There’s no better way to illustrate how the mobile home park business works than with a case study, so here’s a property in Colorado that we purchased, brought back to life, and sold years later – including all the numbers and how the profit drivers worked. As you will see, there’s a certain repetitive pattern to making money with mobile home parks. However, to achieve this business model, the park has to have the right characteristics to achieve the desired results. That’s what the smart park owner does: locate those properties that meet the basic criteria and then enact the basic plan. Not all properties work out the same, but the roadmap to success has already been established.
We believe that bringing science to the mobile home park industry is what has given it newfound respectability as an investment class. Beginning with Sam Zell in the mid-1990s, the “trailer park” concept has been elevated from a virtual unknown as a real estate sector to one of the best investment opportunities in the U.S. And by understanding case studies – both good and bad – we can further unlock and refine how the business model functions.
For more information on the science of mobile home park investing – including the correct way to identify, evaluate, negotiate, perform due diligence on, renegotiate, finance, turn-around and operate these assets – you should consider attending our next Mobile Home Park Investor’s Boot Camp on June 4th to 6th. It’s a three-day immersion weekend into this asset class that has become the gold standard of the industry and is taught by Frank Rolfe, who the New York Times calls “the human encyclopedia of all things mobile home park” and just happens to be the 5th largest owner of mobile home parks in the U.S. with his partner Dave Reynolds.