Ep. 204 | Case Study: Don't Take No For An Answer, and Never Use Your Own Money

Welcome back to the Mobile Home Park Lawyer Podcast! In this solo episode, Ferd breaks down a real-world case study of a 47-site turnaround he bought in 2021 with heavy zoning risk, wholesaler drama, and a seller threatening to walk. He walks through the two rules that guided the play (“don’t take no for an answer” and “don’t use your own money”), why he chose not to syndicate this one, and how strategic seller financing plus a zoning win unlocked the deal.

Ferd shares the exact negotiation sequence (price, assignment, retrading the wholesale fee, and structuring a 60-month, no-interest seller note), his legal strategy to restore infill rights, and an on-the-ground operating plan to convert problematic park-owned homes, add amenities, and submeter utilities—despite a local ordinance that initially prohibited it. He closes with the refinance numbers: a January ’25 appraisal at ~$2.75M, ~70% LTV debt, and roughly $1.2M tax-free equity pulled—off an initial ~$12K cash in.

Whether you’re underwriting a small value-add with hair or navigating a stubborn city, this episode lays out the playbook: structure the capital stack, win the zoning fight, run the business plan, then lock in the win with smart refi timing.

Highlights of the episode:
00:59 – The two rules: don’t take no; don’t use your own money
03:13 – City stance: legal non-conforming use but no infill; “abandoned” lots
03:51 – Pricing & DD: $800k offer, wholesale fees, weak third-party report
06:33 – Retrading the wholesale fee due to hair on the deal
07:19 – Why not syndicate: protecting LPs when zoning risk is binary
08:56 – Operating plan: converting POHs to resident-owned to avoid inspections
10:54 – The legal memo & strategy: restoring infill rights with case law
12:43 – Amenity & ops upgrades: dog park, picnic area, paint, submetering push
13:25 – City council approval to submeter despite local prohibition
15:22 – Refi in Jan ’25: ~$2.75M appraisal, ~70% LTV
16:17 – Payoffs and proceeds: about $1.2M tax-free equity pulled
17:44 – Lessons learned: use the seller’s money; don’t take no from the city
18:33 – Current rents, NOI view, and why Ferd believes it’s a ~$3M park
19:34 – Wrap-up: higher occupancy, better housing, strong ROI

Connecting with MHP Law:   
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#MobileHomePark #MHPInvesting #RealEstateInvesting #SellerFinancing #ValueAdd #Zoning #DueDiligence #Submetering #CashOutRefi #AffordableHousing