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Wondering how you can stack the deck in your favor when purchasing a Mobile Home Park? Wonder no more!  I’ll tell you how we do it at Apex Communities RIGHT NOW  Episode #4 Of “The Savvy Mobile Home Park Investor Show”

The single biggest way to stack the deck in your favor in absolutely any real estate transaction is to pay attention to the three rules of great real estate:  Location, Location, Location. It’s a mantra repeated over and over, as it should be,  because it’s certainly a factor when it comes to a property’s value.

But if experience has taught us anything in running Mobile Home Investment Park projects here at Apex Communities, it’s that that Mantra could mean different things depending on your objectives.  A great location for your primary residence is one thing… and a great location for an industrial business is an entirely different animal.  Location still matters… but it means something different.

At Apex Communities, when we evaluate a Mobile Home Park project before offering it to our investor partner clients, there are 5 specific factors we look at to see just how desirable a location really is.

First is Population.  Populations can grow, shrink or be stagnant.  Only one of those is attractive to us… we want a population that’s growing consistently over time.  It can be booming growth or even conservative growth… but if there’s growth there, that’s a great sign.

Second is Employment Growth.  A GREAT LOCATION is one that has a growing population, and that population is supported by strong local employment statistics that are, themselves, moving in a positive direction… and ideally, there should be a wide breadth of employers that are not limited to one or a small number of industries.  A locale gets bonus points if the fields of healthcare, government and education are well represented in the area, because those kinds of jobs almost never relocate.

Third is we closely analyze local crime.  Obviously, no one wants to live next door to a hot spot of criminal activity. The local police or public library should have accurate crime statistics for neighborhoods. We look at things like vandalism as well as serious and petty crimes, and consider whether those trends are moving in a positive direction.

Fourth is the local economy and amenities in the area.  We like to tour the neighborhood and check out the parks, restaurants, gyms, movie theaters, public transportation links, and all the other perks that attract residents.  These are factors that make an area inherently more or less attractive, so we consider them carefully.

And fifth is that we carefully consider Future Development in the general area, as indicated by the local municipality in their city planning documents.  If there is, or will soon be, a lot of construction going on, that’s nearly always a great sign.

The largest driver of rental demand is population growth and, in turn. One of the largest drivers of population growth is employment growth. When considering a market, you want to understand its job growth trend.  You need to Ask yourself:  Is there a steady jobs market?

In general, the larger the market, the more stable the employment growth because there is a greater diversity of not only employers but a great diversity of industries.   We want to stay away from the small towns with the lone employer or the lone industry. If the employer goes belly up so does the town. 

But here are some things to keep in mind: 

Healthcare, government and higher education jobs rarely relocate and tend to grow over time.  When an area has a lot of those jobs, that’s a great sign!

What about crime? Obviously, no one wants to live next door to a hot spot of criminal activity. The local police or public library should have accurate crime statistics for neighborhoods.  We Check the rates for vandalism, and for serious and petty crimes, and don’t forget to note if criminal activity is on the rise or declining. You might also want to ask about the frequency of a police presence in your neighborhood.

efore we purchase a property we love to tour the neighborhood and check out the parks, restaurants, gyms, movie theaters, public transportation links, and all the other perks that attract renters

What about Due Diligence? 

A wise investor will certainly evaluate the condition of all park-owned homes: Is it more cost-effective to repair or replace each one?  Ultimately, we dont want to keep any of them. Our priority is to sell them back to tenants or to someone else looking to buy, but that doesn’t happen overnight. We might need to fix them up or replace them before they sell, but it’s always better to know that ahead of time. Be sure to inspect park-owned mobile homes regularly and perform preventative maintenance.

When we own a mobile home park, for the most part, we are responsible for maintaining roads and underground water and sewer lines. Additionally, if we own private utility systems—like septic, water well, gas, or electric—then we too are responsible for the maintenance of those systems.  This can be an expensive game to play. Repairing roads or sewer lines can cost tens or hundreds of thousands. Repairing private utility systems can cost upwards of a million dollars. Given these high price points, it’s imperative that we evaluate the likely dollar amount of repairs needed to the park’s infrastructure
One last thing to point out. Is that there is still tons of great Mobile Home Parks opportunities. Many can still be bought from the original mom-and-pop investors who have owned them for 20-30 years, sometimes longer.  Many haven’t raised the rent in years and do not have the money to make the needed repairs on their parks or their homes, those same owners will carry the financing so there’s no need for a bank loan.  

Now there’s always more to think about when making a well-considered Mobile Home Park Investment, and that’s exactly what we at Apex Communities do for our clients.  The Bottom Line, however, is all about one idea:  We’re looking to stack the deck in favor of our project – and therefore our investor partners, potentially like you – to create a huge probability for success. And this much is true:  ​Every state has good cities, every city has good neighborhoods, and every neighborhood has good properties. And that’s what we do at Apex Communities:  We separate the wheat from the chaff, and make sure our investor partners get the cream of the crop every single time.

Folks, that’s all I’ve got for you today, except for this:  The most common question I get is this:  Eloy, I’d love to get involved… can you connect me with some of these great mobile home park investments that you’re describing?  And the answer is:  Maybe! Most of our projects fill rather quickly, and all of them require a minimum of $50,000 to participate, so if YOU would like to be notified whenever we have exceptional opportunities just open up that web browser go to www.partnerwithapex.com that’s PARTNERWITHAPEX A-P-E-X.com to get on our VIP investor list right now and I’ll reach out to you when the next great opportunity comes along.

Until next time, I’m Eloy Retana REMINDING YOU That  “The goal isn’t more money. The goal is, life on your terms”

OUTRO BUMPER:

Thank you for listening to The Savvy Mobile Home Park Investor show. The “The Savvy Mobile Home Park Investor Show,” Is a production of Apex Communities LLC.  This content is not intended to be advisory in nature and is not offered with the intention of providing LEGAL, TAX or other licensed professional guidance to any listener.  Be sure to visit your own licensed professional advisors. This content is copyrighted by and is used under license from Apex Communities LLC

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