I enrolled in 21st mortage however all the home manufacturer I 've called saying the same thing like they have 1 year backlog and not currently taking new clients.
What are you guys tactics to infill vacant lots nowadays ?
Itâs very simple because we all have the same problem. We are installing homes that we bought last year. Best bet is to consider home infill an ongoing pipeline and not a one time event. By that I mean you constantly order homes each month and install them every month (12 months later). Or, you can order a large block of homes and have the deliveries staggered. For example, order 40 homes now but request 4 per month every month starting next November.
I suppose, if you are not setup as a dealer yet, you will have trouble. You can buy from other dealers, and they may pass the home to you plus an extra $2,000 for their efforts.
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Try ordering from Legacy Housing⊠prices are much higher now but if you must fill vacant lots now, it may be an option for you.
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Suggestion: stay away from infill projects or wait until the market crashes and pick up this stuff from the lenders for 50 cents on the dollar. This is a symptom of yet another fed induced housing bubble.
How can infill projects work with no âfillâ inventory available, new or used? Timing a market is always warned against as a good strategy. We are past due for a strong recession and our FED govt is currently doing all it can to enable it. BIG spending [Build Back Better]=BIG inflation.
Just like you cannot time the stock market, so many professional advisors recommend âdollar cost averaging,â the same is true with infill. You cannot predict when the next recession will hit, so are you really going to put your park infill plans on hold until the recession hits? Assuming you donât already have homes on order, it will take you at least a year to get them anyway. Wait another year, and it may take you 2 years to begin filling your park. I think a better idea is to order a small number each month in the ups and downs.
Separately, recession or not, housing is in extreme demand and will for for the foreseeable future.
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Jmazur,
The price of mobile home parks is based on their net operating income. Rents will not be going down in the near future and if anything the net operating incomes will be increasing. Even in a pandemic year our revenues have gone up and will go up next year as well.
That being said I do not think you can consider this to be a bubble since the prices are fully supported by the net operating income that is derived. This is a much different situation than residential housing because house prices are not based on income and cap rates. Instead a large part of their value is based on the emotion of the buyer. Those emotions can run high in a hot market causing prices to escalates into bubble territory. Nobody buys a mobile home park based on emotions.
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Everything is harder⊠getting homes, transporting, installing, etc. The timeline is longer and everything is more expensive. On the positive side, demand is strong and the sale prices residents are willing and able to pay has risen. Not sure what happens when bottom falls out of the economy - I am selling homes through 21st but also retaining title and self-financing in certain markets. Key take-away is that if you are buying a park donât over-value vacant lots.
Speaking of filling mobile home lots with mobile homes, Iâm looking for a cash partner that can go halves with me ($600,000 needed) to purchase almost a 400 space mobile home park in Michigan, where the purchase comes with 150 vacant park owned homes that are just sitting vacant making no income, 70 of these park owned homes are already rented. With a little rehab about $1500-$2000, they can be rentable. It also has vacant lots where you can bring in new or used mobile homes to get to 100% occupancy. Currently there are 111 paying tenants. It cash flows now, but the potential income is very significant by fixing up & getting renters for the vacant 150 mobile homes after rehab. In 4 years or less this park can be worth 10 Million dollars. I believe the park can be purchased for 4.5 Million. Park is doing over $400,000 annual net income right now. If interested and you need more information, contact Byron at (385) 355-0383 or you may email me: mogel007@gmail.com