchase of a park by it’s residents - Posted by Chuck (AZ)

Posted by Chuck (AZ) on October 27, 2001 at 15:05:55:

The first and foremost question… “IS the park for sale?”

If the answer is no, then all the money in China won’t buy it.

Secondly, if it IS for sale… “Can you as an individual or together with the other residents, secure a loan for $1 million to $3 million dollars?”

Have any of you run this type of business before? That’s what it is, bud… a business.

Thirdly, assuming that it’s the normal 30 year loan term… “How many of you will be around to see it paid off?”

Who will manage it?
Under who’s authority or supervision?
How will you deal with deliquents?
How will you deal with new tenants?
Have any of you been in the controlling end of a HOA before?
What about taxes, insurance, deferred maintenance?

I’d bet $1.00 that your thinking this way because you believe the lot rents are too high. Have you checked other parks in the area to see what they charge? What’s a decent apartment run? Is it compariable?

Made you think, didn’t I?

Do you REALLY want to solve this problem? Then buy a piece of land and move your home. You’ll never have to pay lot rent again. If enough of you move out, the current owners will start wondering why.

Your current line of thinking will cause you more grief in the long run than you can imagine.

import · October 28, 2001, 9:10am

Re: Purchase of a park by it’s residents - Part II - Posted by Chuck (AZ)

Posted by Chuck (AZ) on October 28, 2001 at 10:10:51:

Everytime I see one of these pop-up, I immediately assume that it’s the residents trying to buy the park… regardless of how the situtation is phrased.

If you look back at his post, he could have gotten that info from a “comp”. Considering he’s already in RE (so he claims), why didn’t he?

No folks… this (at least to me) is another case of “tenantitis”… tenants itching to fix what they don’t understand.

I could give you a dozen examples of this… but there’s no need to waste the space here, you all know where I’m coming from… and why.

Suffice it to say, that I’ve seen this sort of thing actually transpire… and in doing so I’ve seen a good park go to hell from incompentant management… or to be more accurate, macro-management.

In one instance, 650 of them.

Unfortunately, not everyone understands it’s a business and has to be run like one… even if that means the customer isn’t always right, and doesn’t get his way.

I had a phone call Friday from a lady looking “to buy a lot”.
“Buy a lot?” I said… “we don’t do that”.
“Do you know of a park in Tucson that does?” she asked.
“If they did, it wouldn’t be called a park” I replied.
“What would they call it?” she asked.
“Two miles north of town” said I.

import · October 27, 2001, 11:15pm

Re: Purchase of a park by it’s residents - Posted by Scott

Posted by Scott on October 27, 2001 at 23:15:11:

Way to go Chuck, My family owns 4 M.H.P. and evryone thinks that you just sit back and collect the rents with no problems in the world. Way to go Chuck and welcome back partner.

import · October 27, 2001, 9:29pm

Re: Purchase of a park by it’s residents - Posted by Lee R

Posted by Lee R on October 27, 2001 at 21:29:34:

Hey Hey It looks like Chuck is back in the saddle again!! Shooting fast and straight as always. Ride em cowboy!

import · October 27, 2001, 5:59pm

Well said, and … great post! (nt) - Posted by Eric C

Posted by Eric C on October 27, 2001 at 17:59:07:

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