Dave Reynolds has posted a response to your message titled
We Have Purchased Over 20 M.H. Parks in 2010 in CREOnline Mobile Home Q&A.
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Dated : December 02, 2010 at 20:26:28
Subject: Re: We Have Purchased Over 20 M.H. Parks in 2010
What we have found this year is a lot of good deals out there from a culmination of over 10 years of sending out these postcards and letters and making cold calls and working with brokers. On top of that, the competition has lessened with many of the larger players sitting on the sidelines doing nothing. Is it crazy that we have have purchased over 20 parks this year? I don’t think so as all of them have met our investment criteria of both cap rate and cash on cash returns. As long as we are buying on current numbers and not proforma and at the right cap rates, we feel MHP’s are about the best place to invest for cash flow and appreciation.
Getting ready to send another postcard out to buy more homes. While we have filled about 200 lots this year from buying homes and moving them into parks we own we are looking to increase that next year as well. Of the homes we purchased, about 50 were brand new homes (from Clayton & Legacy) and 150 were repos.
I have been watching the mhp market for years and have never seen such a buying opportunity out there as I do now. It is not going to last forever so we are looking to capitalize on it now.
With the recession and future predictions not so good, there will continue to be strong demand for affordable housing. Our phones ring off the hook for homes at $495 per month (including lot rent).
Our goal for 2011 is to buy 30 parks and are well on our way with about 10 parks under contract set to close this by the end of January. It has been an amazing ride (literally over 40,000 miles in the car or pickup) this year buying and managing parks and look forward to what is in store for December and 2011.