In this episode of House Flip Masters Holly McKhann talks with Bryce Robertson and the lucrative business of mobile home park investments.
Bryce has been investing in real estate for many years, he is a Native Australian, he is an entrepreneur, and educator with more than 20 years experience in major construction, and real estate business.
Growing up in Australia and doing construction lead to Bryce traveling all over the world. On one traveling stint Bryce met his wife who has a background in mortgage and finance. The two decide to started down the basic path of fixing and flipping until they realized they were not passionate about this venture. Bryce’s wife moved over to doing luxury real estate in Newport Beach while he educated himself on mobile home park investing. Once Bryce found mobile home park investing he has not looked back to his old fix and flip ways.
Mobile Home Park investing appeals to price because he deals mostly with land and not with houses. Bryce supplies utilities and maintains the dirt.
Bryce describes to us the 2 types of tenants who occupy Mobile Home Park; those living there because of lifestyle choice and those that live their because of affordable housing. Those that fit into the lifestyle category is people who want to live there and they do so because of the amenities that the park offers. Those that are in the affordable housing category are there because they might have enough money to live elsewhere and they feel that this is the best, affordable choice for their budget.
Bryce deals with mobile home parks in the affordable housing space The affordable housing space has a lot of mismanagement and poorly managed parks and offers investors a lot of increase in profit to turn those things that are not working well around.
Bryce reminds us that cap rates are something that we need to keep in mind when thinking of investing in a mobile home park because they are typically higher than other comparable house rate classes.
Bryce’s company Property Workz LLC aims to own, operate, syndicate, and educate those that are involved in mobile home park investment. Bryce and his company own and take care of property management and improvements, they also provide a platform for investors to gain returns on their investments. They also provide an area for people who want to break into mobile home park investing to educate and help them with their first deal. Property Workz has something for everyone depending on his or her risk tolerance and time that they have in their schedule.
Bryce offers advise on how to find a park for your investment, he suggests visiting www.mobilehomeparksstore.com, the dominating site for sales on MHP. The best route that Bryce has taken is cold calling because it allows for a relationship to be built and those relationships can help to create a sale.
If you are looking to invest in a MHP Bryce advises that Southern California, Florida, and New York are not the best for a business model due to low cap rates and more people living the lifestyle choice. The Midwest and Southwest are the key places to make investments.
When buying a park Bryce’s checklist includes a park with 50 to 200 spaces nothing over that, city water, city sewer, no private utilities, and a low percentage of park owned homes would be an ideal park. He also suggests that occupancy needs to be at least 50% with 80% being a park that is stabilized.
When needing a loan for a MHP investment Bryce goes to specific brokers but says that larger banks are now dealing in this investment space because it is being seen as a solid investment but loans may only be available at specific branches.
Once you acquire a MHP what’s next? Bryce advises to look at the business side of things to lower expenses and increase revenue – fill lots, bring up occupancy, fix up esthetics, signage, landscaping, etc. Also keep in mind that when you have occupants and you intend to make changes that you need to keep them informed, send out notices to those that are living in the park.
Bryce likes investing in mobile home parks because of the fact that it is in the affordable housing space. It allows him to turn around a park that looks ugly and that is being mismanaged.
If you are interested in mobile home park investment you can contact Bryce, he is available to advise and educate those that are interested in investing. You should also look at numbers and properties on www.mobilehomeparksstore.com.
Bryce can be reached at: