WHY DO WE INVEST IN MOBILE HOME PARKS?
1. No competition from new supply – 99% of municipalities will never approve another mobile home park development. If you own one of the few (or only) mobile home parks in town you’re the affordable housing equivalent of Microsoft circa 1997 (monopoly). Compare this to apartment buildings; new developments are started every day.
2. Demand for affordable housing is insatiable – 51% of U.S. wage earners make less than $30,000 / year. There will always be demand for inexpensive housing in this country. We take pride in increasing the supply of affordable housing for deserving American families.
3. High operating margins / higher profits – The vast majority of our tenants own their respective home (we simply rent them the land). This leads to lower operating expenses and drastically lower turnover costs than apartment buildings.
4. Very few competitors or institutional players – the mobile home park industry is a highly fragmented, inefficient market with the largest players owning less than 3% of the total properties. The overwhelming majority of mobile home parks are owned by "Mom & Pop", non-professional operators. This is the only remaining real estate asset class still ripe for consolidation.
5. Completely misunderstood and mis-priced asset class - our parks are family friendly, safe, attractive communities that are well suited for retirees and working class families. Mobile home parks deliver higher returns compared to apartment buildings of similar quality because the average resident owns their home and are responsible for maintaining it. Most Mom & Pop operators have failed to raise rents and therefore most parks rents are grossly underpriced. A Duke University Professors report state lot rents may even be 50% under what average market rents should be.