Welcome to episode 21 of the Park Street Partners’ Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson. Today, Jefferson and Brad talk about the Manufactured Housing Institute (MHI), which is the mobile home park industry’s chief nationwide lobbying group. They work to fend off government regulation that's “suppose to help” the industry and try to get some helpful regulations in place. MHI holds the two big annual meetings in the mobile home park industry. Tune in to hear the highlights of the MHI meeting in Las Vegas and learn more insider tips on doing business in the mobile home park industry.
Key akeaways:
[0:56] Quick shout out to MHPI podcast listeners - Thank you for listening to the show!
[3:07] What’s so great about attending MHI trade shows?
[5:25] Are you a newbee & considering going to MHI? Jefferson has some great tips to share.
[7:25] What’s so valuable about spending a great amount of time with brokers and other industry professionals?
[9:44] Aim to get invited to the dinner & cocktail parties. That’s where you get to know the folks that can be showing you deal flow or arranging financing, and get to meet other owners.
[11:26] Also try to meet some of the mortgage brokers.
[12:20] Listen to episode 20 to hear the interview with ndustry legend Jim Clayton, which was recorded at the MHI meeting in Las Vegas.
[13:00] What did Jefferson & Brad do after recording last week’s podcast at the MHI
conference?
[13:29] You’ll find insurance brokers and mobile insurance companies at MHI.
[15:27] On future podcasts, we’ll do some deeper dives into real estate brokerage, insurance, and water meters.
[15:39] You will also find water meter companies at MHI.
[18:00] Brad speaks to the industry lobbying part of MHI.
[20:28] There was a funny discussion about what to call this business. Thoughts on Land Lease Lifestyle Community?
[22:10] Check out an MHI meeting at least once if you plan on getting into the mobile home park business.
[23:23] NCC which is mainly about owners, is a subgroup of MHI. Jefferson & Brad will be attending the upcoming NCC meeting in November in Chicago.
Mentioned in his Episode:
Park Street Partners
Park Street Partners www.parkstreetpartners.com
Mobile Home Park Investors www.mobilehomeparkinvestors.net
deals@parkstreetpartners.com
Mobile Home Park Investors
Mobile Home Park Investors Group on LinkedIn
Send your deals to: deals@parkstreetpartners.net
Manufactured Housing Institute (MHI)
Security Mortgage Group
Wells Fargo
Greenfelder Insurance
Mobile Insurance by Kurt Kelley
Welcome to episode 20 of the Park Street Partners’ Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson. Today we have a very special podcast, because not only we have the first interview on the show but also because it’s with industry legend Jim Clayton. The interview was recorded live at the Annual Manufactured Housing Institute Show in Las Vegas last week. Stay tuned to hear what Jim had to say about the future of mobile home park investing, estate planning, ESOP, the competitive advantage offered by Clayton Bank and Trust, the future of manufactured housing, and even Jim's thoughts on Donald Trump vs. Hillary Clinton!
Key Takeaways:
[1:06] Jim started Clayton Homes which became America’s largest mobile home park manufacturer. He took that company public & ended up selling it to Berkshire Hathaway through Warren Buffett, for about 1.7 billion dollars.
[1:57] The Park Street Partners have borrowed money from Jim’s bank & have been very happy with their relationship with Clayton Bank and Trust.
[2:26] We encourage you to reach out to Clayton Bank and to Kevin Clayton who is the President.
[2:41] Jim wrote an autobiography titled First A Dream, which turned out to be the catalyst for his deal with Warren Buffett.
[3:58] How did Jim get into the mobile home park investing business?
[5:12] How much of a plan did Jim have when he first started dealing in mobile homes? Was he surprised by his success?
[5:41] How did Jim transition from dealing in other people’s used homes to getting into manufacturing?
[7:16] Jim Started Pre-HUD manufacturing, so he could basically design a house any way he wanted.
[9:46] How did financing a mobile home work back in the 1960’s?
[10:52] Clayton Bank and Trust, compared to other banks, will lend on both the land itself and the chattel park-owned homes offered.
[12:27] What’s Jim’s take on the future of manufactured housing as it relates to the debate on nicer communities with stick-built housing vs. nice, clean, safe & affordable housing for families?
[14:19] When and how did Jim first meet Warren Buffett? What was he like to deal with when Jim was considering selling Clayton Housing to Buffett?
[17:51] What sort of due diligence did Warren Buffett do?
[18:54] Jim’s advice to folks that might consider investing in the mobile home park business now – Jim is extremely optimistic!
[20:25] Do you think that the GSEs will eventually start buying and guaranteeing these loans for financing? Depends on Donald Trump vs. Hillary Clinton!
[21:15] When Jim sold his business to Warren Buffett, he could've easily retired – So what possessed him to keep working?
[24:18] What advice does Jim have for Jefferson and Brad and their passion for mobile home park investing?
[25:29] More about the industry legend, Jim Clayton and key takeaways from the interview.
Mentioned in This Episode:
Park Street Partners www.parkstreetpartners.com
Mobile Home Park Investors www.mobilehomeparkinvestors.net
deals@parkstreetpartners.com
Park Street Partners - Investment Opportunities
Park Street Partners - Resources
Mobile Home Park Investors Group on LinkedIn
Send your deals to: deals@parkstreetpartners.net
Welcome to episode 19 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with Park Street Partners. Today, Jefferson and Brad discuss a case study on a mobile home park that’s near and dear to their hearts. It’s called the Cherrywoods Mobile Home Park and it’s the first deal they bought in their partnership.
Key Takeaways:
[1:48] The Mobile Home Park Investors podcast has over 3000 downloads per month!
[2:40] Check out Cherrywoods.net to see how the Park Street Partners set up their websites.
[2:57] Jefferson and Brad talk about how they found the Cherrywoods Mobile Home Park and all the things they love about this property.
[5:34] The Cherrywoods Park was developed in 1996, which is a rare find.
[6:56] The seller was open to seller financing, which is something the Park Street Partners love.
[11:59] Current rents on properties in the same town, according to rentometer.com.
[14:21] The type of property manager to look for and that you want to have for your park.
[17:29] Jefferson and Brad have easily doubled their money on the property, in a little under two years.
[18:57] Jefferson touches on determining capital rates from looking at the property’s PNL.
[20:42] It wasn’t obvious they were going to fill up the Cherrywoods Park as well and as quickly as they have. What were some signs of softness in that market?
[25:32] Selling the Cherrywoods property today would produce a nice return but that doesn’t beat getting 25% cash-on-cash returns for the foreseeable future.
[27:30] Check out episode 18 to hear all about how the returns can be nearly tax-free.
[30:21] What’s the debt service coverage ratio on the Cherrywoods park?
[32:56] Interested in partnering up? Check out episode 14 to learn the specifics of the Park Street Partners’ partnership strategy.
Mentioned in This Episode:
Park Street Partners www.parkstreetpartners.com
Mobile Home Park Investors www.mobilehomeparkinvestors.net
deals@parkstreetpartners.com
Park Street Partners - Investment Opportunities
Park Street Partners - Resources
Mobile Home Park Investors Group on LinkedIn
Send your deals to: deals@parkstreetpartners.com
EP018: Accelerate Your Depreciation to Save on Your Mobile Home Park Property Taxes
EP014: How to Partner and Invest with the Park Street Partners