All Forum Posts by: Kesha Hamilton

Hi Kesha, it really depends on what type of RV park it is. There are basically 3 types, overnights (catering to RV's traveling along interstates), destination (resort style parks that people vacation at) or long term. So for each type your customer base is quite different and with it your operations/management is different. Overnights are very very transient and come with unique challenges, think about these like a Motel 6, people arriving at all hours, tired, just need a place to crash as they make their way to their final destination. Destination parks are typically in a desirable location where people want to visit and vacation. Typically these will have some amenities like a pool, lake or are near a national park, etc and will attract people for longer stays 3-7 days. Customer experience and hospitality are key to effective management of destination parks. Destination parks are the most intensive from a management perspective. Long term parks are more like mobile home parks, but the home is much more mobile. Long term parks are usually less management intensive. What everyone else said above is accurate and all types of RV parks are more management intensive than a MH park, but to a varying degree depending on the type. Hope this helps. 

really the only thing in common with them is the homes are Mobile.

MHP much easier to manage day to day.

RV park lots of management issues also with RV the chems in the RV's are strong and it can affect how you deal with Grey water and sewage..

many RV parks though turn into MHP if the authorities just let the RVS stay and never move.. Those can work well also.. 

Kesha,

I would let go developing a mobile home park from scratch.  I could list a lot of reasons why from my perspective but Frank Rolfe with Mobile Home University tells the story the best in this podcast.  He revisits the topic often in his newsletters and his explanation stays the same.
https://www.mobilehomeuniversity.com/mhp-mastery/the-new-par...

Where I have seen some impressive development in my neck of the woods is in long term RV park development.  Larger gravel spaces, concrete pads with picnic tables, small storage sheds included in each lot.  Guy in my town built one last year with 30 spaces or so- packed full today.  I have one currently and it is very successful.  I think this is the next wave of the future for "mobile" home park investing. 

Do some digging in that town nearby.  How many RV parks and how full?  What is monthly rate if they have it? What is the apartment/rental market like... you know the drill.
Good luck.  Exciting...

Roger

 @Kesha Hamilton 

1. Start with calling the planning dept at the city to define the zoning and allowed density

2. Work with the city and local brokers to identify the exact product type to meet the housing needs of the area. (Apartments, townhouses, condos, etc.)

3. Run the numbers in the UW to see how big of a gap you have for new construction of those units

4. Talk to planning at the city about available funds they for housing projects like TIFs, CRAs, Housing vouchers, housing grants, etc.

5. Repeat that research at the county and state levels.

6 review all info vs your UW and see if there is a land value above $0 that makes the deal work in today’s market.

7. potentially consider a JV project with the property owner after doing the above as a way to make the deal work.

Separately, you'll want to make sure that you've engaged your strategic partners. Brokers (versed in these development deals to help you negotiate the right contract terms), Lenders willing to fund a construction and permanent loan, architects & engineers vs in land development to help site plan the project, contractors to price the project to help dial in your UW. 

I've been a RE developer for 17 years working on projects nationwide. Building the right team of strategic partners is key to effectively completing development/new construction projects. It's simple but it's not easy.

If you shoot me a DM I'll send you information about our upcoming Free webinars and other resources we've created to empower local entrepreneurs and investors to transform underutilized properties into awesome community assets that benefit all.

@Kesha Hamilton a waterfall is a way of distributing profits.  You may want to get a book on preferred returns, waterfalls, etc.  You really want to make sure that the land you are buying doesn't have any major constraints that can't be overcome, or even if they can be remediated, at what cost, i.e. environmental, soils/geotechnical, adequate access, zoning, etc.  So you likely need to involve either a consultant or developer prior to make sure you don't buy something that doesn't have a fatal flaw or constraints that make the project not pencil out financially. 

It depends on the land honestly. Is the land next to an establish road with utilities? If it's just road frontage land that you can turn into lots it's not that bad. If it's small road frontage but acreage deeper then you need to meet with an architect, and civil engineer to see how you can build a community. A lot going on there. Tree clearing, grubbing, moving dirt for cut/fill operations, storm water, power, gas, water, fire access etc. not a small task but doable. If you are going to JV for land purchase I would definitely get quotes from architect, engineers, and estimated civil cost. Have all that factored in your deal then who would manger construction, and who would manger contractors during the new houses being built. That's quite a bit of up front cost before you see any return on investment. Especially considering zoning approvals, permits for land development (Local and State) moving equipment in, then permits for individual houses before you can even sell or market.

Yes, you can JV with a homebuilder and come up with some type of preferred return and/or waterfall structure to share in the return.