EP005: Initial On-Site and Off-site Diligence on Mobile Home Parks (Part 2)

This is part 2 of the discussion on initial off-site diligence you can do prior to buying a mobile home park. Jefferson Lilly and Brad Johnson, with the Park Street Partners, continue their discussion from episode 4 (part 1), which covered due diligence you can do via desktop research and things to look for in financials. On this episode, they will advise on what to look for in the infrastructure of a park and how to handle a first call with the seller.

Key Takeaways:

[1:35] What is the most important aspect of a park's infrastructure?

[2:15] Determining if a park is on the public utilities system: city water & city sewer.

[4:46] A park that is on the septic system presents a high-risk investment.

[7:40] Park infrastructure: Master-metered gas and electric lines.

[9:36] What options do you have if you get a gas leak and have to shut down service?

[12:00] You can have someone check out the electric load of a park on-site.

[12:35] Understanding what is going on with the water infrastructure.

[13:40] Fixing a water leak on a mobile home park property.
[18:09] Park infrastructure: Roads.

[20:53] Park infrastructure: AMP boxes.

[23:21] Park infrastructure: Sewer pipe system.

[28:38] First call with a seller: Information to gather and types of open-ended questions to ask.  

[33:55] A key open-ended question to ask the seller: Why would you sell your park?

[35:02] Another open-ended question to ask: How do you manage your property?

[37:00] Other things to discuss with the seller.

[39:59] Coming up on following podcasts.

Mentions:

www.parkstreetpartners.com

LinkedIn Group: Mobile Home Park Investors

www.mobilehomeparkinvestors.net

Please rate the podcast on iTunes or Stitcher

Please subscribe to the podcast on iTunes