Podcast Episode #17: Investing In Mobile Home Parks In A Pandemic

Today’s episode pits Jason and Glenn in two different time zones! We thought it important to mention due to growing concerns over the pandemic. First, we hope this finds our readers in good health and spirits. We know how trying such times can be. Our very own Jason and his immediate family tested positive for COVID-19. Thankfully he and his family are doing okay and are on the way to recovery!

Depending on how the pandemic has affected you, it may be difficult to have a positive outlook. Here at The Mobile Home Park Expert, we aren’t going into this with our heads down. We instead hope to be a source of encouragement and support to our readers and listeners. That’s why we’ve put together an episode to help guide you through investing during a pandemic.

The impact of COVID 19 on mobile home parks

The pandemic has had a huge impact on just about everything. Some industries have been better poised to sustain the new normal. Many smaller businesses are clinging to life by a thread. The mobile home park space is no exception to it’s reach. While not on its last leg, COVID did not do the business any favors either. “It’s definitely different,” says Glenn. “At the end of the day, every deal anyone is looking at has a lot more challenges in it to get it to the finish line.”

This will require new or adjusted approaches, but how they’ll unfold remains to be seen. If anything, it’s raised awareness of the risks associated with income properties. One aspect of the industry that’s sure to take a hit is rent collections. As unemployment reaches astronomical heights, you can almost guarantee delays in payment. Still, the team remains optimistic. Glenn projects a 3-6 month stabilization period to adjust to the new normal.

Buying mobile home parks during a pandemic

Is now a good time to buy mobile home parks? In truth, it depends. “I think everybody should pause, unless you’re in a unique position and can’t afford to pause.” Glenn advises holding off on purchases if you’re aren’t already locked into any deals. Instead, buyers can set their capital aside and track future activity for about 3 months.

But what if you’re already locked in a deal? Don’t worry, your options aren’t as limited as they may seem. Because we’re in new territory, you can guarantee other buyers are opting to pause. The open market could mean competitive deals. There are always associated risks, but the right scenario could spell a big payoff.

The value of technology in a pandemic

While the gang promotes pausing and observing, that doesn’t mean pausing altogether. Technology has proven to be a big resource in all businesses post-pandemic. Mobile home park hopefuls can remain in the know using contactless communications. While this sacrifices interpersonal interactions to a degree, it’s still a suitable option.

This pandemic took everyone by surprise. Still, opportunities to learn and grow in mobile home parks remain. The MHP Expert Podcast seeks to help members at all levels in the industry navigate the space. We’ll adjust, and we’ll sustain, our mobile home parks, pandemic or not.

Podcast Transcript

Jason Sirotin:
Hello and welcome to The Mobile Home Expert podcast. I’m Jason Sirotin. Today is April 10th, 2020. And we are in quarantine from the pandemic. And I am in New Hampshire at my home. And Glenn is in Wilmington, North Carolina at your home. Right, Glenn?

Glenn Esterson:
That’s right. I haven’t left this house at least 20 something days now.

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