Do you dare invest in mobile home parks?
If not… why not?
Mobile home parks, aka manufactured housing communities, are among the most stable and profitable asset classes in America. And unlike multifamily, where I had planned to invest for the rest of my life, manufactured housing is still “a little bit undiscovered.”
I’m entering my third decade of real estate investing later this year, and I have had four brushes with manufactured housing. One produced zero results, and the second was a disaster. The third produced minimal results, and I thought that would be my last go-round in this sector.
But our firm has invested millions into mobile home parks in the past few years, and we couldn’t be happier. We have discovered a hidden jewel in the commercial real estate realm, and we, along with our friends and investors, are reaping massive rewards in the form of income, appreciation, and tax benefits.
But there are many ways to mess this up. Though I’ve written elsewhere about why I love this sector, today I want to talk about how this could go wrong.
I’m going to give you a brief tour of my four brushes with manufactured housing investing with the hope that you can avoid my mistakes and enjoy the awesome benefits of this powerful asset class. Then, I’ll tell you why I love mobile home parks.
Experience 1: Pure Ignorance
My mama always told me to stay away from trailer parks. Did yours?
She told me nothing good happens there. I think I even heard her use the word “trailer trash.” (I’m not proud of that.)
My dear mother and father passed away several years ago. And after a lifetime of working hard at a well-paying job, Dad left us about enough money to cover their funerals—along with some hefty credit card bills.
I’m grateful for the life they gave me. But my parents weren’t great investors. In fact, they knew nothing about investing. And this was a handicap to me—especially when I made my first few million dollars at age 33.
I knew nothing about investing. And as a result, I confused investing with speculating. I launched into several years of binge-speculating (though I told people I was “an investor”). And it cost me dearly.
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