This Mobile Home Park could be worth $80 Million?
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- Опубліковано 24 тра 2022
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Mobile home parks are in HOT demand right now. It’s a sector you should tread carefully in given current prices but when done right, can be an intriguing investment asset for a bunch of reasons. Meet my friend Justin Donald who used mobile home parks to replace his wife’s salary and then scale up his income. Let’s break down the broad idea of how to invest in mobile home parks. Providing homes for those who need it, and profits by doing well. I love when purpose and profits collide. Also - check out our free playbook on Mobile Home Park Investing here:
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All content on the Codie Sanchez UA-cam channel reflects my own opinions and should NOT be taken as legal advice, financial advice, or investment advice. Please seek out the guidance of professionally trained and licensed individuals before making any decisions. Some links in the description may be affiliate links. - Навчання та стиль
For many years over Christmas holidays I would take a lot of vacation time saved up throughout the year and dwell on entrepreneurial ideas. Finally one day searching for investment property I stumbled on a mobile home park for sale with no prior intention, no Mobile home Park education, no prior investment property and no prior experience as a landlord. After a few months of research it was still available and I made an offer with contingencies that kept me comfortable. More months of research into a lot of technical and scary info about the well, septic and environmental concerns. I used all of this to lowball them and got a great deal. It's a tiny park with two small houses and 12 mobile home spots. I've been busting a$$ on it for 5 years. I laid under filthy mobile homes repairing broken water pipes. I cut the grass for years, I fought with tenants constantly about the most ridiculous things. People have pulled guns on each other, kicked in their doors, screeching tires, pounding music, attempted to fake an accident and sue me, I'vegone to the emergency room from being gouged in the neck by a pet squirrel in the kitchen of one of my tenants. The ongoing construction, repairs, legal battles, lawyers, broken well for 7 days while multiple families are without water, screaming fits with a hoarder, threats from the township and licensing bureau and on and on and on. I sold another mobile home yesterday with only two more to go. These three will give me another $1,000 raise every month.
Maybe your story will be different. I am simply saying, be ready.
wowwwwwwwww thank you
Would you still buy more if you have the chance?
@@nicktran939 I'm consumed with the process of finishing a new house right now in a secluded beautiful spot in the woods with the intention of turning the walkout basement into short term rental. Still constantly dealing with trailer park issues and currently taking a tenant to court, this past week. But even though I'm consumed with the current projects, I still met a realtor this past week at an investment property with four houses and talking to the bank right now about financing that property. It's the same feeling I had when I was considering buying the trailer park which is that it's scary and I don't know how I would make it work. Ironically, it's the trailer park experience over the last many years that gives me extra motivation to know that I can probably make it successful. I just don't like risking hard-earned money.
So, the short answer isyes, I would do it again.
As a mobile home dweller, seniors on SS income choose MH living because that’s all we can afford. When “investors ” come in and substantially raise the lot rent we low income people are forced out with no where to go. I appreciate entrepreneurship but couldn’t you find a more ethical choice. I suspect the younger generation wouldn’t want to make profit by polluting the atmosphere because that would be unconscionable. Think about putting elderly folks out on the street the same way, please.
Exactly...invest ethically. If you enrich yourself on the misfortune of others, karma always has a way of returning your reward.
The fact that you kept the ant bites in the video is awesome 😎😂
Also someone who estimates a property or business with a variance of 20-80 million has no idea what they are doing.
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Mobile home parks can be a huge money sink. Not to mention, that a lot of mobile home park owners completely neglect the quality of life of their parks to the detriment of the residents. I've seen this countless times.
I own a lot of real estate varying from residential to commercial and wouldn't touch mobile home parks with a 100 foot pole. A lot of folks my generation (I'm 33) are suddenly thinking they're some gold mine, easy to get rich scheme because they can almost entirely neglect them. As someone who spent a lot of time in mobile home parks as a kid, I really resent folks like that because rather than approaching from a point of empathy they're drawing a hardline and money grabbing at the folks who are battling inflation.
Another thing to mention as Texas isn't the only place with "a lot" of protections for landowners: this varies substantially by county. It's almost entirely dependent upon the judges in your county and whether or not they typically lean in favor of the landowner or the tenant. In the U.S. it's a very subjective matter.
Agree on all the above. The ones I’ve invested in seem to be very focused on tenant improvements!
@@CodieSanchezCT Not a strong vote of confidence there. "Seem to be very focused on tenant improvements" sounds like you didn't do your due diligence there. For folks reading - don't invest based off assumptions like this, research and don't be afraid to get your hands dirty to get to the meat and bones of your investment so that you can confidently and definitely say "Yes" or "No" to questions like this!
@@christsciple Ive never invested in mobile home parks, but I think would be a gold mine for redevelopment, this is like vacant land but with cashflow, you dont find vacant land inside cities anymore, you can redevelop the land and change zoning to multifamily, commercial or sfh
@@wojak8297 Not necessarily. It's entirely dependent upon the local council/county. Many cities are currently prohibiting redevelopment unless its in the form of some sort of affordable housing development, which is another beast to tackle from the developers viewpoint. What if you purchase the park with intention to redevelop only for the city to reject your petition? Not saying it doesn't happen, but it's not very common unless you're replacing the park with affordable housing where the city might be more inclined to approve.
Agreed! Lots of good points Chris. People are really kidding themselves about MHPs. Lots of infrastructure problems. The owner is responsible for the water, sewer lines and streets. Lots of delayed maintenance. Many tenants are on fixed income. It’s laughable to suggest that the lot rents are in the thousands. Yes, if you are oceanfront in CA.
I'm going to make it a point to join Contrarian thinking fucking ASAP. Thanks so much for everything that you're doing, I'm learning so much, you're phenomenal!
As always another great video
I have been watching all of your videos, you changed my life .📈
Love your videos codie
Great business if handled properly. Was in that business for 10+ years. Built it with my dad from scratch. Laid the first water line for 56 lots.
LOL
BRINGS BACK A LOT OF MEMORIES.
Just may look at this again. Have a lot of experience in this arena.
Codi I hope you'll keep your glowing heart and your motive to help people I'm really inspired by you to be honest thank you so much for the mentorship I want to give back when I am successful let me know in the next 5 years or less if you start any charity work I wanna do my part to help your so incredible
Berkshire Hathaway does not buy Mobile Home Parks, they build Mobile Homes through the Clayton Homes division.
The Mobile Home park model is extremely predatory. There's huge money in it because there's nothing to stop you from pricing people on fixed incomes out of their slot rental or lease agreements, and then because they can't afford the $5000-$14000 cost to move their homes they forfeit them. Every time you raise rent another vulnerable person on a fixed income is forced to hand over their house. You can't beat the business model with a whole box of perfectly balanced sticks. All you have to be is ignorant and greedy, or a complete psychopath and you can just print money.
Really? How many parks do you own?
Love your content! Hoping to close on my 1st park this month!
Awesome info.
These people buy the parks, and then raise the rents saying they make "improvements", when often times they hardly do anything but raise the rent by 20 to 50 percent and even higher sometimes when they buy out the park. They take advantage of people who can't move their property because either its too expensive (most of the people that live in mobile home parks are poor and live paycheck to paycheck and it cost thousands of dollars to move the mobile home which most poor people don't have on hand) or their homes are most likely to be damaged in the process by raising rents on the land that is leased, and if the people can't afford it the land owners may claim any property that is left behind (which is usually the expensive mobile home that is left behind because its too expensive to move for poor people). This is clearly predatory, and shameful to promote as a way to make a living off of exploiting poor people.
Hello, as a property manager I just wanted to let you know you actually can’t raise the rent by 20-50% because of the mobile home regulations.
They actually are allowed to increase rents up to 10% without having to open up the mobile home fund and nobody goes this route.
It is far to expensive to move your mobile home but you can sell your mobile home for higher then it’s ever been now because 80% of mobile home communities were purchased by huge investors since the pandemic started.
Where your issue is, is that now that investors own mobile home parks, apartments, single family
Homes there is no place to go for the people in the mobile home parks because they are used to paying so little for rent. Sadly there SSI, isn’t increasing at the rate of the cost of living.
So when they try to move, they can’t afford anywhere else anyways.
@@whiskytt2822 I'm not sure what you mean by they cant raise the rent by 20-50 percent, from looking at the following link (housing.az.gov/sites/default/files/LTA-Summary-2017.pdf) it says there are no limits to for landlords and their rent prices, however I will say that when someone comes into a park and buys it, they must honor the lease, but after the lease expires they may increase the rents as high as they want unless there is something that I'm missing like maybe a rent controlled area, but I don't think most mobile homes are in rent controlled areas.
@@jakobrassi9816 the department of housing handles single family and multi family homes not Mobile home parks.
The mobile home department, has regulations that state that landlords (in the mobile home industry) can not raise the rent more then 10% or they activate what is called the “The Mobile Home Fund” where tenants get to access this fund in order to move there mobile homes out of the park for free. Once this is activated it allows all of the lease holders to do this.
Your standard rent increase across the board ( all property management ) used to be 3-5% but after the pandemic it’s been free game in single
Family rentals and apartments.
Mobile home parks have pushed their increases to 7-8% to stay below the 10% regulation. Obviously if you go over the regulations every tenant would move out and that’s not how property management is done.
With every eviction, you must bring in a new tenant to cover the loss of income. So you can’t have mass evictions with out mass home sales.
@@whiskytt2822 Hey I was looking into the law, and it is at 10% plus the most recent CPI from the previous year in Arizona which is the limit which would be over 10% because of inflation, also there is a cap on how much someone can get out of the fund for moving which is 7500 dollars maximum which isn't very helpful when most of the time when you try moving your property it isn't even movable at the time (so people still can easily get trapped). You can view an overview of some of what I'm talking about from the following website: www.azag.gov/sites/default/files/publications/2018-06/Arizona_Mobile_Home_Parks_Residential_Landlord_Tenant_Act_October2014.pdf
quick search (using ctrl + f) "ten per" and you should be able to find the line that talks about what you are saying plus the CPI, its not just the 10% limit (which is big because then increase can be up to 19 percent without going over the limit or even higher depending on inflation). Also I would think that if someone wanted to maximize profits using the kind of predatory tactics many companies use today they would target lower paying mobile home parks and raise the rent sky high (to squeeze poor people for every dollar they can get by maximizing potential income that has not been tapped into yet), also people may not be able to do much because the fund that you mentioned earlier is only used for moving expenses, and if you CAN'T MOVE YOUR HOME it doesn't matter how much is allocated towards moving from the special fund (that's why the movable home statistic is important, and the current state of mobility enables predatory practices), it's worthless. Also there are loop holes to getting around the regulations, they can be helpful for getting around the states grip on rent control, but It's not worth getting into, all I know is that this is a problem, it is predatory/unethical, and continues to put more pressure on the poor Americans today living paycheck to paycheck.
These thoughts are somewhat unorganized, and there may be some details missing but it is the UA-cam comment section, so it is what it is. Also it is nice engaging with you, I didn't know there was a 10% regulation limit before owners can tap until the special fund for moving expenses, with the new information added it doesn't stop the problem, and I have seen peoples mobile homes rent in mobile homes parks get raised by 20-50 percent and they can't do anything because a lot of the times their homes aren't even movable or they don't have the money to move.
@@whiskytt2822 my parents were doubled at one time.
I was pissed. Bought a house moved them out and sold there mobile home.
Another large issue is financing the purchase of a mobile home park. All the banks I called for a loan quote (back in 2018) wanted 30 - 50% down payment with relatively high interest rates or some very aggressive 15 year balloon loans. The vacancy rate and rent rolls did not seem to convince the bank it was a sound investment. In the end my lender backed out because the small park I was looking at (15 or so units) had gravel roads instead of paved ones.
With the average mobile home park being +500k it is hard to find a deal the average person can finance and live nearby.
Because mobile home parks are a bad investment. But I like living in mobile home parks bought by small investors. They don't learn the law, and you as a tenant can make bank from mobile home park landlords. See, when they were low income housing, the tenants couldn't afford to get a lawyer. Now that parks require more income that means more tenants can afford attorneys.
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Another thing to look for is location.
A EF3 to EF5 comes through and all those mobile homes are literally blowing in the wind.
I’ll stick with ice and water machine vending.
9:48 Did she say there were 51 states?
She did…🥴
I would really like to read the Cashflowing From mobile home parks playbook.
I love it 🔥🔥🔥🔥
Chris Rood says own the homes in the park so you can charge the rent. I'd put a clause in the lot rent that once the tenant owned the home if you financed it for them they all have to move it out once they own it outright.
Can you talk about how much you bring in profit for all your businesses?
maybe I think about it too much, but I think they key to a good mobile park would be upkeep and not allowing people to slowly ruin it. Also I used to live in a mobile home park and I moved out because there was no storage. If I could do a mobile home with a basement I would be happy(even a single wide).
Loved the video and explanations! The MHP business is fantastic and a great way to generate cash without the hassles of landlording. Any questions feel free to reach out.
What do you think about purchasing self-storage facilities? Is purchasing a currency exchange a good business?
I'd rather live in a co-op mobile home park.
For most people, with an occupancy rate of 30 or 40% is a pass, this is EXACTLY what I am looking for as I know what to do with these.
What would that be if you don't mind me asking?
I have lived in mobile home parks never thought about buying one They can be so nightmarish how would think about investing in one of these when a mobile home itself well from my experience is built pretty crappy
I have always wants to buy land and rent out RV spots like a KOA for snowbirds and vacationers travelers here in Arizona also have a few small cabins for rent daily or weekly with a catch and release fishing pond. Put put golf ⛳️ with a small convenient store to sell
fire wood, ice, marshmallows,ext.
Hello, I've been a follower for a bit now. I live in Canada and I'm wondering what website I can use to find businesses for sale??? Any suggestions would be appreciated! Thanks!
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You should go to Ohio and interview “Investment Joy”, he may really benefit from you and you from him.
I really think that would be great content for you-he has some laundromats also.
Would hiring a property manager make running these trailer parks easier?
How many fire ant mounds do I need per lot? 🧐🤣 great vid!
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Currently have one rooming House business but only bring them like 5K a month
l'm not investing in texas, the ants are too big, what make is your phone, l want one that shows when someone is talking like yours...love the video
You're about 15-20 years behind the game in Austin. 80 mil for Paisano is even out of Havenparks range. Havenpark is almost always the highest bidder. The industry hates them.; park owners love them. The big corporations have purchased all but one of the big mhp's in the city of Austin. These corps tend to focus on the larger communities of 100 plus lots. Paisano is on the low side of the big corps preference though they have been bought out as well.
San Antonio may be your best bet though the market there is completely different than Austin. There may be some of the larger mom and pop communities left there. The next move would be purchasing several smaller communities in a city.
I guess the corps will start buying out each other soon if they can keep using OPM (other peoples money) money to overpay for these communities. To pay top dollar the rents must go up and then on top of the overpaying corps; the cost of the county ever increasing property taxes are passed on to the tenant. Everything seems to have been gobbled up by the corps all around us in the last twenty years. It's depressing.
I would build a mobile home park. That would be more my wheelhouse. Each phase of development increases the value. Just buying the property and getting permits raises the value, setting up utilities raises the value.
I'm actually thinking about doing this. Buying a Sfh with 6 acres already zoned commercial. 15min from the bay/ boat launch 1 hour from beach. Lots of campground around. Please chime in if you think it's good idea or not.
Another question. What if their is no Mobile Home parks in my area?
Hey Queen Codie
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This is so dystopian, your trying to profit and gouge out of the poorest people in the country. You're not buildilng new housing, you're buying established plots and raising rents without investing in making a better product.
@codie. u should do a video on this owner of Foxtrot Inn in Coldwater, KS. He runs a few businesses and finance it thru owner finance, give or take. Thank you your video but me seeming a person doing what u show on your video just hit home.
👆
Let's talk, I have something bigger to introduce📤📤📤
Theres only 50 states in the US and others are Territories smdh.....
🙌🙌🙌
hi codie praise god
Ok, so it is not only me that hits the walls on ins and outs on commercial property sales… how the heck can I offer when I have zero stats to make a valuation with😂😂. Grrrrr
try looking up investment joy here on yt he has a mobile home park, he took "meet kevin" around it and his some of his other properties in southern ohio, investment joy also has 2 or 3 laundromats and loads of rental houses as well
❤️
Hi there.
Aziz from Somalia..do u have 51 states in the US?
May be it was just 50 !
Killeen wow It’s an hour away from Austin. Soldiers need affordable housing.
You are so smart young lady😘 I love watching your videos, thanks.
The ratio of 70% is good but there is another ratio that is much better than 70%
Ants in your pants 😂
I feel for ya 🙏
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Only 50 states in the USA!
Please drive safer you are a very valuable asset.
Yes it's a good investment if you have a lot of money yo put in
Land prices is crazy real state is very high
To invest in land when the resk state market is higher is only for the millionaires.
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I remember buying a 50 unit Mobile home park with bitcoin earnings back in 2018 at 22 years... right down the street from my house. YT folks deff fumbled the bag on mobiles years ago. Mexicans up one
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Those ants have good taste.
Why you never talk about failed projects ?
Yes but you have to realize the market was at a low at that time, 2012. Now we are either at the top or nearing the top. Why buy now? Just like all these investors that are making a killing in the stock market. Of course they are, we are in a bull market! Duh! Buy low sell high? We are at the high end of the market. I saw this in 1999 and again in 2007. And yet again now. Nothing changes, history does repeat itself. If you do your homework you will make money and keep it to reinvest always. I've been trading the futures markets for 23 years and I see the patterns. I heard this in 2007 that there isn't enough homes and people will continue to buy. That's not how the market works. Eventually money runs out and everything crashes. The pattern is broken and after a few years the bull market starts again. Everything is timing. Love your cartwheel! I am seeing more and more videos like this where people are buying and buying. This is a clear signal. It's called the shoeshine boy indicator. 🙂 But guess what?! This will happen again in 10 to 15 years. And people will always blame the poor people and immigrants......and school teachers, lol. Also, those big institutions that are buying up mobile home parks are buying them for the land. They will eventually kick those people out and start building. You meant Blackstone, not Blackrock? Just ask Sam Zell. They want to eventually get rid of mobile home parks. Some of these parks are sitting on prime land.
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With tiny home tenants you'd get 2-3 in 1 mobile home spot
I love how your calling them mobile home parks instead of what they really are aka trailer parks lol
Just dont be one of those shady MH park owners who sell the mobile home but in a few months raise lot rent or take the lot back. So rent to own owner cant afford to move MH or pay lot rent & leave them homeless. This is disgusting, disrespectful & dehumanizing. This type of business needs regulations to protect people. buyer beware
Who is paying $2,000 for a mobile home lot? The absolute max I've ever heard of was $700
Hello could i work for you maybe solve a problem 😃
The amount of misinformation in this video is so ludicrous...
Sorry but if you are buying mobile home parks in single digit cap rates you don't know what you are doing. I average around a 15% cap all in on mobile home parks. The guy you are taking to doesn't know MHPs, talk to Chris Rood or Corey Thompson about mobile home parks.
Welcome to Texas, AND FIRE ANTS!!!! Ahhhhhhhh!
And other bullshit story. “We needed a way to replace my wife’s 40-50k income.”
Then his first two deals are at 1.5-2 million.
If your worried about losing a 40k income in the family. You don’t have the resources to finance 2 million.
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They needed to replace it to go traveling full time or at least for a year. Her boss just wouldn't let her take time off. Though she could've just taught online I guess. But maybe she was fed up of the job. So they had 2 incomes and probably saved up before for the travel fund.
Girlfriend you are a total badass. I love your content, it is very informative. ❤️❤️❤️💯💯💙🙏🏼
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51 states?
Despite the economic fluctuation, I’m so excited I’ve been earning $45,000 from my $10,000 investment everyday 10days.
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have you invested in a mobile home park Codie??
Look at the comments under these videos...all Crypto spammers and porn link accounts.
This is a scam. Dont listen to these people lol.
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Big fan of your work!! I found you on Instagram! I am hoping to start a small hockey shop 🏒🙌
Best of luck! Hope everything works out for you and can open more shops in the future!
@@fernandovaca7970 thank you!! I have 85k+ followers on IG and reach 1M+ monthly impressions…. Just need to start something up for myself now 🙌
@@ebyrnes97 that is good! Already have a fan base so you’ll definitely get a lot of traction for your shop, especially if you make a an online show