Creative Mh Park Investing?
I am new to MH investing. I am needing help with ceative investing. There is a MH park for sale in my area that has to be sold with a house that is attached to the property. The current owners want to keep just the house, but the city won't let them divide or all the mobile homes will have to go. The agent said the owners are tired of it. Any ideas on some creative ways i could purpose to take over park? Maybe lease property? Manage the park for exchange of being able to put 2 MH on property? There are 9 slots 8 are rented. Please help! I need postive cash Flow.........
Thanks for any help....Newbie
Good Day to you:
Am I reading this right? They want their asking price for the whole property and then want to keep their house? If so, just lease it back to them and you run the Park. If it's all one parcel and the city won't split it off without having to remove the MFG homes, then you are pretty limited as to what you can do. We might need more info regarding your request for + cash flow.
Good luck and make $$$
Tom
The key ingrediant in all forms of Real Estate Investing is the ability to Negotiate. And now dear sir you will be put to the test.
Given: The parcel cannot be split. The owners wish to keep the house which is on the property. There are 9 trailer er mobile home sites and 8 are rented.
You will now offer to buy the Mobile Park and you will bargain as if your Mothers Honor was at stake. You will offer to pay a price based on the entire property and will consider a negative in the vacancy factor associated with the one vacancy. You will offer on your second level of negotiation to either long term lease or give a life estate in the house. Thus the parcel stays together they have the use of the house and they can pay a rental or you can subtract the value of the house and income from your offer. I of course like the idea of a life estate. They get it while they live. If you discover that they are dead, perhaps evidence of a failure to pay a trailer management fee or an accumulation of old bills and mail, they must then give up possession of the house. There are no alternatives to this, Dead is dead you know.
Will the City, State whoever, allow you to insert more pads for additional housing?
Can you take this investment and turn it into an ever expanding complex more units, perhaps a pool, a tennis court, in the right area a set up for throwing horseshoes. Whatever.
Negotiate, that is what it is all about.
Lucius.