Dave Reynolds and Frank Rolfe

Why Invest In Mobile Home Parks
by Dave Reynolds and Frank Rolfe

Mobile Home Park Investing Top Reasons

From the New York Times to Bloomberg, mobile home park investing is starting to be recognized as an attractive real estate sector. Many investors are learning that mobile home parks are the best kept secret in commercial real estate. So what has made mobile home parks suddenly on the radar screen of the real estate community? The sector has always done extremely well, but investors are finally getting over the stigma and learning to appreciate the power of affordable housing. It’s not hard to find literally hundreds of parks to buy very quickly, if you look in the right places. So what’s so special about mobile home parks?

5 Reasons To Invest in Mobile Home Parks

Here are five great reason you should looking for way to findthe ideal park to buy.

Highest Yields

Mobile home parks have the highest yields in commercial real estate, with starting cap rates often over 10%, and cash-on-cash returns of 20% standard fare. This is at a time in which apartment cap rates are often around 7% and retail cap rates are sometimes at 6% or lower. Because there are fewer buyers for mobile home parks than other real estate niches, the supply/demand formula has always given mobile home parks a higher going-in rate of return.

Hedge Against U.S. Economic Decline

If you believe that the U.S. economy will continue to decline in the years ahead, under the weight of social programs and the drag of an aging population, then mobile home parks are virtually the only form of real estate that performs better in a recession. As America gets poorer, mobile home parks are the only form of housing devoted to this demographic.

Barriers to Entry

One reason that mobile home parks have long held their value is the simple fact that virtually no city or town in the U.S. will allow new parks to be built. Why? Nobody wants a mobile home park as a neighbor, and their vocal dislike for mobile home parks eliminates any chance of political approval. In the entire United States, it is estimated that less than 10 new parks are built each year – less than the number that are town down for re-development.

Barriers to Moving Out

Another interesting barrier is the difficulty tenants have in moving their home out of a mobile home park. It costs around $5,000 to move a mobile home, so virtually no tenants can ever afford to move. As a result, the revenues of mobile home parks are unbelievably stable. But what happens when a tenant cannot afford to continue to pay their rent? Then they normally abandon the home, and the park owner ends up with title under abandoned property laws.

Demand is Giant and Grows Daily

Affordable housing is a giant topic in America right now. Over 20% of the U.S. population has a household income of $20,000 per year or less (which is nearly the poverty line). On top of that, there are 10,000 baby boomers retiring per day into social security checks that average only $14,400 per year. The demand for affordable housing literally grows daily, and this will continue for over a decade, according to most economists.

Conclusion

Mobile home parks offer higher greater returns and stability than any other real estate sector. They are the only real estate segment that grows stronger as the economy weakens. That’s probably why the two top investors in this niche are Warren Buffet and Sam Zell.




Dave Reynolds and Frank Rolfe
Dave Reynolds is a successful real estate investor that has specialized in the purchasing of Mobile Home and RV Parks for the past 12 years. He has the keen ability to quickly assess deals, cut through hype, measure upside vs. downside risk, and make sound decisions. He has owned and operated over 55 Mobile Home & RV parks over the past 12 years in 16 different states. He currently owns over $10,000,000 in mobile home park real estate.

Dave Reynolds received a B.S. in Accounting from Mesa State College in Colorado in 1992 and attended graduate school majoring in Accounting and Taxation at Colorado State University in 1993-1994.

Frank Rolfe was born in Missouri, the "Show Me" state, and has been starting up businesses since high school. He has had two big successes: a billboard business that he sold to a public company in 1996, and a mobile home park business that he sold to various buyers beginning in 2004. He always has several start-ups in the hopper - currently an old time photography business, a web-based educational products business, an art school, and a return to the billboard business. Frank Rolfe holds a B.A. in Economics from Stanford University.

Dave Reynolds and Frank Rolfe have combined forces to bring the real estate market a better perspective on the multiple successes you can have with Mobile Home Parks. Together they have a combined experience of 20+ years and over $100,000,000 worth of deals under their belt.


Dave Reynolds and Frank Rolfe Products (6)
EventsMobile Home Park Bootcamp
CoursesMobile Home Park Investment Home Study Bundle 1
CoursesMobile Home Park Investment Home Study Bundle 2
CoursesProfessional Self-Storage Investor Home Study Course
CoursesRV Park and Campground Investment Home Study Course
CoursesThe Outdoor Billboard Professional Home Study Course


Copyright Notice
Copyright 2002-2019 All Rights Reserved. Published with Permission of Author. No part of this publication may be copied or reprinted
without the express written permission of the Author and/or REIClub.com.

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Author's Products

Mobile Home Park Bootcamp

Mobile Home Park Investment Home Study Bundle 1

Mobile Home Park Investment Home Study Bundle 2

Professional Self-Storage Investor Home Study Course

RV Park and Campground Investment Home Study Course

The Outdoor Billboard Professional Home Study Course