This is a Public Service Announcement for anyone considering investing in a lucrative mobile home deal located inside a mobile home park. If you haven’t already heard that mobile homes are cash-cows then consider this your wake-up call.
Mobile homes are categorized in two distinct ways:
The big difference between the two is if the mobile home owner owns the land the home rests on, or if the mobile home owner pays the land-owner monthly for the right to use their land and utilities.
If you own your land you are KING — assuming you pay your mortgage, property taxes, and abide by local and state laws. Popular opinion suggests that in many respects a person’s home “should” be his or her castle. This does not hold true for those who live in a mobile home park. You and everyone else living in the community need to realize that the park managers and park owners have the ultimate and final say. In a nutshell, the mobile home park hold most of the preverbal cards…
As long as you understand the pecking order of this business and your role in it, you and the park can have a very happy and profitable working relationship together.
What is the “pecking order of the business” and what is “my role in it?”
As an investor when you purchase a mobile home inside a park you may do so inexpensively, without bank financing, without escrow, without Realtors, without expensive insurances, and can close in just hours or days. The flexibility and affordability of mobile home investing are amazing features that most other traditional investors only dream about. The cost we pay for all these positive investing attributes is that we must abide by any and all of a mobile home park’s seemingly asinine rules and continual lot increases.
How to fight back?
I say don’t bother unless you have been severally wronged. If you have aligned yourself with the right mobile home park, there is a slim chance you will need to worry about being taken advantage of or bullied by any park employee. Do remember — park owners and managers are REAL people with their own emotions, troubles, greed, and joys that can transfer over into their professional work. Use this as a barometer or guide for their character, management and accountability standards. Maintain your degree of professionalism even if theirs seems to wane.
I have heard many times of park residents filing law suits against parks with mixed results. If a park is even moderately well organized, it has likely positioned itself and the existing contracts each resident must sign prior to moving into the park, in a way to give the park owner every advantage possible.
Clever park owners…
Don’t fight back, just correct issues, smile, and go on collecting money from your buyers. If you piss off an unstable park manager they are not likely going to hold you in high regards.
If you are already living in a mobile home park and are being harassed weekly by a dictator-like manager, it may be in your best interest to speak with the owner of the park directly. If this does not help perhaps legal counsel is in order.
Aligning Yourself with the “Right” Mobile Home Park
In my next article here on the BiggerPockets Blog I will be discussing the three unique stages of mobile home parks and how to align yourself with the “right” mobile home park for investing purposes (concerning investing in individual mobiles and not the parks themselves).
Love what you do daily,