selling mh park

[Waylon Grubbs]

I want to sell a mh park that I gained control of through inheritance. I have no prior experience with mh parks and I am concerned my ignorance could lead to a significant loss in the value of my family's investment. Do you know of any local companies in the Dallas area that specialize in dealing with investors of my status? thanks

Waylon Grubbs

[karen]

Wayne,
I am located in Houston...would be interested in talking with you
Karen

[Chrissy Jackson]

If you and Karen don't work out a deal, and you want information on setting a realistic value on your community, please write back to me, or call me at 727-367-9052. There are a lot of national brokers across the country who sell communities for the owners. A pretty complete list is found in the "Journal" and the "Merchandiser" each month.

[John]

Just a thought, how about hiring a management company to run the community on behalf of your residents and offer them an opportunity to collectively purchase the community from you with the management in place? This scenario could be set up where residents pay a quarterly amount to what would be essentially a HOA. Check with an attorney, but I think HOA Dues are tax deductible, while space rent is not. Say you have a community of 200 spaces, with the average space rent at $900 per month. Your residents are each spending almost $11,000 per year on space rent and not getting a return on that money. Now here you are, you hire a management company that takes a percentage monthly as fees and pays all park operating expenses out of the balance. You keep what's left as profit.

Say you do decide to sell the community to the residents for a fair market value (let's use the above numbers) after bringing a management company into the picture. You sell the park for $2.2M (each putting in the $11K that they would pay you for 12 month's space rent). The residents(no longer yours at this point) form an HOA, and with the guidance of the management company, decide on a fair amount for HOA dues, what payment schedule to follow(monthly, quarterly, annually); they also decide if they want to place homes on the vacant spaces and have them as rentals. The management company uses these dues as funds for the day to day operations of the park. Any future major capital expenditures are voted on by the HOA and they have autonomy over what happens in their community.

Residents in parks that they own benefit in a lot of ways. It would also be easier for these residents to refinance their homes because the space is not rented, but I think that the tax benefits of an HOA are significant.

just my 8 cents' worth

[Chrissy Jackson]

I agree with John on all except the financing aspect. Generally, in a resident owned community it is harder to finance the home. First, because the true value of the home is based partially on the value of the community (as it always is) but in this case, trying to finance that value of the community is impossible. And, secondly because it is extremely hard to find financing for used homes anywhere at all.

[Lance Nerland]

Be carefull about capital gains tax and the tax on accrued depreciation.

[David Oxhandler]

It is not as easy as it used to be but You can find financing on most homes built to the HUD code. Homes built prior to the adoption of the federal standards are difficult but not imposable to finance. Try the local banks where management might just understand the value of the homes in the local communities.

To research more details about financing of homes in communities submit the form at www.ManufacturedHomeLoan.com. They have participating lenders who finance and refinance homes in quality communities for borrowers that have good credit.

There is also a growing secondary market in MH Notes. Seller finance loans that investors purchase at a discount are being snapped up around the country by escapees from Wall Street. We will be able to offer you access to this market in the near future. We have just started to build the new web site that will be at the address MobileHomeNotes.com While your waiting... go to Google and search for mobile home notes. You wont believe the number of web destinations returned.

[Nate Andree]

I agree with David. Too many people think that if they can't get financing thru a lender that the deal won't happen. On the contrary. Just gotta think creatively. Owner financing is a great way to do business. Usually you can get into a used MH for a small DP and then make monthly payments till the home is paid off. Just like a bank.

And for those that hold these notes there is a marketplace for these notes. They do carry a sizeable discount cause they are indeed, risky notes. I just completed a deal where the note went for 33 cents on the dollar. The noteholder was very happy to get his 11K and move on. Of course the investor was happy cause his ROI was very good. Time value of money people. A buck today is worth more than it will be tomorrow. Usually discounts fall into the 30-60 cents on the dollar range if you decide to sell. Food for thought.

Nate

[jj]

mobilehomeparkstore.com

[David Roy]

Waylon...I just saw your message..my parents lived in Dallas (Richardson) for quite a while and I used to fly into Love field...If you still are interested in selling contact me at [email protected] we may be able to strike an agreement.