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:
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
Hello Petter I just watched your video I’m interested in investing but would like hook up with someone else. I have a lot of experience as a carpenter but not with investment property if you know someone that is willing to partner with me let me know.
I am very interested and would like to understand more. I`m looking to purchase withing a year but want to understand the in`s and out`s before jumping in. Thank you so much for sharing.
I really appreciate the knowledge you opened me up to. Im from South Carolina and there are Mobile homes everywhere.
Mr. Harris,
I love your videos. I have learned a lot. I understand why we would want to buy at a 10% cap. I don’t understand why you would try to increase that to 15% cap after 3-6 years? Isn’t the idea to increase the value so it can eventually be sold at a lower cap? Thank you!
The internal cap increases relative to you, but as for reselling to an outside party, you’d raise the price so much higher than what you originally paid that the cap would match up with the area’s market cap and that may be lower or the same as when you bought it.
Love the video, very informative and to the point. Hope to locate something that fits into your guidelines. Keep up the great educational videos. Merry Christmas!
Hi Peter,
Great teaching,how does one get financing after Bankruptcy?
Thank you.
With Commercial real estate, if the deal is good enough and you have arranged the down payment and reserves, oftentimes, the lenders are not as scrutinizing of your personal finances.
I am really interesting and how can i start as a beginner.
thank you for sharing your knowledge
This was outstanding keep up the god work
Dr J Cooper
Hey Peter,
I just got done watching your video. I am a pilot by day and investor (mostly MFR) in Seattle. I am now flying for a private individual who I bring to Tucson very regularly. This brought me to start looking at the market here and I continuously come across the idea of MHPs’. Hence, watching your video… Anyway, I would love to chat, or find out more. Sounds like you are the type of guy who doesn’t mind sharing info.
Peter I need your ability as a mentor or teacher
Hey Peter my name is Perry and I’m from New York City I really want to be an entrepreneur slash investor I’m in the process of working on a downpayment on a potential property I need your help I am looking for some decent properties in Connecticut or Pennsylvania like you mentioned in your video I’m looking for five family apartment building I know once I get my feet wet I will never look back if you can send me a copy of your book I will be grateful thanks for reading my story
We’re about to retire in Anchorage Alaska.
Have money to start up with. I’m a beginner and I want to start this process. Your videos are enlightening but I need hands on.
Lionel Burgess