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HOT TOPIC Where are all the Mobile Home Park Investors?

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BrandonS85

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Major , where did you find your mobile home deals. I got lonnies book and have been reading he doesn't touch on craigslist. But I've been looking for deals on cg and very small amount.

Maybe just time of the year, either way thanks for the help.
I can only speak for the deals I've encountered, but in general you just have to get your hands dirty and find them where they are. Facebook is pretty great that you can drill-down and target people on a massive scale. Never had a problem finding MHs and mostly trying to find MH with lots included. My last cheap ad pulled in 5 trailers that would be great deals normally if I didn't have so much stuff on my plate.
 

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Patrickg

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I can only speak for the deals I've encountered, but in general you just have to get your hands dirty and find them where they are. Facebook is pretty great that you can drill-down and target people on a massive scale. Never had a problem finding MHs and mostly trying to find MH with lots included. My last cheap ad pulled in 5 trailers that would be great deals normally if I didn't have so much stuff on my plate.

Great information. I drove through a lot the other day thinking I'm gonna have to be on the street to find these deals.

Do you mind elobarting? On facebook and the ad.

Do you mean you pulled an ad in local paper?

On facebook do you run ads in people's news feed?
 

BrandonS85

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Great information. I drove through a lot the other day thinking I'm gonna have to be on the street to find these deals.

Do you mind elobarting? On facebook and the ad.

Do you mean you pulled an ad in local paper?

On facebook do you run ads in people's news feed?
The question is 'what kind of person OWNS a MH?'

Once you get a profile for a 'average' MH owner, then you need to think of way(s) to meet & talk to them. That's your goal. Last year I sent out 135 or so mailer cards to landlords (local ones) around 50 called me back. That kind of % is pretty amazing, the big thing is figuring out who they are and the best way to let them know that you're in the business of buying.
 

BRichard

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@BrandonS85 That is a phenomenal response rate for direct mail!!!!! I have sent about 50 this year, so far 5 calls - which still seems to be above the 1-2% response rate for residential.
Would you mind sharing what kind of card/mailer you used? I've done both postcards, as well as yellow letter (handwritten) - always curious to see which style, pictures, wording, etc on direct mailers work for buyers.
I will acquire 2 more parks in 2018 so I'm looking to jam as many properties into my deal funnel as possible - I'm thinking direct mail will be 1 tool to help me achieve that :)
 

BrandonS85

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@BrandonS85 That is a phenomenal response rate for direct mail!!!!! I have sent about 50 this year, so far 5 calls - which still seems to be above the 1-2% response rate for residential.
Would you mind sharing what kind of card/mailer you used? I've done both postcards, as well as yellow letter (handwritten) - always curious to see which style, pictures, wording, etc on direct mailers work for buyers.
I will acquire 2 more parks in 2018 so I'm looking to jam as many properties into my deal funnel as possible - I'm thinking direct mail will be 1 tool to help me achieve that :)
Hand written post cards. I think I could get it up to half of gross mailed letters if I tried a little more.

The big thing I think is letting people know you're in the biz and serious about buying.
 

MHP368

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Never pulled the trigger myself but I actually got the whole mobile home park university training deal (never went to the boot camp) and listened to all the related podcasts (john fedros stuff as well as the park street partners guys and another one I dont remember the name of right now) , plus of course the deals on wheels series of books.

Very under served area of REI , I think the "unsexiness" puts blinders on people where no matter what the numbers say about IRR and cash flow they just want apartment complexes or a portfolio full of single homes.
 

LeoistheSun

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Advantage/disadvantage of buying land and pouring concrete?
 

MHP368

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Advantage/disadvantage of buying land and pouring concrete?
As an imptovement to a small area of an existing park or do you mean startin a park new? , if memory serves all in it costs like 8 to 10k per space starting from scratch so building a new park doesn't bear fruit for quite a long time
 

CareCPA

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As an imptovement to a small area of an existing park or do you mean startin a park new? , if memory serves all in it costs like 8 to 10k per space starting from scratch so building a new park doesn't bear fruit for quite a long time
Also, one of the (bigger pockets?) podcasts I listened to recently stated that zoning approval can be difficult depending on where you live.
 

BRichard

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Never pulled the trigger myself but I actually got the whole mobile home park university training deal (never went to the boot camp) and listened to all the related podcasts (john fedros stuff as well as the park street partners guys and another one I dont remember the name of right now) , plus of course the deals on wheels series of books.

Very under served area of REI , I think the "unsexiness" puts blinders on people where no matter what the numbers say about IRR and cash flow they just want apartment complexes or a portfolio full of single homes.
@MHP368 Do yourself the favor of attending the 3 day boot camp, it is worth every penny! I worked with Fedro and found after going to the boot camp that Fedro's advice was pretty scammy and he actually advises individuals to engage in acts that violate Dodd Frank / SAFE, so i decided to not pursue his methods or recommendations.
Regardless, you are on the right track, but the industry appears it will begin consolidation in the next 10 years or so, so don't wait too long to start buying :)
 
OP
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Major

Major

Luck is Man-Made
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@MHP368 Do yourself the favor of attending the 3 day boot camp, it is worth every penny! I worked with Fedro and found after going to the boot camp that Fedro's advice was pretty scammy and he actually advises individuals to engage in acts that violate Dodd Frank / SAFE, so i decided to not pursue his methods or recommendations.
Regardless, you are on the right track, but the industry appears it will begin consolidation in the next 10 years or so, so don't wait too long to start buying :)

Hey everyone. Sorry for the delay. I really appreciate everyone's feedback and positive views. I am answering questions this week. Feel free to send me a private message.

I have been extremely busy the past few months (no excuse I know). Recently closed on a 185 unit park and currently turning it around (have quite a few good stories turning around this one). Also, I am putting just about everything I have on the market and have been renovating.

YES!! Take the Mobile Home University course. I took the course after working the industry for 2 years. I then found the Bootcamp course hosted by Frank and Dave. Wish I would have taken the course first. Learned a heck of a lot. The course is worth every penny and would have saved me a ton of heart acke and money prior to the purchase of my first park.

It has become increasingly hard to pick up a park for the normal rate of return I expect. Parks are exploding in value right now as the industry is now becoming more normalized and the stigma of MH is changing. Will post a link following this on a couple of US Today and other reports/newspaper articles.

Get in NOW.. You will not regret it.
 

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IGP

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Definitely unsexy but what seems like some good ROI.

Just for the hell of it, I searched close to me and this one popped up?
Mobile Home Park for Sale in Rome, GA: College Corner Community

180K for 10 lots that rent for 300/each per month. That seems like a good deal, no?

Here's another: Mobile Home Park for Sale in Henagar, AL: Northeast Alabama Park

$5600/month in cash flow on 210K investment. That seems to be crazy good, assuming you can do a 20% down loan.

Obviously, I am missing something.
 
Last edited:

IGP

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Tammyanne

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Definitely unsexy but what seems like some good ROI.

Just for the hell of it, I searched close to me and this one popped up?
Mobile Home Park for Sale in Rome, GA: College Corner Community

180K for 10 lots that rent for 300/each per month. That seems like a good deal, no?

Here's another: Mobile Home Park for Sale in Henagar, AL: Northeast Alabama Park

$5600/month in cash flow on 210K investment. That seems to be crazy good, assuming you can do a 20% down loan.

Obviously, I am missing something.
 

Tammyanne

Contributor
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Jun 18, 2017
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I am taking an udemy online course "An investor going global",
they were mentioning how similar to "airbnb" but people will be renting out their land for mobile homes etc...stay 1-3 months and move on..is this not already happening? I guess it's not like the typical caravan park it's joe shmo has land and he or she could rent it to prospective people whom have a camper etc..have you heard of this? Property investor...
 
OP
OP
Major

Major

Luck is Man-Made
FASTLANE INSIDER
I've Read UNSCRIPTED
Oct 26, 2016
57
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South Carolina
Definitely unsexy but what seems like some good ROI.

Just for the hell of it, I searched close to me and this one popped up?
Mobile Home Park for Sale in Rome, GA: College Corner Community

180K for 10 lots that rent for 300/each per month. That seems like a good deal, no?

Here's another: Mobile Home Park for Sale in Henagar, AL: Northeast Alabama Park

$5600/month in cash flow on 210K investment. That seems to be crazy good, assuming you can do a 20% down loan.

Obviously, I am missing something.
Yes, I see these type of deals all the time. I passed on a park, a little while back, in Rural VA for a 72 lot park, with 67 occupied lots (lots with a rental unit) for $800,000 with lot rents of $225. So the math is $11,900+ per occupied lot with a gross rent of $180,900 annually. After vacancy and operating expenses, comes to about $65,124 NOI. With a down payment of $160,000, this park would show a cash on cash return of 40%.

Sounds great right? However, the park is in the middle of nowhere, the utilities are private with no way to expand or connect to city service. The local economy and job market is heavily driven in manufacturing with a MSA of only 12,000 people. The issue was the location, area economic factors, and inabililty to fill vacant homes in a less than thriving job market and and even smaller population.

It takes the same amount of time to manage a 10 unit park in your back yard as it takes to operate and manage a park 5 states away. I stay away from AL, LS, MISS, FL, CA, for economic or landlord/tenant policies (something else to take into consideration).

Why not look in a better economic area?
 
OP
OP
Major

Major

Luck is Man-Made
FASTLANE INSIDER
I've Read UNSCRIPTED
Oct 26, 2016
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South Carolina
I am taking an udemy online course "An investor going global",
they were mentioning how similar to "airbnb" but people will be renting out their land for mobile homes etc...stay 1-3 months and move on..is this not already happening? I guess it's not like the typical caravan park it's joe shmo has land and he or she could rent it to prospective people whom have a camper etc..have you heard of this? Property investor...
No I have not. I know there is a tiny market where people will rent out to a RV or tiny home on their land. I see a whole lot of issues with the model you describe. Sounds like a MHP with only one unit. I highly doubt there will be a large demand of people who own a home and continually move the home, rather than move to a new home?
 

IGP

Gold Contributor
FASTLANE INSIDER
I've Read UNSCRIPTED
Speedway Pass
Aug 24, 2015
506
1,357
426
47
Yes, I see these type of deals all the time. I passed on a park, a little while back, in Rural VA for a 72 lot park, with 67 occupied lots (lots with a rental unit) for $800,000 with lot rents of $225. So the math is $11,900+ per occupied lot with a gross rent of $180,900 annually. After vacancy and operating expenses, comes to about $65,124 NOI. With a down payment of $160,000, this park would show a cash on cash return of 40%.

Sounds great right? However, the park is in the middle of nowhere, the utilities are private with no way to expand or connect to city service. The local economy and job market is heavily driven in manufacturing with a MSA of only 12,000 people. The issue was the location, area economic factors, and inabililty to fill vacant homes in a less than thriving job market and and even smaller population.

It takes the same amount of time to manage a 10 unit park in your back yard as it takes to operate and manage a park 5 states away. I stay away from AL, LS, MISS, FL, CA, for economic or landlord/tenant policies (something else to take into consideration).

Why not look in a better economic area?
I'm just north of Atlanta, so that's where I looked originally. There just weren't any close to me for sale. and those were just the closest ones.

Thanks for the reply!
 

IGP

Gold Contributor
FASTLANE INSIDER
I've Read UNSCRIPTED
Speedway Pass
Aug 24, 2015
506
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426
47
Yes, I see these type of deals all the time. I passed on a park, a little while back, in Rural VA for a 72 lot park, with 67 occupied lots (lots with a rental unit) for $800,000 with lot rents of $225. So the math is $11,900+ per occupied lot with a gross rent of $180,900 annually. After vacancy and operating expenses, comes to about $65,124 NOI. With a down payment of $160,000, this park would show a cash on cash return of 40%.

Sounds great right? However, the park is in the middle of nowhere, the utilities are private with no way to expand or connect to city service. The local economy and job market is heavily driven in manufacturing with a MSA of only 12,000 people. The issue was the location, area economic factors, and inabililty to fill vacant homes in a less than thriving job market and and even smaller population.

It takes the same amount of time to manage a 10 unit park in your back yard as it takes to operate and manage a park 5 states away. I stay away from AL, LS, MISS, FL, CA, for economic or landlord/tenant policies (something else to take into consideration).

Why not look in a better economic area?
@Major do you find that 36% is a good estimate for vacancy and operating expenses? Just crunching some numbers here and that's the missing piece that I am not sure about.
 

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CPisHere

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It takes the same amount of time to manage a 10 unit park in your back yard as it takes to operate and manage a park 5 states away. I stay away from AL, LS, MISS, FL, CA, for economic or landlord/tenant policies (something else to take into consideration).

Why not look in a better economic area?
LS? You mean Louisiana?

I assume Alabama, Mississippi, Louisiana & Florida don't have the economic conditions you are looking for, souldn't that vary quite a bit depending on the area of the state?
 
OP
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Major

Major

Luck is Man-Made
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Oct 26, 2016
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LS? You mean Louisiana?

I assume Alabama, Mississippi, Louisiana & Florida don't have the economic conditions you are looking for, souldn't that vary quite a bit depending on the area of the state?
Very true. It's based again on your main goal. I know the customers I target and look for decent sized MSA that is growing or in the path of progress from surrounding larger cities. But some states are not landlord friendly and not worth my capital or time. Especially when viewed as bigot slumlord devil worshiping MHP investor.
 
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Major

Major

Luck is Man-Made
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@Major do you find that 36% is a good estimate for vacancy and operating expenses? Just crunching some numbers here and that's the missing piece that I am not sure about.
No. I look at 20% to 15% vacancy based on the size and cindition. Banks use 10% vacancy. However, if the get a whiff that the park or buyer can't perform over 10%, no dice.
 

WJK

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@WJK - aren't mobile homes your gig?
Thank you for noticing. Yes, I own a mobile park. Yes, I own almost all the mobile homes in my park. I have low to moderate income tenants -- the only collection of affordable housing in my community. Yes, I also have the only self-service Laundromat in my community -- it is used by my tenants and the whole community. Yes, I designed it and built it -- it is handicapped accessible. Yes, I have a several full hook-up RV spots -- the only ones in my community.

Yes, I'm a very busy girl. It's not strictly 'fastlane,' but most of it is passive income. It's all nitch marketing moves.
 
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Major

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You're mixing oranges and apples. He was saying vacancy AND operating costs...
For operating cost I use 40%-60% based on the condition, occupancy, and estimated amortization period and interest for my debt service. On parks with a value added play or not turn key, the percentage will be high at purchase and decrease as park becomes more efficent.
 
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WJK

Gold Contributor
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Oct 9, 2017
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Nikiski, Alaska
For operating cost I use 40%-60% based on the condition, occupancy, and estimated amortization period and interest for my debt service. On parks with a value added play or not turn key, the percentage will be high at purchase and decrease as park becomes more efficent.
That percentage depends on IF you are renting spaces or IF you own the mobile homes. Also, IF you are maintaining the roads within the park. And then road maintenance costs depend on your climate.
 
OP
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Major

Major

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That percentage depends on IF you are renting spaces or IF you own the mobile homes. Also, IF you are maintaining the roads within the park. And then road maintenance costs depend on your climate.
Very true. There are many factors.
 

EAChi

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It's been hard to find good information on it but how do you operate differently after the SAFE Act? I've been scouting the local MH parks for some good deals and am hoping to make a couple flips.
 

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