Small investors in park

I just want to make sure it’s ok to have investors renting out trailers in a park I may own. So far i have one rehabber that wants to give it a shot and that helps to expedite a turn around if I do get it.

I haven’t heard of any regulations against this to date but didn’t want to assume anything.


There are no regulations against it, but as a park owner you don’t want to become beholden to any single Lonnie Dealer in your park.  Ask yourself how much it would hurt your cash flow if the Lonnie Dealer got upset with you and pulled all his trailers out.  That is your downside - not any regulation against having small investors operating in your park.  About half of our parks have a Lonnie Dealer in them - some more than one.  But no single Lonnie Dealer owns more than 3 homes, and most just own 1.The biggest risk is Lonnie Dealers when you acquire the property, for the reasons outlined above.  But after you’ve purchased a property at a fair price, there is no downside to having a Lonnie Dealer move in ‘a lot’ of homes.  At that point, it’s all upside for you, and if you two go your separate ways, you are not worse off than when you started.FYI, we help our Lonnie Dealers by encouraging them to ‘piggy-back’ on our advertising and traffic flow through the park by prominently putting up ‘for rent’ signs for them infront of their homes, and by collecting their rents and remitting to them if they want.  You’ll definitely benefit from others investing their time and money in your community.  Just be sure to not become beholden to them - especially the day after you close on the park.Good luck,-jl-

Thanks Jefferson, I am definitely aware that if he yanked out 5 units I sold or traded him that I would stand to lose 120k value plus the cost and effort to replace the trailers.