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Mobile Homes Buying Guides Columbus NE

This page provides useful content and local businesses that can help with your search for Mobile Homes Buying Guides. You will find helpful, informative articles about Mobile Homes Buying Guides, including "Mobile Home Park Due Diligence". You will also find local businesses that provide the products or services that you are looking for. Please scroll down to find the local resources in Columbus, NE that will answer all of your questions about Mobile Homes Buying Guides.

Columbus Public Library
(402) 564-7116
2504 14Th Street
Columbus, NE
 
Schuyler Public Library
(402) 352-2221
1123 A Street
Schuyler, NE
 
Humphrey Public Library
(402) 923-0957
307 Main Street
Humphrey, NE
 
Osceola Public Library
(402) 747-4301
131 North Main
Osceola, NE
 
Borders
(402) 331-0731
7775 Olson Drive
Papillion, NE
Hours
Monday - Saturday10:00 am to 10:00 pm
Sunday11:00 am to 08:00 pm

Shelby Public Library
(402) 527-5181
255 N. Walnut
Shelby, NE
 
Hruska Memorial Public Library
(402) 367-3100
399 North 5Th Street
David City, NE
 
Leigh Public Library
(402) 487-2507
156 Main Street
Leigh, NE
 
Silver Creek Township Library
(308) 773-2594
309 Vine Street
Silver Creek, NE
 
Books-A-Million
(402) 330-1481
12220 K Plaza
Omaha, NE
 

Mobile Home Park Due Diligence



Mobile Home Park Due Diligence
Sun 07/20/08 11:41:08 am
by Dave Reynolds

DaveWhen I first started in the mobile home park business I really had no idea of what it meant to do due diligence on a mobile home park. The very first park that I purchased my due diligence consisted of about 30 minutes of driving through the town and park and another 30 minutes looking at the proforma income and expense statement provided by the seller.  I did not see any problems with the deal and it wasn't long before I put down about $60,000 and assumed some mortgages of over $200,000. 

I had heard about home inspections (like you get when you buy a single family home) but I had never heard about inspections on mobile home parks.  Such things as checking out the water and sewer lines and the gas and electric systems were foreign to me.  It never crossed my mind.  Luckily on this first mobile home park, all the utilities were in fair condition so I didn't get burned.  As far as verifying the financials, I just took everything that the seller said as true and went full speed ahead.  It was not long until I found discrepancies in the seller's numbers.  Again, with this park, I was able to work through the numbers and make the park work. 

In retrospect, I could have verified and renegotiated and saved ten or twenty thousand dollars.  It could have been worse. 

As I have continued to do deals, I used this same approach to doing diligence on the parks I was buying and it was not long before my luck started to run out.  Here are just a few examples of things I missed which ended up costing me hundred's of thousands of dollars:

  1. Market - I purchased a couple of parks that were in really bad markets that were declining.  Even though the parks penciled out at the current occupancy, I found out that when people left it was hard to find new residents to rent the lots.  Estimated Losses - $100,000
     

  2. Private Sewer System - I purchased a park with a private sewer system that had not been properly installed and was not meeting the permit for effluent - After spending about 2 years trying to fix the current system without success, I ended up putting in a new plant - Estimated Cost - $225,000
     

  3. Private Water Well - I purchased a park with a private water well that had inadequate pressure and poor water quality - Instead of replacing the system I sold the park to another investor at a discount so he could put in the new well - Estimate Loss - $50,000
     

  4. Drainage Problems - I purchased a park that had a terrible drainage system and every time it rained about 1/3 of the park had several inches of standing water - it made the residents very unhappy and I spent about $25,000 trying to fix the worst of the problem - Cost $25,000
     

  5. Flood Plain - I purchased a park in the 100 year flood plain.  The sellers took steps to...

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