Where are the experts when you need them? - Posted by GG(GA)

import · June 30, 2002, 8:00am

Posted by brad on June 30, 2002 at 10:12:17:

i agree that this forum or any other cannot tell you what you should do with your money. but i can also say this. that is enough capital to buy 4 different parks in my area, none are anything to be proud of but all but one are making money, at least to my knowlage. i personally prefer flipping, but got in to m/h by accident, it is alot of work, at least the way that i have been going around it. i am in the process of evaluating a park now, and the only way i can see it making money is if i do all maintence myself which i will but that takes away alot of time from home and also drastically reduceds the value, since i value my time. i personally would suggest putting the money in to the bank and taking some corses so you can better educate yourself as to what is best for you.

import · June 30, 2002, 8:00am

Posted by GG(GA) on June 30, 2002 at 08:00:43:

I posted yesterday, but haven’t received an answer yet and need one now. I’m getting a tax free settlement soon (this week possible). The total amount is 687,000. The attorney gets his 25% cut and the remainder will be split with someone else. We also have another person that we have an obligation to take care of also. I want to invest in a Mobile Home Park with my share. I need ideas on setting my share up to help take care of this other person and making a good monthly income that I can live on.
My thoughts are:

Take a lump sum, approximately 257,000
Give this other person 100,000 to do what she feels best
Take the remaining 157,000 to buy a small park outright and use the equity in my home to get up to par

My questions are:

Does this sound like the best way to use the money?
Should it be put in a structured settlement instead and used as collateral for a loan on a MHP? What type of structure would be best?

My ex-husband wants to put his share in an annuity that will make 20-30,000 in 10-15 years, but I feel that with a MHP the investment will double once the park is up to par, plus I will have around 5000 a month income. Which really means that I will have all of my investment plus some in just 12-24 months. I’m not against him using his share in whatever manner he wants, to each his own.

I really need help fast. This is happening way to quick for me, since I am still in mourning over the accident that brought this settlement on to begin with. I appreciate any advice and/or ideas on what would be best to do.

Thanks,
Gail

import · July 5, 2002, 9:59am

Re: A better idea? - Posted by Ernest Tew

Posted by Ernest Tew on July 05, 2002 at 09:59:45:

Gail, you will be limited in what you can buy with $157,000 and limited on the profit a small park can earn. You will need to manage it yourself because a small park can’t support a competent on-site manager. This could present another problem if you can’t find the right park in your own local area.

However, there is a better way. You could enter into a net lease for a larger park and acquire an option to buy. Usually, a larger park can be operated more efficiently and will have more growth potential.

Unfortunately, most owners don’t understand lease and option arrangements. To solve the problem, we arrange for a passive investor to buy the park and lease it to us with an option to buy.

For example, in October of 2000 someone in Macon, Georgia, found a good buy on a park. With our help, he was able to get a substantial discount by agreeing to pay all cash for the property. One of my investors purchased the park and then net leased it to us with an option to buy.

My partner who lived nearby managed the business and upgraded the park. We financed several mobile homes in order to fill the vacancies.

Now, in less than two years, the park is under contract to be sold at a substantial profit. Our share of the profit will be tax-free because the option is owned by our Roth IRAs.

The out-of-state investor (who has never seen the property) will receive a substantial profit and is already wanting to know how we can reinvest it for him.

If you would like to discuss some of the possibilities, please give me a call at (352) 475-1280.

import · July 1, 2002, 12:46pm

My thoughts for what their worth… - Posted by Robert (NC)

Posted by Robert (NC) on July 01, 2002 at 12:46:54:

My suggestion is not to make any financial moves while still greving (sp)…

I’d suggest, taking the lump sum, giving the other person their share. Take your share put into a 3 month CD. yes LOW interest, but it earns something. Take the 3 months to let life return to normal for you. During that 3 months, look for a friendly MHP owner that will let you follow them around for a few weeks to make sure it is the investment for you.

I hope things work out for you…

Robert

import · June 30, 2002, 1:00pm

Thanks - Posted by GG(GA)

Posted by GG(GA) on June 30, 2002 at 13:00:32:

I’ve been researching different types of business for over two years now. When we decided, about 6 months ago, that a MHP would be the perfect business (for us), The first thing I did was go out and find an owner who would talk to us. We followed him around for weeks. The park I found is in south GA, it has 20 spaces with 10 filled. Plan is to fill empty spaces with our own homes and rent those until there is enough saved to buy another park, then sell which means I would have to create a note on the homes. Then I just collect $ for the lot rent. With two small parks I should have enough cash for a nice monthly income. We’ll do all the work ourselves to save more money. Asking price for this park is 125,000 and it has individually metered lots with expansion for 2-4 more. Lot rents in the area go for 125.00 a month. Homes would rent for around 400.00 per month.
I have also run several small companies (for someone else) and the last one I was at increased the amount of money in the checking acount from 175,000 to over a million. That’s when I said “NO MORE” if I can do it for someone else I could do it for me!
As for the money, I really have to make the most of it, even though there may be more coming later. My son was killed on May 7 when a dump truck blew a tire and came across the median and struck my son’s van head on. The dump truck owner had put a recapped/regrooved tire on the front steering axle. We’re still waiting to see what charges the state will bring.
Sorry this is so long, I have done a lot of homework already and I just have to get it right.
Thanks,
Gail

import · June 30, 2002, 11:44am

They’re evrywhr, if U know where to look . . . - Posted by Steve W (WA)

Posted by Steve W (WA) on June 30, 2002 at 11:44:45:

www.ernesttew.com
I believe his phone number is there - call him.

Post this on the Commercial board - ray @lcorn can also help with advice.

Check the archives there and here, here and there - good advice is everywhere - - - sorry for Seussing out there.

I also agree with Chris-TX: s-l-o-w down. Do not step blindly nor quickly.

import · June 30, 2002, 8:41am

Re: Where are the experts when you need them? - Posted by Mark (SDCA)

Posted by Mark (SDCA) on June 30, 2002 at 08:41:13:

Here is my VERY quick .02.
157K isn’t going to buy you much of a park unless the market has changed DRASTICALLY from when I was looking. Or how small did you mean? Less than 10 pads?
Why dont you give us some details on what parks you are seeing out there priced at 157K or less.
That might help us give you more advice.

Mark

import · June 30, 2002, 8:31am

Just my .02 - Posted by Chris (TX)

Posted by Chris (TX) on June 30, 2002 at 08:31:27:

I’ve learned in life that if you rush into anything, you generally make many mistakes. Gail you need to slow down here, and learn this business before you jump headlong into it.

No one could possibly sit down at a computer and create a post, or even several, that would provide all the information you need to do what you are intending to do.

Check the archives for information you seek, read all those posts, check posts and check the appropriate section of this website for books and courses on MHP’s, choose several that interest you, order them (rush-overnight if you want to) and get to work learning this business.

The best profits and the best success comes from buying parks right… if you don’t buy them right, there is minimal if any profit. Education is the key.

It would be helpful to know where are you located?

Chris

import · June 30, 2002, 5:44pm

So sorry to hear… - Posted by Chris (TX)

Posted by Chris (TX) on June 30, 2002 at 17:44:43:

about your son. That is a tragedy.

As for information you are seeking… Ernest Tew and Ray Alcorn are the best sources of information here on this site. Contact them for help.

Chris