Welcome to the fund

Don't know a thing about this opportunity. But it's great to see members getting together and making things happen! Lots of untapped potential here.

In many cases trailer park tenants are the worst. Think squatters. Don't pay. Damage the property. Cops to evict. Just a warning. I hope the guys are successful but I know some people that lost a good chunk of change owning a trailer park.

mpl35 said:

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In many cases trailer park tenants are the worst. Think squatters. Don't pay. Damage the property. Cops to evict. Just a warning. I hope the guys are successful but I know some people that lost a good chunk of change owning a trailer park.

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You can say the same about regular old house renting. Tenants have more rights than building owners, especially the ones who never signed a rental agreement.

I have put some money into independent/ memory care facilities which are built greenfield and operated by a management company which is separate from the real estate. Nice chunk of rental income and depreciation; hoping for a sale in 3 to 5 year time frame. Key here is independent living; no insurance or medicare reimbursement issues.

OldArmyCT said:

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mpl35 said:

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In many cases trailer park tenants are the worst. Think squatters. Don't pay. Damage the property. Cops to evict. Just a warning. I hope the guys are successful but I know some people that lost a good chunk of change owning a trailer park.

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You can say the same about regular old house renting. Tenants have more rights than building owners, especially the ones who never signed a rental agreement.

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not really. My point is the ones that tend to be tenants in trailer parks are usually lower income and more destructive.

mpl35 said:

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OldArmyCT said:

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mpl35 said:

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In many cases trailer park tenants are the worst. Think squatters. Don't pay. Damage the property. Cops to evict. Just a warning. I hope the guys are successful but I know some people that lost a good chunk of change owning a trailer park.

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You can say the same about regular old house renting. Tenants have more rights than building owners, especially the ones who never signed a rental agreement.

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not really. My point is the ones that tend to be tenants in trailer parks are usually lower income and more destructive.

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In my experience, lower income does not mean more destructive. In fact, there are often times when we see our lower income residents will fix things on their own, like toilet flappers, air filters and light bulbs.

The only exception to that is if there is a small maintenance issue that can cause big damage like a water leak. Lower income tend to live with or work around small maintenance issues that Karen would be calling you the second she saw a drip of water on the floor.

Troglodyte said:

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mpl35 said:

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OldArmyCT said:

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mpl35 said:

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In many cases trailer park tenants are the worst. Think squatters. Don't pay. Damage the property. Cops to evict. Just a warning. I hope the guys are successful but I know some people that lost a good chunk of change owning a trailer park.

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You can say the same about regular old house renting. Tenants have more rights than building owners, especially the ones who never signed a rental agreement.

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not really. My point is the ones that tend to be tenants in trailer parks are usually lower income and more destructive.

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In my experience, lower income does not mean more destructive. In fact, there are often times when we see our lower income residents will fix things on their own, like toilet flappers, air filters and light bulbs.

The only exception to that is if there is a small maintenance issue that can cause big damage like a water leak. Lower income tend to live with or work around small maintenance issues that Karen would be calling you the second she saw a drip of water on the floor.

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I'm glad you haven't had that experience. I don't want to get down a rabbit hole here. My main point is buyer beware for trailer parks. I personally know of a 3 people that tried it and it didn't work out that well. Needed constant supervision above and beyond normal rentals. When the tenants were evicted or knew it coming, they destroyed things like oven doors torn off and left in the yard. I am just warning that the risk is likely greater.

Troglodyte said:

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mpl35 said:

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OldArmyCT said:

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mpl35 said:

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In many cases trailer park tenants are the worst. Think squatters. Don't pay. Damage the property. Cops to evict. Just a warning. I hope the guys are successful but I know some people that lost a good chunk of change owning a trailer park.

---

You can say the same about regular old house renting. Tenants have more rights than building owners, especially the ones who never signed a rental agreement.

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not really. My point is the ones that tend to be tenants in trailer parks are usually lower income and more destructive.

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In my experience, lower income does not mean more destructive. In fact, there are often times when we see our lower income residents will fix things on their own, like toilet flappers, air filters and light bulbs.

The only exception to that is if there is a small maintenance issue that can cause big damage like a water leak. Lower income tend to live with or work around small maintenance issues that Karen would be calling you the second she saw a drip of water on the floor.

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In the MH world park owned homes are the thing to be cautious about. Those do have reputation for being damaged and being viewed as a lability due to the condition when the tenant moves, but a lot of that goes back to the stigma of MH as trailer park full of meth. Just renting the spaces eliminates that risk but the trade off is that model takes longer to stabilize.

I know guys in the space from small to institutional and it just comes down management and the ability to operate the park. When these things make money they really make money.

I had about a half-dozen MH parks as clients, though most were when I first started my practice. Some were decent sized properties; none were put together seeking outside investors.

About half of them did ok, but nothing that would make you go wow. But there are some issues to look forward to. Park owned homes can be a problem, as someone mentioned. Most of the people (but not all) who live in a MH park can't buy a traditional home, they ruined their credit. So, you often are not dealing with the upper crust so to speak. But they can find a mobile home to buy. As far as having a structure that is suitable for relocation, an RV is better suited for that. The cost of moving a MH (particularly a double-wide) means most of those who leave the park will want you (or someone) to take over the notes.

The other issue is if they abandon their MH. Typically, if that is the case, it will be one that isn't in very good shape. Though it wasn't a client of mine, I did hear of a MH park that had a significant number of homes destroyed by one of the hurricanes (maybe Rita?). And they had no provisions for removal of the damaged/destroyed homes. So metal, wood, insulation, and some of the structure in the MH park and needing to get it out. You can be the owners disappeared!

I would guess the promoters have done several deals and have taken all these sorts of things into account.