Posted by Paul_R on October 11, 2004 at 19:39:22:
I think John’s advice is excellent. Even if the manager runs the park into the ground at least he’s not stealing your money. If you don’t mind my asking what state is the park in?
Running out of state park. - Posted by Gavin Wilkinson
Posted by Gavin Wilkinson on October 11, 2004 at 17:36:05:
Has anyone run an out of state park with a manager? I have just been offered an out of state park, and the price seems really good. It seems to pencil well, and the financing also seems good.
However, I have never had an investment more than 2 hours from home. Also, my previous rentals were all directly managed by me. Is it possible to find a good manager that does the job well. It would seem to me that the average manager would not care too much if the owner was hurting. Also, the manager is in a good position to steal funds/slack off if the owner is not around alot.
I’m looking forward to an investment where I’m not the first person they call.
Re: Running out of state park. - Posted by Ernest Tew
Posted by Ernest Tew on October 18, 2004 at 07:03:49:
Over the years, we have acquired about eight parks in other states. Although management can be a problem, all have been profitable.
We solve most of the management problems by having a joint venture partner. We refer to them as the entrepreneur. They either live in the same town or move there. They invest some of their own money in the business and are responsible for day to day operations. We provide supervision, guidance, and financial backing during the entire venture to assure that it is successful. In short, the entrepeneur has both the “stick and carrot” motivation.
In addition to the beneficial interest that they buy, they receive an additional interest for the services they provide.
They view themselves as “owner” and are much more concerned about doing a good job than most salaried employees.
Re: Running out of state park. - Posted by John (OR)
Posted by John (OR) on October 12, 2004 at 08:25:19:
I do not have MHP experience so this idea is from other types of RE
deals I have done.
Figure out what the park is worth to you and how it should perform.
Factor in the costs to have a manager.
Next figure out a way to get the manager on your side. To have some
skin in the game. Make it work so that when you win the manager
wins.
I my years of experience in RE and in business people tend to focus on
the things that they get paid for. If you create a bonus structure, a
share of the ownership or something else that lines up their interests
with your interest then you will get someone who will think more like
you and less like they need to ripe you off to win.
You still need all the normal controls to deal with fraud, etc.
John
Re: Running out of state park. - Posted by John Merchant
Posted by John Merchant on October 11, 2004 at 19:16:25:
Check the income property forum for the how-tos on checking on bona fides and value and operatng numbers for any MHP.
A good book or two on managing apts will basically tell you how to run a MHP, as they’re similar in management. Your library will have those Apt Mgmt books.
I will just toss this in for you if you do get the MHP.
Post big sign in Mgrs office that NO payaments are to be made to anybody buy your co., and direct deposited in your bank acct at XYX Bank, etc…and that mgr is not authorized to handle any tenant’s money at any time.
Then, communicate with all tenants immediately after you do get title, telling them same thing.
This way the Mgr may not do you the world’s best job but he won’t have his hands on your money.