Mobile Home Park Owner News
Published by: Jim Carmichael, January 2, 2006
HAPPY NEW YEAR!!!!
It’s been a year since my last newsletter. Sorry for that. But there hasn’t been much to write about for Mobile Home Park Owners. I haven’t had a different conversation with any park owner in the last year and a half really. Velocity of MHP sales has been almost nothing. Appraisers have called me for comps because they can’t find any over 100 pads since I sold a 315 pad park in Louisville in late 2004.
Additionally, I don’t like doom and gloom writing, anyone can do that. I believe that if you write about a problem, you should have some sort of solution. We all know about the financing problems. Until the secondary market for our “paper” returns, vacancies will only continue to rise or be stable at best. The cash and good credit market is only so big for our product.
The solution help your state and national association any way you can, money, letters, volunteer, whatever. There has to be some political pressure applied to get FANMAE back to the table. To make that a success dealers must become more accountable to the lenders. They must not “pad” the deals for down payments. Some assurance would be to make the loans full recourse to the dealer for the first 1-3 years. If the dealer doesn’t believe in the customer why would the bank?
For those of you that are cash flowing a plenty, you have a few options while you wait. Either focus on marketing to a higher end resident. Which means cleaning up the park and making it an astetically pleasing, safe place to live. Advertise your “neighborhood”. Or just keep doing what your doing. Or Sell. Luckily there are still buyers out there and there are some great 1031 exchange opportunities available to you the seller.
If the secondary market returns and the mortgage rates keep going up, MHP owners will again be the envy of real estate investors. Mortgage rates are going up. But until FANMAE returns, the MHP owner has no outside support to fill the vacancies. The solution is bigger than any one of us. It will take the collective effort of the industry to better regulate dealers so we can show that we have learned from our mistakes.
I am always happy to discuss my newsletter or positions and appreciate all of the feedback I receive. First Commercial Realty, Inc is licensed in OH, KY & IN with 1031 exchange opportunities nationwide.
SEE YOU AT THE SHOW
I hope to see all of you at the Midwest Manufactured Housing Show in Louisville, KY on January 17,18 and 19. I will be walking the aisles checking everything out and looking to meet you.
Just look for the big guy with a flat top haircut. Come say hi if I don’t get to you first.
Check us out on the web at www.firstcommrealty.com
First Commercial Realty, Inc.
Our goal is to help our clients find the best property in the best location that will maximize their return.
Celebrating our 25th year in business, FIRST COMMERCIAL REALTY, INC. services our client’s needs in the areas of sales, leasing, development, investments, site selection, & buyer/tenant representation. Our agents specialize in their particular field of expertise.
These 25 years of experience, creating good investments for our clients, giving the best service and analyzing the total deal, is what we have to offer you. Anybody can sell a listing and get it financed, but does the deal make sense? We sell and lease shopping centers, office complexes and warehouses working with developers and users as well as listing and selling income producing investment property. We are “dealmakers”. A lot of our business is repeat because we do what’s right. First Commercial Realty is licensed in Kentucky, Ohio, and Indiana.
Some of our Northern Kentucky clients have included CVS, Turfway Retail Center, anchored by Sam’s Club and Wal-Mart; Cinergy Plant; Willis Music, McDonald’s, Cracker Barrel Restaurants, Applebee’s, Microtel, Super 8, Motel 6, Courtyard by Marriott, Kinko Copies, Burger King, Subway, Burlington Health Care and many others.
First Commercial Realty is a continuum of self-motivated hard work and we enjoy helping clients achieve their investment goals. We believe in the ethics and moral responsibility that goes along with being a real estate broker. We would like to help you find your commercial real estate.
If you are selling your property, expanding your business, seeking a new location or looking for investment property in Kentucky, Ohio or Indiana, you need one of our dedicated commercial real estate professionals to represent you.
F1RST COMMERCIAL REALTY, INC.
8174 Mall Rd
Florence, KY 41042
WE ARE NOW ON THE WEB AT WWW.FIRSTCOMMREALTY.COM
Celebrating our 25th year of Professional Service
Jim Carmichael has been in the manufactured housing industry for over 11 years. He has spent time in retail sales with Oakwood and Clayton and later managed a sales center for Clayton in North Carolina.
Jim has a unique perspective of community ownership. He knows where the homes come from and who lives in a MHP. He has devoted the last several years to learning the operation of communities and what investors look for.
Proficient at the 1031 process, Jim will help you after the sale as well.