Looks like an attorney nabbed it, who previously had it under contract and then walked away in the 11th hour. Sucks not having money when there is a good deal staring you right in the face. I did call Ernest, but he is in the middle of a lot of deals. No biggie though, theres another one right around the corner. This woulda been a good one though.
How many parks do you own currently own Doug? I really enjoyed your articles and it helped me during negotiations of a 32 unit I purchased.
Ray, I have a bigger deal that hit my lap today that I was gonna talk to you about. Its 2 parks very close together. Total of 182 units and I can buy for 100,000 down with a 10 year balloon. Price of 750,000 to 800,000. 6% interest on a 15 year amortization. Its probably a C- to D quality park. Fairly clean with city/city, asphalt roads - but mostly older homes and some small lots. I estimate about 80 lots can hold 16x80’s however. Good area.
The property grossed about 255,000 in 2002 and is currently putting 16,000/month in the bank. There are some collection problems, it probably should be 18,000 to 19,000. The property is about 50% occupied.
A recent price reduction has gotten my attention. My plans are to fill the old homes with warm bodies and flip to a cashflow buyer. (i have some experience in doing this). I would plan on living onsite because I know this is management intensive.
I know of a park owner who would partner and put up half the money (for half the ownership). He doesn’t want to manage this turnaround. But I was wondering if are passive investors out there, who might possibly put up most of the 100,000 and do a lease-back. (if someone wants more security, I will throw in a 32 unit MHP I own as additional collateral). If anyone wants to do a win/win, I will listen to all proposals. Time is of the essence. Probably a wet dream, but this is a “creative” real estate website so who knows…
Looks like an attorney nabbed it, who previously had it under contract and then walked away in the 11th hour. Sucks not having money when there is a good deal staring you right in the face. I did call Ernest, but he is in the middle of a lot of deals. No biggie though, theres another one right around the corner. This woulda been a good one though.
How many parks do you own currently own Doug? I really enjoyed your articles and it helped me during negotiations of a 32 unit I purchased.
Sounds like an interesting deal. I would send a note to Ernest Tew, you can find his email address over on the MH Forum. He has set up deals just like this and might be able to help. I might be a player if you and Ernest get something going. (I have some other things in the works that may or may not be completed by the time you need to close.) In anycase, have him contact me if anything comes up.