First, Happy Thanksgiving to all!! I have a lot to be thankful of, including the ability to share ideas with a large community of like minded folks. Here is my question to all:
Provided you have a large capital source to support the growth, what are your top 5 ideas to market and sell homes to infill a park. The goal is to sell 30-50 homes/yr in a good market with solid demographics. The park would allow SW and DW.
The ideas can range from:
paying move ins
21st homes with big incentives (what really drives demand)
dealer spiffs (unless they are illegal)
free puppy if you buy a home
anything
Remember, you have capital backing so sky is the limit in terms of creative ideas!
Cheers
When I was seriously considering a MHP, I kept asking myself 1 question.
“Why do so many MHPs look stereo typical of the image as portrayed in most media?”
The answer I came up with, is most of them are older, run down poorly designed homes, that sit high up off the ground, people park where ever, not in assigned or formed parking spaces. Streets are nasty, no curbs and trash seems to be every where, probably because of client type. Just everything about them is exactly what code enforcement solves in stick built homes.
To get someone willing to buy a new SW, DW or modular in a MHP, they need to know their investment is protected. Many of these new homes are $60k and up- plus delivery & setup. Yes, I know the banks still have over 2 million homes as unlisted REO, but you are now competing with that as they are disposing of homes at prices that are in your range, and of course a stick built does retain value better than a manufactured, even though manufactured are better built.
I personally would put every one on an appropriately sized lot, on a pit so that all the utilities could be run underground, put in plentiful nice street lights, landscape to compliment, fixed parking, homes as close to the ground as possible for appearances, and of course nice high end canvas type awnings over both exterior doors…
I agree with you and I think what you talk about is the Achilles Heel of this industry. Despite all the talk of “affordable” housing, new homes are expensive and many parks (perhaps most) look like c**p. Who in their right mind would spend so much money on a depreciating asset to live in parks full of nasty people and run by a landlord who does not care?
Having said the above, you also nailed it on what can be done to turn the industry around. Make these places look great, attract better residents, enforce common-sense rules, and then, maybe, the industry might change. I am pessimistic because operators can make so much more money by not doing all of these things. I put a lot of time and effort into keeping my community looking good, yet I realize that I would net a heck of a lot more by not doing all that work. Not planning to stop because I take pride in what I own, but I do not think that is a commonly shared outlook amongst most operators.
You’re making some really good points about the perception versus reality of MHPs. A lot of the stigma comes from outdated parks with neglected infrastructure, which makes people assume all manufactured housing is subpar. Your approach—putting homes on properly sized lots, running utilities underground, adding street lighting, landscaping, and fixed parking—would go a long way toward changing that perception.
Appearance and presentation are huge for buyers, especially when homes are $60k+ and competing with REOs or stick-built homes. Even small details, like lowering homes closer to the ground and adding quality awnings, can make them feel more permanent and desirable. Essentially, investing in the environment around the homes is just as important as the homes themselves to make people feel their investment is protected.
If developers applied these principles consistently, it could really elevate the MHP market and attract a wider range of buyers.