Mobile Home Park Investment Due Diligence Manual
30 Days of Successful Due Diligence on Mobile Home Parks
Don't Ruin Your Life! Consult the Mobile Home Park "Due Diligence Experts"
We have now literally written the instruction manual on it!
Dear Fellow Investor,
Many people who purchase their first mobile home park investment grind it out, paying for the "privilege" of being in the mobile home park business with every hour of their day, and every ounce of their energy. And guess what? Many of these mobile home parks do not work as expected - their owners do... And they spend hours and hours spinning their wheels... doing the WRONG things, for the WRONG reasons.
Bottom line, if you want to get into the business and not make mistakes that could end up costing you thousands, if not hundreds of thousands of dollars and wasted time and energy, and if you are open and honest about this "reality check" then we are giving you a chance to wiggle free from this trap you have burrowed yourself into... or are about to dig yourself into.
Are You "Trapped"?
Simply check off any of these thoughts that may have crossed your mind from time to time:
- "Does this mobile home park actually make as much money as the owner has reported it does? Is the owner cooking the books?"
- "How do I check on the water lines or sewer lines?"
- "How do I check on the market?"
- "What questions should I ask the seller? The city? The electrician?"
- "What about all those Park Owned Mobile Homes?"
- "Am I missing something?"
- "What will I do if (fill in the blank)?"
- "I wish there was someone else that could help me? this stinks!?"
Learn From Our Experience
Frank and I have made mistakes on due diligence. But there was never someone there to steer us in the right direction. Instead of wasting time and potentially thousands of dollars wouldn't it be nice to keep that hard earned money and make a wise investment?
Key Questions to Ask Yourself:
- Do you want to invest in the right Mobile Home Park and not regret it later?
- Do you know how to determine if the park is a "Deal" or "No Deal"?
- Are you sure you have not missed something?
- Are you ready to get some advice from an unbiased and experienced third party?
Included in this manual is a day by day schedule that will help you plot out your strategy and schedule everything in the most cost effective manner.
Excerpt from the Manual
This manual is designed to give you a roadmap, from start to finish, in achieving a successful due diligence examination of a mobile home park.
Since the failure of any one step of due diligence might result in your decision not to buy the park, we have organized the order of steps in such a manner as to minimize expense and effort. We have chosen the order to put the items most likely to fail at the front end of your examination, to get the bad news early on and to act on it accordingly.
We have organized the manual in a day-by-day manner and while this makes for good organization, not every deal is going to fit into this order and if possible you would like to have 45 or 60 days to do the diligence, or at least a provision in your contract that allows you to extend the period in case some of the third party reports are not able to be completed in thirty days. The real key is to make sure to complete all the steps in a complete and timely fashion.
Is 30 Days of Diligence Adequate?
Thirty days of diligence is an industry standard, but there is no rule that the due diligence period must be exactly thirty days. Of course, the longer the diligence period, the better it will be for you, the buyer. Sixty days is far superior to thirty if you can get it. And, of course, you can't get it unless you ask for it. Most people ask for thirty days because they are afraid that sixty days will scare the seller off, and less than thirty is way too short.
That being said, I have done fourteen days of diligence on deals that I really wanted but that had a difficult seller. Less than fourteen days and you may just be wasting your time, since it is near to impossible to get a lot of third party reports completed that quickly, not to mention just the regular stuff that you perform yourself.
Diligence periods in excess of sixty days are pretty unheard of, except in cases of extreme lack of park stability, such as not having any books, rent roll, etc. For example, it would not be unusual to ask more than 60 days to sort out bank foreclosure. However, except in that type of difficult environment, you will probably do some degree of damage to your reputation by asking for more than sixty days of diligence.
You will find in the due diligence process that there is no perfect park. While successful due diligence will help you formulate an idea on the true economics and risks of a mobile home park, it will still ultimately be your business decision as to whether or not to proceed with the purchase.
Before You Start: Key Requirements
Your Purchase Contract
One of the most important items that you will need to have is a good purchase contract that has been reviewed by your attorney. Don't ever just take a purchase contract you find on the internet or receive from the seller or seller's broker and sign it without first having your attorney review it.
A good purchase contract will have, at a minimum, the following:
- Full and Correct Legal Name of Seller
- Name of Purchaser and right to Assign Contract
- Legal Description and Address of Property
- Description of Personal Property Included
- Purchase Price and Terms
- How Prorations are Handled
- Right of Purchaser to Conduct Due Diligence (30+ Days)
- Right to Cancel and Receive Earnest Money Refund
- Financing Contingencies
- Who Pays for What (Survey, Appraisal, etc.)
- Date of Closing and Possession
- Representations of Seller and Purchaser
Due Diligence Clause
In your purchase contract you want to make sure that you have a good due diligence clause.
Key provisions should include:
- Right to inspect condition of Real Estate and improvements
- Right to inspect all documents and materials
- Written request period for seller documents (7 days)
- Seller delivery timeline (7 days)
- Cancellation right within 30 days of receiving documents
- Sole discretion of Purchaser to cancel
- Extension for Third Party Reports (30+ additional days)
- Seller cooperation with inspections
- Access to property at reasonable times
Who Are Frank Rolfe & Dave Reynolds?
Frank Rolfe
Frank Rolfe and Dave Reynolds have ranked as high as the 5th largest owner of mobile home parks in the U.S., with over $1 billion worth of mobile home parks in over 25 states. They have a 30-year track record in the mobile home park business and have bought and sold hundreds of mobile home parks during that time.
As a result of this experience, they have become very experienced in locating, negotiating, performing due diligence, financing, turning-around and operating mobile home parks. It is this wealth of information -- and the insider secrets, tricks and shortcuts that they have devised -- that they deliver in their courses and boot camps.
You're not just learning theory. You're learning from practitioners who have done this thousands of times across America.
Dave Reynolds
What Our Customers Are Saying
"The reference material provided is comprehensive and invaluable. Thank you!"
— Brady B.
"Far exceeded my expectations! Thank you for a great package and fast delivery!"
— G. North
"Excellent info. Everybody interested in mobile home parks should get this!!!"
— Matt
"Bill and I are going to do every thing that you and Dave do. We respect both of you, your knowledge, wisdom, and your success. Without your help we would have been lost and probably lost money."
— Jerry
And That Is Why We Have Written This Manual
We want you to learn from our mistakes... and not make the same ones we have made!
We Don't Want You to Feel Frustrated and Broke!
And it doesn't have to be this way - not for you!
100% Satisfaction Guaranteed
If you're not completely satisfied with The Mobile Home Park Due Diligence Manual for any reason, simply return it in resalable condition and we will immediately refund your invested money in its entirety - no questions asked!
P.S. This manual will pay for itself many times over in allowing you to find flaws that allow for renegotiation, to protect you from overpaying and losing your down payment, and to point out the drivers to profitability that will allow you to proactively push your returns.