Podcast Episode #20: COVID-19 and Mobile Home Parks Update

During COVID-19, mobile home parks have had an interesting run. The MHP expert pledges to deliver up to date news on the industry. As we’ve seen, the pandemic has had a tremendous effect on almost every aspect of our daily lives.
As we adjust to the new normal, some businesses have emerged as unlikely hot spots. We’re thankful that the mobile home park space is one of those businesses! Listen as Jason and Glen break down the industry’s current place 6 months into the pandemic.

How does COVID-19 impact mobile home parks?

“It’s the hardest damn business,” asserts Glenn. “And the COVID experience has been no less different. It is still hard.” Buyer inquiries have been relatively low in the previous six months. That said, there’s been an increase of transactions and sellers. That’s because the buyers that are committed haven’t missed a step. One client has sold “at least 10 parks” during the pandemic. He’s also inked deals for roughly 12 other prospects.
Glenn even recalls a recent sale that yielded profits in the billions. Several of these buyouts are a result of investors looking for short term turn around. This presents an opportunity to connect them with the buyers in active search.

Are there benefits to a pandemic in mobile home parks?

First, it’s important to note that severity of this pandemic. Generally, benefits aren’t what immediately come to mind in such a sensitive scenario. That said, the shock of the pandemic did relieve the industry of people not serious about buying. For those fully invested, this minimizes dead end leads.
“Our database has about 12,000 buyers, and we have pretty great interaction with a large portion of them.” Glenn says that the top 300 of these buyers move at an aggressive pace. This can yield great results for those connected to the right buyers. But by and large, the majority of the industry is pressing pause.

So what happens post COVID-19?

Glenn thinks the “lowest wrung” of society will win big during this pandemic. In the mobile home park space, rent collections have sustained. This is a good sign for the future of the industry. Its survival during the peak of the pandemic is a testament to its durability.
That’s not to say things are all in the clear. Many who were already locked into deals are still feeling the effects of the shut downs. Limits on person to person interaction can prove challenging when it comes to on site needs.
“The best remedy to hyper inflation is hard assets and hard goods,” says Glenn. Investors who’ve taken this approach project a solid return. But for those with cash in, things are a bit less smooth. In short, “Baby steps will get us through this.”

Trust the expert on mobile home parks

Even with COVID-19, mobile home parks remain a legitimate opportunity for more income streams. With continued adjusting and the right approach, you can prepare for success in the space. Contact us today to get started!

Podcast Transcript

Jason Sirotin:
Hello and welcome to The Mobile Home Park Expert Podcast. I’m Jason Sirotin, and today, as always, I’m joined by Glenn Esterson. Glenn, how are you?

Glenn Esterson:
I’m doing wonderful, my friend. Hope the same is true for you.

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