Hey Everyone,If you want to know the facts of why we bought each and every park in our portfolio – the turn-ons, the turn-offs, the risks we mitigated, the market dynamics – then join our teleseminar tonight on which we spend one minute on each park we own, and tell you the basic drivers behind our buying decision.If you are trying to unlock the secrets to dissecting park deals and deciding if they are an opportunity or not, then this teleseminar will help you make those decisions. How important is metro population? How important are college towns? What makes a deal too small? Learn the answers to these and 1,000 more key issues on this one teleseminar.As always, following the presentation Frank will answer all questions until they’re exhausted. So if we missed something, just ask! To join this free teleseminar at tonight 7pm Central, fill out the form on this page:http://www.mobilehomeuniversity.com/emails-and-events/teleconference-series/101-parks-in-101-minutes-sign-up.phpWe hope you can make it!
That was a great marathon of information and Q & A. Thanks Frank!Tim
Tim,Nobody enjoys talking about mobile home parks as much as I do. Glad you liked it.
And nobody does it better than you, sir.
There was a lot of nuggets in the presentation. Very good listen. Frank basically said this is what we like and why.1. Where major intersections meet2 Big on county seats3 Lots between 50 and 2504 The states they like and why5 Buying another park in the same city to increase lot size6 Lot rent in relation to medium housing price7 Lot rent in relation to apartment rent cost8 Unemployment rate in the cities they buy in9 Always know who the major employers are in the city of purchase10 It is all about providing affordable housing Thanks again Frank
Just found out about this today, sorry I missed it. Did ayone happen to record the session? Is there anyway for us to watch it now?
Here is a link to the recording of this session.http://www.mobilehomeuniversity.com/emails-and-events/teleconference-series/101-parks-in-101-minutes-recording.phpI hope everyone enjoys it!
Frank and Dave, Very interesting listening to your Audio Conference, was wondering if you would let us all know the names of the parks and locations that you guy have purchased, so we could get more of an idea what your Parks looks like , so us Park Owners could see and visit with some of your renters to see how well the Parks are managed and maintain with local Management and absentee Owners? And if there has been rate increases in the past year are they compatible with the local economy. I have been reading these blogs for some time and haven’t said much, but I have been wondering if I wanted to list some of my parks on your site because what i’am hearing you guys don’t put much Value on your Renters. More interested in jumping the rates $$$$$ to get your Cap above 10+ , so you can flip your Parks to Someone new to MHP. It looks to me any Park Owner that wants to list their Park For Sale on your site, that you might be Cherry Picking these Parks and find out if you want to buy them before you list , was always wondering why when a Park Owner list his Park it take a couple days before posted . Maybe you guys can answer some of these questions.
At their price point, exactly what kind of “value” are you supposed to place on your renters? They aren’t ELS; they don’t have parks along the coast of California with a private lake, fancy clubhouse, and golf carts. It’s a different business model. They deal in affordable housing - their tenants are looking for basic shelter, safety, and some level of privacy (not available in comparable apartments, obviously). That’s all. Just because they don’t give tenants amenities of a 5 star park, or cultivate friendships with them like some other “hands on” owners doesn’t mean they aren’t putting value on them. Affordable housing is a huge demand in the US, and they are filling that demand. I don’t really understand why you single them out as if they are operating in an egregious manner. Take a look at apartments in their areas that offer comparable rents - in other words, their competition. Are those owners spending time with tenants, offering them a fancy pool or clubhouse? No. They’re offering basic shelter. You might think it’s unfair to the tenants, but that is just the reality at that low price point.
the ability to view properties early is available by paid prescription. you certainly have the ability to view these properties early as well.F & D’s strategy to buy under performing parks and work to improve performance by removing deadbeats and establishing rules concerning payment and appearance are keys to their approach. They are providing safe and affordable housing to those who need it most. When they choose to sell their property, they should be able to reap the rewards of their efforts.There are parks listed on the site to be had, however it takes effort to make it happen. I hope to close on my first property by the end of the year due to present survey challenges, but will have an excellent investment at the end of the day. While this park offers no amenities, it is a fairly new park (15 years), excellent appearance with GREAT pride of ownership, and room to immediately raise rents by $25. The downside is only one empty spot, however with a small capital investment, I hope to add approximately 10 spots. Water and sewer is in place for these lots, I will need to build a straight road and add electric hook ups.In this business, there seems to be room for many. We may all operate a little different but one fact remains constant, affordable housing is needed to support the retiring boomers that have very little retirement to support their present lifestyle. These people are looking for safe, affordable housing options.
Dean if you would please note the comment by Carl (last one) drugs use in parks there is an area of concern by some park owners of the boosting that will eventually put up red flags for more government controls. When you say affordable housing is that before and after the $25 raise. Sounds like the owner will be there to help you with your new operation and indicate all water and sewage lines per a stamped drawing by a certified surveyor In our last park we had to have a complete layout by a certified surveyor of all our water lines and size before the state would allow us to complete a project.
the government concerns itself with monopolies, and I do not see a park as a monopoly. In raising rents, it must be done smartly not to overprice yourself out of the market. The tenant always has the option to move, and that is the control needed.
Please answer the question about affordable housing. With 40 years of experience and my FIRST HOME (12x60 Marlette) in a trailer park I have watch government creeping to the point NOW I need multiply licenses to operate a park or a business. When the RESIDENTS is just able to pay his present rent and then you increase it he life can becomes a disaster but why should you care you just had boot camp Then he has no money to leave which Frank brags about in the Wall Street Journal and talks about being chained in a restaurant and they could not leave since they do not the $4000 to leave. He man, these are people and please understand there choices are LIMITEDED just like yours (money) since this is maybe your first park . Your comments might change greatly after you have owned some parks.
Carl you have to remember that your business model is completely different than Frank’s. That doesn’t make it better and it doesn’t make it worse. It isn’t Frank’s or any other park owners responsibility to hand hold the tenants and make sure they make it in life. He isn’t a non-profit and at the same time, he or other owners, as Dean has stated, have to keep their prices competitive. That means just because they raise the rents, doesn’t mean they are forcing people to tier knees. MHPs are the only place you can find housing at these rates.
Dean is also correct when he states his point about apartment buildings. They are the same if not worse and I don’t see you knocking their business practices.
Not everyone is in this business to be philanthropic. Bottom line is, it is a business. Nobody in this forum is running their parks as slumlords, they have the right to make money regardless if being a hands on owner or not.
Again, it’s all a personal choice. You can’t bash another owner for running a business their way. They don’t bash you for being a hands on owner. This forum is to lift people up not bring them down.
carl … not everyone pulls their own chain on this forum. for me, yes it would be my first park however i am not quite sure what you mean by your comments. i have many other options. you seem to object most of what is written here, why are you around? you come off as being better than others, sort of drinking your own kool aid.
The so-called bashing was the comments in the Wall Street Journal and I am sure Frank is capable of explaining his comments about people chained in a restaurant he does not need minions to expound his comments as to what he said. The free exchange of ideas is the purpose of this discussion and correctly said there are different styles but why bring up the term slumlord-Maxwell. So from the above two comments what do you say to lift people up? Again please answer the question about affordable housing–Dean. Maxwell I do not do 24/7 or hold hands I just place a very high value on people and their needs. I was raised socially poor but as well as my classmates that were farmer kids we did not KNOW we were poor. I see some poor person in my park as being a future president, senator, mayor, a super parent, great mother or super dad not just an object to see how much money I can expel-- I taught school and many timers saw potential that other just saw as a trouble maker. I bring in young people to my parks to work and many times they come back to say Thank You for the experience as well as the parents. Actually I am thinking of starting an intern program for potential park owners with a friend so they can spent 6 months to a year with us and later help in the purchase of a park if they believe that is there calling. My upbringing will not allow me to take advantage of God’s children, that is really the bottle line of my business model and I feel very blessed. So how was my negativity or kool-aide, dude???
- I use the word slumlord because based on other comments and yours above, that is the connotation that comes across from your postings. It’s clear that you believe others take advantage of their tenants via rent raises etc and keep them in a pit they cannot get out of. That’s not a park owners responsibility to make sure each tenant can survive. That’s called accountability and is the tenants responsibility alone.
- I never stated you personally hand hold. I simply stated that Frank does not nor do many other park owners. Maybe that was not the correct verbiage but I believe my intent was clear.
And we aren’t Franks or anyone else’s minions, we, like you, are stating opinions.
If becomes negativity when you come in and bad mouth owners. You have stated on multiple threads that park owners that operate outside of your box are more or less taking advantage of poor people and wrong in their business practices.
Again, this is about perception. You seem very passionate about your business and maybe when you are writing your comments you don’t see how it can be taken negatively.
Mr. Maxwell to use your words who have I badmouthed 1. 2. 3. 4. 5. Now that you have indicated WHO they are I can personal say I am sorry to each one for me not being proper. Please who used the word slumlord did I? Try to stay positive my thoughts on a intern program are being affected I like the words of our great president Ronald Reagan whose dad was a drunk but a mother who spend time on her knees said, “All great changes in America begins at the dinner table”!
I used the word slumlord. Not you, me. We obviously have different opinions. My intent was to state that some of your comments may come off as negative and to bring it to your attention.
I wish no ill towards anyone as we all can learn from differing points of view and different experiences.
I wish you the best with your intern program and I think it’s a brilliant a idea and a way for you to pay your knowledge forward.
By the way, it’s Miss, not Mr.
Frank and Dave , I was wondering if you would share with us some of your Park locations and the names of the Parks, so some of us PO’s and possible Investors looking to buy Parks this would be very helpful and positive to everyone, to see how you two have successfully mastered Business. I think we all would like you to Answer, this would be very helpful to all. I’am considering buying your courses and attending your 3 day school , even though I’ve own a number of Parks I think you could teach me some new ideas how to improve my Bottom Line $$ Someone asked me today what is the % of Minorities that are Park Owners ? And I could not answer them but I thought you guys would know all that with all the research that you guys have done about MHP Ownership. Because when you talk about Section 8 Housing in Parks the rule is going to be 48% African Americans, 32% Hispanic , 20% Whites , As of 2012 Section 8 Records, That’s a little Scary to me, but we screen our people out and get good references,