In the vast landscape of negotiation advice, a common misstep is to oversimplify the process, especially when it comes to substantial investments like mobile home parks. Unlike the transactional approach often depicted in media or generalized negotiation guides—which can range from selling everyday items to negotiating multi-million-dollar deals—the reality of negotiating a mobile home park purchase is far more nuanced.
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In the world of property management, encountering challenging tenants is an inevitability that many of us dread. These individuals test the limits of our patience and policies, often seeming to revel in the chaos they create. From incessant complaints about trivial matters to outright rule-breaking, their actions can significantly impact the harmony and operational efficiency of a mobile home park.
Read MoreWarren Buffett hasn’t been buying much lately – noting that the stock market has no bargains -- but apparently, he quietly has been loading up on housing stocks – placing big bets that housing is the strongest part of the economy going forward. So why is Warren Buffett putting so much money into the U.S. housing industry at a time in which he earlier declared that “the incredible period” for the American economy has ended and projecting lower net income for all businesses going forward?
Read MoreRecent studies have found that 4 out of 10 companies are laying off workers in 2024, with the vast majority “knowledge workers” (people who are paid to think) who are being replaced by Artificial Intelligence (AI). While that will certainly be the catalyst for the 2024 Recession it also ushers in a new Megatrend that you better be prepared for and one that will be among the largest of this century: the replacement of “knowledge worker” jobs with AI. And there will be major winners and losers from this transformation.
Read MoreI was an economics major at Stanford and one of the core principles of capitalism is market efficiency. In a perfectly efficient market, there are no great deals and little opportunity outside of the regular small advancements brought on by inflation. Everyone has perfect knowledge of every deal on the market and then bid them up to the point in which there is no profit. You are seeing that right now in the stock market where all key indexes are lower now than in January. Indeed, the only money you can make in America is in “inefficient” markets in which competition is restricted due to a lack of complete knowledge by all competitors – the type of efficiency that can then ruin any opportunity for profit.
Read MoreRobert Kiyosaki – the author of “Rich Dad Poor Dad” from 1997 – has recently turned to pitching investing in gold as the best hedge to the end of America. We disagree with that. Mobile home parks are definitely a better investment option than gold if the topic is best defense against the collapse of the U.S. economy. But let’s break that down into actual statistics to prove that argument.
Read MoreMobile home park investments present a unique opportunity that many ask about—how long will this favorable market last? From our perspective, this golden era of purchasing mobile home parks likely has about 10 more years in its lifespan. That is, of course, contingent on a number of factors that none of us really know but can make educated guesses on.
Read MoreIt would appear that apartment rents have finally achieved terminal velocity with aggressive increases during the pandemic coupled with a weakening U.S. economy. In some markets rents are starting to come with small discounts (1% to 5%) or a couple of free months. Of course, that’s on an average U.S. rent of over $2,000 per month. So if apartments have finally hit the “top” where do mobile home park lot rents stand, and are they approaching that limit?
Read MoreI shot this photo yesterday at our local Walmart down in Perryville, Missouri. I assume it’s the same nationwide. You have three vending machines that dispense three different product lines. And the middle machine – selling Pepsi products in plastic bottles – offers soft drinks for $2 while the other machines selling cans of Coke and generic brands are only $1. Clearly, there must be demand for the $2 Pepsi or Walmart would remove the machine. So how can Pepsi get $2 when Coke is only getting $1?
Read MoreIn 1958 when Marge didn’t get pregnant as hoped, I was drafted into the army, but got two breaks. I was sent to Alaska rather than Korea. That meant Marge could come up and live with me in Fairbanks if we could afford housing. We couldn’t. Apartment rent was so high there were more mobile homes per capita than anywhere.
Read MoreIf you’ve ever been to a “farmers’ market” you know that it offers superior selection and pricing to what you can get at the supermarket. And the mobile home park industry is like a giant “farmers’ market” in the way it’s structured and the opportunities that exist if you simply take advantage of the opportunity to shop there.
Read MoreWhether you own a single mobile home park or a portfolio of properties, enhancing performance is essential for creating a welcoming environment and maximizing profitability. Recent technological advancements allow you to instantly pinpoint park inefficiencies and hold management accountable. This guide will provide an expanded perspective on how to leverage technology to swiftly optimize your mobile home park's performance.
Read MoreOver the decades we have found holding conversations to be one of the most effective investigative tools. So often with Phase I Environmental Assessments, the critical information is not documented anywhere; rather, it is held in the memories of those familiar with the property. No database search, review of documents or site inspection will grant you access to this information. You only gain access by talking to people.
Read MoreThe story of Conrad Hilton, the founder of the Hilton Hotels chain, began with the modest Mobley Hotel in Cisco, Texas. Although the hotel was small and not very profitable, it set Hilton on the path to success. This story holds valuable lessons for those considering investing in small mobile home parks, as it highlights the importance of adapting one's business model to achieve greater success.
Read MoreOne often-overlooked aspect of mobile home park aesthetics is the presence of quality window coverings. The appearance of a property can be significantly impacted by the state of its windows, both in terms of the glass itself and the choice of coverings. This article will discuss the importance of selecting appropriate window treatments for mobile homes in a park setting, the benefits of doing so, and some practical solutions to ensure that your mobile home park maintains a cohesive and visually appealing appearance.
Read MoreA CD pays 4% right now, but inflation is at 6.5% -- so that’s a guaranteed loser. The S&P 500 is down 6% over the past year, so if you add on inflation, you’re actually down over 12%. In times of high inflation the only thing that matters is how fast you can increase revenue and net operating income. It’s like a NASCAR race and all that matters is how fast your investment can go to outpace inflation.
Read MoreAlthough economists are confused on the exact timing of the pending recession, there’s one thing they all agree about: the continued issue of U.S. inflation. Under Biden inflation has soared from around 2% to nearly 10% -- the highest increase in 40 years. And most are asserting that inflation cannot be tamed by the Fed’s action on raising interest rates over 4 points and will probably never be lower than 4% again. So what’s the true story about the impact of a permanent higher inflation level on mobile home park ownership?
Read MoreAmerica is in a real mess right now, and it’s only going to get worse. Virtually all U.S. economists predict a major recession in 2023. There are already many headlines about layoffs at places like Twitter and Facebook. However, mobile home park collections are still strong, demand for homes has never been higher, and defaults on mobile home mortgages are still at around 5% or less. So how come mobile home park residents don’t seem to be struggling while many other Americans are? The answer lies in the facts and figures regarding employment.
Read MoreFor over 40 years, Dollar Tree charged $1 for every item in the store. Whether it was a shirt, a toy, or a book, there was no price check needed because your tab would be exactly $1 per item. But recently, Dollar Tree raised that amount to $1.25 per item. Of all retailers, Dollar Tree is the most comparable to the mobile home park industry, as “trailer parks” have been offering ridiculously low prices for decades, and our customer base is very similar. So what’s the story on why Dollar Tree went to $1.25, how has that worked out, and what are the lessons learned for mobile home park lot rents?
Read MoreJerome Powell with the Federal Reserve has raised interest rates around 4 points in 2022 – the fastest such increase in 40 years. And, predictably, this is causing widespread disaster with the single-family home industry, which had experienced 14 straight years of world-record low home mortgages. So what’s the impact going to be on the mobile home park business when the single-family bubble bursts?
Read MoreTo build an additional stream of income – or entirely replace a day job – there are really only two options: 1) buy income properties or 2) buy a business or franchise. Of these two options, the income property route is far superior at this moment in U.S. history, and the mobile home park is the winning choice for an income property. So why is buying a mobile home park superior to buying a business or franchise? The reasons are numerous.
Read MoreNouriel Roubini is the New York University economist who rose to fame as the first to predict the 2007/2008 Great Recession and was given the name “Dr. Doom” for espousing what was considered then a heretical doomsday vision at a time when the U.S. economy appeared to be booming. Now “Dr. Doom” has issued his new predictions and we couldn’t agree with them more.
Read MoreJerome Powell at the Federal Reserve is in the process of raising interest rates farther and faster than America has seen in over 40 years. And the effect of these increases has resulted in a plunge in the stock market coupled with a great deal of uncertainty regarding commercial real estate. While some sectors of real estate are already going down – such as single-family homes – the impact on mobile home parks has been much lower. Why is that? Better ability to raise rents
Read MoreYou only have to go back to January 2021 to get a 30-year home mortgage of 2.74%. But with the advent of some of the dumbest governmental policies since Jimmy Carter the 30-year home mortgage has now broken the 6% barrier and is on the way to approaching 7%. While that’s historically about the norm (the 1972 mortgage rate was 7.28%) it’s going to be a huge shock to an America that has been enjoying quantitative easing and low rates since 2008. What will be the impact on this doubling of home mortgage rates for the mobile home park industry?
Read MoreYou’d never find it in a mainstream media outlet today, but there is still fair and balanced journalism to be found in places like Hazleton, Iowa, which recently published this story on the turn-around of a mobile home park. Here’s a quote from the story:
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