You’re here because you’ve caught the entrepreneur spirit and you’re thinking a mobile home park may be the thing for you. But questions plague you.
“Where do I start?”
“How do I buy a mobile home park to make a profit?”
“Is it hard work?”
Well, you’re in the right place. Buying a mobile home park to make a profit is hard work. We won’t lie to you and say it’s all sunshine and roses. But is it worth it? We’d say so!
How do I buy a mobile home park to make a profit?
So come along and we’ll walk you step by step on important tips that answer the question, “how do I buy a mobile home park?”
Know your goals, know your purpose
Now you know you want to buy a mobile home park, but do you know why? What’s your goal and purpose in taking on this business venture? Entrepreneur.com says that without a solid view of your goals, your business plan won’t be very coherent or effective.
As you plot out your goals, it is time to take a serious look at whether or not you’re willing to put in long hours and make the financial sacrifice needed to make this venture work. And this brings us to the next section.
Research, research, research – know your market
Once you’ve figured out your goals, it’s time to roll up your sleeves and dig deep into research. That’s right – if you’re serious about buying a mobile home park to make a profit, you need to do your own homework.
And that’s not because we don’t want to help. But rather it’s due to the fact that every geographic location will have its own unique market and factors to take into account. And that’s something you’ll have to investigate.
Over the next few months, research the mobile home parks in your area and jot down all the information you can collect on each one. Figure out what is the best going rate and calculate how so you can get a good return on your investment. Compare these park listings with your own criteria checklist.
Locate mobile home parks for sale
If you’re wondering where to find mobile home parks for sale, you can try online markets such as loop.net. Craiglist, Land and Farm, and Mobile Home Park Store are other sites you can peruse.
Once you’ve located the parks you’re interested in, please ensure that you see them in person before making any offers. This is important. It wouldn’t be the first time a listing looked completely different in person. It could be a huge disappointment and financial pain if you’re stuck with a lousy deal on a lousy mobile home park.
How do you know the property is right for you?
So now that you have a few parks lined up that intrigue you, it’s time to run through your list of criteria.
What is your niche market? Retirees? Families? Does the location of the park cater to that niche?
If the park is quite the fixer-upper, then calculate how much of an investment it will take to get that park into working order. Is it worth your blood, sweat, and tears?
Ask the owners to provide you with the rent roll and any other financial information available. This will help you make some predictions on what your investment will look like three to five years from now.
Find a mentor
Do your homework. And then when you’ve done your homework, reach out to someone in the business that you can trust. Ask questions, learn what you can about the business.
You’ll find that more often than not, other entrepreneurs are willing to help the little guy out. They too know what it’s like to start from the bottom up.
Closing the deal
We set out to answer the question, “how do I buy a mobile home park and make a profit?” And in the process, we hope we’ve also laid out the steps that will lead you to closing on a great deal!
As you go through the closing process, keep in touch with your lender to make sure everything is running smoothly. Be prepared to share more documents with the bank.
It’s important that you carefully read over any documents you’re signing to be clear that you know what you’re signing for. Don’t be afraid to ask the seller for a list of inventory that comes with the park. This is important so that you have a clear picture of what you’re getting.
OK. I bought the mobile home park. Now what?
Now we’ve answered the question, “how do I buy a mobile home park?” It’s time to consider how you’re going to run the place.