In a newer 55+ all double wide MHP I am closing on soon, only 16 of 49 lots are occupied. Previous owner due to illness, didn’t market well (at all).
I was considering working with a local well respected MH dealership that sells Redmans, Champions and Ridgecrafts to put a couple of model homes in the park.
Perhaps work with them as exclusive builders where I would get a kickback on any homes sold, yet not charge them lot rent on the models.
ANY thoughts on the matter? Is this a bad idea?
thanks
Dan,
I would certainly pursue a possible partnership with local new and used mobile home dealers to put homes in your park. This will significantly reduce the amount of money that you will need to spend on buying homes to fill your park.
With new homes we are going to let dealers know that we are giving a bonus of $200 for any homes that they sell customers and the home is moved to our park.
I know several mobile home park owners are working with Vanderbilt and other banks to move repos into their parks and sell the home for retail on behalf of the bank. The bank pays all moving costs, set up, rehab, etc. They are not charged lot rent. Upon the sale of the home, the park owner receives 10% of the sales price. This is basically a “disguised mini used dealership”.
Corey
Hi Dan,
I just finished a similar type project. The developer of this project had sat on vacant land for 2 years. This is a 39 lot “air space condo” where you purchase the land. They had placed several model homes in as an acting dealer unfortunately no one from there staff was able to drum up any business. It really does take a certain person with the experience in working with this type of project. You are not only selling the home and site but a way of life. The baby boomers want to downsize and not live for there home nor a high house payment.
I came to work with a local dealership and became the onsite sales/project consultant for the project. I started in June 2005 and sold 16 lots/homes in one year.
The owner of the dealership I was working for wanted to be “exclusive” but the developer wanted it “open” to anyone.
The dealer may want to place a home in and use it as a sales office/model as well. Normally speaking dealers don’t give kickbacks on homes. They usually receive one from the park owner when placing a home. This is called a “spiff”, and is offered to entice the sales staff. I was given a land spiff and a management fee for every home that went in. I drew each plot plan for an approval from the developer. Placement of the home is very important when having so many lots available!
You can contact me with any other questions, this is the 7th project I have worked on.
Good Luck,
Mimi LeMoine
I have been in the business for 20 yrs and the park usually gives 1-3 months free rent on a model. The park usually gives a “spiff” to the salesman who places a home in the park. At least that’s what is typically done here in WA state.