Tag Archives: JLT & Associates

Rachel Hernandez is ‘going it alone’

‘Mobile Home Gurl’ finds her niche

In her own words, the woman known to some as “Mobile Home Gurl” is an entrepreneur, a dreamer, a thinker. A doer.

Rachel Hernandez, AKA “Mobile Home Gurl”, addresses the audience at a recent author’s seminar.

She started investing in real estate with single family homes, but her mind was captivated and heart captured when she immersed herself in the world of mobile home investment. And she’s taken quite a few of us on the ride with her, in her blog and in the book “Adventures in Mobile Homes” and others.

Rachel Hernandez, as she also is known, operates in the vicinity of San Antonio, Texas. She prefers to buy locally to regionally, and rather than looking for parks she has concentrated on purchasing individual mobile homes, and and more recently securing the land they sit on or a good parcel where they can be placed.

“I focus on the area first and then find the deals,” Hernandez said. “As an experienced investor, I’ve learned to find motivated sellers. Usually, I can tell over the phone whether a seller is motivated or not.”

Strategy

Most of the deals Hernandez pursues are unadvertised. She has an education and background in sales and marketing, and networking is among her greatest strengths. She leverages that capability and relies on her industry interactions and relationships to find opportunity.

Her first deal took about a year to complete, and she continues to take it relatively slow. She purchases one or two homes at a time, and puts her “sweat equity” into them.

“Usually, I get them up to apartment standards,” Hernandez said. “New carpet and paint at a minimum.” She fixes the leaks, fills any cracks or holes and gives a thorough cleaning. Then she offers the home on a rent-to-buy plan.

“Most people appreciate this hybrid as it’s not like a mortgage where you’re locked in, but at the same time you’re not just renting,” she said.

Her inventory is on the rise, to the point where she owns in quantity what would be a small mobile home community. She does receive regular offers to partner, but has resisted the urge to purchase an entire community outright. She remains on the lookout for land, and does work in communities buying both homes and pads, operating just on the fringe from that investor who looks to buy or infill on a larger scale.

Investing-in-mobile-homes

Meet the Challenge

And while she appreciates having all of the particular on paper, she mostly “follows her gut” when deciding what to pursue and what to leave alone.

“It’s more the person than the price. If the person I’m talking with on the phone does not seem trustworthy, or seems like they’re covering something up…  I back off immediately,” she said. “No matter how good the deal sounds, an untrustworthy seller is a deal breaker for me.”

Still, Hernandez has run into problems.

“I imagined buying a home, filling it and moving on to the next deal,” she said. “Though I did this for many years without many issues, I started taking back more homes as my inventory grew.”

A rent-to-own resident loses a job, goes through a divorce or wants to move closer to family, and sometimes the only solution is to reclaim the home and find someone new for it.

“I knew taking homes back was part of the business. But I didn’t plan on it being a large one,” Hernandez said. “So, I had to learn to work with contractors. There was no way I could fix up all these homes myself.”

Another difficulty has nothing to do with residents and everything to do with one of her favorite parts of the vocation… the prime location.

“Unfortunately, sometimes local ordinances may place more scrutiny on mobile home parks, as an asset class,” she said. “There’s still that mindset.”

The not-in-my-back-yard attitude, the general concern of reduced property values, and the perceived threat of residents who pay less tax than many for the same municipal services, often can be difficult issues to navigate when looking to obtain rezoning or a new use permit – regardless of the great need for more affordable housing.

All part of the journey, Hernandez said.

The take-back and fix-up strategy, as well as the municipal hurdles, have resulted in another of her books, this one entitled “Real Estate Investing Sucks: How to Deal with Change and Find Success as a Real Estate Investor”.

“I document my entire experience,” Hernandez said. “I persist. I know what I want and keep going. Success takes time.”

Nowhere to go but up

 

mobile-home-park-investing

Kevin Bupp will tell you he’s in a better place today than he was just three years ago.

That’s saying something for a guy who’s spent two decades in real estate successfully buying and capitalizing on single-family homes, commercial properties and apartment buildings.

There are worse fates.

And, Kevin wears a big smile and readily shares his joy about where he and his associates have landed.

Sunrise Capital Investors is in the value-add niche

“We’re still small fish in a medium sized pond, because the industry is still not as large as it could be,” said Bupp, a resident of Clearwater, Fla., and co-owner with Charles DeHart and Brian Spear of Sunrise Capital Investors. “Manufactured is all we focus on now.”

Bupp and his partners are seasoned investors who purchase and improve what most often are referred to as “mobile home parks”, though a true mobile home, by definition, hasn’t been manufactured in the U.S. since June 1976. Since then, and today, manufactured homes are stamped for quality by the U.S. Department of Housing and Urban Development (HUD).

Some of the communities Sunrise purchases have homes that pre-date the 1976 regulatory change, but most are small to mid-size communities with homes from the 1980s and ’90s, some newer.

Their investment targets represent a middle-market niche that larger investors and owners overlook, though less so in recent years.

2016 Real Estate Returns by Sector

 

 

 

 

 

Value-add Niche

“We’re really value add guys,” Bupp said. “We are really good at taking a community that is in distress, but in a good market, and taking out the bad elements, bringing in some improvements and making things work.”

It’s a niche that’s gaining stability and wider recognition all the time, largely because the ROI doesn’t lie.

“It took us a year to buy the first park, then it’s been one or two in those in between years,” Charles DeHart said. “In the last 18 months, we’ve purchased six parks.

“We have five more parks currently in contract (pending sale) that represent 430 spaces,” he said.

Sunrise has raised more than $2 million in cash during the last two years from the attraction of 10 dedicated outside investors, and they look to raise $3-5 million more to purchase another six parks – perhaps 800 land-lease spaces – during the next 12 months.

It’s not BIG business investing, but it’s been shown as a way to steadily grow wealth. And, if you ask the Sunrise partners and similar investors, it’s a way to improve affordable housing stock – for the metro area and for the park residents.

“We’re in a niche that allows us to earn a very reasonable return for our investors,” DeHart said. “And also provide quality housing for people who may be coming into home ownership for the first time in their lives or even in their family’s history.”

How it’s done

They don’t buy through a broker. Brokers typically want to work with higher volume investors, and also make sizable commissions. Rather, Bupp and DeHart delve into county records within a geographic area of interest. They find out where the communities are and who owns them. If they’re fortunate, they find a phone number for the owner.

After that, it’s sales 101; they make cold calls, employ heavy use of direct mail and sometimes put out bandit signs.

“We typically have five or six unique owners in the system at any given time, and check back with them three to four times per year,” DeHart said. “It’s not just finding the right seller, it’s about finding the right seller at the right time.”

Often, they’re in front of a prospective seller before the owner of a property realizes they’re in a good position to sell. So, checking back often is key to being in the right place at the right time.

They work some of the prospects themselves, but commonly put out a post to acquire a “trainee broker” who can visit communities of interest, take photos and notes, and possibly make an introduction to get talks underway. That trainee broker also learns how to access county records that are unavailable online, and does this on their own time and earns a commission when a sale is made.

In training these brokers, Sunrise is creating more than a strategy, more than a company brand. They’re helping to build an industry. Along those lines, the three operate Mobile Home Park Academy, which teaches others how to do what Sunrise does. Charles and Kevin host a podcast on the topic, and also are in the final throes of writing a book on mobile home park investing.

“We intend to be in the business for a long time. We really enjoy it, it’s lucrative and we appreciate being able to provide a critical affordable housing segment,” Bupp said. “We only buy stuff that makes sense. If we only buy one community in a year, that’s good with us. It will be the one we want to buy.”

What’s the Deal?

Big Investors Move to Find Best Deals Before Market Levels

Lakeway Mobile Estates,Bellingham, Wash.

From Bellingham, Wash. to Newnan, Ga., Jon Harrison scans the map for just the right patch of land. He talks to brokers, scours county records and relies on whatever information he can gain from inside sources.

All in the name of finding the prime manufactured home community.

Harrison isn’t looking for his retirement place. He’s not looking for the simple yet ideal coastal getaway for the family. He works for Inspire Communities, not the largest of the community owners, but certainly entrenched in the top quarter of the industry.

A former broker himself, Harrison is in acquisitions, and always is looking for the perfect mix of placement and amenities that can be a great home for 200 hundred residents or more – and no less important, a stellar portfolio addition for the company owners and investors.

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Florida Rent, Occupancy Continues Growth

JLT Florida Market ReportsMHVillage parent company Datacomp, publisher of JLT Market Reports and the nation’s #1 market data company for the manufactured housing industry, has made available a 17-year summary report of its manufactured home community rent surveys for 32 Florida markets.

For the seventh consecutive year, occupancy rates for Florida “All Ages” manufactured home communities increased. As of May 2017, the occupancy rate for All Ages communities is 91 percent, up 2.4 percent compared with May 2016.  The national average for All Ages communities as of December 2016 was 90 percent.

For the fifth consecutive year, occupancy rates for Florida “55+” communities increased. As of May 2017, the occupancy rate is 95 percent, up 1.2 percent compared with May 2016. The national average for 55+ communities as of December 2016 is 94 percent.

As of May 2017, Florida ranks 11th for average occupancy in All Ages manufactured home communities out of the 131 regions in which JLT rent surveys are published. Of the 20 regions that include 55+ communities, Florida ranks sixth for average occupancy among this segment.

Average rents in All Ages Florida manufactured home communities continued to increase for the 17th consecutive year.

Florida Manufactured Home Community

In May 2017, the average adjusted rent in All Ages communities increased by 3.6 percent to $497, which is consistent with the average annual compounded increase of 3.5 percent during the last 17 years. In comparison, the national average adjusted rent for All Ages communities increased 2.9 percent to $477, as of December 2016.

The average adjusted rent among 55+ communities in May 2017 increased by 3.6 percent to $498. In contrast, the national average adjusted rent for 55+ communities increased 2.9 percent to $507, as of December 2016.

Florida manufactured home community rents ranked sixth out of 23 regions tracked by JLT for All Ages communities as of May 2017, and seventh out of 20 regions for 55+ communities.

Recognized as the industry standard for manufactured home community market analysis for more than 20 years, JLT Market Reports provide detailed research and information on communities located in 131 markets throughout the United States, including the latest rent trends and statistics, marketing programs and a variety of other useful management insights.

Datacomp Releases 2017 Rent and Occupancy Reports for FL Markets

Datacomp Releases 2017 JLT Manufactured Home Community Rent and Occupancy Reports for Florida Markets

jlt-market-2017-florida-market-reportsDatacomp, publisher of JLT Market Reports and the nation’s #1 provider of market data for the manufactured housing industry, today announced the publication of its May 2017 manufactured home community rent and occupancy reports for 31 markets in the state of Florida, now including Bay, Escambia and Leon counties.

Recognized as the industry standard for manufactured home community market analysis for more than 20 years, JLT Market Reports provide detailed research and information on communities located in 130 major housing markets throughout the United States, including the latest rent trends and statistics, marketing programs and a variety of other useful management insights.

Datacomp’s manufactured housing market data published in the May 2017 JLT Market Reports includes many of the major markets for mobile homes in Florida. Together, these manufactured home rent and occupancy reports track 752 “All Ages” and “55+” communities encompassing a total of 208,881 homesites.

Each JLT manufactured home community rent and occupancy report published by Datacomp includes detailed information about investment grade communities in the major markets, including number of homesites, occupancy rates, average mobile home community rents and increases, community amenities, vacant sites, and repossessed and inventory homes.

JLT Market Reports also include management insights that rank communities by number of homesites, occupancy rates and highest to lowest rents. Detailed reports show trends in each market with a comparison of May 2017 rents and occupancy rates to May 2016, as well as a historical recap of rents and occupancy from 1996 to present date in most markets.

The May 2017 JLT Market Reports for Florida are available for purchase and immediate download online at the Datacomp JLT Market Report website at http://www.datacompusa.com/JLT, or they may be ordered by phone in electronic or printed editions at 800.588.5426. Each fully updated report for mobile home communities is a comprehensive look at investment grade properties within a market, enabling owners and managers, lenders, appraisers, brokers, and other organizations to effectively benchmark those communities and make informed decisions.

About JLT Market Reports
For more than 20 years, countless professionals have trusted JLT Market Reports for timely and accurate management reports on land lease manufactured home communities. JLT Market Reports are currently published for 90 markets nationwide and are recognized as the industry standard for manufactured housing industry data. In 2014, JLT & Associates merged its resources, skills and expertise with Datacomp, the industry’s oldest and largest national manufactured home appraisal company and number one provider of market data for the manufactured housing industry, and MHVillage, the premier website for advertising mobile homes for rent and sale nationwide.

Rent and Occupancy Reports for the Northeast Region Available

Datacomp Releases 2016 JLT Manufactured Home Community Rent and Occupancy Reports for the Northeast Region

Datacomp, publisher of JLT Market Reports and the nation’s #1 provider of market data for the manufactured housing industry, today announced the publication of its March 2016 manufactured home community rent and occupancy reports for 5 Northeast markets in New York, Maryland and New Hampshire.

Recognized as the industry standard for manufactured home community market analysis for Datacomp logoover 20 years, JLT Market Reports provide detailed research and information on communities located in 87 major housing markets throughout the United States, including the latest rent trends and statistics, marketing programs and a variety of other useful management insights.

Datacomp’s manufactured housing market data published in the March 2016 JLT Market Reports includes many of the major markets for mobile homes in New York, Maryland and New Hampshire. Together, these manufactured home rent and occupancy reports track 106 “All Ages” and “55+” communities encompassing a total of 23,248 homesites.

2 Homes EntryEach JLT manufactured home community rent and occupancy report published by Datacomp includes detailed information about investment grade communities in the major markets, including number of homesites, occupancy rates, average mobile home community rents and increases, community amenities, vacant sites, and repossessed and inventory homes.

JLT Market Reports also include management insights that rank communities by number of homesites, occupancy rates and highest to lowest rents. Detailed reports show trends in each market with a comparison of March 2016 rents and occupancy rates to March 2015, as well as a historical recap of rents and occupancy from 1996 to date in most markets.

The March 2016 JLT Market Reports for are available for purchase and immediate download online at the Datacomp JLT Market Report website at http://www.datacompusa.com/JLT, or they may be ordered in electronic or printed editions by phone at 800.588.5426. Each fully updated report for mobile home communities is a comprehensive look at investment grade properties within a market, enabling owners and managers, lenders, appraisers, brokers, and other organizations to effectively benchmark those communities and make informed decisions.

About JLT Market Reports

For more than 20 years, countless professionals have trusted JLT Market Reports for timely and accurate management reports on land lease manufactured home communities. JLT Market Reports are currently published for 87 markets nationwide and are recognized as the industry standard for manufactured housing industry data. In 2014, JLT & Associates merged its resources, skills and expertise with Datacomp, the industry’s oldest and largest national manufactured home appraisal company and number one provider of market data for the manufactured housing industry, and MHVillage, the premier website for advertising mobile homes for rent and sale nationwide. For more information, or to purchase complete JLT Market Reports, call 800.588.5426 or visit http://www.datacompusa.com/JLT.

CO Rent and Occupancy Continues Growth

Darren KrolewskiBY: DARREN KROLEWSKI:
Executive Vice President, Marketing & Business Development at Datacomp – Operator of MHVillage.com & Publisher of JLT Rent Surveys

Colorado Manufactured Home Community Rent and Occupancy Continues Growth Trend According to Datacomp 10-Year Market Summary Report

Datacomp, publisher of JLT Market Reports and the nation’s #1 market research company for the manufactured housing industry, today announced a 10-year summary of its manufactured home community rent and occupancy reports for major markets in Colorado.JLT

Recognized as the industry standard for manufactured housing market data for over 20 years, JLT Market Reports provide detailed research and information on communities located in 75 markets throughout the United States, including the latest rent trends and statistics, marketing programs and a variety of other useful management insights.

The most recent JLT Market Reports for Colorado were released in July 2015 and include 94 communities encompassing 27,888 homesites. This summary report is based on rent and occupancy trends from July 2005 to July 2015.

Findings and Observations

Occupancy Numbers for All Ages Communities Outpace National Average

For the seventh consecutive year, occupancy rates in Colorado “All Ages” manufactured home communities have increased. As of July 2015, the occupancy rate is 91%. In comparison, the national average for All Ages communities is currently 83%.

For the third consecutive year, occupancy rates in Colorado “55+” communities have increased. As of July 2015, the occupancy rate is 90%, up 1.4% over July 2014. In comparison, the national average for 55+ communities is currently 93%. As of July 2015, Colorado ranks 7h for average occupancy in All Ages manufactured home communities out of the 19 regions in which JLT Market Reports are published. Of the 14 regions that include 55+ communities, Colorado ranks 10th for average occupancy among this segment.

Continuing Trend of Strong Rent Growth

Average rents in both All Ages and 55+ Colorado manufactured home communities increased for the 10th consecutive year.

In July 2015, the average adjusted rent in All Ages communities increased by 3.9% to $534, which exceeds the average annual compounded increase of 3% in this market. In comparison, the national average adjusted rent for All Ages communities is currently $401.

The average adjusted rent among 55+ communities in July 2015 increased by 3% to $512. In contrast, the national average adjusted rent for 55+ communities is currently $468.

Colorado manufactured home community rents ranked 3rd out of 19 regions tracked by JLT for All Ages communities as of July 2015, and 4th out of 14 regions for 55+ communities.

All Colorado manufactured housing research is based on data published in JLT Market Reports. Complete reports, including detailed information on manufactured home communities in three Colorado markets, are available for online purchase by major credit card at www.datacompusa.com/JLT or by calling 800.588.5426. Each Colorado manufactured home rent and occupancy survey, fully updated in July 2015, is a comprehensive look at investment grade properties within a market, enabling owners and managers, lenders, appraisers, brokers, and other organizations to effectively benchmark those communities and make informed decisions.

About JLT Market Reports

For more than 20 years, countless professionals have trusted JLT Market Reports for timely and accurate management information on land lease manufactured home communities. JLT Market Reports are currently available for 75 markets nationwide and are recognized as the industry standard for community market analysis. JLT Market Reports are published by Datacomp, the industry’s oldest and largest national mobile home appraisal company and operator of MHVillage, the premier website for advertising manufactured and mobile homes for rent in land-lease communities. For more information, or to purchase complete JLT Market Reports, call 800.588.5426 or visit www.datacompusa.com/JLT.

 

Florida MH Rent and Occupancy Report Available

Florida Manufactured Home Community Rent and Occupancy
Continues Growth Trend According to Datacomp 15-Year Market
Summary Report

Darren KrolewskiBY: DARREN KROLEWSKI:
Vice President, Marketing & Business Development at Datacomp – Operator of MHVillage.com & Publisher of JLT Market ReportsFL Icon

Datacomp, publisher of JLT Market Reports and the nation’s #1 market data company for the manufactured housing industry, today announced a 15-year summary report of its manufactured home community rent surveys for 24 Florida markets.

Recognized as the industry standard for manufactured home community market analysis for over 20 years, JLT Market Reports provide detailed research and information on communities located in 75 markets throughout the United States, including the latest rent trends and statistics, marketing programs and a variety of other useful management insights.

The most recent JLT Market Reports for the Florida markets were released in May 2015 and include 695 communities encompassing 194,771 homesites. This summary report is based on rent and occupancy trends from May 2000 to May 2015.

Findings and Observations

Occupancy Continues to Outpace National Average

For the fifth consecutive year, occupancy rates for Florida “All Ages” manufactured home communities increased. As of May 2015, the occupancy rate for All Ages communities is 88%, up .1% over May 2014. The national average for All Ages communities as of December 2014 was 83%.

For the third consecutive year, occupancy rates for Florida “55+” communities increased. As of May 2015, the occupancy rate is 93%, up .2% over May 2014. The national average for 55+ communities as of December 2014 is also 93%.
As of May 2015, Florida ranks 12th for average occupancy in All Ages manufactured home communities out of the 20 regions in which JLT rent surveys are published. Of the 15 regions that include 55+ communities, Florida ranks 8th for average occupancy among this segment.

Continuing Trend of Strong Rent Growth

Average rents in All Ages Florida manufactured home communities continued to increase for the 15th consecutive year.

In May 2015, the average adjusted rent in All Ages communities increased by 3.5% to $472, which is consistent with the average annual compounded increase of 3.6% over the last 15 years. In comparison, the national average adjusted rent for All Ages communities increased 2.7% to $403, as of December 2014.

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Download a pdf of the Florida summary report

The average adjusted rent among 55+ communities in May 2015 increased by 3.1% to $460. In contrast, the national average adjusted rent for 55+ communities increased 2.8% to $456, as of December 2014. Florida manufactured home community rents ranked 6th out of 20 regions tracked by JLT for All Ages communities as of May 2015, and 7th out of 15 regions for 55+ communities.

All Florida manufactured housing research is based on data published in JLT Market Reports. Complete reports, including detailed information on manufactured home communities in 24 Florida markets, are available for online purchase by major credit card at www.datacompusa.com/JLT or by calling 800.588.5426. Each Florida manufactured home rent survey, fully updated in May 2015, is a comprehensive look at investment grade properties within a market, enabling owners and managers, lenders, appraisers, brokers, and other organizations to effectively benchmark those communities and make informed decisions.

Tunica Show March 25th

BY: DAWN HIGHHOUSE IMG_1250

It’s that time of year again! Time for the annual Tunica Show, March 25-27, 2015. If you are new to the manufactured housing industry, the Tunica Show has been in existence for over 17 years. Last year the show drew 1,115 retailers, builder/developers, community owner/operators and installers from 447 different companies.

MHVillage will once again be exhibiting, and we would love to see you there! In addition, on Wednesday, March 26th, Datacomp Appraisal (MHVillage’s sister company) will be a part of The Appraisal Rule and Manufactured Home Lending Panel. This panel (with a Q&A to follow) will be covering one of the hottest topics in the industry! Like all of the Education Seminars at Tunica, this panel is free to attend for registered attendees.

Interested in seeing what the Tunica Show has to offer you? Note that the cut off date for reservations is coming up soon, so go to www.prereg.net/2015/tmfs to register today!

Hotel Information:

Resorts Hotel and Casino call 1-866-706-7070 for reservations. Mention group code: SCH0315

Hollywood Hotel & Casino call 1-800-871-0711 for reservations. Mention group code SCM0315

See you there!

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JLT Releases 2015 Reports for Southeast and Southwest Markets

Darren KrolewskiBY: DARREN KROLEWSKI:
Vice President, Marketing & Business Development at Datacomp – Operator of MHVillage.com & Publisher of JLT Rent Surveys
JLT & Associates (JLT), the nation’s #1 market research company for the manufactured housing industry, today announced the publication of its January 2015 manufactured home community rent and occupancy reports for markets in the Southeast and Southwest regions.

Recognized as the industry standard for manufactured housing market data for over 20 years, JLT Rent Surveys provide detailed research and information on communities located in 73 markets throughout the United States, including the latest rent trends and statistics, marketing programs and a variety of other useful management insights.JLT and Associates

JLT’s manufactured housing market data published in January 2015 includes major markets for mobile homes in Arizona, New Mexico and North Carolina, as well as Kansas City, Las Vegas and Salt Lake City. Together, these manufactured home rent survey reports track 282 “All Ages” and “55+” communities encompassing a total of 74,065 homesites.

Each manufactured home community rent survey published by JLT includes detailed information about investment grade communities in the major markets, including number of homesites, occupancy rates, average mobile home community rents and increases, community amenities, vacant sites, and repossessed and inventory homes.

JLT rent surveys also include management reports that rank communities by number of homesites, occupancy rates and highest to lowest rents. Detailed reports show trends in each market with a comparison of 2015 rents and occupancy rates to 2014, as well as a historical recap of rents and occupancy from 1996 to 2013 in most markets.

The January 2015 JLT rent surveys for are available for purchase and immediate download online at the JLT & Associates website, or they may be ordered in electronic or printed editions by phone at 800.588.5426. Each fully updated report for mobile home communities is a comprehensive look at investment grade properties within a market, enabling owners and managers, lenders, appraisers, brokers, and other organizations to effectively benchmark those communities and make informed decisions.

About JLT & Associates
For more than 20 years, countless professionals have trusted JLT & Associates for timely and accurate management reports on land lease manufactured home communities. JLT Rent Surveys are currently published for 73 markets nationwide and are recognized as the industry standard for manufactured housing industry data. In 2014, JLT merged its resources, skills and expertise with Datacomp, the industry’s oldest and largest national manufactured housing appraisal company, and MHVillage, the premier website for advertising mobile homes for sale and rent in land lease communities. For more information, or to purchase complete JLT Rent Survey reports, call 800.588.5426 or visit http://www.jlt-associates.com