Investing in the MH Sector

[Ken Rishel]

This was posted in response to someone asking about investing in homes and/or parks in another area of BP:

Investing in land lease communities and/or investing in the homes themselves is very complicated and requires a great deal of knowledge to do successfully. While many, including myself, have been very successful at both, far more people who jumped in without the knowledge have ended up losing a great deal of money.

Part of the problem is very much like the parable of blind men describing the elephant. Geography and economy play a huge part in what works and what does not. Interestingly, different successful models can exist at the same time in the same area under certain circumstances which makes it even more confusing to the novice. There are reasons for this, but it takes considerable knowledge to understand why.

Here are three suggestions:

One, go to the threads on BP that deal specifically with manufactured housing. https://www.biggerpockets.com/... and read not only the current posts but also the older posts as well. Bear in mind that many of the posters have faulty opinions themselves because they lack experience and knowledge, but that a few experienced folk also post there from time to time to try to help.

Visit the RV/MH Hall of Fame (Elkhart, Indiana) and spend a day or more in their library reading from their extensive works of now defunct publications and older books. Subscribe to the last remaining print publication MH Insider for current information. https://www.mhvillage.com/pro/... Get on George Allen's email list for his blog and buy his books on land/lease communities. https://www.educatemhc.com Attend the Louisville Manufactured Housing Show in Louisville, Kentucky in January. http://thelouisvilleshow.com

If you are still interested in getting involved, find a partner who is willing to teach you in return for you investing with them. Be careful however to find someone solid and reputable as there are many who might take advantage of you. This is how I started in the business in 1975, and how many, many other very successful operators of today did it as well.