A Great Investment Opportunity!
“Mobile Home Parks”
Have you dreamed of earning 8%, 12% even 20% returns on your savings and IRA accounts? Well…this just might be your dream come true!
An Opportunity to make great returns and help create more affordable housing too !
In the 1950’s and 1960’s building a mobile home park was akin to printing money. Build it and they would come.
The boring Real Estate business
with double digit returns
Because the real estate investing market place has changed, mobile home parks are once again an attractive investment opportunity.
Very few new mobile home park developments have been undertaken in the last 25 years. This decline in the number of MHP has been caused by a whole host of events, that occurred over a long period of time. These events when combined with some mis-perceptions about mobile homes and mobile home parks created a lack of investment. Some of these events are:
- Government programs that lowered down payment requirements on conventional home loans making Mobiles Homes less financially attractive.
- A disparity in home finance interest rates that favored conventional houses over mobile homes.
- A whole generation of people who know nothing about mobile homes.
- Cities discouraging Mobile Home Parks with restrictive zoning.
- Government guaranteed loan programs that favored conventional construction.
- A change in the banking practices away from consumer loans.
A decline in the number of Mobile Home Parks
Because of the preceding and other events, there has been a decline in the number of Mobile Home Parks (MHP) throughout the U.S. that has continued at a rate of about 1-2% a year.
- Cities discouraging mobile home parks by restricting zoning.
- Cities rezoning to get a higher tax base.
- Some of the older parks were caught up in the flood zone map changes.
- Some parks where purchased by developers wanting the land for other uses.
- Some older parks cannot accommodate newer larger houses.
- Some smaller, older MHP are not economically viable nor warrant re-investment because of the size of lots and the location of the park.
- Some, older MHP owners who built parks in the 1960’s and 70’s are retiring.
- Many older parks do not have the amenities and conveniences sought by todays families and seniors, to command the higher lot rents needed to update and improve.
What should a Mobile Home Park look like? Watch our Video on what a 5-Star Park should look like. 5-Star Mobile Home Park Video
OH! How Things Have Changed Over The Last Twenty Years!
Keep in mind as you read this that Mobile Homes are affordable housing. Yes, I know you can buy $150,000 Mobile Homes, and even pay more than that. But most Mobile Homes are affordable.
- The average conventional home being built in suburbia now cost over $200,000 and that would be the low end. In San Antonio, TX the average new home sale is $256,000.
- Some 65% of people wanting a home cannot qualify for a mortgage, for a variety of reasons.
- Every day, 10,000 people are reaching the Social Security age of 65. (Starting in 2011 continuing until the year 2030). Creating demand for affordable living.
- Some cities are easing up a little on zoning restrictions as they look for affordable housing alternatives.
- Mobile homes are a much different and better product than in past decades.
- Taxes and insurance rates have increased, causing monthly housing cost to rise, even with the current low mortgage rates. ($400-$700 a month for taxes and insurance on a $200,000 house). With many families’ mortgage payments starting at $1,600 a month. This adds to demand for lower cost alternatives.
- Apartment rents in many markets have increased to un-affordable amounts for the average family. (it is not unusual to see new apartments renting for $1.00 to $1.50 per square foot per month).
- There is a huge demand for homes priced under $165,000: the supply is not there, and because of increasing development cost, little new lower priced supply is being created.
Mobile Home Park lot rental rates have changed over the last twenty years:
- The rental rates at existing mobile home parks vary wildly. In older MHP that where built in the 1960s and 1970s, the current lot rents are $250 to $350 a month. The smaller size of lots in these older parks restrict the size of homes that can be accommodated, making the spaces harder to rent.
- MHP’s built in the 1980’s and 1990’s are better designed and have more amenities, the monthly lot rent in these parks are $350 to $450 a month.
- The nicer, well maintained class “A” MHP’s (5-Star) Parks with amenities such as club houses, pools, basketball and tennis courts, are getting $450 to $550 a month for lot rent.
- In some high demand areas, rents can be as high as $800+ a month.These higher lot rent rates, plus very high occupancy rates make for a great investment opportunity.
All this adds up to higher lot rental rates, and high demand for more rent spaces, that means opportunity for the development of new parks, because the numbers work.
Because the market place has changed, mobile home parks are once again an attractive investment opportunity. We are actively working in the mobile home park investment space.
All The Foregoing Creates 2-Great Mobile Home Park Investment Opportunities
We have several Mobile Home Park Syndications available for accredited investors.
You can invest today!
#1: New development of a Senior Living Mobile Home Park.
(accredited investors only) The goal of this investment is to double the investor equity investment in 5 years.
A great opportunity to participate in a new Mobile Home Park development. The first Senior living Mobile Home Park in San Antonio and the first park to be built in a decade or more.
# 2: New development of an All Ages Mobile Home Park. (accredited investors only)
The Project is a new development of a Class “A” Mobile Home Park (MHP) in the IH-35 Central Texas Corridor. The Mobile Home Park will consist of 150-200 spaces. This is one of the fastest growing areas in the state.
Contact us for more information. 210-413-7230
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