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