Hello
My husband and I have decided to start our own mobile home park. We are at the very beginning with the business. What do you recommend my first step should be with getting into the business? I am not sure if we should buy land and build our park from scratch or buy an existing mobile home park? Also, is there a good site that I can go to that has a checklist of starting one? I want to make sure I am doing everything right legally and contacting the right people.
It would be better to buy an existing community with the correct demographics and fix it up. In every area that I have seen land for sale that can be developed into a MHP it is cost prohibitive. You can buy an existing MHP with tenants for less money than you can develope a new one.
Go to the Mobile Home Park Store Web Site and start analizing cost per site of existing communities that are for sale versus what you think your development costs will be.
Is there a good site I can go to and find existing parks for sale? I just got off the phone with someone from SCORE and she was telling me that starting a mobile home business today is not a good decision and I should think twice since I do not have much experience in the mobile home industry. She also said that banks wouldn’t even look at me for financing because I do not have any experience. Is this true?
Best site
You need to gain knowledge- get educated. Banks wont even deal with most of us who have experience.
Rick is 100% correct. Go to Mobilehomeparkstore.com and focus only on deals that the seller will carry the financing.
I had a banker once tell me that the mobile home park business was a loser and only an idiot would get involved in it. He came by about a year ago while he was passing through Missouri. He has plenty of time on his hands now because he’s unemployed.
Whenever somebody gives you their advice, always check their credentials and think “is this person qualified to give me a correct opinion?” There are plenty of people who shoot down every idea and then go home to their efficiency apartment and eat a frozen dinner. When’s the last time that person at SCORE “scored” any money on their own?
Boss,
Congrats on looking into this business! It can be a great one. If you are really interested in this business I almost insist you educate yourself first. You can start for free by reading all the posts on this forum and on mobilehomepark.com. There is a ton of great information.
If after reading the posts and you still believe that this is the industry you want to get into, then either get F&Ds home study course or attend the bootcamp. I have talked to enough eager investors who got into this business without the education and are struggling. And these are very bright business folks. The issue is that parks are not like other types of investments, including apartments.
The education will be helpful when you talk to a seller or bank for your first deal. Remember that if a seller is going to finance, they also want to make sure that you know what you are doing. Last thing they want is to take back a park that has been run to the ground by a buyer.
My second bit of advice is to write down your goals and objectives for this industry. Treat it like a business. You would not start a business without a written plan (or you should not). It does not need to be detailed or perfect, just enough so your thoughts are clear. This will make it easier when you start evaluating parks.
Keep plugging and ask questions. Lots of great knowledge on both forums and people in this industry are helpful, not cutthroat like other RE Investment arenas.
Cheers!
@mrsboss I’m coming to the party a little (4 years) late. What did you decide to do? Where did this take you?