I’m reading quite a bit about how to fill empty lots and best strategies on buying new and used MH’s to get lots filled then sold off to future tenants. How often are lots filled by tenants that come in and set-up their own MH’s on your park pad (and is there an estimated % of times this happens?)? Am I correct that this is the best of all scenarios?
Yes a tenant that moved their home into your park is the best way to fill a pad. I have owned my park for 5 years now and have never had someone move their home into my park from somewhere else. One time I had a tenant from another park with what I would call a borderline home that I would accept want to move to my park. It did not happen, the manager at the other park talked them out of it. A dead giveaway for a MHU grad calling for information on my park is when I get a call from someone interested in moving a home into my park and starts asking the typical questions. I laugh and tell them I have never gotten a real call from someone wanting to move their home into my park and that I was once in their shoes and will answer any questions they have without the sticht. I suppose it depends on your location, the desirability of your park, and many other factors though. Just my experience.
Depends on your market- mine has a housing crunch so I’m able to work with dealers and get new homeowners in that way pretty quickly. I’ve also owned in lower income areas and agree with Jcas. Got maybe 200 inquiries over 5 years and moved maybe one or two homes in. The other 198 ranged from asking if an RV could stay, to asking if they could pitch a tent on the lot.
This entirely depends on demand and supply in your market, but definitely rare. Ordinarily the park owner has to fill the park by sourcing homes and then getting them some (or rented). Dirty little secret of this business.
There is one term that is used interchangeably in this industry and that is referred to as a unicorn. Being an owner of several hundred pads in multiple communities, we have had that happen twice since 2007 and we offer to pay all moving costs if a homeowner wants to move their home into any of our communities. What is also a unicorn? Finding a community in an MSA with 100k+ population, with 100+pads on all city services, selling at a 8-10 CAP with seller financing.
Appreciate the feedback, everyone - very eye-opening and educational.
We have only had 3 homes brought in by residents EVER.
- One was a guy who bought a home online from Arizona and needed a place to put it (really bad). I charged him $5K to bring his home into my park. At that time I was a dealer and was ordering new homes and reselling them myself.
2+3 Were long-term residents who had “Amazing” spaces and they replaced their old homes with new ones.
The most common scenario is a dealer will bring in a spec home and sell it in place.
The next most common, is I bring in a spec home or a used home and sell it.
The least common is when a dealer will option a lot and try to presell a home.