I bought your book! I watched your videos, and now because of you, I have my own real estate investment company, I purchased my first mobile home park, (20 units) also self storage units! After 40 years of working for someone else, I am now my own boss! The future’s so bright, I gotta wear shades! THANK YOU!
Great video! My father and I just bought a 2 acre lot that is in a great location in town that is zoned RM5. We are highly considering a mobile home park. Lot lease only. This lot is located between two other MHP that have been around for 50+ years with a strong Latina community. We initially wanted to build duplexes, but seeing as how the two MHP's beside the lot are probably NEVER going anywhere, it did not seem to make much sense as far as property value and home value. The parks next door are FULL and as I mentioned before, the tenant demographic is mostly, if not all, Latina. These tenants tend to be LONG term and develop their own communities within the parks (family, friends, etc). This video is very helpful!
As soon as I heard the average rental in US is 1k, I knew the video is dated! Though I'm sure the process is still a firm good plan! 👍Thanks for the information!
Mr. Harris, I have been impressed with your ads and trainings as a real estate investor and mentor from the first introduction. I have some investment capital to consider your course and trainings. Thank you for your knowledge and sharing these opportunities.
Great video. Very helpful and you're a wonderful teacher. I feel like this is something I could actually do. I subscribed and look forward to watching your other videos and learning more from you. Thank you!
We have 105 acres we own outright. We are concerned if we develop all the land for MH pads and bring in utilities that people will not pay $3-5k to move or bring a MH to our pads as you said in your video people buying in this market don't have 3-5k to move a MH to our pad! I believe we may need to actually provide the trailers on the pad too ready for sale (which we don't want to but not seeing another way around it)? Because if I were someone buying a MH to live in I would look for a MH already in place with the pad and everything so I can skip all the upfront costs associated with buying AND moving one? It is also 5k sunk cost that the person will never get back but if it's apart of the sale they really won't know it or feel it because it will be apart of the financing and monthly payment and not 5k they have to dig out of their pocket? Thoughts?
Thank you very much for the video and your time it took, to make it. What i always ask myself is, why do people sell a good running business? I mean, if your really get 10% or more ,there is no reason to sell, right ?
I’ve been watching some great RU-vid videos including yours ... about mobile home investing , legally what do I need to start the process In Florida? Any recommendations in classes or websites
Near the beginning of the video, you explain that mobile home park investing is potentially more lucrative than other commercial properties, and explained that you were going to compare their returns to apartments, but then didn't compare the returns. What can you expect?
This is a really good question. Apartments are in higher demand by investors. Not everyone is willing to say they own a Mobile Home Park(s). Bankers are more interested in Apartments because there is a secondary mortgage market for them as well and they're more common. Meaning they can get there money back to loan to someone else and retain servicing. But what are the numbers? Let's say the current interest rate for an apartment loan is 5%. At the same time the mobile home park loans are 7%. So why would you want to spend more on interest for a MHP? Here's why, the Net Operating Income as a percentage of investment is much higher. Cap rates on apartment might be 7 while at the same time they are 11 for a MHP. Apartment complex, $30,000 NOI / 7% Cap rate = $428,571 Value or sales price. MHP $30,000 / 11 Cap rate = $272,727 value or sales price. So for a smaller investment you receive the same $30,000 Net Operating Income. So the return on your investment is much better. If money is tight for you as an investor you are going to look for the best return and you would find that in MHP vs Apartments. There is one thing that is often not said but it should be here. Higher return investments have higher risk. Another reason why investor like apartments over MHP.
Your statement about owning the lots and not the mobile homes. Long term I don't see how that can be done and maintain a nice park. Can you explain further? You will have evictions, people will abandon the homes, And now these places will be sitting on your lot to either fix up or move out. Are you saying at that point you pay to move out to home and wait for a new person to come in? That also needs me to my next line of questions regarding your average mobile home renter. Most won't have the credit nor down payment to go buy a new home let alone the cash It takes to move one into your park? So now you have a vacant lot that could sit there for a year or two until you find that random person with money. It sounds good in theory to just own the dirt but I'm curious if that is reality. I'm a long time home investor looking to get into commercial investing.
Thank you Peter i want to buy For Next year but i need to need more information before I investing I live in Massachusetts i very aplesured any help thank you for you video !
Great Stuff Peter!! What about Staying Away from Flood Zones? ..Also, how do you feel about getting in on a MHP Syndication deal with a 5 or 10 year exit strategy?
Does anyone have any advice on buying land and setting one up yourself!? Im from a country town that is consistently becoming more populated. I’m just at work thinking of getting into this and I haven’t done a ton of research on it yet. But I’m considering buying some land and setting up a few mobile homes aiming at a certain demographic as far as renters. I want a nice clean place where you don’t have to be afraid to let your children play outside in your yard. 🙂
If you want to turn your land into a Mobile Home Park, I would strongly suggest obtaining the proper permission from the governing bodies that handle land use.
"Hi Peter Harrison, I enjoyed your video! At 15:30, you mentioned buying at a 10% cap rate and aiming for 15% in 5 years. I thought cap rates and value were inversely related. For example $30,000 NOI / 10% Cap = $300,000 value and $30,000/15% Cap = $200,000 value. - can you please elaborate on how this strategy works? Thanks!"
There are two types of Cap Rate; market cap and deal cap. I was referring to a 15% deal cap. This blog article explains more of the difference between the two and how they are calculated: www.commercialpropertyadvisors.com/commercial-real-estate-terms/#cap
This is very informative. We own our mobile home park but we have renters on them. We purchases these mobile homes which now I realize was a mistake. Do you recommend demolishing these homes in disrepair first to clear the homes from the land, then rent those lots? Or should we sell them as is so someone else can move them?
Look up the nearest Palm Harbor homes. Put ad in paper and on youtube for persons to purchase only from them and set it up on your lot. Get a company to refurbish the homes you have or offer them at price still owed and sell them to people on craigslist, low prices to get rid of them, they must move them. Go through a real estate company to sell them off,
Refurbish the ones that have value and sell them at full retail and rent them the lot only. They take on home ownership for the home and utilities and pay you the space rent
I want to buy a mobile home but how do I go about it? How do I see what the land rent is and manufactured home rent is? Would it be cheaper than renting an apartment overall?
A couple questions: In holding the property in an LLC what type of taxation would be the most advantageous? Is there really any downside to having a water well over city water? Would city water be preferred?
Awesome this is what me and my husband want to invest in. I live in the country and we need to make money I would love to partner with you. We have a baby boy on the way. We have to start a business. Tired of working for somebody. I need to work for myself
There is a limit for the amount above what it costs the park owner in some states. For example in California you can not charge anything above the amount the utility charges the park owner. It is best for owners who have a community water system to use the gross rent method and charge for the water in the rent. However, tenants differ and don't like not using water for washing their cars or watering etc. so owner will try to limit usage if not metered.
Absolutely! But you would have to be on the developer side of these deals; since it's a brand new deal type and there aren't any for you to buy that are existing.
@doc hall In addition " new " lots run about 60k and up depending on the sq ft of the intended structure just to run utilities . So and average of a 1500 sq ft manufactured home that was 75000 in a park of 50 spaces would be a mear pittance of three million seven hundred fifty thousand dollars . Hmmmmm . under 1500 sq ft might still be 60000 but you can see what I'm getting at. That figure was from 2015 in northern Communist California I'm sad to say.
That's perhaps too small for either an apartment building or a mobile home park. But you could syndicate to raise the required money to do either type of deal. Watch this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-TuL7sjVHi0o.html
Mr. Harris said you want get a 10% CAP rate going in and in a few years hope to see it at 15%. That would mean the property value went down. Did you mean it goes down to 5% after a few years? Higher CAP = lower property value. Just sayin’
batterista - you don’t want to own or have any liability of the house. Your phone will not stop ringing and you’ll either be fixing problems yourself or paying out the wazoo having someone else fix it. You want to own the land and lease it out. It’s what McDonald’s does, they don’t own their buildings. That would be insane. Mcdonalds owns the land.
Hi Peter, I have a question. The property next to my house is up for sale, it’s a .6 acre lot with some waterfrontage, it had a trailer home on it before that’s gone now. The asking price is $38k but I believe I can get it for about $26k I am using a equity refi on my home to purchase it and would like to put 3 trailer lots on the property and rent them out. From what I’ve seen I believe I can get $450. - $500. A month for each. I would have to get a loan to put in the trailer pads, the 2 additional modabs, water lines, and electrical service poles before I can rent it out. I figure a loan of about $20k - $30k will do it. Would this be a deal you would call good, bad, or ugly? I would like to do more small multi trailer lots like this until I have enough to secures loan for my first apartment building.
Except in a tenant friendly state like California. You can’t just evict without a court order and you can’t just take the home without a separate court order. Texas is awesome. It’s a landlord friendly state and you kick a tenant out in 30 days.
@@froggergypsy4596 if someone is that stuip to get evicted and lose there home then you get there trailer and sell it again more money for you works out in your favor
What does this mean @jeffsharpton. Would you explain a little? Lower caps means higher value. As inflation and interest rise, so do caps. Help me understand what you mean please?
Hi ,l invested in mobile home, it was the worst thing I ever did. I paid £38.000 cash. I was evicted 2 seasons later, for trumped up accusations from my neighbours, which the park home owners(PURE LIESURE GROUP). said that l had broken their rules.so they claim my. Licence was REVOKED BY THE COUNCIL ? WITHOUT ANY WRITTEN NOTICE. I was paid£7.000 trade price only at the peak of season. GOOD INVESTMENT?NO...........
Mobile homes depreciate in value and if they are in a park, as you discovered, you have no control. Mobile Home Parks is what this video is all about because they appreciate in value and you have complete control over what happens to them.
I will not dispute the wisdom for someone who can own the park....however, only an IDIOT would put a mobile home in these parks...after the home is a few yrs old, you are trapped.
