Mobile Home Park Investors With Jefferson Lilly & Brad Johnson

Welcome to Episode 60 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. This episode is a continuation of Dick Ernst’s interview from last week. If you haven’t heard Part 1, be sure to check it out before listening to this episode! Dick continues his discussion on what it takes to help people buy mobile homes, and discusses in detail how the Dodd-Frank regulation has helped/hurt families.   Key Takeaways: [1:30] Has the Dodd-Frank regulation helped families making 30K a year get mobile homes or has it hurt them? [8:45] Lenders in the industry don’t want to make high-cost loans because they’ll become branded as a predatory lender. [9:45] What’s happening with the CFPB (Consumer Financial Protection Bureau) right now? [14:30] In an attempt to get Fannie and Freddie to be investing more into mobile home parks, who is leading the lobbying efforts in this? [17:40] What can listeners do to help support this cause? [22:35] Have more questions for Di

Welcome to Episode 59 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Dick Ernst has been involved with the Manufactured Housing Institute (MHI) for the last 25 years, and currently serves on the board of directors. On the show, Dick discusses MHI’s financial lobbying efforts, and offers a behind-the-scenes look at what it takes to help people buy mobile homes.   Key Takeaways: [1:20] Who is Dick, and how did he get into manufactured housing? [5:45] How did Dick end up on the board of directors for MHI? [9:05] What’s MHI’s vision for mobile home park financing? [13:40] The whole reason banks and mortgage companies are not in this business right is because they don’t have any place to sell their loans. However, that’s about to change. [16:10] Fannie & Freddie have dipped their toes in manufactured housing, and it has not ended well for them. [18:30] The industry continues to grow every year at about an 8% annual rate. [23:00] Dick believ

Welcome to Episode 58 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. This episode is a continuation of last week’s interview with Donald Westphal. Jefferson, Brad, and Donald discuss how older mobile home parks change overtime as the city grows bigger, creating a good image for mobile home parks, and what it takes to make a community as a whole look good.   Key Takeaways: [3:15] What kind of land makes it difficult to build a mobile home park? [6:15] As the city gets built up around mobile home parks, the industry begins to lose a lot of older mobile home communities to higher density and higher value property development. [7:35] How many mobile home parks got re-development last year? [10:25] How many new mobile home pads or mobile home park expansions were added last year? [14:35] Donald tries hard to inform people in the community of the benefits of a new mobile home park in the area. [16:30] What do the conversations look like when spe

Jefferson and Brad interview Donald Westphal for this week’s episode. This show is part one of a two-part interview. The men discuss zoning restrictions, what it takes to take a raw piece of land and turn it into a mobile home park, and all the red tape that’s associated with government bureaucracies.   Key Takeaways: [2:25] How did Donald get into designing mobile home parks? [6:45] A quick plug for State Associations. They really help give the mobile home park industry a good image. [8:15] What’s the process towards taking a piece of land and turning it into a mobile home park? [16:25] Why has it become difficult to build affordable housing? [20:40] Most people think zoning is a frivolous activity. It’s not! [22:15] Townships, councilmen, and mayors often do not approve of the ‘trailer trash’ image. This is why it’s important that Donald get to work earlier, rather than later, on developing a good reputation and image when he begins building a new mobile home park. [26:25] You have do your research and look

Welcome to Episode 56 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. As Brad is off this week, Jefferson offers a case study on his recent park manager hire. This is a complementary show to Episode 45: How to Hire the Right Manager, which you can listen to on iTunes. Jefferson discusses the ins and outs of how he found his most recent manager for his new park.   Key Takeaways: [1:30] Jefferson and Brad recently made an acquisition in Florida. The park came with the manager, and although the guys usually keep the manager, this one unfortunately did not fit the bill. [4:15] In fact, some of the manager’s billing was a bit of a red flag. [6:45] The manager was also very unprofessional and sent some nasty emails. [8:40] Jefferson sent out a flyer notifying the residents in their 80 space park that they were hiring, but only 5 responded to it, and only 1 of them seemed qualified. [9:40] The ad Jefferson placed in Craigslist pulled around 40 ap

Welcome to Episode 55 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. What do mortgage bankers bring to the table? Well, in this episode, Jefferson and Brad bring on Andy Margolis, a mortgage broker from Draper & Kramer. Andy explains in detail what a mortgage broker can do for you when it’s time to borrow money.   Key Takeaways: [3:10] How did Andy become a mortgage broker? [5:00] Why should somebody use a mortgage banker? [9:15] Andy highlights an example of how he saved a client money, and even noticed some things in the loan docs that his attorney missed. [10:45] How does Andy work with mobile home park lenders, especially when it comes to park and home percentages? [11:45] Why would you do a life insurance loan vs. a CMBS loan vs. a bank loan? [13:55] When somebody comes to Andy with a deal, does he shop it around to life companies, CMBS, etc. for the best deal? [17:30] If somebody were to buy a $500,000 park, what would that finan

Welcome to episode 54 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Brad is off on this week’s episode. Jefferson does a quick recap of the MHI Show that was hosted in Vegas this year, and shares some of the useful technologies he found out about while at the tradeshow.   Key Takeaways: [1:25] Jefferson ended up getting a handful of deals at the tradeshow. [2:45] What kind of technological tools did Jefferson see? [6:15] Jefferson would like to have several of these tech founders on the show to get a deeper dive on the tech. [10:00] Gama Sonic Lights can help light up your park for free through the use of solar power. [11:00] Moving away from tech, let’s talk about some of the useful credit companies your tenants can benefit from. [12:25] Jefferson saw a booth there that almost brought tears to his eyes. Yes! Need mobile home park renovations done? Home Depot has a specific branch about it now! [15:45] Should you attend MHI next year? Yes

Welcome to episode 53 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Brad and Jefferson are joined by Paul Bradley, the Founding President of ROC USA. The guys continue last week’s conversation about how mobile home park residents are able to go from rentee to owner. If you hadn’t had the chance to listen to part one, be sure to listen to that episode first!   Key Takeaways: [1:30] When it comes to sign for the big bank loan, how many tenants are in charge of signing it? [2:30] If you’re working with a company like ROC USA, their minimum membership requirement is 51% of owner-occupied homes must be members of the co-op. [7:00] Many residents are willing to invest in the property when they’ve lived there for 10+ years or more. Residents who have only been there for 2 or so years are more likely to oppose to the co-op. [9:15] To be clear, Paul’s company is not just a brokerage or lending operation. His team focuses on helping tenants with th

Brad and Jefferson are joined by Paul Bradley, the Founding President of ROC USA. Paul helps tenants acquire their mobile home parks, and explains in detail the steps residents need to take to go from rentee to owner. This episode is part one out of a two part interview, so be sure to come back next week and hear more from Paul!   Key Takeaways: [1:10] Last week Brad was hacking through the Everglades of North Carolina, looking for good mobile home park deals. [1:30] Paul and his company help tenants buy their mobile home parks from their park owners. [2:35] Who is Paul, and how did he get involved with ROC? [6:10] Paul spent 2006-2007 writing a business plan for ROC USA. [6:40] Is it true that 20% of all mobile home parks in New Hampshire are owned by the residents? [7:10] In what states is the ownership by residents high/low, and why? [9:00] What does a limited equity model mean, and how does it work? [12:30] Homeowners benefit from this model by essentially borrowing equity at market rates. [15:25] How doe

Welcome to episode 51 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Brad is off this week looking at houses in North Carolina! Instead, Jeferson invites four people, probably the most he’s ever had on a single podcast episode, from the Tric Tools team to discuss their pipe bursting technology. On this show, you’ll hear CEO Ward Carter, CFO Michael Lien, Director of Marketing, Tech Support John Rafferty, and Market Strategist Eli Nir on the call!   Key Takeaways: [2:20] Ward’s grandfather was an inventor, and invented the Coleman stove, among other things! [6:25] Jefferson had a problem with one of his mobile parks. He had an infiltration problem as well as some old sewer pipes, but according to the guys at Tric Tools, they’ve got a way to fix this cost effectively without replacing the pipes. [11:25] Ward discusses his second client ever, who was a lawyer, and some of the challenges his client had. [14:00] What kind of equipment do the gu

Welcome to episode 50 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Jefferson and Brad interview Mike Renz, an environmental geologist & consultant. Mike’s clients hire Mike to test the soil of properties and sites prior to purchase. Mike talks in detail about the type of work he does for property investors, and why it’s so important to understand what kinds of toxins are in your soil.   Key Takeaways: [1:35] Mike takes long motorcycle rides just to go look at rocks. [2:45] How did Mike into this work? [6:25] Jefferson and Brad call in Mike and he usually does a ‘Phase 1’ on the property. What does that entail? [12:50] For Phase 1, some of the work can be done remotely. [20:55] It takes Mike around 2-3 weeks to do both the onsite and offsite work. [21:35] When does a phase 2, 3, 4, or 5 happen? Is there a phase 11? [26:45] Mike’s goal with his clients is to discover the property’s deal breaker as quickly and as cheaply as possible. [2

Welcome to episode 49 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. March 2nd marks Jefferson’s 10th year in the mobile home park industry! As Brad is off this week, Jefferson reflects on the many, many lessons he’s learned over the years.   Key Takeaways: [1:00] Jefferson has been in the business for 10 years! [2:15] Jefferson never would have been able to predict everything that’s happened over the last 10 years. He thought that after he spent a year in this business, he was going to go back to his ‘day job.’ [3:00] How did Jefferson get into this business? [5:45] Jefferson found his first property on eBay! [7:45] Jefferson decided to do this full-time, but only for a year. He really wanted to double his assets before going back to his day job. [8:25] After around the 4 year mark, Jefferson bought his second mobile home park. [10:50] If you’re still working a day job and looking to invest in your first park, pay for value. [13:55] If yo

Welcome to episode 48 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Brad is off on this week’s episode, but Jefferson has a powerful tip that took him nearly ten years to figure out! If you’re looking for a creative way to reduce that costly electric bill, then this is an episode you surely do not want to miss!   Key Takeaways: [1:15] Today’s podcast is going to be like an espresso — very concentrated! [2:00] It took Jefferson nearly 10 years to figure out this trick to save on his electric bill. [2:20] After having over 117 electric bills pass through Jefferson’s desk, he finally took a look at one. [3:55] Service availability charge. Look out for those words! [5:10] Jefferson was getting charged $279 a year for both bills! [7:25] Remember, a penny saved is a penny earned! [7:45] If you have multiple bills, take a look at them carefully. [8:45] Shoutout: Thank you Pastor Joshua for listening to this podcast!   Mentioned in This Episode:

Welcome to episode 47 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Jefferson and Brad continue their discussion about CMBS financing, and outline what you need to know before you get one! Be sure to listen to last week’s episode to get caught up to speed.   Key Takeaways: [2:15] What third party documents/reports do you need in order to apply for CMBS financing? [5:45] What do you know about zoning restrictions/requirements? [9:55] Brad has never seen a survey done for CMBS under $10,000. [10:35] You're going to need a minimum of 45 days to get the loan done. [12:00] Tip: Plan for margin of error. [12:50] What does the seller need to know, if the buyer is applying for CMBS financing? [15:30] How do you find out what interest rate you’re going to be paying? [20:00] Remember, you want to be sure you have enough money in order to see the loan through. It can be expensive and time consuming! [21:30] Brad does a quick recap. [24:45] With a CM

Welcome to episode 46 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Jefferson and Brad explain everything you need to know about Commercial Mortgage-Backed Securities (CMBS), and when it’s the right time to get one. Is CMBS financing right for you? Get a crash course on it in this week’s episode!   Key Takeaways: [2:20] How does CMBS work? [7:05] Most commercial mortgage brokers deal with CMBS loans. [8:15] If your mobile home park’s purchase price is just above $2 million, that’s when you’ll be getting a bit of CMBS attention. [12:40] Who ends up owning this debt? Individual investors or institutions? [14:15] You definitely want to go with a mortgage broker that has experience with CMBS and mobile home parks. If not, the process might be tougher for you to acquire the loan. [16:30] Another thing, be sure to have your lawyers present when applying for CMBS financing. [20:40] Try to keep your entity structure as simple as possible. [22:35]

Welcome to episode 45 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Jefferson and Brad dive right in on how to hire the right property manage for your mobile home park. What do Jefferson and Brad look for in a manager? Find out today!   Key Takeaways: [2:00] You have to hire somebody with integrity. [2:25] When Jefferson and Brad acquire a new property, they’re open to keeping the same manager. [5:30] Jefferson dives into how he finds good talent. [7:15] Despite looking for new managers, Jefferson and Brad decided to keep the current one for this particular property, because she had fire in her belly and knew the properties well. [8:15] Managers who are in charge of the checkbooks can be dangerous. [8:45] You can tell a lot about somebody based on the condition of their house. Managers with well-kept homes know what to look for. [11:10] Jefferson and Brad don’t usually have full-time managers, but some parks do need them. [15:30] Very few

Welcome to episode 44 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Jefferson and Brad welcome listeners to the new year! They do a quick year-end wrap-up of 2016, and discuss the future of mobile home parks, on this week’s episode. What can we look forward to in 2017? You’ll have to listen in!   Key Takeaways: [:55] Happy New Year, everybody! [1:25] Jefferson and Brad have been busy during the month of January and are getting ready to close on their second deal for the New Year. [1:45] Jefferson has already completed 3 of his 5 New Year’s Resolutions - from 2012! [2:10] The Park Street Partners 'Mobile Home Park Investors' podcast series is slightly over a year old! Jefferson and Brad do a year-end wrap up. [4:15] Hi mom! [4:45] Got some good deals in your area? Let Jefferson and Brad know! They’ll either partner with you or pay you a referral fee. [8:15] There’s still a big stigma about mobile home parks. [9:10] Will the mobile home par

Welcome to episode 43 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. This episode is a continuation of last week’s podcast, where Jefferson walks Robert Nelson through the math and money behind purchasing his first mobile home park. What are some telltale signs that Robert needs to look out for? Find out today!   Key Takeaways: [1:45] It’s a good thing Robert’s first prospect park is not listed in the yellow pages. [3:05] Jefferson is now looking up on Google Earth where the nearest Walmart is. [7:35] Jefferson talks about a red flag he just spotted with the property. [8:35] When looking at locations, Jefferson tries to find properties where the unemployment in the area is under 7%. [9:40] In this area, homeownership is about 63%. [11:35] Lot rents can go to about half of what an average 2-bedroom apartment goes for in the area. [14:40] What does Jefferson look for in the last 12 months of bank statements? [17:50] This property is being po

Welcome to episode 42 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Jefferson Lilly invites Robert Nelson on to the show to discuss the first mobile home park Robert found, and does an analysis on the property. Jefferson walks Robert through the process, and the math, to help him come to the conclusion whether the mobile park home he found is worth the hefty price tag.   Key Takeaways: [2:55] How did Robert first get involved with mobile home parks? [7:10] How did Robert find his first park? [8:05] Robert thought the park he found was a good park, but then he listened to episode 14 of this podcast show! [12:55] The park Robert is looking at currently has five occupied trailers, four unoccupied trailers, and three empty pads. [15:25] One of the unoccupied trailers has been trashed, and the owners are using it for supplies. [17:30] Jefferson is going to assume those 5 occupied trailers do not need extra work. [18:35] If Robert were to buy t

Welcome to episode 41 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. This week’s episode covers Jefferson and Brad’s deal flow, along with the properties that they have in their fund right now. They discuss a little bit about the inner workings of each mobile home park, and share their expert advice to you!   Key Takeaways: [1:00] Jefferson and Brad give an update on how their portfolio is doing right now. [1:40] The first mobile home park property is located in Hillsborough, North Carolina. [6:05] The second mobile home park property is in Port Huron, Michigan. [8:55] Brad discusses the deals that are currently in progress. [11:55] Next up, Jefferson discusses the property he acquired in the upper midwest. [17:50] Brad talks about a mobile home park located in a fairly large metropolitan statistical area. [20:15] Whenever you see greater than $100,000 average house prices, that's a good sign that a trailer park will do well in the area. [