Before you jump into the industry, you need a plan. You need your strategies and business plans prepared before joining the industry. Otherwise, you’re setting yourself up for failure. Having a solid mobile home park business plan can make all the difference in your experience.
So how do you create a good plan? That’s a bit of a loaded question. It depends on your intentions. Ask yourself, what is your mission? What is your goal? Is it yield, is it long-term ownership. A 3-5 year plan then get out? A 10 year IOR? Once you figure this out first, then plan accordingly. Also, you have to be realistic relative to the kind of park you’re going for. Each comes along with its own set of considerations that vary a lot based on your agenda. From there, create the plan.
Location, Location, Location
The locale of your park plays a large role in how to plan for it. Determining the region that you wish to settle in can have huge implications on your park. The considerations for a park in the Southeast may look different than one in the Southwest. Likewise, your localized parks can have their own set of demands to keep in mind.
As you may already know, there are several different kinds of parks. This leads to your next step: which one will you choose? There’s rentals, park owned homes, lot rent parks, heavily-vacant, and more. Even stabilized parks come with their own dealings, as they can be agency financeable. In all, your efforts must be targeted and disciplined. If you shoot for everything you, you’ll likely stumble. Take your time, weigh out every option, and pick what’s best for you. From there, you’re a step closer to successfully entering the industry!
Resources & Financing
Once you’ve identified which kind of park and where, now you can start your focused search! There are several resources to choose from when locating a functional park. You can search the online database for mobile home parks to see what’s available. From there, there are google earth images that you can search to see any park from your laptop. It doesn’t hurt to take a ride by the park once you’ve found one of interest, either.
Let’s say you’ve narrowed your selections down to your best possible choice. From here, you have to figure out the financing side of it. Where is the equity coming from? Are you paying out of pocket, investing with friends, going to a bank? You want to run through as many critical considerations as possible.
Even after you’ve secured equity, there’s still more steps. You have to consider, do you have the maintenance team to support a quick turn around if needed? You’ll also want to talk to the municipalities in the area to ensure they’re friendly. The last thing you want are zoning violations that can shut you down! What’s the point of all that effort if it’s for naught. Don’t just throw darts at the board. Be prepared.
This may seem like a lot to keep in mind, and it is! That’s why we at the MHP Expert are here! We know creating a mobile home park business plan can be daunting, and we want to help. Reach out to us today if you have any further questions, or are ready to take that next step!