Mobile Home Park Owner News
January 14, 2004
Here we are at the 2004 Louisville Show and as MHP owners and investors we are all wondering the same thing. When is it going to get better?
If someone tells you, let me know. I think we have finally hit bottom and are starting a very slow rebound. Granted the rebound will have some dips but I think the worst is over.
The MHI is doing everything they can to get the secondary market back. And apparently Wallstreet is listening. Once the lending practices are set up the way they should be (and should have been) and accounting is standardized, the lenders will come back.
This won’t happen overnight. It could be another three plus years before things are better. But it is coming.
What’s working now?
As I stated in my last issue, there are only three ways to make it. And then I find out all three of my theories are already being practiced right here in Northern Kentucky.
- The down and dirty trailer rental park is doing as well as ever. They don’t look pretty, but they make good money.
- The family park can work only to the extent you are willing to get into the retail end of the business and finance the homes yourself (i.e. SSK, MC Equities, etc.)
- The high-end class “a” community is doing well (i.e. Crestview Lakes Villa). Here you can see a quality community. This segment of buyers appreciates that. And that market is the growing one. Retirees cashing out are the growth markets of the very near future. Are you in a position to attract them?
Future issues will go into marketing your community and positioning for growth.
You must look at your park as an investor’s lender would. Whether you plan on selling or not. Some times stuff happens, you will want to sell. Will you have your property positioned for attracting the buyers to get the maximum dollar for your property? Buyers are not banging down the door anymore and they are not going to over pay. There are too many other types of property that aren’t in such a bad position right now. Lenders are still willing to go to a 9% CAP on current real numbers, not proforma.
Please email me or call me with your impressions of the show. I am going to try to put together a reception of sorts for the 2005 show for just park owners/ investors and the ancillary services, lenders appraisers, surveyors, etc.
If something like this would interest you or if you have any ideas or, even better, you would like to help me with it, please call me.
I think something fairly informal. But if time allowed maybe a 20-second commercial from each person in the group. What do you think?
Contact for comments, input or information
F1RST COMMERCIAL REALTY, INC.
8174 Mall Rd
Florence, KY 41042