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Creating a Lifetime of Cash Flow and Equity throughMobile Home and Mobile Home Park Investing! 
Mobile home park investors across the nation are raking in the doughwhile countless single family home real estate investors are struggling to turn amonthly profit. Okay, so it's not exactly like investing on Madison Ave. However, if you have the knowledge you can do just as well as the Donald Trump in realestate. Just ask Jim Clayton of Clayton homes who sold his company andportfolio of mobile home parks to Warren Buffet for a cool $1.7 Billion dollars!Why are mobile home parks the "red-headed stepchildren" of thecommercial real estate investment world? Perhaps one of the reasons why mostinvestors ignore this lucrative asset class, other than for obvious eye sorereasons and the negative connotation associated with mobile home parks (welike to call it the Jerry Springer effect), is because they believe it requires toomuch up front cash and a personal income statement well above their means.This might be true if you were trying to finance your property through a largebank, however many mobile home parks are purchased with much less than 20%down and with little financial reserves in the bank. In fact, many of these mobilehome parks are purchased with seller financing.Small to medium sized parks are typically owned by "mom and popowners" that have been running or overseeing the managers of their respectiveparks for a long time. Many of these owners have mobile home parks that have alarge vacancy due to the glut of repossessed mobile homes caused by themobile home industry overheating in the late 1990's. It is difficult for these ownersto refinance or sell the mobile home parks conventionally due to the significantvacancies in their park.Furthermore, some of these same owners prefer doing business the oldfashioned way (without bankers / real estate brokers). In other words, a largepercentage of mobile home park owners would rather take some initial financialconsideration, make a nice profit each month off the interest on their note and notworry about the day-to-day issues of running the park. Additionally, many do notwant to deal with a large tax problem if they sell the park outright. Sure theycould 1031 exchange it into something bigger; but then they would be in thesame situation all-over again.Investing in mobile home parks is an absolutely beautiful thing! Not only isit a long term land play, but you have NUMEROUS ways to make money throughmultiple "profit centers" in a park. Single family homes and apartments are a "onetrick pony" with only one source of revenue… the rent payment. It is much easier to achieve your financial goals with mobile home parks due to the followingreasons:
 
1. The parks are usually in a less than favorable part of town. Therefore the landis cheap and you will be spreading that cost over numerous mobile homes.2. Provided you purchased the right mobile home park, there will be vacanciesfor you to bring in extra mobile homes. (Yes, that's right….you want at least 20%of the park vacant so that you have a huge upside!) You're healthy, sharp and fullof energy so you'll improve the quality of the park, raise rents and maximize your rent roll. By the way, this will immediately increase the value of your mobile homepark through the cap rate valuation.
Example
30 Space Park, $300 a month Rent Roll (50% Vacant) = $45,000 yearly rent$45,000 - 15,000 (33% of rent goes towards Operating Expenses) = $30,000$30,000 (N.O.I.) / 9.0 % (cap rate) =
$333,333 (Your Purchase Price)The Upside:
30 Space Park, 100% Occupancy, $320 a month rent roll = $115,200 yearly rent$115,200 - $34,560 (30% park operating expenses) = $80,640$80,640 (N.O.I.) / 9.0% (cap rate) =
$896,000 (at 100% occupancy)
Over $500,000 profit! 
3. If cash flow is low you can add additional revenue by putting in a coin operatedlaundry mats, vending machines, lawn service, day care service, self storage,etc.4. You can purchase mobile homes at a 40%-50% discount and resell them onterms (either with a lease option or note). Home ownership is the Americandream so when you advertise "Own your own home, $2000 down, low monthlypayments - Bad credit OK, call Boca Vista Mobile Home Park" your phone willring off the hook, trust me. From there you take their down payment and havethem sign your lease option paperwork that details the term of their loan with you.So why sell them one of your mobile homes….isn't that an asset to the park youask? Yes, but:A. You now collect the lot rent. Pure profit with no additional expense.B. Now you have someone in your park that has pride of ownership andwill most likely take better care of the mobile home than a renter.
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