You want to invest in what??? Trailer Parks!!!
That is usually the reaction I get when I tell people that I want to invest in Mobile Home Parks! Most people think I am crazy because their perception of a “Trailer Park” is this…
And the people that live in it look like this….
But the reality is that most parks actually look like this…
and if you are lucky, the tenants look like this…
Why are Mobile Home Parks such a good investment?
- First and foremost they provide an affordable housing solution that is so greatly needed across the world. An average mobile home is between $10k – $50K to purchase. A good solution for the affordable housing crisis
- Cap rates usually range from 10% to 15% so the returns are much better than most real estate assets.
- They can build great communities…deep down everyone wants to be a part of something
- Maintenance and capital expenses are minimal compared to other asset classes.
- There is very little tenant turnover as they own their own homes and the owner just leases them the land. Moving a mobile home costs anywhere from $3k to $7K so tenants are unlikely to default on rent considering the prospect of moving their home.
- Less competition in this asset class…many investors don’t know the value that exists in mobile home parks.
- Many are owned by Mom & Pop’s giving investors the opportunity to transact deals outside of the traditional structures – ie vendor financing!!!
- Sales prices equate to a lower cost per unit than multi family residential or single family.
A little more about me… I grew up in a mobile home park so I know a little bit about what it is like. I always had a sense of shame about my humble residence in the “trailer” park. I promised myself when I got successful I would buy myself a house and own land…so I did…I bought a great house in North Vancouver and renovated the whole house over 3 years. Just before I bought my house I had also invested in a park model trailer in Birch Bay WA in an RV park on the beach. As time progressed my little “trailer home” at the beach became my community…I would count the days and still do as to when I could get back down to my community on the weekends. I began to realize that my desire to own a home and have a yard was starting to really tax my time and my ability to do what I really wanted…which was spend time in my trailer at the beach! This is when it all came together for me and I knew that investing in mobile home parks was exactly what I needed to do! I can’t wait to sell my home and invest in Mobile Home Parks to create a future where I can spend as much time in my trailer at the beach as I like!
I attended Mobile Home Park University in June of this year…I have now learned all that I need to know to successfully invest in Mobile Home Parks. I have shared those resources with Liza and we are both very excited about sharing our knowledge about this amazing real estate investment vehicle. In upcoming events we will share more about how you can get involved with us as we build a portfolio of Mobile Home Parks! Join us and learn more!
My happy place at the beach!