I recently attended the annual conference put on by the Ohio Manufactured Homes Association. One of the speakers had the most amazing business model I have ever heard of and want to share it with everyone. I’m trying to get him to come to MOM also.
First I have to tell you that he is an ex-IRS agent, an accountant and an attorney. Rather smart fellow. As I understand his plan, he buys rundown parks and does what he has to to make them pretty and fix any infrastructure problems. Then he buys homes and places them. These are in decent and livable condition but nothing top-of-the-line. Next step is where the genius comes in: He works with a social services agency to find people in need of housing. The agency does all the tenant locating work but he still screens for criminal history. When an acceptable resident is found for a particular home, he donates the home to the agency for charitable donation tax deduction and then the agency titles it in the name of the new residents. He then sells the fully leased park as a turn-key operation.
The single biggest problem according to the speaker was finding an agency to work with. He had nothing good to say about United Way. The one he does business with also helps people with other problems in their lives and takes care of problems like budgeting for their clients. The last park involved giving away 70 homes and he had 3 come back but 2 of those were for family reasons where the residents had to move immediately. Only one turned out to be a flake.
A side benefit to all this is the amount of free publicity he has received from the local newspapers and a 90 second spot on NBC Nightly News.
The above is a really rough outline and I’m hoping he can come down to MOM and better explain everything. I had my jaw on the floor listening to this presentation as I could see how it could benefit me in my park so I probably missed as much as I understood. You have to admit this is a really creative way to do business.
Wheat Hill MHC