|
Mobile
Home Park Owner News Market
Conditions
Haven't we all been busy?
Money hasn't been this cheap in a long time. A lot of refinancing is going on.
But where is the market really? Let's look at the facts:
1. Vacancy Rates are very
high, averaging 15% to 20% in most markets.
2. Shipments are still way
down. 3. Only a couple of lenders will do chattel financing for a MH going into a park.
4. Mortgage rates are so low;
it doesn't make sense for a consumer to move into a MHP.
5. The industry is going
"residential".
Bottom line? There is little or no support for the MHP's. I tried to
warn everyone this was coming. One year ago to even six months ago, your park
was worth 5% to 15% more than it is today.
We are near the bottom, but it is going to be 3-5 years before the dust
settles. And the picture will be quite different when it does. So what now? I am about solving problems. I see a few options available to you as the owner of a MHP.
A. HANG IN THERE. And
upgrade as much as you can while you wait. If you have the reserves available, I
strongly recommend it. Quality of life is going to be the #1 marketing tool/
service in the next 3-5 years. B. Open a dealership as part of your community and finance homes yourself. You will need some capital and a good salesperson. You will need to manage it as well, but there are huge returns there if you work it.
C. SELL while you can.
If your quality of life depends on this asset, it is going to go down for a
little longer. If your park isn't as nice as the one next door or you don't
have the reserves to upgrade, your value will be dropping too.
The recent mergers in the industry mean something to everyone (Hometown/
Chateau & Berkshire/ Clayton). We are in an economy of consolidation. I do
not believe Hometown or Berkshire overspent. They are very frugal. How will you
look in the future to a big company? If your position isn't going to be
stronger tomorrow (3-5 yrs) than it is today ... well, you can hear the great
sucking sound. New Services
I have had a great education over the last
few years and the 9+ years in the business helps too. I get asked for advice on
purchases or next steps frequently and I enjoy it thoroughly.
Therefore I have expanded my services to accommodate the growing need for
change.
My primary function is investment associate. Listing and selling MHP's
is my specialty. However, Site selection and management is a growing part of my
business. As well as consulting all the way through the process. If you have a
need or are interested in how I can help you or my fee schedule, please contact
me.
Product review
At the Louisville show I picked up a product you should have. If not this
one, something very, very similar to it. It is the MHC Management System by
Syrasoft. EASY to use and navigate through. It shows and does everything I have
ever conceived needing and then some. If you didn't get a sample call Joe
Grotto @ 1-800-817-7706 or visit their website www.syrasoft.com. You need this
system. Contact
for comments, input or information
Jim
Carmichael (859) 371-9000 fax (859) 371-6365 or jcarmichael@firstcommrealty.com.
F1rst
Commercial Realty, Inc.
8174 Mall Rd
Florence, KY 41042
|
