Posted by Glenn-OH on May 14, 2000 at 17:21:52:
A couple of commments. Notice that the park you passed was an addition, not a new park. That eliminates the 100% vacancy of a new park. Also, are you sure the other parks are too expensive? Or are they just out of your reach? The numbers will tell.
Glenn
mobile home park construction - Posted by Mike
Posted by Mike on May 13, 2000 at 05:25:57:
This question is directed to Lonnie.How come you never mention anything about the topic of building from scratch a mobile home park. Is this a profitable possibility. I would appreciate any info you can pass on to me about this
Re: mobile home park construction - Posted by Lonnie
Posted by Lonnie on May 13, 2000 at 07:20:36:
Hi Mike,
The reason I don’t talk about developing a MH park is because I don’t recommend it. It’s a tremendous under-taking, even for an experienced developer. Wendy (Houston) asked that question on the MH forum, and here’s what Ernest Tew says. I agree 100% with Ernest.
"During my twenty plus years in the mobile home park business, I have developed two parks and owned and managed several others. If you are not an experienced developer, I would not recommend attempting to develop a park. Even with experience, I wouldn’t do it again.
Your time would probably be more productive searching for an existing park that you could buy at a low price and enhance its value by providing good maintenance, better management, and a better marketing program.
We have been able to buy parks at prices far below the cost of replacement because they were poorly managed and half vacant. With a newly developed park, you would start out with 100% vacancy and probably have a higher cost than you would with one half occupied. Depending on the local market and your marketing ability, it could take years to reach the break-even point." Ernest Tew.
Hope this helps,
Lonnie
Re: mobile home park construction - Posted by Mike
Posted by Mike on May 13, 2000 at 16:24:29:
Lonnie:
Thanks for getting back to me so quickly. I see your point now that you mention it. I was just thinking, on
Thursday I passed a new Mobile home park addition out by Rochester NY and it occured to me you never mention this type of avenue.Here in Albany NY it seems like the cheap mobile homes are a wreck for 2000 and the other side of the spectrum they are too expensive. What do you suggest. I’m sure you have had this posed to you many times.
Mike