Mobile Home Park Development
what are the best sources of financing? what uis an appropriate cash on cash return? where can I get design and management books? good titles? why arn't more people developing parks. seems like a no brainer. esp with all the repos available. wehat am I missing? Even at 50,000/acre it seems like the pay-off would be in 3-4 years. what am i missing?
You will need to hook up with a general contractor, who will set it all up for you. The main reason is the need for mobile homes has dropped dramatically since the 80's. Another large factor is that you will need a lot of liquid cash to do the deal, unless you presell the lots. You are right the payoff in three to four years is great, but the risk is high unless you presell or get the land at such a discount that it would cost the value of the land to build. Also you will need to keep a buffer for advertising, at least for the first year of development. Here in Florida its actually cheaper to buy a used park then to get a new one built, due to the amount of parks available.
Good Luck,
Kyle