i have a small comment on what i have learned on mobile home parks (equity stake in 2 currently), but moreso by what I learn from my peers in the mobile home park business
even though the properties are marketed toward “the lower end”, the more quality you can provide, nice landscaping, fences, livable spaces (but not necessarly a big investment in community buildings or amenities), the more desireable and profitable the park will be.
another thought is that I have tried to utilize land in various areas that I or partners of mine own to get new mobile home parks approved, its never worked.
This should not be a deterrant, rather an example that its worth the time effort and investment to make them work because they are getting harder to develop
anything that is hard to develop has the “franshise or monopoly” effect of holding its value and / or becoming more valuable
Markoarko - have you ever tried developing a mobile home park in a rural area? Or was it urban, or suburban?
I’m curious.
Like D_Sbrown, I’d probably develop a mobile home park in a non-incorporated rural area. It’d be out of the city limits where you could build just about anything. And since I wouldn’t have any perm. structures, except say a water pumphouse or a managers office [portable building too], I don’t even see how county/state/federal building codes would matter. However any underground electrical or plumbing work would be ‘quality’, not to mention the roads/etc. The key thing is the city wouldn’t have any zoning restrictions affecting you…
I’m still in the researching stage and would appreciate any tips.
My experience is in the rural markets, although I would not completely rule out more urban markets as potential sites (its a whole 'nother story I could discuss)
As far as regulations and portable buildings, whenever I have had to deal with a regulatory issue, the problems have related to the fact that the buildings are temporary.
I believe that the logic (if you call it that) is that municple governments desire more permanent structures that attract more permanent residents.
Interestingly, I have found that the tenants of parks I am involved with are very permanent, moreso than other renteres that are my customers.
My biggest push though, both in creating regulatory approval and in good management of the parks, is stressing quality and “landscape” related amenitys. These are the most comments I get from my investments in the parks and I am certain that I get premium rents because of the amenities.
There is an attractive moble home/RV park here in the DFW area. 20%cash on cash return, 109 spots, city water & sewer, some 17 owned homes within the park.
Because Im a hard core democrat, Im probably not allowed to own property in Tx.
Having said that I may be interested in lending money, probably in a Mezz Debt arrangement to an operator with a good plan.
If not me (for the purposes of compliance with posting rules), I would be interested in helping an interested operator get financing, as an unpaid mentor, if someone really wanted to make a quality park that was both a good deal for the owner and its residents.
I want to build a mobile home park in Mexico. I’ve been to one that must have been there since the begining of time. It’s in a super prime location (now) with 2 huge time-share projects on each side. The owner must be itching to sell it off to the next time-share developer. Anyways, I would love to have one a little out of town. Buy the land, develop the infrastructure, rent it out, cash flow, wait for the town to catch up to it, and sell or develop for best use.
M.CEO
You can get around the restrictions on American’s buying coastal proeprty through a ‘Fideicomiso’ or bank trust. Technically you are not buying. The bank holds the title to the property in trust for the beneficiary who retains the exclusive right to use and control of the property. The terms are for 50 years and are renewable in 50 year terms. There is a nominal yearly fee for the trust.
"As the beneficiary, the foreign investors have a personal and exclusive right to use, occupy and possess the trust property, including the right to build upon it, subject to applicable construction and zoning regulations. In addition, the beneficiary may transfer or assign his/her beneficial interest to any person and may keep the profits from the sale of the property according to the instructions given to the trustee, subject to applicable tax laws and expenses of sale. "