Vacant Lots and Replacing Older Units

[Greg Tawes]

I have a question, I'm looking at a small park in a rural market (maybe 30 lots). There are about 15 vacant lots and 15 with mobile homes. Do you ever have to bring in the homes yourself for spec? Do you buy them all new? Will the manufacturer typically provide financing to the landlord for these? I just don't think I'm in a dense enough market for folks to see a vacant lot and decide they are going to go buy a trailer to put on it. However, if there's a decent trailer already in place I think a rent to own scenario would work. Any recommended strategies?

[Kyle M.]

@Greg Tawes I'm in the same boat as you. My park has 31 vacant spots. 

Cash program wont work for me because they want to see 2 years financials and I don't have those.

I'm bring in 6 brand new Clayton homes that are financed 15% down plus moving and set up. Puts me at about 25% down total. They will be brand new and like @Ken Rishel said they will attract better buyers. 

BTW the financing on that is private no banks or institutions.

My second plan of attack and really the more profitable one is going around to all the MH dealers and setting up a great incentive  program for people that want to buy a new home and live in a great park. It seems like you and I are facing the same issue.  This will include a reduced rent for 12 months or so and to sweeten the deal I'm looking to pay some amount of money to help with the setup and moving cost. Haven't landed on a number but the way I figure is if I throw a $1000 at helping them move a nice home into the park I'd have my money back in less then 6 months and that thing isn't going anywhere for a very long time. I hope that this gives you a couple of ideas. I've been working at this for sometime and would love for this to cut down the time for you.

Look into Legacy Mobile Homes. They have a park program where they will finance the homes for 15% and put the homes in the park's name. 

Let me know if you come across any other kind of programs on your search. I'm excited to see that mobile home lending is getting easier.