Mobile Home Park and Storage

[Debbie]

In the near future (within 3 years), I plan to purchase Mobile Home Park or develop Mobile Home Park. I've yet to know which is actually better.....

Plus, entertaining ideas of mini storage warehouse on land but not enough knowledge to persue it. Whether to purchase existing or develop.

I've often thought that mobile home lack space hence thinking that it would benefit of having storage building on one end of the park. Of course, there would be monthly fee for users on the park. What is the opinion of this? Is this common or unique?

Any advice for the above?

Thanx. Debbie

[Aldo]

Given the choice, I'd opt for self-storage in a heartbeat for more reasons than I have time to express. For an overview, here's some of my thoughts:

Mobile home occupants, whether owners or renters, are there because that's the best they can do. That should give a clue about their continued ability to pay home or lot rent. I promised myself not to use the term low-life.

When evicting a home-owning/lot-renting tenant, I have to wonder what it costs to remove their home from its rented lot.

Self-storage can be a cash cow. We're talking rental units with (usually) no HVAC, no plumbing or electrical systems, no fixtures or walls or floors or ceilings, etc. likely to need maintenance.

While laws vary from state to state, the differences usually aren't huge. I have friends in Ohio who own self storage units and I'm green with envy when I hear their eviction requirements. If the rent is due on a Saturday and it is not paid on that Saturday, they can change the locks on Sunday. Get this - that's the bad news. The good news is that, after changing the locks, they are the new owners of anything contained in that storage unit. I'm sure this is not the norm, but I do know that non-paying storage renters are hugely easier to remove than residential tenants and their stored property is easier to attach.

As to your question about having a MH park with an adjacent self-storage facility, I'm not sure that it would produce the results you appear to expect. Depending on location, you may find a need for self-storage units, but I doubt that you'd have more than a few MH residents needing to rent storage space.

My disclaimer is that I know there are many great MH occupants and I respect that. But, this is a matter of comparing a MH investment to a self-storage investment.

[Debbie]

Curious, Aldo.....why haven't you persue the self storagey warehousey thingy types?:SM006:

[Jim Johnson]

In the near future (within 3 years), I plan to purchase Mobile Home Park or develop Mobile Home Park. I've yet to know which is actually better..... For the most part, it cost more to develop a MHP than to buy one. That said, I would love to develop a new park in several parts of Denver, if I could ever get it permitted.

Plus, entertaining ideas of mini storage warehouse on land but not enough knowledge to pursue it. Whether to purchase existing or develop.- Mini storage units are great for return, better yet is secure outside storage for RV's and boats. Because the newer developments do not allow for these to be parked in the neighborhoods they really do well in my area.

I've often thought that mobile home lack space hence thinking that it would benefit of having storage building on one end of the park. Of course, there would be monthly fee for users on the park. What is the opinion of this? Is this common or unique?- most parks have a separate, gated parking area for RV's, trailers and boats. In some cases they might charge 10 or 20 dollars but for the most part, they are given as a perk for the residents. I have seen mini-storage units within a MHP but they are really two different kinds of investments and businesses. Though, in saying that you could have the same management run both businesses.

Any advice for the above?

Thanx. Debbie

I hope this helps!

[Aldo]

For several years I very actively pursued building or acquiring one or more self-storage properties as well as MH's and/or MHP's.

Building one is not cost-effective, similar to Jim's observation about MHP's. There are many considerations that would not apply to standard residential, commercial or even industrial construction. That's just part of the problem with building them. Then, cities don't like them because they're not pretty and, as a result, severely restrict the areas where they can be built which are generally areas with little prospect for success. Other problems might include over-saturation in the desired area and whether the industry is locally controlled by a few individuals. I tried doing some Lonnie Deals (Lonnie Scruggs - MH's) and was shot down every time by the local family which decides who can or cannot but MH's for investment in my area.

Nuff on that and on to acquiring. The first consideration is the possible 'family control' mentioned above. That aside, I had three realtors watching for self-storage properties for several years with none knowing of the others. Each one basically said, "Fat chance!" because those properties are cash cows and, when sold, go to family or friends without ever being publicly offered for sale. The only thing any of them found for me was a deal that fell through because the three owners were sub-humanly stupid. That's a story for another time.

Please note that the above applies to my personal experiences and I have no doubt that it is probably different in your, and other, areas.

[Bernie (FL)]

I know this reply is kinda off the subject, but related....

There is money to be made bidding on storage units full of stuff that somebody has stopped paying rent on that go up for auction.

In my area there is a very large storage facility that is auctioning off 8 units full of stuff this Thursday.

I attended one of these auctions a few years back and one of the bidders got his hands on a storage unit full of mechanics tools worth over 2k for around $200 bucks. I would have gotten into a bidding war with this guy but I was there looking for a good computer and only had so much money to work with, plus I had no place to store tools.

[Debbie]

I know this reply is kinda off the subject, but related....

There is money to be made bidding on storage units full of stuff that somebody has stopped paying rent on that go up for auction.

In my area there is a very large storage facility that is auctioning off 8 units full of stuff this Thursday.

I attended one of these auctions a few years back and one of the bidders got his hands on a storage unit full of mechanics tools worth over 2k for around $200 bucks. I would have gotten into a bidding war with this guy but I was there looking for a good computer and only had so much money to work with, plus I had no place to store tools.

:SM118: :shocking: :eek: :SM026:

Um, how HARD or EASY is this land and storage unit warehouse is it to buy?!?!

[Jim Johnson]

:SM118: :shocking: :eek: :SM026:

Um, how HARD or EASY is this land and storage unit warehouse is it to buy?!?!

Around these parts we have several storage places that auction off the abandoned units contents every month. I just look in the local paper and find them. After you know who is doing them you can get on their e-mail list. There is some good stuff... and some real junk...

[Aldo]

Bernie, here's how it works. I'll come up with the two hundred bucks, Dan (your FL neighbor) will provide storage space, and you will sell it at eBay. The proceeds, after expenses, will be fairly divided four ways.

10% to you
10% to Dan
10% to me
70% to the Magic Bullets Donor Fund.

[Debbie]

Bernie, here's how it works. I'll come up with the two hundred bucks, Dan (your FL neighbor) will provide storage space, and you will sell it at eBay. The proceeds, after expenses, will be fairly divided four ways.

10% to you
10% to Dan
10% to me
70% to the Magic Bullets Donor Fund.

HEY!!! Don't forget my percentage! After all, I did started this thread, you know....LOL

[Bernie (FL)]

Sorry to have gotten off the subject, but good money can be made with this stuff and I didn't find this out on some infomercial.

As Jim said, there is good stuff and junk.

To tell you the truth, I'm all about making the greenbacks. I want to be able to provide for my family as best I can and for them not having to worry about anything (financial). I'm just looking for the best way to accomplish that goal, whether it happens to be rei, buying and selling stuff I find at auction, whatever...I'm not afraid of hard work, I love a challenge but not enough of a challenge that gambles with my livelihood.

I will make that leap. When is another question.

:question: