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Home Park Owner News
PRIVATE
WATER AND SEWER ????? Last
issue I asked for topics that you would like for me to discuss. One topic came
up several times, so I will address it here. Why won't you
do a deal with a MHP that has private water or sewer? And why should an investor
be concerned? Many of you
have had an experience with this. Some with no problems to speak of and some
with more problems than you wished you had. The reason I
don't do these deals is for a couple of reasons. Primarily there is a limited
market of investors willing to buy them. And the other is that I was warned to
stay away from them by someone in Frankfort, KY (Capitol). Why do
investors stay away from these communities? Our asset is cash flow and risk
avoidance. We rent dirt. How hard is that suppose to be? When you own a MHP with
it's own private water or sewer plant you open the doors to potential
problems. With the water you must establish and maintain a water company. This
means testing and inspections. Therefore added expense. With private sewer you
have all the testing, more inspections and a lot more maintenance. Any time you
open yourself up to the government to inspect your property, they will
eventually find a problem. And for those of us in Kentucky, we have enough
problems with health department inspectors. Not to mention that there is an
active movement by the state to get rid of the private systems. Particularly the
smaller mom and pop parks. The bottom line
is this, as an investor, you want to minimize your risk of exposure. Private
water and sewer systems only open the door for potential problems. HAVE YOU CONSIDERED YOUR 1031 EXCHANGE???
Have
you noticed the CAP rates on exchange properties? If you are selling or are
about to sell you MHP (or any other property) you need to think about this. For
most MHP sellers the next logical step is to purchase a single tenant NNN
property. What you are going to do with the proceeds of the sale of your park
needs to be part of the conversation with your agent when you list the property
for sale. You need to start looking at deals and what you think you want to buy
next. The NNN deals sell very fast, so you can watch trends until you get to
closing, then the process begins. For
your 1031 exchange to be success you must watch the trends, the interest rates
and what kind of financing is available. A good professional agent/ broker will
be able to help you through this.
CONGRATULATIONS!!! David Dulworth on the sale
of his 315 pad MHP in Louisville, KY Jim Carmichael for brokering
this deal. GONE HIGH
TECH Our new
website is up and running. We are still working out some glitches but for the
most part it works great. Go check it out at www.firstcommrealty.com First
Commercial Realty, Inc.
Our goal is to help our clients find the best property in
the best location that will maximize their return.
Celebrating
our 25th year in business, FIRST COMMERCIAL REALTY, INC.
services our client's needs in the areas of sales, leasing,
development, investments, site selection, & buyer/tenant representation. Our
agents specialize in their
particular field of expertise.
These 25 years of experience, creating good investments for our clients,
giving the best service and analyzing the total deal, is
what we have to offer you. Anybody can sell a listing and get it financed, but
does the deal make sense? We sell
and lease shopping centers, office complexes and warehouses working with
developers and users as well as listing and selling income producing investment
property. We are "dealmakers".
A lot of our business is
repeat because we do what's right. First Commercial Realty is licensed
in Kentucky, Ohio, and Indiana.
Some of our Northern Kentucky clients have included CVS, Turfway Retail
Center, anchored
by Sam's Club and Wal-Mart; Cinergy Plant; Willis Music, McDonald's, Cracker
Barrel Restaurants, Applebee's, Microtel, Super 8, Motel 6, Courtyard by
Marriott, Kinko Copies, Burger King, Subway, Burlington Health Care and many
others.
First
Commercial Realty is a continuum of self-motivated hard work and we enjoy
helping clients achieve their investment goals. We believe in the ethics and
moral responsibility that goes along with being a real estate broker. We would
like to help you find your commercial real estate.
If
you are selling your property, expanding your business, seeking a new location
or looking for investment property in Kentucky, Ohio or Indiana, you need one of
our dedicated commercial real estate professionals to represent you.
If
you are looking for a career change, please ask about our mentorship program.
F1RST
8174 Mall Rd
Phone: 859-371-9000 WE ARE NOW ON THE WEB AT
Celebrating our 25th year of
Professional Service
Jim
Carmichael has been in the manufactured housing industry for over 11 years. He
has spent time in retail sales with Oakwood and Clayton and later managed a
sales center for Clayton in North Carolina.
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