A New Way of Life.....

We have opted to do something untraditional. Jim has moved into a mobile home in the community, and Ellen is living in Palm Bay, Florida - a 7 1/2 hour drive. Needless to say, we don't see each other very often, but we do talk on the phone at least twice a day. There are several reasons for living this way: getting a quick handle on park problems, current lack of park cash flow, necessity of management of our Palm Bay area properties, and the J-O-B. Although our present way of living is not at the top of either of our lists, is is currently our life!

No one in the community knew it had been sold, so they were very surprised when Jim arrived. The prior owner lived quite a distance away, and was only there once a month to collect rent and mow. Jim stayed in a hotel for a few nights, then set up his air mattress in the office after he got it cleaned up. It was a far cry from life in Palm Bay!

The first order of business, after letting everyone know by notice that there was new ownership and a new manager, was calling a tenant meeting to introduce himself and give out copies of park rules and new month-to-month leases. Most of the residents who attened seemed receptive to change, although there was a recurring theme that the $175 monthly lot rent should be lowered. (It has not been.)

Although all were told at the meeting that rent was expected to be paid and paid on time, we decided to waive late fees for August. It was apparent that this would be a re-training exercise for them. The prior owner turned over his records with about $60,000 in unpaid rents!

We quickly found that about $20,000 of this receivable was uncollectible - he was accruing rent on repo units and abandoned homes. Quickly researching the repo units in the park, Jim picked up two 16 x 80 units for $7,000 each. (The first week he bid $8,000 on one and his offer was rejected. The second went on the sheet the next week and he offered $14,000 for both!) One of the homes was a 4/2 and needed some work, but was in good enough shape that Jim could clean it up and move in. The other was a 3/3 and needed quite a bit of rehab work. Now (semi) comfortable with a real bed again, Jim could begin other necessary items to help this community become one where people want their families to live.

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