Wondering where to begin on your journey in the mobile home park space? The MHP expert is here with more top tips for making your experience in the industry as pleasant as it can be. Today, we’re discussing how to make a mobile home park business plan.
But first, let’s take a look at some of the latest news and trends regarding the industry. There’s so much going on currently that’s affecting the social, political, and economic climates. How and when will this impact the MHP industry? The MHP expert investigates below.
Current Events In The MHP Industry
“Interest rates are really going up now.. [with a projected] 9 increases in the next 1 months. With the war, with the changing economic things, who knows if COVID’s coming back… inflation,” the list goes on. As I note in the clip, based on all relevant information, another recession seems imminent. With the vast increase in inflation, among the other noted factors, it seems all but guaranteed.
So what does this mean for a Mobile Home Park investor? Well, if park owners are looking to sell their properties at lower rates in light of the current interest spike, that means an overall lower profit. Which ultimately means a lower ROI for investors.
MHP Supply and Demand
In the end, it boils down to supply and demand. And with the disruptions to the MHP supply chain still in effect, that means a higher risk of the aforementioned low sales happening. Normally, this exclusivity would mean a good thing for the industry, as it ups its competitive nature.
There are even certain cities that are becoming more and more welcoming to MHPs. Altogether, this works out well for park owners. But, even if the entire nation was receptive to MHPs, it still would do little to solve the supply and demand discrepancies. And what’s good for park owners, in this case, may prove to be a difficult time for investors depending on the deals you’re tied to.
What This Means For Park Owners
This doesn’t mean that park owners are in the clear, though. For those unwilling to change their selling terms to account for the current economic strain, their parks will begin to lose value over time. It’s a bit of a catch twenty-two, and it takes people with real knowledge of the industry to make the best decision while navigating these factors.
Cash Flowing Real Estate
Another big takeaway from the clip is the importance of cash flowing real estate. It’s your best bet as an investor in the current climate. When it comes to dealing with the spikes in interest rates, cash flowing real estate poses the best opportunity for a favorable return on your investment.
The MHP Expert Podcast
Be sure to check out the rest of our discussion on making a mobile home park business plan at the links above and below this content. The MHP expert is dedicated to keeping its audience informed on the latest trends and news in the industry. If you’re in need of a credible MHP broker, check out our services page to learn more!