Mobile Home Park Investing for Beginners

You’re about to discover what every beginner should know about investing in mobile home parks (MHPs). You’ll learn the 2 types of deals, the 4 key demand factors and why you should invest in mobile home parks. You’ll also find out the top 3 misconceptions about this commercial property type, 5 major things to look out for before you invest, 3 big pitfalls to steer clear of, how and where to find the best deals and the 3 most common ways to finance your first mobile home park. MHPs often fly under the commercial investing radar but they can be terrific investment opportunities for individual investors like us. Here is mobile home park investing for beginners:

Mobile Home Park Investing for Beginners PodCast

Here’s a summary of what you learned in the video above:

PART 1: 2 Types of and 5 Figures that Demonstrate Demand for Mobile Home Parks (1:57)

• Land Only
• Land and Mobile Homes
• 8.6 Million Mobile Homes in the United States
• 50,000 Mobile Home Parks
• 60 Million People Earn $20,000 per Year
• $1,000 per month is the average rent for an apartment in the United States
• 8% of United States Population live in Mobile Home Parks

PART 2: Why Invest in and 3 Misconceptions of Mobile Home Parks (5:39)

• Growing Demand for Affordable Housing
• Stable and Predictable
• Limited Competition for New Parks
• Potentially Higher Returns
• Misconception # 1 – Crazy Lazy People live in Mobile Home Parks
• Misconception # 2 – Mobile Homes can pull out at anytime
• Misconception # 3 – You can’t get loans on Mobile Home Parks

PART 3: 5 Tips on What to Look For and 3 BIG No-Nos (12:18)

• Increasing Population Areas
• Stay Away from 5 Star Parks
• Seek Out Mom and Pop Owned Parks
• Minimum 10% Cap Rate
• Best deals allow for easy rent increases and cost reduction options abound.
• No-No # 1 – Hurricane Zones
• No-No # 2 – Park Owned Homes
• No-No # 3 – Operating Permit Status Issues

PART 4: How and Where to Find Mobile Home Park Deals (21:36)

• LoopNet.com
• CIMLS.com
• MobileHomeParkStore.com
• 1031CommercialProperties.com
• Direct Mail Campaign
• Of the deals you look at, 20% will be potentially good deals, 30% deals will be marginal deals, 50% will be over priced.

PART 5: 3 Most Common Ways to Finance Your First Mobile Home Park (26:48)

• Bank Financing
• Seller Financing
• Seller Financing with Note Assumption