All Forum Posts by: Jefferson Lilly

I've been on the BiggerPockets podcast twice:

http://www.biggerpockets.com/renewsblog/2015/02/26...

https://www.biggerpockets.com/renewsblog/biggerpoc...

... and am launching my next MHP investment fund late this month (October of '18).  (And - full disclosure - I will be using a mail forwarding address also and only occasionally actually hosting meetings at that location... it's like a 'WeWork' space, I generally work from home and my managers are on-site at the parks...)

To everyone's continued success, and due diligence,

-jl-

Park Street Partners has been acquiring and improving mobile home parks nationwide for three years. The general partners have >20 years experience in real estate, and charge no management fees (nearly all our compensation comes only from a profit split). We co-own mobile home park properties with you. PSP has been returning 12%+ annually to our LPs, and appreciation is likely to bring investors' total IRR to around 20% annually.

And we are the MHP podcast here on BiggerPockets :(http://www.biggerpockets.com/renewsblog/2015/02/26...)

Ours is a 506 Reg D fund; you must be an Accredited Investor.  We've raised money from approximately 65 LPs and have references and a proven business model.

Please see www.parkstreetpartners.net for more information.  Click 'View Current Investments.'

Thank you for your consideration!

-Jefferson Lilly-

We buy MHPs nationwide, and are happy to partner or pay referral fees for good deals.  Please feel free to reach out to us if you wish to pursue such opportunities.

To your continued success,

-jl-

@Paul Stout 

Thanks for the shout-out regarding our industry-first podcast on mobile home park investing and our website.  Folks can find links to our stuff at mobilehomeparkinvestors dot net.

@William Simmons

We own a park in southern Illinois.  Carterville, IL to be exact.  It has proven to be challenging.  Profitable, but challenging.  The economy is generally weak south of Bloomington.  Our park had $150 lot rents a year ago at acquisition, we bumped them to $195 and lost nobody.  That said, we've found the tenants to be quite rough (unemployed, drugs, vandals, etc.).  We have had turnover because of enforcing no-pay no-stay (but that's a separate issue from resetting lot rents).  

You should get a handle on how well-run your park is.  Ask for 12 months' bank statements.  Look at when the deposits are actually being made.  If you see 90% coming in the first week of every month, then you are buying a well-run park, and you'll not likely experience much turnover/vacancy.  If you see only 1/3rd of the rents deposited that first week, and another 1/3rd the next, and the final 1/3rd (or less) trickling in during the latter two weeks of the month, then you've got a poorly-run park, and you should expect 25% turnover within the first 90 days of enforcing NPNS.  A previously-poorly run park in that part of America will likely give you upwards of 25% vacancy when you start enforcing timely payments and the rules.  And it'll likely be the people in the roughest homes that leave and abandon them to you.  So you better have a $5,000 budget for each home to get them renovated and RTOed to somebody new (and be advertising on CraigsList all the while, and have a good website that showcases each home, etc.).

Good luck, and let us know how it goes,

-Jefferson-

One of the parks in San Angelo, TX was sold fraudulently about a decade ago.  The owner stole mobile homes, infilled the park with them, connected them to the utilities and turned the lights on.  Made the park look full.  Then sold it as a 'full' park.  Do your diligence always - especially on the parks in San Angelo.

Feel free to take a listen to my BiggerPockets podcast on mobile home park investing:

http://www.biggerpockets.com/renewsblog/2015/02/26...

@Ryan W. you are making a number epic rookie mistakes.  This park is worth <$400,000.  You really, really need to get yourself educated.  Please listen to my Bigger Pockets podcast: http://www.biggerpockets.com/renewsblog/2015/02/26...

@Michael Fortier you are on the right track with your line of questioning.  There is much, much more to it than just POH vs. ROH.

Please take a listen to my BiggerPockets podcast on mobile home parks:

http://www.biggerpockets.com/renewsblog/2015/02/26...

Take a listen to my Bigger Pockets podcast on mobile home parks:

http://www.biggerpockets.com/renewsblog/2015/02/26...

Ken -

I am not familiar with the community adjustments you mention.  I was so disappointed in the NADA publication a few years back, I've made no effort to look at it since.  Perhaps the adjustments are something new..?

Regardless, consider this: NADA guides are not based on actual used mobile home sales prices.  That's right, NADA makes absolutely no effort whatsoever to determine what used mobile homes sell for in the market (any market anywhere).  I got the publisher on the line a few years ago (Sherry Clevenger) and she explained that NADA only makes note of the initial sales price of the home when new, and then apply a constant depreciation amount every year.  I was incredulous when she told me this.  I thought for certain NADA would have a database full of thousands of actual used mobile home sale prices nationwide.  Nope.  NADA just has a spreadsheet that takes last year's value of the home, and multiplies by .97 (or so) to come up with the value of the home this year.

So that's why I say I don't like/trust NADA values.  And they do seem to be high.  We've been buying ~1998 3/2s in Oklahoma for $8,500 in excellent condition with all appliances and central heat and air.  NADA says I should have paid twice that.  No thank you NADA.  

My 2 cents worth,

-jl-

Don't build a MHP - especially in the Southeast.  The SE is just too low-income.  Plus, you can acquire MHPs already full of homes and cash flowing nicely for less than construction cost.

Please see the 'Resources' tab on our website for more information.

My 2 cents worth,

-Jefferson-