Strategies for filling up Mobile Home Park

[Mark Rechkemmer]

I own a 40 unit/pad MHP with 8 vacancies and looking for creative strategies for filling lots that doesn't require capital on my part.  I have already reached out MH dealers for used trailers and they will share my park info if clients are looking for a place to move their trailer to.

Any creative strategies out there such as linking with MH flippers to place trailers in the park and rehab/sell them there to owner occupants, etc?

[Frank Rolfe]

Your best shot -- if the city will allow it -- is to get people retiring in RVs to fill those lots. RVs require zero lot preparation. The downside is that some lenders will discount some portion of their rent as they are far riskier to move out than mobile homes are.

[Mark Rechkemmer]

Thanks Frank.  We actually spoke 2 years ago regarding a different MHP that you evaluated for me.

[Dave Rav]

You could offer MH owners and MH investors incentives to come to your park.  Since your goal is zero capital out-of-pocket, you may need to "give" somewhere else.  These incentives could include:

- discounted lot rent first 3 months (make it a rate that beats all your local competitors)

- for investors, make it clearly evident you are investor- friendly (some parks either don't want investors, or make it hard on them with multiple rules, etc.  You could tell them you are flexible on rules [such as with rehabbing the home, timeframes, etc]).

- offer "locked in" lot rents.  In today's chaotic financial environment, prices are all over the place and changing.  Tell your prospect you'll lock them in at a price for 24 months.  (Obviously, you lose the chance to up rents after a year, but if this solves your vacancy issue, it's worth it)

- think of other ways your Park provides more value than your competitors (larger lots, privacy, more parking, anything that screams "value"

Best of luck!

[Kyle Mccaw]

We manage a park in Southlake, TX that we have been transitioning from park owned to tenant owned homes. Of course we wanted the homes to be much better than the existing. I reach out to a district manager of a manufactured home company. We have a deal that they prep the lot and install a new home at no cost. They typically only do one unit at a time. It has been a great way to upgrade the neighborhood. All the new units match. 

Don't bother talking to the sales rep on the sales lot. He doesn't have the authority to do this arrangement and most likely doesn't get paid.

[Steven Nguyen]

Have you considered the 21st Mortgage CASH program?  You can bring brand new homes (there is a large backlog so new homes will take approximately 8 months to arrive if the dealer wants to work with you) with zero dollars out of pocket.  If you want to rent to the homes, you can get 100% financing.  If you want to sell the home, you have 1 year to sell the home.  You can try to sell the home and if that fails, can always try to rent them out.  The CASH program is pretty flexible.  My park has about 120 vacant spaces and I plan on bringing in 12 brand new homes every quarter to fill up the park.  Renting is always faster than selling, but renters have more turnover vs home owners are more sticky.  I hope to have a good mix of both.  I just got approved by the 21st Mortgage CASH program and looking to bring in 12 brand new homes around May.  For the area, I know I can definitely rent them out, but ideally would just want to sell the homes to collect lot rent.

[Mark Rechkemmer]

Quote from @Kyle Mccaw:

We manage a park in Southlake, TX that we have been transitioning from park owned to tenant owned homes. Of course we wanted the homes to be much better than the existing. I reach out to a district manager of a manufactured home company. We have a deal that they prep the lot and install a new home at no cost. They typically only do one unit at a time. It has been a great way to upgrade the neighborhood. All the new units match. 

Don't bother talking to the sales rep on the sales lot. He doesn't have the authority to do this arrangement and most likely doesn't get paid.

 Kyle,

I'll give your advice a try.  Was this an easy or difficult proposition for the district manager?  Was there anything you said specifically that influenced the DM to place trailers for free in your park?

thanks