Best way to fill empty lots ?

Question

I've got a MHP under contract, in the process of due diligence currently . It's coming with 22 lots, 4 are empty . I've read about different ways to fill them . From giving current home owners monetary insentive to move . Also buying a repo from a dealer, fix it up and sell on contract . Just curious what works best for others and your community ?

Mark Brogan · Answer

I was discussing this with a park owner the other day, he gave me a good idea, call all the dealers in your area and tell them they can set up new or used homes in your park and not charge them lot rent until the home sells. After it sells buyer pays lot rent

Ed Emmons · Answer

Depending on your objective for the park, you can look into Century 21 cash program. That program can fill your park if you are willing to accept their terms. I have used the other suggestions as well. Currently I am looking for homes on private land at auctions. I buy them at a good price, move the homes on to my lots and then I sell the land for what I paid for both or above, usually on payments.

Scott Schaar · Answer

@Jack Baczek thanks for the ideas . The RV route is what I just implemented . Luckily the previous owner already had RV hookups wired in on four sites . There is a big power plant nearby that has a lot of out of town tradesmen . Putting 2 in there next week on year leases . Hopefully word will spread along with advertising RVs on the sign we just installed .I definitely need to publicize a list of incentive offers . That everyone has mentioned . I'll do that next .

Roman Tomkiv · Answer

Great idea with dealers @Mark Brogan we recently acquired park in NC and have lots to fill.Dealers are open to incentives and are willing to place your marketing materials for potential tenants to see. Cash program requires you to have strong financials and cash flowing property and state license to sell homes.

Jack Martin · Answer

@Scott Schaar there are a host of ways to fill lots, with each strategy requiring less or more of your time. Here are all the ways we have explored, from least amount of effort to the most:Advertise free lot rent for a year if they bring their own home into the park Work with the dealers who have showrooms and offer them an incentive to sell you their used trade-insWork with MH sales people who specialize in the sale of MH only (many times they will be dealers as well, but focused only on used homes)Network with MH movers who often times know of used homes that could be availableNetwork with wholesalers who flip MH (be aware of homes in parks with this, as most often the park will have first right of refusal and you cannot remove it from the park. Also, it is important to note that you should be respectful of other owners. Do onto others....)Sheriff sales, REOs or foreclosures of MH on individual parcels of landHunt them down and buy them yourselfIn all cases, the homes will have to be moved and set up, so you will want to build those relationships as well. All the best,Jack

Rachel H. · Answer

@Scott Schaar Many mobile home park owners try to work with the mobile home dealers in the area since they have the inventory. Usually they can make special arrangements for bulk purchases and/or working with multiple buyers. Offering incentives (i.e. moving costs, free lot rent, etc) to prospective residents also helps. Good luck!

Account Closed · Answer

@Scott Schaar I havent done it but quoted from my electrician the cost to add the 50 and 30 amp pedestals seemed insignificant.I forgot one other thing we did, if a salesperson referred us a customer, we paid for a catered lunch to the dealership ( up to $250 dollars) . So then everyone at the store knows about it and maybe we catch another one from it. Im thinking we would have received the referral regardless but we formalized it. Oh yes, in our metro, we also went around to say about 10 stores with a box of donuts and a nice flyer with all the info on our park in English and Spanish, meeting all the stores, sales people etc. Dealers in markets where there are dealers happening need to know where to be able to place homes. This changes so you want to periodically keep them updated. Also do you have a doubewide space ? Might be great especially in an area that doesnt have them.

Account Closed · Answer

@Scott Schaar Looks like from the other post you closed the deal , congrats. Here is what i have done this year. Offer to pay utility hookups and 6 months free rent ( ask that you stay in park 6 years) . I have had success on this with new and used customers. Buy a new home to fill a lot. Work with a dealer to bring in a home for them to sell. If you can get away with them paying the utility hookups on their dime even better . We dont charge lot rent until it sells and be proactive in helping any way we can. This will all be market specific . You can also look at RVs for income in the interim if your park or spacing allows it. Be sure to let all your current residents know you have promos in case they have someone that might want to live by family /friends .

Chase Louderback · Answer

Absolutely, I'm happy to help. I have heard of some dealers bringing in mobile homes and selling them from your lot, so that's great you were able to find that connection.

Scott Schaar · Answer

@Chase Louderback I like this idea . I’ve stared networking with local dealers about this . Which has also led to conversations on them bringing one of their homes in also . This should work well . Thanks for the advise .