Trailer Park Millionaires Of The USA

What do the billionaires Warren Buffet and Sam Zell have in common? Both owe part of their assets to the trailer industry in the USA. Buffet owns Clayton Homes, the largest US mobile home manufacturer, and 21st Mortgage Corporation and Vanderbilt Mortgage and Finance Company, the two largest mobile home lenders.

Zell owns Equity LifeStyle Properties (ELS), the largest mobile park owner in the US with over 140,000 trailer parks. But even without big companies, other people become millionaires in trailer parks. By investing their money in dilapidated trailer parks and following some established guidelines, they earn a much higher return on investment than traditional real estate investments. If you have played a good round of online slots and want to invest some money, this may be right for you. Caravaners are generally people who can not find other accommodation for a variety of reasons, including poverty, criminal records, bad credit and drug abuse. If a new owner takes over, he can do some renovations and thereby increase the rent.

Some tenants have their own caravan, but rent a property in a park. If the rent rises, they may not be able to afford a move. In such cases, they either sell their trailer to the park owner at a discounted price or even swap the trailer for the end of their lease. Other tenants also rent out the caravans, and even if the rent rises, they are still finding their own apartment because of their problems.

Some people argue that this idea of ​​a new owner coming in and raising rents is immoral and exploits people who are already struggling to make ends meet. However, others argue that buying a trailer estate is a great business idea that also benefits the entire community. It prevents people with bad data from becoming homeless and on the street, and helps those who have it better by safely hiding all “these people” in one place.

Trailer Park Management

Business is so good that more and more companies are emerging throughout the country who are familiar with caravan estate management. One example is the Mobile Home Park Academy, which is led by Kevin Bupp and Charles Dehart. They even have their own podcast titled “The Mobile Home Park Investing Podcast,” which features over 100 episodes in iTunes. They started their business after the 2008 recession when they found that market competition was low and they would bring in at least 20% cash-on-cash returns, regardless of what happens to the economy.

Another multi-millionaire caravan estate is Frank Rolfe, founder of Mobile Home University and the fifth largest owner of trailer parks in the US. He even runs boot camps across the country to give potential new investors an introduction to the industry and give them examples of what to do.

Why Investing In Trailer Parks Is A Good Idea

Investing in trailer parks offers some real benefits, not other types of real estate. They have lower unit costs, especially since the price paid per lot and not per trailer is on the lot. They also have lower costs for repairs and maintenance as the owner of each trailer has to pay for its maintenance. The demand for these low-cost housing options is quite high, as incomes are falling and people are without savings.

When it comes to retirees and other people living off social benefits, they are even less likely to avoid housing or housing. Similarly, caravan sales are rather low due to limited options as well as high relocation costs. The investment opportunities remain interesting as the owners of “Aunt Emma” retire and are looking for someone to sell to. Since these small owners are not usually professional landlords, a new owner can shop at a reasonable price, make improvements and improve the tenant experience – and often win new ones.

And even as the field becomes more and more popular, it still has much lower competition than other real estate investment opportunities.