If you’ve got a low downside and a big upside, you go do it. If you’ve got a big downside and a small upside, you run away. The only time you have any work to do is when you have a big downside and a big upside.

If you believe the U.S. economy is in great shape then you must not be in your 60’s. That’s because you’d have to be in your 60’s to have been an adult during the era of Jimmy Carter and “stagflation”.How did that era work out? Well, here’s a preview: inflation goes up, the stock market crashes, bonds plunge, and single-family home values plummet. Those who lived in the era of Carter are permanently scarred by what they saw and are better investors because of it. I am one of those people. And that is why I’m 100% bullish on the mobile home park industry at this moment in American history.

If you study the data on www.Bestplaces.net, you will see one unusual anomaly that has a direct bearing on understanding the attractiveness of a market for mobile home park ownership: the astounding difference in single-family home and apartment pricing. Perhaps the best example of this is to be found on the stats for Cairo, Illinois. This city of around 2,100 inhabitants has a median home price of $31,500 yet a three-bedroom apartment rent average of $1,000 per month. How is that even possible? Here are some thoughts:

I get a lot of calls from various mobile home park owners that find my name and phone number on the internet. These are people that I have never met and have never read a single book or article I have written. Instead, they are going through the internet desperately looking for help to save their property from failing, and when you Google “mobile home park” I come right to the top. One call I remember vividly was from a new park owner named Rosie. Here’s her story.

One of the big news stories in the U.S. – which gets little coverage in mainstream media outlets since most of them are based in New York City – is the simple fact that people are leaving American cities in a big way to gain a higher quality of life in suburbs and exurbs. Titled “The Great Migration” by some groups,it’s a reversal of the period in U.S. history, starting in the 1920s, when Americans flocked to move to the “big city” from smaller towns across the country, followed by recent trends of both young and old to abandon the safety of outlying areas and move into the city center to be near the “action”. And the net effect of this new exodus megatrend is very favorable for mobile home park owners for a number of reasons.

Despite every bad faith attempt by the Biden administration to accept the Federal Court’s decision that it’s unconstitutional, the national “masks off” policy will probably finally force a day of reckoning on June 30th – the official expiration date of the current CDC evictions order. Here is our opinion of what happens next when the eviction floodgates are opened, and how to best mitigate these factors.

Many deals – despite you doing everything correctly to the best of your ability – reach a moment where an extension is necessary from the seller. It typically is the result of the bank’s attorney not getting the loan documents together as promised or a missing or deficient third-party report such as the survey. But regardless, your deal hangs in the balance if the seller should deny your need for more time. So here are the secrets to successfully getting an extension from your seller.

When I got into the mobile home park business with my first property “Glenhaven”, one of the chief attractions was the financing. The deal was $400,000 with $10,000 down and the seller financed the remaining $390,000 with non-recourse debt. This was insanely compelling to me as it meant that – no matter what happened – I was only out $10,000 if I walked away from the deal at any moment. Sadly, the Governor of West Virginia did not follow this same conservative posture when he borrowed $700 million with full recourse. So what is recourse vs. non-recourse debt, and why do mobile home parks have so many non-recourse options?

Mobile home parks have outperformed virtually all other sectors of real estate in recent years. But that’s only about to accelerate. The net effect of the new America – created by the impact from the pandemic, urban unrest, and the Biden administration – is about to create an environment in which all other sectors of American real estate take a beating and mobile home park revenues and values soar.

No mobile home park can be successful without a competent manager. A manager serves as your eyes and ears in the field, as well as your problem-solver, ambassador and mayor all rolled into one. Since the manager is such an essential role, every community owner should focus on what can go wrong and how to mitigate that risk.

Bill Gates once said “your most unhappy customers are your greatest sense of learning”. It’s an unusual adage from someone who held a virtual monopoly over the personal computer for decades, but this mantra is true for all industries. So what can you learn from unhappy customers, and how can you make them happy again?

There’s a unique strategy that has been used to construct clever mobile home park deals over the decades, but it rarely gets much notoriety. The name of this strategy is a “master lease with option” and it can be a win/win for many situations – as well as the worst idea ever in other circumstances. So what is a “master lease with option”, how does it work, and when is it a good or bad idea?

Much of the Southeastern U.S. has not been taken seriously by mobile home park buyers – or commercial real estate investors, in general – for decades. Even Groucho Marx made jokes about the region in 1930. But all that is changing now.

Buying a mobile home park is a lot like diving into that lake: it seems like there is no risk. After all they are not like factories, gas stations or urban tracts. The environmental risk is not obvious.

It’s becoming pretty common for mobile home parks to be torn down to make way for a new and more profitable use. But this story is different, because the owner of the property it the city itself, not your typical park owner. So how did this 15-acre mobile home park meet its fate? And what are the lessons learned for all of those out there that complain about higher mobile home park lot rents?

There is no better feeling on earth than when you own a mobile home park and you have absolutely no money into it. Not only do you have no worries (assuming your debt is non-recourse) but your rate of return is infinite (since it’s based on your down-payment and you have none). You can literally own an empire of mobile home parks and have zero money at risk. So if zero-down is living the dream, how do you accomplish it?

Selling 11 homes on the first business day of 2021 is quite an accomplishment. But many park owners are similarly having the highest level of demand in industry history. And we didn’t get those 11 sold in just one “hot” property but spread out about evenly across five states: Texas, Indiana, Illinois, Wisconsin and Kansas. So what’s with all the demand out there for mobile homes?

Prior to the pandemic, most economists predicted the next U.S. recession would begin in 2021. However, they still do. Effectively, the Covid-19 outbreak was simply a prelude to a larger economic event, which historically always falls immediately following the U.S. Presidential election. In this case it’s all about the final reckoning of the debt of those businesses that failed (hotels, restaurants, retail stores, etc.) coupled with displacement of workers in non-essential industries and state/cityfiscal calamity as the result of plummeting tax income. The bottom line is that if you think it’s all upside in 2021, you’re not aligned with economic models and probability, nor are you being realistic. Talk is cheap – and we heard a good bit of it during the election – but the fact is that America is well positioned to go further down the tubes in 2021 and with perhaps greater acceleration.

Tony Hsieh is known for being the founder of Zappos, as well as personally funding the renaissance of portions of Las Vegas. But I will remember Tony for a different reason, and one that has received zero media attention. As a trailer park pioneer.

“Inflation” is defined on Wikipedia as “a general increase in prices and fall in the purchasing value of money”. In mobile home parks it has a different definition: “the ability to raise rents and produce higher values while being fully protected from economic danger”. In a nutshell, inflation is a friend to mobile home parks. Why?

Blackstone – one of America’s largest private equity groups – has announced that they are buying around 40 properties from Summit Communities, expanding their foot print in Florida and Arizona and significantly increasing their mobile home park holdings https://www.cpexecutive.com/post/blackstone-to-buy-550m-mhc-portfolio/. In so doing, they are continuing the love affair that institutional investors are having with the mobile home park industry and its brilliant business model. Why have they become big fans?

In every election there is a winner and a loser. But with affordable housing, the outcome of every election is the same: the demand for affordable housing goes up and nobody does anything about it. As a result, the mobile home park business always does well as the sole provider of quality affordable housing in the U.S. Why does it always turn out this way?

We always think of mobile home parks as being great income properties – but what about the land underneath? Surprisingly, mobile home parks may be the most valuable development site in any city. And it’s been proven over and over again. Why is that?

Values of mobile home parks have been skyrocketing over the past decade. At the same time, so have municipal government deficits. Where these two lines intersect is with property tax, and that’s why this is an important item for all park owners and buyers to understand. So how can you take control of your property tax costs?

The approach of winter often brings forth mental images of the holiday season. But for mobile home park owners, it also brings forth other items: some dreaded and some good news. Here are the winners and losers of winter as far as community owners are concerned, and how to mitigate these issues before the snow starts falling and the temperature dips below freezing.