EP. 190 | Case Study: How to Survive a Deal when Everything Seems to Go Wrong
Welcome to another episode of the Mobile Home Park Lawyer Podcast with your host, Ferd Niemann. In this Independence Day special, we celebrate freedom and community while diving deep into the world of mobile home parks. In this episode, Ferd dives into a case study that showcases how to manage a mobile home park investment when everything seems to go wrong. This real-life example highlights the challenges and lessons learned from a deal that didn't go as planned, yet still resulted in a modest profit. The deal, located in Missouri, spanned from early 2021 to late 2023, covering 22 months of ownership. The park, consisting of 36 sites, was initially under contract for $850,000 but was ultimately purchased for $650,000 and later sold for just under $1.8 million. Business PlanThe business plan included various improvements: repairing roads, sub-metering water and sewer, infilling homes, renovating and demolishing homes, and adding signage. The park also featured small amenities like a playground and picnic area. Challenges FacedHowever, numerous challenges arose throughout the process. These included acquisition issues like disagreements on pricing and retraining negotiations, as well as operational hurdles such as cost overruns, problems with concrete measurements, lot slopes, and unexpected electrical upgrades. Additionally, changing city regulations on home placements and power line requirements added to the complexity. The park also faced tenant problems, including evictions and vandalism. Lessons LearnedDespite these obstacles, several key lessons were learned. The importance of thorough due diligence and planning for unforeseen expenses became clear. Flexibility in adapting to new challenges and regulations proved essential. Effective community management, especially in handling problematic tenants and improving park safety, was crucial. Tune in to this insightful episode to learn more about surviving and thriving in the mobile home park industry. Timestamps:00:00 Buying and selling mobile home parks, with a focus on value-add strategies and lessons learned.02:10 Real estate deal with cost overruns and permitting issues. 06:40 Electrical issues in a housing development. 09:51 Electrical code violations in a mobile home park. 15:38 Drug use and crime in a neighborhood, including a violent incident and a renovation project. 21:22 Winter home challenges and repairs. 24:28 Challenges with a mobile home park, including tenant issues and cost overruns. 29:31 Challenges and lessons learned from renovating a mobile home park. Connecting with MHP Law: Website: https://themobilehomelawyer.com/Facebook: https://www.facebook.com/The-Mobile-Home-Park-Lawyer-103814958118069LinkedIn: https://www.linkedin.com/in/themhplawyer-ferdniemann6923147/Instagram: https://www.instagram.com/themhplawyer #MobileHomePark #RealEstateInvestment #Deals
