Mobile Home Park Investing Tips – 1 to 5

Our Weekly Mobile Home Park Investing Tips.  Along with comments from investors.  Enjoy!


Mobile Home Park Tip #1

You need to make some initial changes to your thinking and behavior to improve your chances of successfully removing the obstacles to mobile home park profitability.

First, you need to slow things down.  You will notice that a lot of your tenants demand instant response to their problems.  They call you at 2:00 am and demand that if you don’t respond in ten minutes, they will call the authorities to complain.  You have to immediately end this “rapid response” program.

Many of these tenants make these threats because they know you’ll make a bad decision in their favor if you don’t have time to think.  You have to slow the business down.

The only problem in a mobile home park that you need to respond to immediately is a dire threat to safety, or a problem that could rapidly escalate into a significant expense item.  For example, a water leak, other than the rupture of a main line, can wait.  In my markets, water costs $3 per 1,000 gallons.  While waste is bad, a water leak is hardly a reason for immediate attention.  We never repair water leaks on weekends or at night because the extra cost of doing so (plumbers charge significantly more during these times) is always more than the cost of the water usage itself.  A sewer, back-up, however, requires fairly immediate attention because, if left alone, it could cause you a big clean up bill, and even penalties from the city.

There is no tenant issue that demands instant service.  If your tenant demands quick service, then suggest to them that they move to a Ritz Carlton hotel and the concierge will be happy to jump through hoops. 


Mobile Home Park Tip #2

At your park your new policy is that you will get to things slowly and methodically, using proper decisions.  To help you in your “slow things down” program, make yourself less accessible.  Don’t ever answer your phone for a tenant (caller I.D. is required), and let all of their calls go to voicemail.  And then don’t call them back for a day or so unless it is super important.  This will gradually send the message that you won’t be rushed any more, and that you are not that interested in 24/7 servicing.

While you are slowing things down, you have to prepare yourself for making tough, unpopular decisions.  You need to develop an alter ego who enjoys confrontation and unpopularity.  If you are like me, you have enjoyed a fairly prosperous life surrounded by intelligent, rational people who abhor unpleasantness.  So to get in the mood for being the reverse of your natural personality, you need to develop a “Hollywood” quality alter ego of “Mr. Nasty”.  Initially, you may need some crutch to put you in the mood.  Mine was an old WWII army helmet.  When I had to make unpopular decisions and phone calls, I would put the old helmet on (in the privacy of my home), psych myself up, and start making nasty calls that would shock George Patton himself.  Once you have established your alter ego, the need for the props go away, but you can still keep it around as you laugh about those bad times later down the road.

The next adjustment you need to make in your mind is to assure yourself that you are the boss.  You own the park.  The tenants do not.  Despite your bank loan commitments, you have the right to shut it down if you so desire, or at least to evict each and every person in the park if you get such a whim.  And don’t ever forget it.  When a tenant gives you perpetual grief, you can tell them that it’s your park and you’ll do as you please, as long as it’s within the law, and you can kick them out if they don’t stop bothering you.


Mobile Home Park Tip #3

Comment from Previous Tip in this Series:


I have to disagree whole heartedly for a number of VERY good reasons.
You never need to get nasty.  Why get nasty when it is never your fault.  “I wish I could help, but it’s not up to me.  It was not my decision.  It was owner.  I would love to help, but there’s nothing I can do.”

Why get nasty.  Who needs that stress, and who needs to put themselves in that kind of danger.  I know a real estate investor whose property manager was stabbed in the heart when confronting a tenant over rent.

Another, even better, reason to take this approach is and I hope property owners know that they MUST own the park in an LLC, Corporation, or limited partnership, NEVER in their own name – if everyone knows you own the park, then guess who is the first to get sued?  If you are “just the manager” for ABC Park Management, Inc. who happens to manager the park for Sunshine Properties, LLC, then when someone trips and falls, you are not the first one they think of when the lawyer starts suing.

So, you never say you own the park.  That way all the unpopular decisions are not your fault, they are the fault of an unknowable, distant, unreasonable, and unreachable owner who must be appeased.  There may be times when you can even be a good guy and bring a case before the owner on a tenant’s behalf.  There should never be a reason to be nasty.  It’s stressful on you, on them, on the properties they leave behind, and it can be dangerous, physically and financially.



I appreciate your comments on this tip series.  I agree completely that it is always better to start with a more civil approach and see if things can be resolved.  If the resident does not respond with the civil approach then you may have to move on to other means of enforcing the rules or rent collections.  But always be smart about it with you or your manager’s safety in mind.  The context of the Mr. Nasty approach was if you are in your office (as the owner) making phone calls from a distance.  Maybe this approach would be better labeled as Mr. Firm.

I have heard similar stories of property managers and owners that have been threatened and in some cases harmed physically like the property manager you mentioned.  In one case, the owner was actually shot and killed over a problem with a tenant.  Your advice is right on point and it is never worth putting yourself or your managers in danger over rent.

Your thoughts on owning the park in an LLC, Corp, or other entity is also very important.  We will have an entire series of tips on this point but for any investors or owners reading this, never buy an investment property in your own personal name.  Many investors still do this and are sorry later when they get sued.  That extra shield definitely allows me to sleep better at night on my properties.  Great advice and 100% right on.

You last comment about not telling people that you are the owner and making the owner sound like a distant and unreachable entity is also a great idea that I have used ever since my first few parks.  I will be the first to admit that when I was first starting out, it felt good to walk around the park and have people come up to me and say things like “you are so young and must be rich to own the park” and similar things.  However, that good feeling would have changed quickly had I been sued.  I am satisfied now to visit my parks in small rental cars and old jeans.

Thanks again for the great comments and disagreements!


On to the next part of this series…

I bought a park once where the tenants had been terrorizing the former owner, calling him at home at all hours of the day or night complaining that the neighbor was making too much noise, etc.  This owner had let the tenants run all over him, and in doing so he had empowered them to get the feeling that they owned the park and he was their servant.

When I took over, I got sick of these people almost immediately. I told anyone that called in that obviously they weren’t happy and that they needed to find a new place to move their trailer.  Of course, it costs thousands to move a trailer, and pretty soon the roles changed and I became the boss, constantly threatening to have them move out.

The final adjustment you need to make before starting my program of redemption is to swallow your ego and stop being the owner at least as far as everyone in and related to the park will know.  To start your plan, you will need to announce to the whole world that you have a new partner, or have hired a consultant to make major changes to the property.  This will already get them braced for some big shake-ups to come.  It also allows you to slow things down even further  now you have to ask your phantom “partner” for his approval.  Then you can blame the new partner for the most unpopular decisions  even to city inspectors.

Once you have made these four mindset adjustments, you are ready to begin the process of reclaiming your property and sanity.


Mobile Home Park Tip #4

Comment From Last Tip:


Thanks for the tip regarding the property manager / phantom partner.  Your approach is one that I’ve been using successfully for years now.  There are only a hanful of tenants in all my parks that know I’m the owner (or for that matter even know me).  Of those tenants who have somehow discovered that I am the owner, I always let them know that I am the managing member whose sole responsibility is to protecting my “partners” interest.  I let them know that my partners ownership interest far exceeds mine and that I answer to them.  It has been an effective strategy in diffusing some situations and also in enforcing park rules (such as strict adherence to timely payment of rent).  For those people who like the recognition of being the owner, I would suggest asking yourself  if you’re in the business for the notoriety or the money.  For me the answer is always the money.



Finding a Manager for your Mobile Home Park:

When I am taking over a park and need to find a manager, I always start by asking the previous owner if he knows of someone that he would recommend that currently lives in the park.  This is a question that he will not have a good answer immediately but if given some time to think about it he/she can usually come up with a few recommendations.

In the rare case that he has no recommendations and you can’t find a suitable current resident to run the park (by sending out a letter or posting a flyer in the park), then you will have to look elsewhere.  Of the 100 or so managers that I have had, I  went outside of the park for a manager on only approximately 10 occasions.

I have three places that I currently use and have never had a problem finding several qualified managers for each position.

  1. Place an ad in a local newspaper advertising the position.
  2. Place a Free ad on under our employment section.
  3. Place a listing on Craigs List.

If you need someone fast the best avenue will be the local newspaper.  If you have some time and want to find a manager or management couple that has previous experience, then the and will bring in the better candidates.


Mobile Home Park Tip #5

Comments From Last Tip:


Great series of tips,

The absolute best managers I have ever had were a park residents.  They were a couple that lived in the park for several years and really enjoyed the life style our park offered.  Their enthusiasm was transmitted to the other residents, especially when they started to hold monthly community cook outs,  organized and led softball and bowling teams, with the same name as the park, to compete in a local leagues.

We provided the tee-shirts with the parks name on the front for the teams and hot dogs for the cook outs.  For next to nothing we found the best source of local promotion that we could ever find, current resident excitement about being representatives of their community. 

Keep those tips commin’…your making e-mail something to look forward to again.

David Oxhandler


Thanks David I appreciate your comments.  If you haven’t ever visited David’s site… you should visit it.  He has many great articles and other resources for the Industry.


Mobile Home Park Managers… Continued

Once you find a potential manager for your mobile home park, the work is still not over.  Questions such as background checks, credit checks, how much to pay them, what their responsibilities will be, are they an employee or contractor and others still need to be answered.

Should you obtain a background or credit check?  The right answer to this question is probably yes.  Does everyone do it?  No.

My personal thoughts on this are that you should obtain these background checks if you suspect any reason to do so.  I have only performed a few background checks over the years and have been fortunate in finding good managers for the most part.  I currently have some excellent managers that I am sure have terrible credit.

When I am interviewing potential managers and making my selection I rely on my gut feelings more often than not.  If the potential manager needs this job in order to survive that has been a good indication that they may not be a great manager.  They will constantly be looking for a raise and if they need money that bad, then it opens the door to theft.  My worst managers have been the ones that did not have at least one spouse working elsewhere and their compensation was only from running the park.

Other indications that I have found of poor quality managers have been those that are constantly talking and say they know how to do everything.  They have worked in every trade known to man.  Once they get the job, you find out that they don’t know how to send a fax or replace the inner workings of a toilet even though they may have been a plumber for 5 years.  I would much rather have someone that knows their limits and is not afraid to disclose those limits up front.

So, a background check is a good idea but the real key is interpreting what they say they can do and forming your opinion of how well they will do it.

One other note on the background checks…  The reason that you should obtain this stems into potential future liability issues.  You don’t want to hire someone as the manager that may have had issues in the past as sex offenders or other crimes that can come back to haunt you.  If you hire an offender and then he/she has a problem with one of your residents, you don’t want to face a potential lawsuit.


To see a list new and used mobile home dealers.
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To view the newest Mobile Home Parks for sale.
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To get a fast quote on Mobile Home Park Financing.
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By Dave Reynolds and Frank Rolfe

Dave Reynolds and Frank Rolfe are mobile home park investor and together own and operate over 100 parks. Frank also leads regular Mobile Home Park Investing Bootcamps through

Mobile Home Park Financing Alternatives

Announcing New Alternative Loan Programs!

Financing for Parks Not Serviced by Conventional Lenders


  • Development Loans for Acquisition and Improvements
  • RV and Mobile Home Hybrid Parks
  • Alt-Bank Financing


Development Loans – Acquisition and Development Loans enable investors to unlock income potential of underperforming parks. Loan-to-Cost financing allows additional funds to be added to the initial loan amount to make needed improvements. Bridge loans provide interim funds to develop and stabilize the park to eventually be refinanced by a permanent, conventional loan with attractive and long-term features.


Development Loan Terms:

60% to 70% Loan-to-Cost (LTC)

5.50% – 6.00%, 3 to 5 Year Fixed Rates with 5 Year Term

Adjustable 5.25% (Prime + 2.0%) for 5 Year Term

20 Year Amortization, No Prepay Penalty


RV and Mobile Home Hybrid Parks: (>50% + short-term and transient rentals required).This loan offers an innovative use of SBA financing for RV Parks with Mobile Homes. Program provides high leverage and low rates and funds for improvements. Can include park or tenant owned mobile homes, motel units, resorts, cabins, RVs. Government insured loan program allows for more flexible underwriting.


Hybrid Park Loan Terms:

75% LTV, 5% ARM with 25 Year Amortization and Term, 3 Year Prepay


Alt-Bank Financing – Portfolio lenders with liberal underwriting guidelines and loan programs. The park income, quality and strength of borrowers are main qualifying criteria. No restrictions on unit type or operating structure: park owned, contracts, RVs and lower occupancy rates can be accepted.


Alt-Bank Loan Terms:

60% – 70% Loan-to-Value (LTV)

5.50% Fixed for 5 Years + 5 Years ARM @ Prime + 1.0% for 10 Year Term

Adjustable Rate 4.50% (floor) @ Prime (currently 3.25%) + 1.0%, 10 Year Term

25 Year Amortizations. 5 Year Step-down Prepay Penalty.


Getting Started


Property and Investor Profile Forms (attached)

Pictures, Rent Roll, 3 Years of P&Ls + YTD 2014


For a Confidential Review, Call or Email

David Harley, Senior Loan Consultant

Office Phone (415) 888-3458 and Cell (415)250-5300

NMLS 243624; BRE 01334092


Blue Point Commercial Mortgage:provides financing, investment and analytical services for Manufactured Housing and RV Community Investors and Industry Professionals. Loan programs are available through our nationwide network of banks, financial institutions and private lenders. David Harley has over 10 years of industry specific experience.


655 Redwood Hwy, Suite 311, Mill Valley CA 94942



ARA’s National Manufactured Housing Group Executes Sale of Lake Bryant Manufactured Home Community in Florida

ARA’s National Manufactured Housing Group Executes Sale of Lake Bryant Manufactured Home Community in Florida


Buyer Acquires a 180–Site All Age Community in Ocklawaha, Florida


Ocklawaha, Florida


(June 16, 2014) — Atlanta-headquartered ARA, the largest privately held, full-service investment advisory brokerage firm in the nation focusing exclusively on the multihousing industry, is pleased to announce the sale of Lake Bryant Manufactured Home Community in Ocklawaha, Florida.

ARA National Manufactured Housing Group’s Andrew Shih and Brian Vita (based in Austin, TX) and Todd Fletcher and Jon Shay (based in Denver, CO), represented the institutional Seller. The property was sold to a private owner/ operator.

“It was a rare opportunity to acquire a Recreational Vehicle (RV) Community in Florida that also has a Manufactured Home (MH) component all in the same property,” said Shih. He added, “The MH side provides stable, annual cash flow to help with the slower off season months when the RV side slows down.”

“With over 15 offers on the property, there was tremendous interest from investors wanting to acquire

this REO asset due to the outstanding management turnaround opportunity. The community was offered at an attractive basis with the potential to improve RV operations through a comprehensive marketing effort,” said Fletcher.

Constructed in 1969, Lake Bryant is a large, scenic, low density, REO community with 84 MH sites and 96 RV sites and has the potential to expand. The property is situated on beautiful Lake Bryant in the heart of the Ocala National Forest which offers 383,000 acres of pristine forest land and home to more than 600 lakes, rivers and springs. Amenities offered to residents and guests include a private on-site beach with lake access, a new boat ramp, a spacious clubhouse built in 2004, a community store, shuffleboard, horseshoes, volleyball, and basketball.

The residents of Lake Bryant enjoy Easy access to Ocala, FL, 22 miles to the West and the Village of Ocklawaha, only 10 miles to the South, offering options for dining, cinemas, bowling and golf. The community is in close proximity to some of Central Florida’s most popular vacation destinations, including Daytona Beach 60 miles to the East, and Disney World only 75 miles to the South.

To schedule an interview with an ARA executive or for more information about ARA, nationally please contact Lisa Robinson at, 404.990.4900 or Amy Morris at, 404.990.4902; locally, Allison Blount at, 512.637.1229.




PRESS RELEASE: The Madison Group Facilitates a Non-recourse Commercial Real Estate Loan a Mobile Home Community in Dodge City, Kansas

Date: 6/3/2014    

The Madison Group (TMG), a commercial broker and loan consultant, has facilitated the financing for a 79 unit mobile home community in the rural community of Dodge City, Kansas.   TMG was able to bring a non-recourse loan of $1,200,000, rate of 5.75%, with a ten year fixed rate on a 30 year amortization.


Although the park is located in a small market, the occupancy was historically strong and we were able to get a large amount of cash out for the sponsor.  The owner had previously had issues with the financing of the park due to size and location.  TMG analyzed the information provided and were able to find the right lender to fit with the specific needs of the owner.


“The property is located in a small market, but because of our experience with this property type, we were able to facilitate the most favorable terms to meet the clients goals, said Angela Kesselman of The Madison Group who originated the financing.  “The borrower’s needs were to secure a 10 year term at a lower rate than his existing loan, while getting maximum proceeds. The borrower is now looking to purchase other parks with the proceeds”.


The financing was arranged by Angela Kesselman Associate Director of Finance at The Madison Group.


The Madison Group ( is a commercial loan broker and consultant specializing in financing for investor properties nationwide. TMG provides flexible and reliable capital for real estate acquisitions, refinances, and re-capitalizations for a variety of property types including:  multifamily, mobile home parks, credit tenant NNN net lease, office, retail, industrial, self-storage and other commercial properties in the United States.  Established in 2001, The Madison Group’s intention is to provide highly competitive loan products through its superior capital market expertise and quality sources of capital.  TMG works efficiently and effectively to get the transaction closed and funded.


The Madison Group and Angela Kesselman can be reached at 435-785-8350 or by emailing Angela at