| You can't be a mobile home park owner and not | | | | offer them no lot rent until the home is sold. |
| realize that the good old days are over in filling up | | | | Steal Thy Neighbor |
| vacant mobile home park lots. Those of us who | | | | If there is a park owner doing a lousy job in your |
| owned parks in the late 1990s became spoiled with | | | | market, consider offering his tenants the ability to |
| how easy it was to fill up a mobile home park. Back | | | | move, free of charge, to your park. You can send a |
| then, all you had to do was to meet with a few | | | | direct mail piece to his tenants, who hopefully are not |
| dealers, drop off some flyers, and you would start | | | | very happy where they are. Make sure not to steal |
| bringing in a home a week. | | | | tenants who are still under lease with your competitor. |
| Enough of the history lesson, you're saying. How do | | | | That would break a law called "tortuous interference |
| you rent mobile home park lots in this market? Well, it's | | | | of business". And be very sure that your tenants like |
| a lot harder. But if you follow these steps, you'll find it | | | | you more than him, because he may return the favor |
| can be done. | | | | by sending a letter offering the same deal to your |
| Don't Ignore the Dealers | | | | tenants. Only pick a park that is in real trouble, and |
| Just because they are not selling like they used to, you | | | | cannot mount any effective attack on your tenants. |
| cannot turn your back on your local dealers. They still | | | | Sure, the move will cost you about $2,000 or more, but |
| sell homes occasionally. Make sure that you have a | | | | it's a whole lot cheaper than the next option. |
| stack of flyers at every dealership, and call them once | | | | Bring in Homes and Sell or Rent Them |
| a month to make sure they have not forgot about you. | | | | This is my least favorite option, since it costs a lot of |
| Offer Dealers This Deal | | | | money and creates lots of management problems. If I |
| Every dealer has some "junk" homes at the back of | | | | didn't have to do it, I wouldn't. The only gain is from filling |
| their lot. Normally trade-ins that weren't of much value. | | | | a lot and getting the lot rent going. But as far as |
| Pitch the dealer on taking those junkers and bring them | | | | making money in selling or renting the homes - forget it. |
| into your park. Throw some skirting on them and | | | | Used mobile homes are money-pits with no upside. If |
| re-paint them, and sell them on location. You won't | | | | you have no other way to fill lots, at least make sure |
| charge them any lot rent until the home is sold. I've had | | | | that the value of the lot your rent (lot rent minus |
| dealers bring in as many as ten homes under this | | | | expenses x 12 x 10) equals or exceeds the cost of |
| program, and it works pretty well. There is a lot of | | | | the home. For example, if your lot rent is $200 per |
| pent-up demand for mobile homes that are already set | | | | month, with expenses of $60 per month, then the |
| up in parks, as long as the seller carries the paper, or | | | | resulting $140 x twelve months x 10 equals a value at |
| the price is so low that the buyer can come up with | | | | a 10% return level on the benefit of getting that lot |
| the cash. | | | | occupied. If you spend less than this amount of |
| "Lonnie Deals" are Great - As Long As They Are Not | | | | value-add, you at least won't lose money if you bring in |
| Yours | | | | a home and give it away for $1 (which is sometimes |
| I don't think that buying and selling used mobile homes | | | | where you end up). |
| is that great a business - but there are those who do. | | | | Conclusion |
| So let them bring in the homes into your park and you | | | | Yes, you can still fill up your vacant lots. But it's a lot |
| keep your money in the bank. You can find these folks | | | | harder than just dropping off a stack of flyers at your |
| by asking around, places like dealers and people who | | | | local dealer. If you follow these suggestions |
| move mobile homes. You can also find them by driving | | | | aggressively, you should be able to create a positive fill |
| through other parks and looking for similar signs and | | | | rate and increase your cash flow and value |
| phone numbers on homes for sale. When you find one, | | | | substantially. |