This episode is Part three of a three-part series. On this week’s show, Ryan continues his discussion on how the two publically traded companies, ELS and SUI, are doing in the market, where they’re headed long- and short-term, and what kind of events in the world need to happen for the industry to disappear.
Key Takeaways:
[1:25] Who wants to be in just ‘average’ real estate?
[2:05] How do the two management teams, ELS and SUI, treat each other?
[5:50] These teams have very little control over how strong the NOI growth is and what happens with cap rate.
[8:25] Where does Ryan see ELS and SUI going both long term and short term?
[10:40] Jefferson loves Equity Lifestyle and has been very happy with the return over the last few years.
[11:55] Most people don’t realize it but manufactured homes comprise about 7% of the total housing stock in the U.S.
[16:45] Unfortunately it’s hard to see bubbles until they’ve viciously popped. They’re difficult to predict. However, there are some current indicators that suggest we’re not in a bubble just yet.
[18:55] What’s Ryan’s opinion of mobile home park investors? He thinks they’re extremely smart!
[21:25] What kinds of books does Ryan recommend to people who want to learn more about real estate?
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to Deals@parkstreetpartners.com
Welcome to Episode 75 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Ryan Burke is a Wall Street Analyst for Green Street Advisors. This episode is Part two of a three-part series. On the show, Ryan discusses why there isn’t new park development in the mobile home park industry, what kind of returns you can expect from a mobile home park, and how they’re faring with publicly traded companies like ELS and SUI.
Key Takeaways:
[1:25] What kinds of things or factors inhibit the construction of new parks?
[4:00] Why are there not a lot of third-party managers in this industry?
[6:15] On average, what type of return could you achieve if you were to buy a manufactured home and hold it forever?
[7:50] What are the average premiums to property value right now?
[10:15] How does Ryan conduct his research on this industry?
[13:10] What kind of differences are there between the publicly traded companies like ELS and SUI?
[18:20] Rental homes are like kryptonite in this business. How do companies like ELS and SUI manage their rental home numbers and are they making money?
[21:20] What percentage of home rents are ELS and SUI having to spend to maintain their homes? Curious about this answer? Tune in next week for part 3!
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to Deals@parkstreetpartners.com
Welcome to Episode 74 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Ryan Burke is a Wall Street Analyst for Green Street Advisors. This episode is Part 1 of a three-part series. On the show, he discusses where the future of manufactured housing is headed. There is a strong manufactured housing demand from baby boomers and millennials, and since nothing new is getting built, we are seeing the strongest revenue growth upcycle that the sector has ever seen.
Key Takeaways:
[3:40] What did Ryan do before he joined Green Street Advisors?
[6:05] What is Green Street Advisors and what does Ryan do for them?
[9:05] To remain conflict-of-interest-free, Green Street Advisors do not engage in investment banking activities nor do they own any properties.
[11:35] What kind of clients does Green Street Advisors have?
[12:55] When looking at the bigger picture, where does Ryan see the manufactured housing business going?
[14:00] Baby boomers and their children, millennials, are keeping manufactured housing in high demand.
[16:00] Ryan believes these demands drivers will be in place for the next 10 years, if not more.
[16:15] What’s going on when it comes to the supply of manufactured housing?
[17:25] Why has supply become so constricted over the years?
[18:20] What is Ryan seeing when it comes down to property-level characteristics?
[22:20] This episode is the first of three parts! Tune in next week for the second part.
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to Deals@parkstreetpartners.com
Welcome to Episode 73 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Kurt Kelley is the CEO of Mobile Insurance, a family insurance business based out of Texas since 1991. On the show, Kurt discusses what kinds of insurance you need to best protect yourself against hurricanes and other natural disasters. No one loves paying premiums for their insurance, but subpar insurance can hurt you a lot more in an unexpected situation.
Key Takeaways:
[1:15] How can park owners properly prepare for a hurricane? That’s the subject for this week’s show!
[1:55] How bad is the flooding in Houston right now?
[4:25] What can park owners physically do to prepare their park for an oncoming hurricane?
[7:25] What’s the best way to prep tenants for the hurricane?
[8:25] What kind of park insurance should homeowners have?
[11:10] What kind of debris is covered in ‘debris clean up’ coverage?
[14:45] With the two recent hurricanes, how busy is Kurt at the office right now?
[18:10] What is FEMA doing both in Texas and in Florida right now?
[19:30] What can park owners do to help their tenants get assistance from FEMA?
[21:10] Take it upon yourself to know what your insurance covers and what it does not.
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to Deals@parkstreetpartners.com
Call Kurt: 800-458-4320 ext 17
Email Kurt: Kurt@MobileAgency.com
Welcome to Episode 73 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Kurt Kelley is the CEO of Mobile Insurance, a family insurance business based out of Texas since 1991. On the show, Kurt discusses what kinds of insurance you need to best protect yourself against hurricanes and other natural disasters. No one loves paying premiums for their insurance, but subpar insurance can hurt you a lot more in an unexpected situation.
Key Takeaways:
[1:15] How can park owners properly prepare for a hurricane? That’s the subject for this week’s show!
[1:55] How bad is the flooding in Houston right now?
[4:25] What can park owners physically do to prepare their park for an oncoming hurricane?
[7:25] What’s the best way to prep tenants for the hurricane?
[8:25] What kind of park insurance should homeowners have?
[11:10] What kind of debris is covered in ‘debris clean up’ coverage?
[14:45] With the two recent hurricanes, how busy is Kurt at the office right now?
[18:10] What is FEMA doing both in Texas and in Florida right now?
[19:30] What can park owners do to help their tenants get assistance from FEMA?
[21:10] Take it upon yourself to know what your insurance covers and what it does not.
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to Deals@parkstreetpartners.com
Call Kurt: 800-458-4320 ext 17
Email Kurt: Kurt@MobileAgency.com
Welcome to Episode 72 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Dawn Highhouse is the Vice President of Customer Care at MHVillage. On the show, Dawn discusses how mobile homeowners can benefit from using a website like MHVillage and how you can also find properties on the website to buy. There are lots of features on the MHVillage website that saves homeowners a lot of time as well!
Key Takeaways:
[2:55] What is Dawn’s background and how did she get started at MHVillage?
[5:50] How does Dawn help park owners?
[8:30] How does the park owner get notified on MHVillage that they have an interested tenant?
[11:50] MHVillage can also help park owners with appraisals.
[15:15] How does MHVillage compare to the Kelley Blue Book?
[16:35] How many homes get appraised/sell on the MHVillage website?
[18:45] How does the website help people buy mobile home parks?
[20:45] How much does the website cost to a park owner?
[23:45] Rent Manager works closely with MHVillage. What other third party apps can users benefit from by using MHVillage?
[26:40] What terminology does MHVillage use when referring to mobile home parks? Trailers?
[28:15] Has Dawn ever spent a night in a manufactured home?
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to Deals@parkstreetpartners.com
Call MHVillage: 800-397-2158.
Call Dawn: 877-460-0259
Email Dawn: Dawn@MHVillage.com
Welcome to Episode 71 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Drew Babin is an equities analyst for Robert W. Baird & Co. Today’s show primarily focuses on Equity Lifestyle Properties and Sun Communities and how these two companies are performing in the marketing from a Wall Street perspective. Jefferson, Brad, and Drew discuss same-store sales, how Wall Street views certain revenue streams differently, and more!
Key Takeaways:
[3:35] How did Drew first get started in this industry?
[5:10] How does a company like Baird decide which stocks to follow and why?
[6:25] For Equity Lifestyle and Sun Communities stocks, what are the ratings on these stocks?
[9:25] Sun has not been as aggressive with acquiring properties over the last two years because they bought Green Courte Partners and CareFree Communities.
[12:40] How does Wall Street view the rental business vs. owning land as revenues streams? Do they see it the same way as the public firms do?
[17:15] Same-store sales are not a topic real estate people are very familiar with, but it is used as a metric for a company with already-existing assets vs. acquisitions.
[20:25] As there is no new competition in the mobile home park sector, what else drives the industry?
[23:00] Drew has noticed that there’s a bit of a misconception on what an RV really means vs. a mobile home park.
[26:30] Sun has a $6 million credit facility. How are they using/lending those funds?
[33:25] When analyzing these two companies, does Drew see how these stocks compare to the overall market? Any correlations?
[37:20] What are some of the risks to the industry?
[42:50] Park Street Partners uses a cash program from a Berkshire Hathaway subsidiary. Do Equity Lifestyle and Sun also use cash programs, or how are they filling in vacancies?
[46:50] If Drew had to retire in the next 30 years, which stock would he pick?
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to Deals@parkstreetpartners.com
Email Drew: DBabin@Rwbaird.com
Welcome to Episode 70 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Steve Case has had a long history in the mobile home park industry. He cites guys like Dyches Boddiford and Ernie Tew who have helped mentor him throughout the years, and made him a smarter and wiser investor. On today’s show, Steve talks about MobileHomeUniversity.com (now being run by Frank Rolfe and Dave Reynolds), the SECO Conference hosted by Southeast Community Owners Symposium, and the best way newbies can enter into the market.
Key Takeaways:
[2:05] Who is Steve and how did he get into mobile home parks?
[2:45] Steve met a man named Ernie Tew who explained to him what mobile home parks were all about.
[3:50] Who is Ernie Tew?
[7:25] Steve and his business partner Corey Donaldson started hosting conferences in 2004 to help people get familiar with the industry.
[8:45] What was the purpose of Mobile Home University and why did Steve and Corey create it?
[10:15] Frank Rolfe and Dave Reynolds are now managing Mobile Home University. This is because Steve was starting to get burned out.
[12:50] Steve cites Dyches Boddiford as one of his mentors and a very knowledgeable man in real estate.
[14:15] How does Steve typically structure his joint ventures?
[18:00] What’s the best way for a newbie to get started in this industry?
[22:10] Why does Steve like self-storage facilities/properties so much?
[27:00] How does Steve market his self-storage facilities?
[29:00] What was the biggest mistake Steve made, when he first got into the mobile home park industry?
[31:10] What is the SECO Conference about?
[41:45] To be honest, Steve thought he’d be a pilot for all of his life. Sometimes, life throws you curveballs!
[42:55] Associate with successful people. Find the guys and gals who are successful in the industry you want to be in, and learn under them. Pay them or work under them for free!
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.com
Welcome to Episode 70 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Steve Case has had a long history in the mobile home park industry. He cites guys like Dyches Boddiford and Ernie Tew who have helped mentor him throughout the years, and made him a smarter and wiser investor. On today’s show, Steve talks about MobileHomeUniversity.com (now being run by Frank Rolfe and Dave Reynolds), the SECO Conference hosted by Southeast Community Owners Symposium, and the best way newbies can enter into the market.
Key Takeaways:
[2:05] Who is Steve and how did he get into mobile home parks?
[2:45] Steve met a man named Ernie Tew who explained to him what mobile home parks were all about.
[3:50] Who is Ernie Tew?
[7:25] Steve and his business partner Corey Donaldson started hosting conferences in 2004 to help people get familiar with the industry.
[8:45] What was the purpose of Mobile Home University and why did Steve and Corey create it?
[10:15] Frank Rolfe and Dave Reynolds are now managing Mobile Home University. This is because Steve was starting to get burned out.
[12:50] Steve cites Dyches Boddiford as one of his mentors and a very knowledgeable man in real estate.
[14:15] How does Steve typically structure his joint ventures?
[18:00] What’s the best way for a newbie to get started in this industry?
[22:10] Why does Steve like self-storage facilities/properties so much?
[27:00] How does Steve market his self-storage facilities?
[29:00] What was the biggest mistake Steve made, when he first got into the mobile home park industry?
[31:10] What is the SECO Conference about?
[41:45] To be honest, Steve thought he’d be a pilot for all of his life. Sometimes, life throws you curveballs!
[42:55] Associate with successful people. Find the guys and gals who are successful in the industry you want to be in, and learn under them. Pay them or work under them for free!
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.com
Welcome to Episode 69 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Pat has bought and sold 250 communities over the last 37 years. Everytime he thinks he knows it all, he learns something new. That’s how diverse this industry can be! On the show, Pat discusses what RenterText can do for mobile home park owners and how it makes their lives just a little bit easier.
Key Takeaways:
[1:50] Who is Pat and how did he get in the mobile home park industry?
[5:35] Some may not know that a F4 tornado in January (of this year) tore through a town in Albany, Georgia, and completely wiped out one of Pat’s communities, along with causing massive destruction to other communities. Pat discusses some of the lessons he learned from this.
[10:45] What is Pat’s business, RenterText, about?
[15:10] How does Pat get ads posted on Craigslists in an automatic way?
[19:20] How does a mobile home park owner typically use Pat’s service? Via email? Website? What’s the process involved?
[23:55] It’s a neat tool that will make your managers and leasing agents accountable... month after month.
[25:25] What else do listeners need to know about RenterText?
[27:15] Remember, let the money follow the mission.
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.com
Look out for the app, “Tornado Free” when it launches!
Welcome to Episode 68 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Today, our two hosts bring on Ryan Howerton from 21st Mortgage to discuss how more park owners can help their residents become owners themselves. Ryan explains that there is a ‘free’ way how you can do this!
Key Takeaways:
[2:30] Who is Ryan and how did he get his start at 21st Mortgage?
[5:00] 21st Mortgage has a CASH program, how does this help both the park owners and tenants?
[8:35] Every year Ryan and his partner Lance looked at how they could improve this CASH program.
[13:35] The benefits of working with 21st Mortgage’s CASH program is that you also get access to a wide variety of expertise all across the nation. Ryan and his team have learned from their mistakes, and it makes no sense why you should start from zero.
[14:30] Ryan’s main focus for the customer is affordability. He aims to get the best setup as possible at the best price possible.
[19:00] Why does Ryan deny certain applicants? What do tenants need to know before they apply with 21st Mortgage?
[21:35] What are some the reasons why park owners are denied from the CASH program?
[26:55] How long does it take to get a mobile home park from 21st Mortgage?
[36:40] How has 21st Mortgage changed since Warren Buffett of Berkshire Hathaway has bought the company?
[40:35] At the end of the day, it’s all about the people. 21st Mortgage wouldn’t have seen the growth that they’ve seen without their dedicated and hardworking team.
[43:00] Does 21st Mortgage finance tiny homes as well?
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Call Ryan: 866-727-4733
Email Ryan: RyanHowerton@21stMortgage.com
Welcome to Episode 67 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. This week’s episode is a continuation of Craig’s interview on 1031 exchanges. Craig discusses ways you can defer, and hopefully avoid, taxes (the legal way!) on buying and selling real estate. Be sure to listen to last week’s episode, if you haven’t already!
Key Takeaways:
[1:20] How do you insure a home under a 1031 exchange?
[3:30] 1031 exchanges are regulated on both a federal and state level.
[3:50] How can mobile home park owners best do their due diligence when looking into a company that handles 1031 exchanges?
[7:30] Will President Trump get rid of 1031s?
[9:50] What should folks do if they’re worried they won’t make the 1031 timeline?
[16:30] Can you do a 1031 on real estate into a real estate fund? How does that work?
[20:35] Have your CPA onboard when you’re considering doing a 1031 exchange. If not, you could get into some trouble with the IRS.
[21:35] Craig and his company also do something called a construction exchange and explains what that means to you.
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Call Starker: 800-332-1031
Call Craig: 916-261-1031
Welcome to Episode 66 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Today, we’re going to learn how to pay no taxes! Craig Procter of Starker 1031 Exchange Services explains to Jefferson and Brad how you can structure things (legally) on your real estate and save some money. Keep in mind that this interview is part one of a two-part episode. Tune in next week to hear more from your hosts and Craig!
Key Takeaways:
[2:45] Who is Craig and how did he get started in real estate?
[8:10] Technically, when you’re doing a 1031 exchange on your property, what you’re doing is deferring your taxes, but you’re not avoiding them. However, you can defer your taxes indefinitely.
[10:20] This applies to all types of properties, not just mobile home parks.
[15:15] What is the purpose of doing a 1031 exchange?
[17:45] Can people exchange/buy property that’s less in value than their original property value?
[21:45] What happens when you’re trading your mobile home park for another mobile home park a couple of years later? What kind of filings would you have to do?
[26:00] If Jefferson wants to work with Craig’s firm (or similar companies) what are some of the steps he needs to take to begin the process?
[31:15] Want to know more? Tune in next week for the second part of this interview!
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Welcome to Episode 65 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. As Brad is off this week, Jefferson interviews Gerry DiMarco from Security Mortgage Group. Gerry’s company is a full-service mortgage brokerage firm that specializes specifically in financing mobile home communities. On this week’s show, Gerry goes into depth on what kind of debt you can take out on your mobile home park, and how he helps ease the process between banker and lender.
Key Takeaways:
[1:15] Who is Gerry and how did he get involved with mobile home parks?
[5:05] How did Gerry and his father grow the family business?
[6:35] What’s going on in the mobile home park industry when it comes to financing a mobile home?
[10:55] What kind of star rating do you need to qualify for a 3 Max loan from either Fannie Mae or Freddie Mac?
[14:40] How does Gerry search for good financing deals?
[19:00] Gerry and his brother are able to condense a complex transaction’s terms, and turn it into a two-page summary for their lenders, making it easy and concise to understand.
[19:55] Does Gerry go on site to any of the parks he brokers?
[21:55] What kind of financing can park owners expect, based on the state of their park?
[27:35] How do most of Gerry’s clients structure their loans?
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Call Gerry: 585-423-0230
Email Gerry: Gerry@Securitymortgagegroup.net
Welcome to Episode 64 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. As Brad is off this week, Jefferson interviews Matt Cohen from Gama Sonic Solar Lighting, based out of Atlanta. On today’s show, Matt discusses the benefits of using solar lights vs. traditional lights in your mobile home park. Aside from the obvious reduction in your electricity bill, solar lights also require less maintenance.
Key Takeaways:
[1:55] Who is Matt and what does he do for Gama Sonic Solar Lighting?
[4:25] How many solar lights does the average mobile home owner need to successfully light their park?
[6:15] These lights are also automatic! You do not need to rely on the manager to turn them all and off.
[8:50] The batteries need to be replaced roughly every 36 months. Where can you buy the batteries?
[11:20] Jefferson already has these solar lights in two of his mobile home parks.
[15:25] The highest pole you want to use for these lights is a 10ft pole.
[17:35] How much do these solar lights cost?
[20:15] What do the tenants think about these lights?
[22:25] How easy is it to order replacement parts?
[23:55] What’s the best way to install these lights?
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Call Matt: 727-688-5030
Email Matt: Matt@Gamasonic.com
Welcome to Episode 63 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. As Brad is off this week, Jefferson interviews Justin Powell of Streamline Automation Systems. Justin discusses the benefits of using technology and helpful products that make your property maintenance duties go by so much faster.
Key Takeaways:
[2:40] How did Justin first get started with Streamline Automation Systems?
[5:55] What kinds of products does Streamline Automation Systems have, and how does he help park owners?
[9:55] The product only runs on iOS right now, but they’re making an Android and Windows version. Coming soon!
[11:35] The cool thing about this product is that your property manager can use it to inspect your property’s structure and make the necessary work orders to get it repaired/cleaned.
[18:40] The great part about is that you don’t have to recreate the wheel. This product is specifically designed for mobile home park owners and their needs.
[20:40] Can tenants log in too and flag certain things for the park manager?
[22:15] Justin shares a quick client case study.
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Welcome to Episode 62 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. This is the second episode to Erik Hanson’s interview. Be sure to the listen to the first part to get a full view of what kinds of things go into an appraisal report. On this episode, Erik discusses how you can increase your property value and get more bang for your buck.
Key Takeaways:
[1:15] Erik continues his discussion on what goes into an appraisal report.
[4:25] On the report, there are some things you just have to include in there that the government requires. They don’t mean much to the buyer personally, though. Erik and other appraises call this the ‘Fluff.’
[7:30] There are two terminologies you should be aware of that appraisers use when discussing a park status, but what happens if your park doesn’t fall into these two?
[10:00] What kinds of things can a park owner do to increase their property value?
[11:40] What kind of amenities can you add to increase rent?
[14:30] How does Erik value the amenities?
[17:10] What states are Erik and his team currently active in?
[17:55] How do the park valuations change based on the different locations?
[20:55] Erik shares a quick funny story on an appraisal he did.
[24:30] Erik offers tips on how to find the right appraiser.
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Email Erik: erik@mhpappraisal.com
Call Erik: (608) 279-1164
Welcome to Episode 61 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Brad is off this week, which leaves just Jefferson as today’s host. How do mobile home park owners increase the value of their property? That’s exactly the topic that Eric Hanson, MAI will be discussing on today’s show. Erik is the Executive Vice President of Midwest Appraisal Group, and works specifically in appraising the mobile home park industry. Listen in as Erik has some advice for all you park owners out there on how to retain, and increase, your park value.
Key Takeaways:
[2:40] How did Erik Hanson first get involved in mobile home park appraisals?
[8:20] Erik has MAI in his official title, what do those letters mean and how does someone get that type of certification?
[10:45] When evaluating properties, do the banks ever try to influence Erik into giving them a higher value estimate (so that they can charge more interest)?
[13:15] What are some of the steps to appraise a mobile home park?
[18:45] Erik runs a ‘potential gross income’ report to see what’s the maximum amount of income the property can make.
[20:25] Since Erik has appraised a lot of parks, he typically can see right off the bat where all the mobile home park expenses should be.
[23:45] Join us next week for part 2 of this interview!
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Welcome to Episode 60 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. This episode is a continuation of Dick Ernst’s interview from last week. If you haven’t heard Part 1, be sure to check it out before listening to this episode! Dick continues his discussion on what it takes to help people buy mobile homes, and discusses in detail how the Dodd-Frank regulation has helped/hurt families.
Key Takeaways:
[1:30] Has the Dodd-Frank regulation helped families making 30K a year get mobile homes or has it hurt them?
[8:45] Lenders in the industry don’t want to make high-cost loans because they’ll become branded as a predatory lender.
[9:45] What’s happening with the CFPB (Consumer Financial Protection Bureau) right now?
[14:30] In an attempt to get Fannie and Freddie to be investing more into mobile home parks, who is leading the lobbying efforts in this?
[17:40] What can listeners do to help support this cause?
[22:35] Have more questions for Dick? You can give him a call!
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Email: Dick@FinMarkUSA.Com
Dick’s Cell Phone: 214-335-2708
Dick’s Office Line: 972-503-3201
Welcome to Episode 59 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Dick Ernst has been involved with the Manufactured Housing Institute (MHI) for the last 25 years, and currently serves on the board of directors. On the show, Dick discusses MHI’s financial lobbying efforts, and offers a behind-the-scenes look at what it takes to help people buy mobile homes.
Key Takeaways:
[1:20] Who is Dick, and how did he get into manufactured housing?
[5:45] How did Dick end up on the board of directors for MHI?
[9:05] What’s MHI’s vision for mobile home park financing?
[13:40] The whole reason banks and mortgage companies are not in this business right is because they don’t have any place to sell their loans. However, that’s about to change.
[16:10] Fannie & Freddie have dipped their toes in manufactured housing, and it has not ended well for them.
[18:30] The industry continues to grow every year at about an 8% annual rate.
[23:00] Dick believes that direct lending is the best way to deal in the manufactured housing business.
[26:25] Join us next week to listen to part 2 of Dick’s interview!
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Welcome to Episode 58 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. This episode is a continuation of last week’s interview with Donald Westphal. Jefferson, Brad, and Donald discuss how older mobile home parks change overtime as the city grows bigger, creating a good image for mobile home parks, and what it takes to make a community as a whole look good.
Key Takeaways:
[3:15] What kind of land makes it difficult to build a mobile home park?
[6:15] As the city gets built up around mobile home parks, the industry begins to lose a lot of older mobile home communities to higher density and higher value property development.
[7:35] How many mobile home parks got re-development last year?
[10:25] How many new mobile home pads or mobile home park expansions were added last year?
[14:35] Donald tries hard to inform people in the community of the benefits of a new mobile home park in the area.
[16:30] What do the conversations look like when speaking one-on-one to a mobile home park owner?
[21:55] Donald shares a funny story that have happened to him while on the job.
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Email Donald: Don@DCWestphal.com
Call Donald: 248-651-5518
Jefferson and Brad interview Donald Westphal for this week’s episode. This show is part one of a two-part interview. The men discuss zoning restrictions, what it takes to take a raw piece of land and turn it into a mobile home park, and all the red tape that’s associated with government bureaucracies.
Key Takeaways:
[2:25] How did Donald get into designing mobile home parks?
[6:45] A quick plug for State Associations. They really help give the mobile home park industry a good image.
[8:15] What’s the process towards taking a piece of land and turning it into a mobile home park?
[16:25] Why has it become difficult to build affordable housing?
[20:40] Most people think zoning is a frivolous activity. It’s not!
[22:15] Townships, councilmen, and mayors often do not approve of the ‘trailer trash’ image. This is why it’s important that Donald get to work earlier, rather than later, on developing a good reputation and image when he begins building a new mobile home park.
[26:25] You have do your research and look very professional while giving a presentation on why mobile home parks are good for the community.
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Jefferson and Brad interview Donald Westphal for this week’s episode. This show is part one of a two-part interview. The men discuss zoning restrictions, what it takes to take a raw piece of land and turn it into a mobile home park, and all the red tape that’s associated with government bureaucracies.
Key Takeaways:
[2:25] How did Donald get into designing mobile home parks?
[6:45] A quick plug for State Associations. They really help give the mobile home park industry a good image.
[8:15] What’s the process towards taking a piece of land and turning it into a mobile home park?
[16:25] Why has it become difficult to build affordable housing?
[20:40] Most people think zoning is a frivolous activity. It’s not!
[22:15] Townships, councilmen, and mayors often do not approve of the ‘trailer trash’ image. This is why it’s important that Donald get to work earlier, rather than later, on developing a good reputation and image when he begins building a new mobile home park.
[26:25] You have do your research and look very professional while giving a presentation on why mobile home parks are good for the community.
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Welcome to Episode 56 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. As Brad is off this week, Jefferson offers a case study on his recent park manager hire. This is a complementary show to Episode 45: How to Hire the Right Manager, which you can listen to on iTunes. Jefferson discusses the ins and outs of how he found his most recent manager for his new park.
Key Takeaways:
[1:30] Jefferson and Brad recently made an acquisition in Florida. The park came with the manager, and although the guys usually keep the manager, this one unfortunately did not fit the bill.
[4:15] In fact, some of the manager’s billing was a bit of a red flag.
[6:45] The manager was also very unprofessional and sent some nasty emails.
[8:40] Jefferson sent out a flyer notifying the residents in their 80 space park that they were hiring, but only 5 responded to it, and only 1 of them seemed qualified.
[9:40] The ad Jefferson placed in Craigslist pulled around 40 applicants.
[11:05] By this point, Jefferson already knew he was not going to be working with the current manager.
[13:20] Former park owners will try to encourage you to hire their manager, because of course, they often think very highly of them. Jefferson recommends that you cut through the noise and do what you think is best.
[19:45] Jefferson honestly has no idea what the manager was doing. She was never around!
[23:20] Jefferson has hired a new park manager for $1200 a month.
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Welcome to Episode 55 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. What do mortgage bankers bring to the table? Well, in this episode, Jefferson and Brad bring on Andy Margolis, a mortgage broker from Draper & Kramer. Andy explains in detail what a mortgage broker can do for you when it’s time to borrow money.
Key Takeaways:
[3:10] How did Andy become a mortgage broker?
[5:00] Why should somebody use a mortgage banker?
[9:15] Andy highlights an example of how he saved a client money, and even noticed some things in the loan docs that his attorney missed.
[10:45] How does Andy work with mobile home park lenders, especially when it comes to park and home percentages?
[11:45] Why would you do a life insurance loan vs. a CMBS loan vs. a bank loan?
[13:55] When somebody comes to Andy with a deal, does he shop it around to life companies, CMBS, etc. for the best deal?
[17:30] If somebody were to buy a $500,000 park, what would that financing structure look like?
[21:10] Andy shares some examples of what some of his deal structures looked like with his most recent clients.
[28:20] When would a non-recourse lender come after you personally?
[32:30] Find a lawyer who is familiar with CMBS loans. If you’re working with an attorney who has never done one before, your legal bill will double.
[35:35] Mortgage brokers typically cost about 1% of the loan amount, which typically gets paid out on closing.
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to: deals@parkstreetpartners.net
Email Andy: Margolis@Draperandkramer.com
Call Andy: 312-795-2507