Pre-selling New Manufactured Homes.

Mobile Home Park Investing
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Pre-selling New Manufactured Homes.

Derek Dickson
Quebec City, Quebec · Member since 2017 · 11 posts · 1 vote

Hello,

I have a question for MHP investors. 

When you have a home move out of your park how do you fill that pad quickly? Do you buy a used home and put it on the land, do you buy a new Clayton home and put it on the land, do you advertise only the land and hope someone moves their home to it? 

Do you run ads on social media, do you post it on FB marketplace, or use bandit signs in the park? 

I look at Elon Musk(like him or not), pre-selling his Cyber Truck. It makes me wonder if mobile homeowners would be interested in doing something like that. For example, you know one of your tenants is moving their home in two months and you pre-sell a new home that will be moved onto that pad. The home would need to be ordered, built, and then moved onto the pad which could take a few months. Do mobile home dwellers have this kind of time to wait or do they need to move right away most of the time?

In new condo developments, the developer usually pre-sells the condos to get funds to build the building. Is this a strategy that can be used in MHPs? 

Thanks,

Derek

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Will Stewart
Investor · MA · Member since 2014 · 164 posts · 114 votes
3y

Yes, there are a few park owners in my area (northeast) that do this. They’ll have their realtor post a facsimile (or pics of the same model from the dealer/manufacturer) as new construction. Seems to work well. 

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  • Will Stewart
    Investor · MA · Member since 2014 · 164 posts · 114 votes
    3y

    Yes, there are a few park owners in my area (northeast) that do this. They’ll have their realtor post a facsimile (or pics of the same model from the dealer/manufacturer) as new construction. Seems to work well. 

    3Reply
  • John Boutros
    Investor · Member since 2021 · 113 posts · 56 votes
    3y
    Quote from @Derek Dickson:

    Hello,

    I have a question for MHP investors. 

    When you have a home move out of your park how do you fill that pad quickly? Do you buy a used home and put it on the land, do you buy a new Clayton home and put it on the land, do you advertise only the land and hope someone moves their home to it? 

    Do you run ads on social media, do you post it on FB marketplace, or use bandit signs in the park? 

    I look at Elon Musk(like him or not), pre-selling his Cyber Truck. It makes me wonder if mobile homeowners would be interested in doing something like that. For example, you know one of your tenants is moving their home in two months and you pre-sell a new home that will be moved onto that pad. The home would need to be ordered, built, and then moved onto the pad which could take a few months. Do mobile home dwellers have this kind of time to wait or do they need to move right away most of the time?

    In new condo developments, the developer usually pre-sells the condos to get funds to build the building. Is this a strategy that can be used in MHPs? 

    Thanks,

    Derek


     In terms of filling a pad quickly, Id strongly suggest building a buyers list, with a funnel in place, prequalifying people based on their interest, income, how much down they have, home many beds/baths they're looking for, etc... touch base with them before you have a home available/from time to time. You can do this with used and new homes. Building a list can be done with ads on Facebook, Instagram, bandit signs, Craigslist, Google ads, referrals, and so on...knowing the demographics of your local area and what they can afford is really important and will direct which homes you can bring into your parks. 

    1Reply
  • Chase Louderback
    Real Estate Agent · Luray, VA · Member since 2016 · 460 posts · 293 votes
    3y

    The answer in our experience is that it depends on the market.  If you are in a strong market and your park has a good reputation in the area, then with little advertising you could potentially have an organic infill lined up by the time that home is moved from the park.  Parks in areas like this generally even have a waiting list.  

    Otherwise, if you are still in a good market, you can order a new home and try to pre-sell it before it gets there as you described.

    It really just depends on the market and how aggressive you want to be on your marketing.

    0Reply
  • Derek Dickson
    OP
    Quebec City, Quebec · Member since 2017 · 11 posts · 1 vote
    3y
    Quote from @Chase Louderback:

    The answer in our experience is that it depends on the market.  If you are in a strong market and your park has a good reputation in the area, then with little advertising you could potentially have an organic infill lined up by the time that home is moved from the park.  Parks in areas like this generally even have a waiting list.  

    Otherwise, if you are still in a good market, you can order a new home and try to pre-sell it before it gets there as you described.

    It really just depends on the market and how aggressive you want to be on your marketing.


     Thanks

    I didn't realize that some parks had waiting lists. 

    would you usually aim for a certain demographic when filling the empty slots? Like would you want to slowly transform your park to a 55+ type park or are you aiming to stay around the 40 year range?

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  • Chase Louderback
    Real Estate Agent · Luray, VA · Member since 2016 · 460 posts · 293 votes
    3y

    We personally don't worry about the demographic as long as the tenant passes the background check.  We don't have an 55+ age restricted communities though.

    0Reply
  • Rachel H.
    San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    3y

    @Derek Dickson I've seen mobile home park owners do both options. It really depends on the park owner and the market regarding how they want to fill their lots. 

    In parks with high demand and low supply, usually they just wait for someone to come in and apply for a lot. Most times, these lots go fast in these types of areas. 

    On the other hand, in parks with higher supply and lower demand usually they tend to put a new home (or used one) on the lot and sell the home (or rent it out) and rent the lot. 

    Just some observations based on my experience. Hope that helps! 

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