Mobile Home Parks with Vacancies

[Logan Hartle]

Hello,

I am looking at investing into a few value add mobile home parks. They are underperforming due to significant vacancies (vacant pads not vacant park owned homes). If I am to buy one of these parks where is the best place to find mobile homes to move onto the pads? Should I leave that to the tenants or go find them myself and resell them?

Thanks All

Logan

[Jerry Lucker]

@Logan Hartle

Most tenants only bring in new homes, not the norm for most parks.

Investors can find bank repos or homes that can be moved and fill up the lots. Homes not too old in decent shape work great. The investors put in the time and money, buy, move, rehab, and resell the homes. Let them do all the work and just collect the lot rent.

Advertise the opportunity - don’t charge the investor lot rent for 90 days.

I put a lot of homes in parks, works great for everyone.

[Logan Hartle]

Thank you Jerry! This is great

[Monique O.]

@Logan Hartle you could also reach out to a mobile home dealer and see if they might work a deal to move in a few homes on consignment. That way you do not have to pay upfront costs to fill the park. When the mobile sells, you each get your cut of the deal. The new owner would reimburse the cost to move and set it up as well. Continue the process until the park is full!

[Logan Hartle]

@Monique O'Dell thanks! This is a great idea

[Jerry Lucker]

@Monique O'Dell

I’ve found dealers are reluctant to move in spec houses unless the park is new or a 5 star property.

They have difficulty in getting people to pay the price for a new home in an old neighborhood.

(My experience of 20 years filling park vacancies)

[Monique O.]

@Jerry Lucker Thanks for your thoughts! Good info!

[Matt Bonestroo]

@Logan Hartle @Monique O. @Jerry Lucker 

Good info from Monique and Jerry!  I would personally start with a local mobile home mover. In my market, they are constantly being contacted with homes that need to be moved, and usually work with the local park owners to fill their lots. They are the first people that I contact when I come across a mobile home that needs to be moved... they always know of a potential buyer. 

With that being said, you can try contacting some of the parks in the area to see if they have any homes that need to be removed (bringing in newer homes to their park). Just make sure to ask prior to pulling... Some other places to look - tax sales, auctions, mobile home dealers, offer incentives to bring homes in the park, and etc. 

I believe 21st Mortgage offers a program to park owners trying to fill their parks...

[Monique O.]

@Matt Bonestroo Awesome.. great info!

[Nick Gann]

@Matt Bonestroo yep! I've listened to everything Frank Rolfe has ever said, although I do not yet own a park...actively looking, the CASH program from 21st is a very appealing concept for filling lot vacancies with a solid product.

[Logan Hartle]

@Matt Bonestroo thanks! I will add these ideas to the toolbox. Also I’m definitely going to check out 21st Mortgage!