Differences between 21st Mortgage CASH program AND Legacy Housing

We make an exception and use .8 as the expense ratio, since the fixed costs of running the park are going to be lower for any added homes. 

I can agree with that. We just like to put more fluff in there, but your argument is sound.

KurtKelley…Why would you put all the rental homes in a separate LLC/ownership? Wouldn’t the homes and debt transfer over to the new owner anyway?

Kurt, most park owners do not want to deal with rental homes but have  the seller keep the homes and have an agreement they will stay for at least 5 years.      We want to rent spaces and not be housekeepers and why again all the empty spaces???    With few new parks we all should have a waiting list wanting a space for their home.

Carl you ask why all the empty spaces? Because of the financial meltdown and loose borrowing practices of 2008… bank’s are scared to lend on mobile homes although SFH were the most overall in default that year , mobile homes were the most percentage wise.Now with people like Warren Buffet offering lending to park owners maybe the empty spaces will get filled once again. It is rare someone moves their home these days and where I am at the big parks bring in there own homes and rent/lease/ sell them. I too need to fill spaces but I don’t want to keep those homes once I get ready to sell. 

So with Mt. Buffet basically controlling the building of  new mobile homes and with his insurance  company continue to see the Progressive ads as per nausea that he owns, WHY, WHY with such a bully platform have we not seen ads all over proclaiming to  adults the beauty of home ownership from Clayton Homes into parks??     Could it be since park owners are wanting to fill the spaces and are good payers why deal with the general public whose track record can be faulty???        I personal believe as long as park owners do what is in the above conversation there is NO REASON  for  Mr. Buffet or others to spend millions on that ad campaign.      Mr. Buffet is known to downsize all spending including laying off people to be  gratify his share holders including 25% of Heinz’s worker fired when he took over that company with the investor from Brazil.      Maybe some conversations as to Clayton Homes doing some ad blitz about the nice parks that are ready for his homes financed by him for tenants  would be a good PR for the parks and Clayton Homes.    My conversation is really about I believe we might have the cart before the horse  and in our ownership of parks when we buy has at least 90% occupancy with tenant ownership homes or we walk and still have a 10 cap or higher return from the start.    What about seeing if Clayton Homes would pass us a winner so all around this is a win-win situation???

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Brandon