August 2009
Newsletter
This issue of the MobileHomeParkStore.com and MHBay.com Newsletter includes:
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We recently updated our Mobile Home Park Investment Study Course. This is a must have for anyone who is thinking of investing in mobile home parks, or currently owns mobile home parks and wants them to operate more profitably. -------------------- I purchased you home study course a few weeks ago, and am very satisfied. It is better than I expected and I have learned so many things that are saving me time and money already, and I am just entering my first deal. I have also called Frank twice and he answered both times and has spent nearly an hour on the phone with me personally; most of which was before I even purchase the course. I will say that even though I probably would not have bought your course for $5000, it would be worth it. It is definitely worth the $600 you ask. Thanks Guy’s. Paul B. -------------------- When you order the Home Study Course you get the following:
-------------------- Dave, Just wanted to send you a quick note to let you know that I really think your home study course is great! I purchased it last week and have been diving into all of the material. You guys overdelivered for sure! I hope to be able to meet you guys sometime. John N. -------------------- To view more information about the home study course Click Here. |
Don't Even Think About Getting Into The Roto-Rooter Business. Mobile home parks are one of the largest users of roto-rooter services. The habitual sewer clog is as much a part of park management as storing hay is for a farmer - it's just a natural byproduct of the business. Why do mobile home park sewer lines clog so frequently, anyway? There's basically three reasons: Cooking with lots of grease Mobile home tenants are very big consumers of fried foods. That's how they maintain their healthy figures. And every time they fry something, whether it's bacon, or fried chicken, or French fries, they pour the grease down the drain. Sure, you were taught not to do that when you were 10, but mobile home park tenants don't really care since they don't own the sewer lines. When the grease hits the water in the sewer line, it starts building up and collecting other grease, ultimately creating a "snowball" effect. When the ball becomes large enough, it closes off the sewer pipe. No disposals Mobile homes in most parks do not have kitchen disposals. As a result, big items that don't dissolve into water are introduced into the system, such as lemons and orange peels and other bulky masses. They collect with the grease balls, and shut down the line. Bad behavior Nobody ever said that mobile home park tenants are well behaved, but in the case of the sewer system, they are particularly bad. Many times, they will deliberately shove things into the sewer line (normally by removing clean-out caps) just to see what would happen. We have removed such items as Power Rangers and T-shirts and bricks. How did they get there? I'm pretty sure you can guess. Alright, we've established that you are going to get sewer clogs - so how do you fix them? Well, the worst thing you can do is to try and do it yourself. Fixing sewer clogs yourself is one of the all-time worst ideas you can have. Here's why: You can't buy the professional grade equipment you really need When you buy the roto-rooter machine at Home Depot, be advised that it is like a play toy of the real machine. That machine fits in the back of your car, the real machine takes up the entire back of a truck. In addition, the special fittings and blades that the pros use do not come with the Home Depot model. You need to be able to cut the clog into pieces - the Home Depot unit can only push it farther down the pipe. There is a lot of liability when using the machine Do you really think that your park manager or maintenance man is capable of running something like this without getting injured, or injuring people or property? Think again. The metal wire that pushes the machine forward can do incredible damage if not used correctly. It can cut off a hand or foot, or blind someone. It can easily knock a hole in a car door or in a neighboring trailer. Do you really want to be on the hook for that? You don't mess with sewage When you have a sewer clog, bad things can happen. You can get sewage backing up in the houses, or coming out of the ground via the clean outs. Plus, your tenants can't use the bathroom. As a result, the city inspector will get called, and he will be all over you. If the spill is bad enough, you may have to do a Phase I environmental assessment. That's a huge impact to your business. If you want to try painting the laundry building, who cares? Want to plant some bushes? Go ahead. But only a idiot would mess with their own sewer. The risk/reward is just not there. Conclusion A roto-rooter service in most markets is about $250. That's a bargain. Call the professionals and save yourself a lot of aggravation, time and risk. |
10 Great Ways to Increase the Value of Your Mobile Home Community 1. Raise Rents: A $10 per month rent increase at a valuation using a 10% capitalization rate, can increase the per lot value of $1,200. 2. Submeter Water and Sewer and Trash: By installing water meters and billing the residents back for water and sewer and trash you are in effect increasing your bottom line. I often think this is one of the most equitable ways of to pass on expenses to the residents as they only pay for what they use. In my experience when meters have been installed the master water and sewer bill is reduced by 30-40% as your residents become conscious about the amount of water going through the faucets. Leaky faucets are fixed, toilets no longer run continually, cars are not washed every day, etc. 3. Enforce Rules and Leases: By enforcing reasonable rules and regulations your community will be regarded as a safe and comfortable environment. Get rid of problem tenants. If you are worried about losing the rent from one or two problem residents, consider that you may lose even more good residents and potential residents by keeping those that are causing problems and not obeying the rules. 4. Reduce your Property Tax Expense: Contact a company that specializes in going to bat for you with your county tax assessor to get your valuation and taxes reduced. Many states and counties base the assessed value on the purchase price. However, most mobile home parks should have a business value component that should not be taxed as property tax. These companies often work for a % of the reduced taxes thus no money out of pocket. 5. Reduced other ongoing expenses: Get multiple insurance quotes, evaluate telephone costs and extras, negotiate with plumbers and electricians to get a lower hourly rate, etc. 6. Fill vacant lots: How much is a vacant lot worth? In many cases, a vacant lot is actually costing you money to keep the grass mowed, the lot clean, and so on. If your lot rent is $200 per month and based on a simple formula that a lot is worth 60 times the monthly rent, then an occupied lot is worth $12,000. Would it make financial sense to spend $2,000 to cover the home moving costs of a potential resident? I believe it does. Other incentives I have used include, free or reduced rent for the first year or two, free installation of new skirting, free steps and decks, and the list goes on. Be creative and stay ahead of your competitors. It is much more effective to come up with 50 ways to market to one customer rather than 1 way to market to 50 customers. 7. Buy homes for Resale or Rental. Buying used homes and placing them in your community for resale or rental is another way to drastically increase the value of your community. As mentioned before, each time you fill a vacant space, the value of your park increases. As a community owner you have an advantage over most mobile home retailers in that you do not need to make a profit on the sale of new and used homes. If you profit by $12,000 per space in equity each time you add a new home, you can sell the homes at breakeven and be way ahead. 8. Increase the Curb Appeal: Encourage residents to clean up their yards and property. Hold clean up days on a monthly basis. Have new and attractive signs installed at the entrances. Repair roads and maintain adequate street lighting. Have monthly rent discount incentives to the residents for things such as: Property of the month, most improved property, etc. Additionally, financing for your residents such things as new skirting, paint, wood siding, and other outside improvements can get the homes looking better as well. 9. Add additional income sources: If you have some vacant land, consider adding some mini storage units, or fence it off and offer storage for RV's, Boats, and extra automobiles. If you have highway frontage, look into placing billboards or selling easements to billboard companies. Look into getting Cable TV or Wi-Fi for the entire park and in doing so, your residents will get a break on these costs and you should be able to profit as well. 10. Dedicate streets and utilities to the city. Although is not too common for established communities, if you can talk your city into making this happen, you just reduced your exposure to street repairs, utility repairs and metering. |
New Service for Lenders: Mobile home parks are unusual additions to most REO portfolios, and require specialized assistance to operate and maximize their re-sale value. If you are a lender and have a mobile home park in your REO portfolio, or are faced with foreclosure on a mobile home park, then we offer consulting services specifically for you |
News Stories Applications to build new Mobile Home Parks denied |
Are you a manufactured home owner or community owner with homes or lots for sale or rent? If so, then you can list your new and used mobile homes for sale or rent and lots for sale or rent for FREE at MHBay.com |
Tell us what you think!Wed love to hear what you think of this issue! We need your articles and press releases - send your articles to perry@mhps.com to be included in upcoming newsletters. Where else can you put your press releases and articles in front of thousands of people for FREE! Please send your comments, questions, articles, and ideas for upcoming issues to us at: perry@mhps.com Your feedback matters to us! Visit us at www.mhps.com or www.mhbay.com Until Next Time! Dave Reynolds MobileHomeParkStore.com 18923 Highway 65 Cedaredge, CO 81413 PH: 800-950-1364 FX: 970-856-4883 |