Starting the Journey as an MHP Investor: Podcast Episode #1

 

 

 

Mobile home parks (MHP) are a niche in the real estate market that goes unnoticed by many. While gaining in popularity in the last few years as individuals look to make a first-time investment, owning a mobile home park is pretty unique. Glenn Esterson began as an MHP investor because he needed some extra income. He learnt the business as he went along, facing the ups and downs of MHP ownership. Glenn has recently compiled his knowledge into a book, The Mobile Home Park Manifesto. Along with a companion podcast, Glenn, breaks down what you need to know before beginning to invest in mobile home parks.

 

Bringing interested investors in

The lure of MHP ownership is the potential return on investment, both as an annual return and when you decide to exit the property. While it may take a few years to get the park in order for a maximum payout, if you do things right, you can get up somewhere between 35 percent and 100 percent for your return on the sale of a mid-grade park. The specific percentage depends on a variety of factors like occupancy at purchase vs sale, what lot rents were at purchase vs at sale, Cap Rate compression and other improvements. The bottom line is, do things right.

 

Debunking a bad rep

Mobile home parks have consistently gotten a bad reputation as seedy locations that the average person wouldn’t want to call home. While there’s truth in any assessment, it’s not fair to lump all parks into a single stereotype since their quality has a wide range, based a lot on how they’re maintained. The best way, Glenn discovered, for keeping a park in the best condition is to take an empathetic approach to turning a profit. This means not defaulting to raising rents to increase profits, but working with tenants. It also means focusing on the best way to fill every lot, and providing proper on-site service. 

 

Knowing what’s what

It’s a lot of work, owning an MHP and to be a smart investor, you need to know what you’re getting into before buying your first park.

Learn more about what that means in the first episode of the MHP Expert Podcast with Glenn Esterson and Jason Sirotin.

 

Podcast Transcript

Jason: Hi. I’m Jason Sirotin, and welcome to The Mobile Home Expert Podcast with Glenn Esterson. This is our first podcast, Glenn, so why don’t you say hi to everybody? 

Glenn: Hello, everyone. I’m Glenn Esterson. I appreciate you all being here. 

Jason: So, this podcast is really dedicated to teaching people how to invest, and manage mobile home parks not only in the United States, but all over. Right, Glenn? 

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