Mobile Home Parks For Sale
BUYING THE RIGHT MHP IS JUST THE BEGINNING
We firmly believe, and our experience has confirmed this, that the Management and Operations
are just as important as the park itself. In other words, you can buy an excellent park, but if run poorly, it will under-perform, and maybe even fail. By the same token, you can buy a marginal park, but run it really well and it may perform brilliantly. I mention this here because it’s important not to put all the emphasis on the park you’re buying. An equal amount of attention must be spent on the proper Operational Plan and the Implementation of that plan.
BUYING THE RIGHT MHP IS A HUGE ADVANTAGE
That having been said, obviously the ultimate manifestation of this principle would be to buy the right park and
run it right. We can help you run it right, but that’s another subject altogether. For more info on this, please refer to our MHP Management-page
. For now, let’s focus on finding the right Mobile Home Park for you to invest in. With a park that is already running fairly well, we can focus our energies on building up the park and its income, rather than digging it out of a hole from day-one. There aren't as many MHPs on the market as there were a couple of years ago (investors are catching on), so good ones aren't as easy to find. But, finding the right MHP
is the vital, so make sure you get a good one.
HOW TO FIND THE RIGHT MHP
It is paramount that you work with people you trust. One of the biggest risks in this business is buying someone else’s problems. And many a desperate seller, honest in most other areas of their lives, are often tempted to gloss over the real problems in an effort to unload the park on some poor unsuspecting investor. A resourceful seller, and/or his agent, can even find ways to ‘spin’
the books to hide the problems and/or to enhance the numbers. So, the first step in finding the right park is to make sure you’re dealing with honest people and the genuine facts and figures. This is harder than it sounds. Don’t take this the wrong way. 90% of the people, Buyers, Sellers and Agents, are honest ethical people who wouldn’t intentionally mislead anyone. However, the 10% that would are going to look and sound just like the other 90%. People who engage in half-truths or outright deceit are good at convincing people that they’re honest. It’s what they do. So, be very careful. Check and recheck everything, do your Due Diligence
or hire a pro to do it for you. And above all, find professionals that you can trust.
We're the kinds of professionals I'm talking about, of course, so call me, Andy Tallone, RLM Mobile Home-Park-Consulting at (925) 323-2134 or email me at firstname.lastname@example.org
TODAY’S MARKET IN A NUTSHELL
The market for MHPs has shifted almost completely in the last few years, from a Buyer’s Market to a Seller’s Market. Where once you could go online and find dozens of decent parks to choose from, today there are almost none. The few that are advertised all seem to have something wrong with them, which is probably why they’re still on the market! Anything decent, with good income or good potential, is getting snapped up by investors who 5 years ago turned their noses up at the sight of a MHP. These same investors have seen their other investments do poorly over these last few years, while MHPs performed well, right through the real estate crash and beyond. So now there is much more competition for those few parks that are for sale. Additionally, MHP owners don’t want to sell their parks as often today, because they can’t find anything as good to replace it with. And with rents climbing today, MHPs are becoming cash cows. So, we have more people trying to buy, and fewer willing to sell.
THE PROBLEM WITH THE INTERNET
Have you ever heard the expression “If it’s on the internet, there’s probably something wrong with it”? What does that mean? In today’s red-hot MHP Market, any park that is worth owning sells very quickly, so quickly in fact that they rarely “hit the market”. In other words, long before the owner or the agent advertises them online, some savvy investor with “an inside track” picks it off. It could be someone the seller already knows who always admired the park. It could be the listing agent, or another agent in his office, or one of his best clients. The agents themselves often take the good ones for their own portfolios, leaving only their leftovers to show the public. This is called “Creaming the Deal”, and what it means is that the good parks never see the light of day. This explains why there are so few good MHPs being advertised today. If you want to get a good MHP today, you need your own “inside track”.
WHERE DO WE FIND OUR MHPs?
We are Mobile Home Park Consultants. People call us with their problem-parks. Perhaps the founder who ran it for 30 years has passed on, and his heirs have let it fall into decline. Maybe they just discovered their manager is stealing, or they aren’t able to collect all the rent, or they have infrastructure problems...you name it. We analyze the park and its shortcomings, design an Operational Plan for it, then implement the plan and turn the park around. Most park owners who retain our Consulting Services just want to get the park in condition to sell.
GETTING THE INSIDE TRACK
We have around 90 such Mobile Home Parks right now, in all phases of the turn-around process. Some are just barely getting started, some are well along the way, and other are finished or nearly finished. While these parks aren’t on the market, many can be purchased as is. So, an investor can literally choose between several parks, in various stages of completion. And since we’re already running it, we’ve already discovered the hidden problems and are probably working on fixing them. We know we can trust the Onsite Manager because we probably hired and trained him and have been supervising him on a daily basis for some time. And we know we have ‘the real numbers’
because we’re overseeing the collection and deposit of the rents, we pay the bill and we do the books. In this way, you have an inside track to dozens of winning properties that aren’t on the market yet, with credible, reliable facts and figures, and far less competition for them.
For more information, call me, Andy Tallone at (925) 323-2134 or email me at email@example.com
TURN-AROUND OR TURN-KEY?
There are many, many ways to make money in this business. And there are every type of parks and situations. The term ”Turn-Around”
refers to a park or a deal that has some problem or deficiency that is holding down its value, but that you feel can be fixed. High vacancies, poor collections, poor offsite management, a bad onsite manager, infrastructure problems or a bad reputation are a few examples of some of the fixable problems a MHP can have. The idea of buying such a ”turn-around deal”
would be to then fix the problems and make the park worth more, either to keep for the Cash Flow or flip for the Profits. Big money can be made doing this, but there is more risk and frustration (unless you have the right mindset). The other side of the spectrum is the ”Turn-Key Deal”
. This is a park that is done, everything has been fixed and the cash flow is more or less maxed out already. Many investors like Turn-Key Deals because they’re more predicable and less stressful. But the returns are usually lower, since whoever turned them around and made them a Turn-Key Deal has gotten paid in the form of an increased price. It's good for the seller (he gets a profit for all his efforts), and good for the Buyer (who gets a finished park at a fair price). These differences are usually reflected in the Cap Rate
. Turn-Around Deals may start at a 8% Cap Rate but after being massaged into shape might produce a 14% Cap Rate. Whereas a Turn-Key Deal might start at a 7% Cap and stay there. The idea of a Turn-Key is stability, after all. The idea behind a Turn-Around is growth.
FINDING THE RIGHT PARK FOR YOU
This is a daunting challenge, and one that you cannot afford to screw up. Give yourself every advantage in the marketplace. Most realtors know very little about MHPs, even though they may have one listed, maybe the only one they’ve ever done. MHPs are highly specialized ”Machines for Making Money”
, and they take a highly specialized, and uniquely qualified hand to run properly. That’s where we come in. Mobile Home Parks is all we do and we’re very good at it. We’ll help you find the right park, conduct proper due diligence, devise an Operational Plan, then help you implement that plan to its ultimate success. I know it’s a lot to absorb all at once. Call me, Andy Tallone at (925) 323-2134 or email me at firstname.lastname@example.org
. I’d love to talk with you about your questions and concerns and will take as much time as you need. There is no cost or obligation. Please call. Let’s talk Mobile Home Parks.
ALL ABOUT MOBILE HOME PARKS
MHPs For Sale
Recent MHP Sales
Investing in MHPs
Investing in MHPs for Retirement
MHP Due Diligence
MHP Due Diligence Checklist
MHP Wells vs. City Water
MHP Sewer vs. Septic
Park-Owned Mobile Homes
MHP Tools & Equipment
Financial & Investment Terminology
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Last updated 2/24/18
For more information call
RLM Mobile Home Park Consulting
PLEASE NOTE: This website is intended for your information only. It is not meant to answer every question or solve every problem that could arise. While the information contained in this website is deemed reliable, it is not guaranteed. Every property and every situation is unique. Some of the information contained in this website may not apply to every case, and so should not be relied upon, per se. You should seek qualified professional help with all legal, estate, financial, tax and real estate questions, and conduct proper due diligence prior to any transaction. We accept no responsibility for any loss or liability, in law or in equity, that arises out of your use of the information contained in this website. It is your responsibility to verify everything for yourself.