Welcome back to yet another episode of The Mobile Home Park Podcast. I’m joined as always by my great friend Jason Sirotin. Today, we’re talking about some interesting current events in The MHP space. Be sure to check us out on Vimeo, SoundCloud, & YouTube!
First, we cover some updates about the 1031 exchange. Specifically, they ponder its fate under the President Biden administration. Also, we discuss “the bottlenecks [they’re] seeing in the manufactured home space.” Elsewhere in the clip, I break down my perspective on current interest rates. And last, we look to the future of the industry as it continues to take shape post-pandemic.
The 1031 Exchange has long been a popular current event in real estate. I foresee the effort to adjusting 1031 regulations having “having legs to it”. This speculation is fueled by the projections of a few subject matter experts.
“It’s looking more and more likely that there’s going to be some major reform to the 1031.” The jury’s still out on how exactly this will look once enacted. Our best advice is to keep a look out for updates. “You have other options out there, and those don’t seem to be on the chopping block.”
But what happens if the 1031 exchange is erased? How hard of an impact will this have on the mobile home park industry? Thankfully, as stated, there are many alternatives to the 1031 statute. Though it’s unlikely to go away completely, it’s still good to be abreast of back ups.
Though there are alternatives, that’s not to say its absence wouldn’t be felt. As Jason inquires, what “if there’s a 1031 rollback and interest rates go up?” This would “restrict a lot of the reasons why people invest.” We can’t understate the benefits that come with the exchange. That said, the interest rates may not be as big a factor as you’d assume.
Due to recent setbacks in the supply chain, it’s been more difficult to deliver services. The pandemic did not help things, of course. This, among other factors, has caused temporary inflation in some cases. This does not mean however, that any and all increases are here to stay. As the pandemic eases, things will gradually begin to get back to normal.
Ever the skeptic, Jason wasn’t so easily convinced. You can hear our deep dive in full in the clip above. One can’t blame his trepidation. Now more than ever time and resources are precious. No one wants vagaries when the stakes can be so high. We assure you, the industry continues to present a viable pursuit. It’s proven it’s resilience through the past year, maintaining steady momentum.
Have any more questions about the mobile home park industry? We’re here to help! Our extensive experience and researched literature is open to you and your efforts! Schedule a consultation with us on our contact page today!