6 Ways Mobile Home Investors Add Value to Local Mobile Home Parks
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The more time spent in our mobile home investing niche, the more I see how productive and helpful we investors can be. Most investors who buy, hold and/or resell mobile homes typically will do so concerning mobile homes on owner-occupied land or inside of a preexisting mobile home park with rented land. In this article we will be discussing the latter type of mobile home.
6 Ways Investors Add Value to Local Mobile Home Parks
1. They Provide Clarity
One of the biggest values a dedicated investor can bring to a mobile home community is clarity. With training, experience, and a clear plan, we investors provide mobile home market knowledge to sellers and park managers. Oftentimes sellers may have overly-high preconceived notions about how much their property is worth or how soon their property will resell. Something I have seen make a large impact to reduce a seller’s stress and provide them answers is simply us taking the time to educate every seller on their options moving forward, whether with your help or not.
2. They Change the Landscape — and Change Lives
Over the years investing in factory built housing, there were many times I have had mobile homes moved from one location to another. After these homes are moved, they are then resold to qualified park approved buyers. These moved homes and the families we fill them with are a direct reflection of an investor’s efforts to move a quality home to a nice location, clean it up, and sell to eager buyers. Where there was no home or family before, there is one now, thanks to you.
3. They Bring in Revenue
One of the most obvious value that investors can bring to local mobile home parks is the constant stream of income paid to these local parks. Depending on your area of the country, typical lot fees can range on average from $150-$700. A minority of mobile home parks allow renting your investment mobile home to renters, however most do not. Whether you are renting your investment mobile home out or selling it via monthly payments, it is your job to make sure the low-risk occupants pay you every month, so that you may pay the park. If selling for a new loan or all-cash, the concern of lot rent payment monthly in none of your concern.
One advantage to park owners working with investors can be that the park knows it is going to get paid rain or shine for the homes you own.
4. They Fill Up Vacant Lots
In some parks you drive through, you will notice vacant lots that should be filled with cash-flowing mobile homes. Depending on the park’s lot rent, every mobile home you add to a park will increase the owner’s gross profit of the park and therefore will increase the total value of the park. Many park managers and park owners love to work with knowledgeable, serious, and productive investors. Smart park owners look at local mobile home investors as allies and partners in filling up their park with used mobile homes.
5. They Act As a One Stop Shop
Does a mobile home need repairs? Is the owner behind on payments? Are there title issues? We are here to help. I have found that the more hurdles we need to cross to close a deal, the fewer and fewer competitors we have bidding over the same property. In short, we investors solve problems, period.
6. They Offer Finder’s Fees
Incentives typically help most people work harder and faster. Offering and giving gifts of appreciation is a direct and obvious benefit for local park managers who help you find sellers and/or buyers. Plant a mental seed that any mobile homes for sale should be run by you first if possible. When reselling a mobile home inside a park, many park managers meet new buyers on a daily basis. Be aware that in most states, there is a limit to the cash fee or gift value you give to any person who is not a Realtor.
When I first started investing in mobile homes over a decade ago, I believed that real estate investing and mobile home investing were lone-wolf pursuit careers. The more I learn and grow my circle of influence, the more I see there is typically enough profit in most deals to make sure everyone is happy and well compensated. Expanding your circle of influence and networking is almost always a great idea.
While this article was discussing how well-meaning investors can behave, there are other investors in the world who are greedy, selfish, and short-sighted. These “bad apple” investors can ruin relationships with park owners and managers for years to come. Common items that can make park owner’s mad include moving a mobile home out of the park, not cleaning up the home like you said you would, constantly being late with payments, and other forms of disrespect. Again, our goal as mobile home investors is to make a park owner and park manager’s life easier.
Remember: Love what you do daily.
What would you add to my list? How do you help out the community as a mobile home investor?
Leave your comments below!