Please read the details below for further
information.
We look forward to
working with you in this new program.
This program will be top notch and will
put SMART Park Owners and Mobile Home Investors together so they can both
beat this recession and get better returns.
This program is a
win-win-win (consumer, park owner, and home investor).
How the Program
Benefits the Consumer
In addition to providing affordable
housing to consumers who are desperate for it, the
Mobile Homer benefits the customer in other ways:
By enjoining the park owner into the
process, you have helped close the circle with everyone being on the same
page. In the old days, the park owner was often hostile to the Lonnie
Dealer, thinking that they were importing bad tenants into their community.
As a result, the park owner would often “ride” these tenants with
over-zealous rules and collections methods. The
Mobile Homer puts everyone on the same team.
By focusing on the amount that your
customers can afford, you help ensure that the resident does not exceed what
they can actually afford, thereby giving them peace of mind, and their kids
a sense of security. It’s a shame that the stick-built home market did not
share such a goal.
By keeping the amortization short, you
help ensure that the owner will get the home paid off and establish an asset
for themselves, as well as enjoy lower housing cost in less than 7 short
years. This is a great win/win for the consumer.
By watching over the quality of the home,
as described in the program, you make sure that the customer has clean, safe
housing at a very affordable price.
The Mobile Homer truly is a tremendous opportunity for the customer, and
should be treated as such. Your reward, as the seller, will be a phone
endlessly ringing with demand, and customers who can afford their payments
and stick to the end of the contract. Not to mention the many families that
you have put on the road to home ownership.
How it Benefits the
Mobile Home Investor/Dealer
Doing Mobile home deals, under the
guidelines established in the course can be enormously profitable. In
addition, using the system we show you, it can be relatively stress-free and
enjoyable.
By bringing the park owner on-board, as a
member of your team, you have an ally who has 24/7 visibility of your
property and tenant (buyer). You no longer have to feel isolated and
powerless to monitor what’s going on with your property. In addition, it
establishes fairness, since the park owner has to share in the pain and well
as the profits at all times on the home.
And by basing the business model on real,
tangible economics and strategies, it is structured on reality and realistic
results. Under the old business model, you had a much lower chance of even
recouping your investment. Under this new business model, you have a very
low chance of failure. Sure, in any investment, you have a chance of
not making your goals. But under the
Mobile Homer model, you have a math formula of 2+2=4,
instead of constantly trying to nail Jell-O to a wall.
This business plan has been built on the
lessons learned of buying and selling over 400 mobile homes in parks across
the U.S. It is fundamentally sound and tested.
How it Benefits the
Mobile Home Park Owner
When you fill a lot in a mobile home park,
the benefit to the park owner, based on a standard valuation of a park at a
10% cap rate, is sizable. At a $250 per month lot rent ($200 per month net
after expenses), this increase in valuation is $200 x 12 x 10 = $24,000.
We are assuming that the cap rate is 10% and that $200 is a net of expense
number.
In addition to an increase in valuation of
$24,000, the park owner also enjoys a cash flow of $200 per month for each
occupied lot, without any capital cost in the home that sits upon it.
Contrary to what park owners may tell you,
there are virtually no new mobile homes moving into lots in mobile home
parks these days. Back in 1999, there were as many as 400,000 mobile homes
manufactured in the U.S., of which 75% were singlewides that went into
parks. Today, there are under 100,000 mobile homes manufactured in the U.S.,
of which less than 50% are singlewides that might go into parks. That’s a
decline from around 300,000 new homes into parks in 1999 to less than 50,000
today – about an 80% decline!
The most common way that a new home moves
into a lot today is when a park owner buys it himself. That costs the park
owner capital – an item most park owners lack after making the significant
investments in the parks that are required.
So every time you bring a home into a park
under the Mobile Homer
program, you are making the park owner a significant amount of money. Never
let them forget this!
You are not asking the park owner for much
in return for making them a huge amount of money. In fact, there are plenty
of park owners out there that would love to work with you! And Frank
and Dave are some of the most workable park owners there are around!
How the Structure
with the Park Owner Works.
The park owner is getting a great deal by
you simply bringing in a home, or retaining an existing one in their park.
The motivation for them to work with you is already on the table.
What you are asking in return from the
park owner is in no way a ridiculous request. All you want them to do is be
on your team, so that the relationship between you and the park is not all
one-sided. We live in a new era of win-win negotiating, and without the park
owner agreement, as part of the NEW program, you are structuring a win-lose
deal – with you on the losing end.
There are some park owners that are
particular about the homes that come in as well as having a tough screening
process and they will be hesitant to just let someone start buying and
selling homes. However, there are ways to work with these park owners
as well. The basic premise would be that you would buy the home and
instead of selling it to the future resident, you sell it to the park owner
on the same terms that you would sell it to the resident. Then the
park owner would take care of the rest. You have the home as security,
the park owner guaranteeing the payment, and relatively little time involved
in the whole process.
In the course we will
go over in detail what you will be expecting from the park owner:
Here are a couple of examples:
1) No rent during the period in which you
remodel the home – and nothing due until you sell the home for the first
time. There is no reason you should pay lot rent while you are getting the
home ready to sell, nor while you are marketing it to sell. Since the home
sitting on a vacant lot costs the park owner very little to nothing at all
other than opportunity cost – and without you there’s no opportunity.
2) No rent during any period in which the
home sits vacant between tenants. You hope that the first buyer sticks until
the end, but there’s no guarantee and the reality is that many buyers
default before the end of their mortgage. As a result, you may have periods
of vacancy after the initial sale is completed. During any vacant period,
you are not asking much of the park owner to let the rent be abated during
these down times. You are asking them for very little and at the same time
you are providing them with substantial economic gain during the rest
of the time.
I think you would agree
that this is a small request for the amount of money/equity you are creating
for the park owner with your home.
Conclusion
We have spent countless hours trying to
dissect the old system of buying and selling mobile homes that was made
popular by Lonnie Scruggs in Deals on Wheels. As mentioned
before we do believe that there is more potential in making bigger profits
in buying and selling mobile home parks. However, not everyone has
$100,000 or more to buy a mobile home park and we know that many people out
there would satisfied with double digit returns on their investments
and at the same time we are ultimately filling that void of affordable
housing. And we think if you follow this program and don't cheat and
cut corners you have a good shot at these double digit returns.
Lonnie Scruggs laid the groundwork for the
Lonnie Deal and our goal with our program is to take out much of the risk
and increase the profits for the mobile home investor by creating a
partnership with the mobile home park owner. This plan is definitely
feasible as we are putting our own mobile home parks into the program and
will set a standard of how aggressive the park owner can be in working with
the mobile home investor.
So using the basic strategies outlined
above, we believe there is opportunity in this concept for both the park
owner and the mobile home investor, but only based on the business model we
have demonstrated.
If you were to go into this business on
your own without some type of partnership with the park owner, you odds of
success are limited and your chances for failure are increased. As
park owners and educators in the industry, we have had numerous sad meetings
with folks who have failed under the traditional model and have ended up
walking away from homes or selling them for a pennies on the dollar.
The Mobile
Homer business model is based on the reality of
affordable housing, and the shortage there of, sprinkled with the pathetic
lack of funding available by institutions in this arena, and then blended
with the inclusion of the park owner.
Is it a window of opportunity that will
soon close, or will it be open in perpetuity? We don’t know.
If you follow the concepts and systems
shown above and in this program, and then start striking relationships with
park owners whether it be Dave, Frank, or the park in your city, you should
be able to produce good, and sometimes sensational, returns on investment
from used mobile homes.
Frank Rolfe & Dave Reynolds
MobileHomeParkStore.com
Are You Ready
to Get Started?
For
Mobile Home Investors:
150 Page eManual
Downloads of Forms and
Checklists
One Year Access to the
Mobile Home Park Owners in the Program
One Year Listing as an
Investor
Access to Mobile Home
Deals
Access to Wholesale
Pricing on New Manufactured Homes
Access to our Resource
Directory - best and cheapest place to buy skirting, doors,
etc
For
Mobile Home Park Owners:
150 Page eManual
Downloads of Forms and
Checklists
One Year Access to the
Mobile Home Park Investors in the Program
One Year Listing as an
Approved MH Park
Access to Mobile Home
Deals
Access to Wholesale
Pricing on New Manufactured Homes
Access to our Resource
Directory - best and cheapest place to buy skirting, doors,
etc
The price for park owners
to list their property is $97.00/year.
The information on the
NicheInvestmentNetwork.com network of sites has been obtained from sources
we believe to be reliable. However we make no guarantee, warranty
or representation on the information provided and it has not been
independently verified. It is your responsibility to verify its
accuracy and completeness. In all cases you should enlist the the
services of competent counsel to aid you in the verification.
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