In the world of mobile home parks, the role of a strong manager is paramount. While every park may have its own challenges, a skilled manager can make all the difference in tenant satisfaction and overall success. Today, we’re diving into the practices of one exceptional manager who has achieved unparalleled results. Without revealing too much, it’s clear that their approach can serve as a model for managers aiming to elevate their game.

That's a quote from an economics newsletter I get. The point is that the U.S. employment numbers were deliberately fabricated by around a million jobs – recently revealed by corrections in the numbers. And that should make every American a little suspicious on where employment really stands, because we now know that actual data is being manipulated for the November election. More than likely there will be a huge reveal following the election and we will all be horrified by the lies (yet to late to do anything about it politically). So if we can't really trust the nation's responsibility in macro numbers, what can we do to examine the typical mobile home park resident base as far as its exposure to what may be an extremely unfavorable job market? Here are the basic facts:

Mobile home parks bring unique challenges that catch even seasoned real estate investors off guard. Investors often assume their experience in apartments, retail, or office space will give them an edge, but many fall short, overpaying for parks and managing them poorly. So, what makes mobile home parks so different?

I have been talking about mobile home parks for nearly 30 years and the best park buying opportunity in history is about to start coming to a close. As a veteran of multiple recessions (and a park owner during the last two) here’s my rationale on why you will be really missing out if you don’t buy a mobile home park in this moment of the cycle:

If you're looking for a quick and affordable solution to fill empty lots in your mobile home park, consider this: RVs. Short for recreational vehicles, RVs provide an immediate and cost-free method to boost your occupancy. Yet, many park owners overlook this effective approach when faced with vacancy issues.

A common misconception in the world of real estate is that mobile homes have a built-in expiration date, destined to deteriorate beyond repair. However, this notion couldn't be further from the truth. With proper maintenance, mobile homes can stand the test of time, defying the myth of disposability. Here’s why these homes are built to last.

David R. Williams was a formidable force in U.S. architecture and was hired by the U.S. government in 1941 to design and build what may serve as the first true large-scale mobile home/modular park. It was called Avion Village and was located on a vacant tract of land near Dallas. It was needed to provide housing for 300 households that would be working at a defense plant nearby. It's still there and is located at 800 Skyline Road in Grand Prairie.

Not all commercial real estate is created equal. Some is reliant on “good times” and economic boom like shopping centers, hotels and office buildings. And others are “contrarian” and flourish when times are terrible. And the most “contrarian” investment property in the U.S. is the classic “trailer park”. Essentially a parking lot for mobile homes, these properties are 100% focused on affordable housing – a product that goes up in demand in inverse proportion to the decline of the U.S. economy. So how does the mobile home park asset class fit into the current torrent of U.S. bad news?

In 1996 I bought a mobile home park. Everybody told me it was a terrible idea and I would lose all my money. I couldn't really blame them as it was one of the nastiest mobile home parks in Dallas. But even then I was impressed by a few factors:

Gold is at around $2,500 per ounce right now while silver is around $28 per ounce. Why is gold more valuable than silver – about 100 times more? Because gold is much more rare. In this same manner, mobile home parks are the rarest of all commercial real estate, and this one fact has created extreme wealth for owners simply by having the title to a mobile home park in their name. Why are parks so scarce and how does this manifest into financial gain?

Weather forecasting is all about taking past events and applying them to future conditions. In this same manner there is a tremendous amount of predictive science possible from a simple historical interest rate chart from the U.S. Federal Reserve. Let’s first make some significant observations:

When you own a mobile home park you are in charge of a large water and sewer system – whether you like that or not. That's because virtually all mobile home park water and sewer lines are on your private property and the utility provider has no responsibility over them. Although most mobile home parks have little problem with this issue – except for the occasional water leak or sewer clog – there are certain cases of mobile home parks that have extreme sewer problems and smart buyers will want to get price reductions to accommodate the work needed to fix them or avoid them altogether. So what are the top four signs of a troubled mobile home park sewer system?

We get asked frequently about when – and if – mobile home parks ever end up in such bad financial problems as to come to auction in foreclosure or in a distressed sale format. While most mobile home park owners tend to be on the conservative side due to decades of negative stigma, and most banks are only willing to lend at about 70% LTV based on pessimistic underwriting, nevertheless there are some operators who get in trouble through a combination of too aggressive lending, seller financing without a plan when the loan comes due, or basically no management ability or plan. Here’s a primer on how these deals come to market and how to take advantage of them.

Warren Buffett’s Berkshire Hathaway bought around 63 million shares of Paramount in 2022 and then lost around 50% on that investment in only two years. Buffett admitted that where it all went wrong was in relaxing his standards regarding a “moat” – a wall that protects a good business from competition. Paramount had no “moat” and the competition destroyed it with shares plunging from $30 to around $13. We have always adhered to Buffett’s “moat” mantra and that’s why we’re in the mobile home park business.

In recent discussions within the mobile home park sector, the term "land-lease communities" has surfaced as the newest contender for renaming what many still call a mobile home park. This industry has seen its fair share of rebranding efforts, from "coach park" to "trailer park," and now to "manufactured home community." Each iteration aims to shake off old connotations and refresh the image presented to tenants and investors.

In August 1900, Galveston Island, Texas suffered the worst natural disaster in U.S. history, with over 10,000 killed in a single hurricane. This crisis could have been largely avoided except for the flaws in human nature that we see bringing continual losses in the stock market over the past century. Here are the life lessons from the Galveston hurricane that apply to investing and should be avoided if you want to be successful.

Evictions often paint landlords in an unfavorable light, suggesting they lack compassion. Yet, this simplified view doesn’t fully capture the true dynamics between property owners and tenants. Let's consider why eviction can be a necessary part of property management and how landlords can handle it thoughtfully.

Yes, and so did George Burns, Gracie Allen, Barbara Stanwyck, Greer Garson, Jack Benny, Claudette Colbert, and Danny Kaye. Even Lucille Ball owned a mobile home park. And then there’s Stanley Marcus – the founder of Neiman Marcus – who owned a mobile home park in Dallas. Effectively, all the stars and notable people of the 1950s owned mobile home parks at one point. Why?

Acquiring mobile home parks often presents a unique set of challenges, particularly when a significant portion of the homes within the park are owned by the park itself. The key to successfully navigating these transactions lies in the delicate balance of negotiation, especially regarding the valuation of park-owned homes. While some parks may have a negligible number of such homes, making little impact on the overall deal, others can feature a substantial percentage, ranging from 20% to over 50%. This scenario places the valuation of these homes at the forefront of the negotiation process.

Mowing a mobile home park is much more than a cosmetic chore; it's an essential part of park maintenance that, when done properly, can enhance the community's aesthetic and keep residents happy. Unlike desert parks where the landscape takes care of itself, most parks require regular grooming. As we delve into the grassy expanse of mobile home park maintenance, let's mow down the details.

In the vast landscape of real estate investments, mobile home parks stand out for their unique potential for profit. Whether we're talking about modest-sized parks, sprawling complexes, or RV parks, the most lucrative investments share common characteristics. As we navigate through an evolving market, here's an updated guide to making money with mobile home parks.

In the landscape of real estate investment, mobile home parks (MHPs) hold a unique position, distinguished by the prevalent opportunities for seller financing. This financing option remains a compelling advantage, especially in an era where traditional bank loans can be elusive, allowing investors to navigate through challenging financial terrains.

The last time the U.S. faced “stagflation” was 44 years ago under Jimmy Carter. I should know because I was there. In fact, I was 19 years old when it arrived and I had a summer job standing in lines at gas stations all day long for an advertising agency owner who tried to keep his car full of gas so that he could go to meetings. It was during a period of gas rationing which was just one part of the complete collapse of society as we knew it. The general tenor of the period was desperation and disbelief and we all knew that Carter was so bad at his job that it would be a miracle if we survived until his term ended. Fortunately, Reagan stepped in and saved America. Sound familiar? History has literally repeated itself as discussed in this article.

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.

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.