Investor · Macomb, MI · Member since 2016 · 121 posts · 8 votes
I've been hearing a lot lately about mobile home park investing. Not just buying a couple trailers and renting them out, I'm talking about owning the whole park. I don't see them for sale on LoopNet or on the MLS. Any ideas?
Specialist · Springfield, IL · Member since 2011 · 700 posts · 479 votes
10y
I'm sure we all have lots of ideas.
In order to help, all of us would need a lot of information from you to even begin to help.
It sounds like you are going to need a real education before you begin to look at buying communities.
Consider the Mobile Home University Course which is mentioned frequently on this forum. ( Frank Rolfe and Dave Reynolds)
Consider talking to George Allen who is a consultant to community owners and maybe subscribing to his Allen Letter. For his subscribers, he publishes a national list of lenders who loan on these communities as well as a list of brokers who list and sell communities.
Here are some of the many questions people will need answers to:
What size of community are you talking about?
Where do you want to buy a community?
What is your business plan for buying and operating a community?
What are your financial resources?
You cannot shortcut. You need to know what you are doing before you do it, and you need to know that what you know is, in fact, correct. Otherwise you will wind up buying the Brooklyn Bridge. This is not an easy business, but it is a highly profitable one.
Specialist · Springfield, IL · Member since 2011 · 700 posts · 479 votes
10y
I'm sure we all have lots of ideas.
In order to help, all of us would need a lot of information from you to even begin to help.
It sounds like you are going to need a real education before you begin to look at buying communities.
Consider the Mobile Home University Course which is mentioned frequently on this forum. ( Frank Rolfe and Dave Reynolds)
Consider talking to George Allen who is a consultant to community owners and maybe subscribing to his Allen Letter. For his subscribers, he publishes a national list of lenders who loan on these communities as well as a list of brokers who list and sell communities.
Here are some of the many questions people will need answers to:
What size of community are you talking about?
Where do you want to buy a community?
What is your business plan for buying and operating a community?
What are your financial resources?
You cannot shortcut. You need to know what you are doing before you do it, and you need to know that what you know is, in fact, correct. Otherwise you will wind up buying the Brooklyn Bridge. This is not an easy business, but it is a highly profitable one.
Is it a good idea? Probably not. Try craigslist, call brokers, look at CBRE, ARA, etc. the best deals will never show up on the net, but will be done completely off market. Properties sit (and show up online) when they're not priced correctly and the biggest mistake you can make in this business is to overpay for something.
Investor · Macomb, MI · Member since 2016 · 121 posts · 8 votes
10y
My successful real estate investor uncle recently told me about his venture into MHP and the benefits. Comparing it to apartment buildings, he tells me there's more potential. He's scouring the country for distressed parks and already owns one in Tampa.
I've checked the forums here and most recommend Lonnie Scruggs' books. But they appear to be geared towards buying individual unit homes and how to rent them out. I saw the books on Amazon but I'd like to collect more info first (my due diligence, lol). As mentioned above, I have seen the MHU which looks like a good source of info. Any other books you can recommend?
Investor · Wappingers Falls, NY · Member since 2015 · 4 posts · 0 votes
10y
Hi Todd,
Parks are out there, Loopnet, MLS, Craigslist. Found mine on Loopnet. It is like any other property you search for. All about timing and what you want to pay. keep putting time in and you will find what you are looking for. Good luck.
Real Estate Agent/Investor · Chicago, IL · Member since 2015 · 229 posts · 108 votes
10y
This is something I have thought about getting into but never did look to much into it. What would are some good sources to gain some knowledge to better understand Mobile homes and how the whole process works.
I've been hearing a lot lately about mobile home park investing. Not just buying a couple trailers and renting them out, I'm talking about owning the whole park. I don't see them for sale on LoopNet or on the MLS. Any ideas?
As with finding anything for sale, it all comes down to the seller. Some sellers know how (and where) to sell and some just dont!
What i have done in my local area is mapped out about 50 or so MHP (mobile home parks) that are not corporate owned and have made personal visits to them. In short i tell them i'm interested in not only purchasing units in their parks, but the whole park as well. I leave it as an open offer. Leave some cards, follow up with a letter (now that i have a name and they "know" me...). Often times you have to "get out and grind" to make things happen!
@Todd Moriarty Could be the same you never mentioned the title. Another good educational tool that I'm using right now is Jefferson Lilly & Brad Johnson's podcast I think they are doing a killer job of really giving the A-to-Z on the entire process in my personal opinion.
@John Duffy I like what you had to say about targeting Non-corporate owned MHP owners. Also showing your face first then providing mail piece is a good strategy this way they have an idea of who you are you are real!
Most states have a manufactured home board or associations. You can search them and contact owners.
Honestly this is the best answer , get a list of all local parks and send snail mail / call them or visit.
As others have pointed out once its online somethings amiss - you will occasionally find mom and pop feals on craigslist but its quite a hassle and no guarantee they'll be what youre looking for.
With the list from the states MHP association you can get good basic info going in as far as # of lots and such.
My successful real estate investor uncle recently told me about his venture into MHP and the benefits. Comparing it to apartment buildings, he tells me there's more potential. He's scouring the country for distressed parks and already owns one in Tampa.
I've checked the forums here and most recommend Lonnie Scruggs' books. But they appear to be geared towards buying individual unit homes and how to rent them out. I saw the books on Amazon but I'd like to collect more info first (my due diligence, lol). As mentioned above, I have seen the MHU which looks like a good source of info. Any other books you can recommend?
How to Find, Buy, Manage, and Sell a Manufactured Home Community by George Allen.
It is a standard classic among real estate professionals and the book that led Sam Zell to start purchasing manufactured housing communities many years ago. Today Sam's organization, ELS is the largest community group in the country.
Austin, TX · Member since 2015 · 92 posts · 45 votes
10y
Todd,
Yes I agree, MHPs are ignored because they are not as "sexy" as other RE investments like multifamily - which means less investors competing, which in turn means being able to purchase properties at lower prices.
It's good to see the BP community come together to assist you & I wish you the best of luck!
Harrison Township, MI · Member since 2015 · 39 posts · 6 votes
10y
My partner and I just starting searching, and have found 3 owners willing to sell. We contacted the park about flipping some homes, and also asked if the owner would be willing to sell. All three we have talked to said yes. Two have offered owner financing. They all have issues with vacancies, so we need to really be thorough in due diligence.
Investor · Durham, NC · Member since 2013 · 62 posts · 40 votes
10y
i highly recommend MHU. Attend a Bootcamp if you can, it will be money and time well spent. Kevin Buppnalso does a good podcast on cash flowing properties. You can also schedule a one on one with him for free. He is a wealth of information too.