Posted by Shawn Sisco on February 09, 2011 at 10:59:56:
One aspect of MHP development that is really underappreciated is the fact that at the time of construction almost every park had a developer who was in the MH sales biz or had very close ties to one. Even today in the booming economy of Northwest North Dakota where housing shortages are the limiting factor in much business expansion the formula is the same: (Park infrastructure and management) + (Qualified Customers) + (Competent Sales and marketing) + (financing wholesale and retail) = a chance at successful infill.
What is attempted nowadays is to combine the park management with the sales and financing operations, and let me tell you; it is a challenge to handle all the resales needed to maintain a MHPs occupancy, let alone to start with zero occupied lots.
I’d like to learn more from experienced park developers.
I’ve found a nice cleared and level 13 acre tract, in good location.
City water, sewer, and electric is available.
I’ve heard people quote figures of about $12,500 per lot to develop. but I know this is a rough figure.
I would like to make a list of tasks or a checklist of things to adress. I know I would need Sewer, water services, and electrical put in, as well as a paved road.
Should I work with ane xperienced developer / contractor.
Also, it seems the hardest part of development would be getting homes into the park. Any advice on this?
Posted by Tony Colella on February 08, 2011 at 11:38:33:
This topic has been discussed many times over the years here and you should be able to find more info in the archives but in a nut shell you typically find that you can buy it for far less than you can build it.
When you buy it already developed it is typically making some money or soon will through your efforts. When you develop from the ground up all you do is put out huge sums of cash with no money coming in and none expected for a long time.
The cost of development and compliance is harsh enough but then you have to spend hundred(s) of thousands buying, moving and setting up homes and still little if any cash coming in.
Fighting to build a “trailer” park is never much fun. Politicians only say they want affordable housing when they are running for office. Once elected they want nothing to do with true affordable housing.
Posted by Steve-WA on February 08, 2011 at 11:15:58:
Boy, you really want to jump in, don’t you?
The classic approach to park development is that you spend thousands - tens or hundreds of thousands to get an asset that makes ZERO money - then you find homes to move in.
Mucho grande bueno to find an upgrade-able existing park.