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The Williamson Group | THEWILLIAMSONGROUP.CO

the williamson group

A real estate investment company specializing in mobile home parks.

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the williamson group.

Headquartered in San Diego, The Williamson Group is a real estate investment company that focuses on the acquisition, rehabilitation, and management of mobile home parks throughout the U.S. We pride ourselves on an in depth knowledge of the mobile home industry, honest and straightforward negotiations, quality improvements, and efficient and fair project management.

We strive to acquire under performing mobile home parks and rehabilitate them to create stable affordable housing communities and provide a fair return for all stakeholders.

Mobile home park acquisitions will be focused in select metropolitan areas and targeted submarkets, generally throughout the Midwestern and Mid-Atlantic states. Once properties are acquired, the renovation and stabilization process will begin, which includes fostering a sense of pride and community amongst the residents. In all cases, The Williamson Group will retain quality hands on property management and personnel, and utilize tested systems in order to achieve optimum operating efficiency.

The Williamson Group | THEWILLIAMSONGROUP.CO
The Williamson Group | THEWILLIAMSONGROUP.CO

MOBILE HOME PARK
INVESTMENT OPPORTUNITIES

If you’re interested in owning a mobile home park, contact us to discuss any investment opportunities with The Williamson Group.

The Williamson Group | THEWILLIAMSONGROUP.CO

MOBILE HOME PARK
PURCHASE DUE DILIGENCE

Due diligence is critical for a mobile home park purchase. We are happy to lend our expertise to assist you with yours.

The Williamson Group | THEWILLIAMSONGROUP.CO

MOBILE HOME PARK
MANAGEMENT TRAINING

The management of your mobile home park impacts your bottom line—we are happy to train you how to do it effectively & efficiently.

why invest in mobile home parks?

Learn why mobile home parks are one of the most desirable investments available in today’s unpredictable economic environment—and why the integrity and experience of The Williamson Group makes it an excellent partner in this often misunderstood asset class.

The U.S. is in an economic decline and is faced with a shortage of housing for the lower income brackets. Since 2000, those needing affordable housing have increased by 38%, yet the supply of such housing has increased by only 7%. The median home price in the U.S. is $170,100, and the average three-bedroom apartment rent is $1,290 per month. Based on earnings, these prices are unsupportable by a majority of the U.S. population.

Roughly 15% of Americans fall below the poverty line, which is defined as less than $23,834 per year for a family of four and $12,000 for an individual. This does not include non-legal aliens living in the U.S., which many believe take this number well above 20%. Regardless of the exact percentage, what this means is that approximately 60,000,000 Americans do not have enough money for adequate food and shelter.

Based on the government’s suggested ratio of housing costs to total income—about 33%—these families can only afford around $500 per month for housing. So, where can you live for only $500 per month? There are only two options—low rent apartments and mobile home parks.

So, who wants to live in a mobile home? As it turns out, just about everyone faced with the issue of affordable housing and the 8% of Americans who already live in one. Low rent apartments have many characteristics that tenants find appalling—including high crime, constant noise, little to no outside play space, pet restrictions, and often a lack of community. Some of the attractive features of mobile home parks include privacy, the lack of neighbors on the other side of the walls, floor and/or ceiling, the ability to park by your front door, a yard, and the ability to have a pet. Mobile homes parks often have a neighborhood feel, much like a residential subdivision.

It is estimated that 10,000 Baby Boomers will retire every day for the next 19 years! The problem is they cannot afford to retire. The median amount of savings of those retiring is $60,000. Current CD rates, which are around 1%, would yield only $600 per year. Add to that the average social security check of $1,341 per month and the problem is clear. AARP suggests that you should save ten times your annual income as a retirement stockpile—and that you should live on no more than 4% of that amount each year. That means the median American needs around $500,000 in the bank and should live on no more than $20,000 per year. The problem is clear when you compare that to $2,400 per year available to the median retiree (4% of $60,000).

There are significant barriers to entry for those wishing to develop a new mobile home park from the ground up. In most areas of the country, it is difficult to find properly zoned land or obtain a variance, acquire the necessary permits and licenses, and satisfy numerous other regulatory prerequisites.

In addition to these legal restrictions, mobile home park developers do not break even or generate cash flow until a substantial amount of the home lots in the park are rented. Also, many counties in the U.S. have banned or discouraged construction of new parks because the inhabitants are poor, pay little in taxes, and drain resources. Consequently, new mobile home parks are not easy to develop and boost the desirability of the investment in an existing mobile home development.

Older, inexpensive mobile home parks are still one of the best income-producing businesses around. One of the bedrocks of this investment vehicle is the inability for most customers to leave. It costs about $5,000 to move a mobile home, so very few tenants can afford to move out even if they are unhappy with the product or the price. This locked-in tenant base is what enables park owners to enjoy phenomenally stable revenue figures, even in major recessions. Compared to RV parks, where tenants can simply turn on their engine and go or apartment buildings where residents can pack up in a matter of hours, mobile home ownership enjoys extremely low resident turnover.

The mobile home park market has not been lost on some of the country’s richest and most high-profile investors. Sam Zell’s Equity LifeStyle Properties (ELS) is the largest mobile home park owner in America, with controlling interests in nearly 140,000 parks. In 2014, ELS made $777 million in revenue, helping boost Zell’s near-$5 billion fortune. Warren Buffett, the nation’s second richest man with a $72 billion fortune and an attraction to high value and low costs, is the largest owner of mobile home manufacturing and lender in the U.S.—Clayton Homes, 21st Mortgage Corporation and Vanderbilt Mortgage and Finance Company.

Mobile home parks consistently deliver higher cash-on-cash returns than the typical multi-family investment. This is due in part to reduced costs. Rather than needing to maintain physical structures, park owners only manage the land and associated facilities, which includes keeping the grounds clean, ensuring the roads are maintained, and providing for any amenities that are expected in the given area. They are not incurring costs for interior or exterior painting, new carpets and appliances, or any other amenities inside the home itself. In addition, as mobile home park owners are essentially renting land, they do not have to save for expensive capital improvements.

Owners of mobile home parks realize good returns on low rents. The average expense ratio for mobile home parks is 30-40% of gross revenue and parks sell with capitalization rates in the 7-10% range. As a result, the average park owner has no pressure to dramatically increase rents. And when rents are raised, it is typically in affordable increments of $10 to $20 per month.

The Williamson Group has:

  • Decades of real estate investment experience along with extensive continuing education
  • Ongoing relationships with other highly successful investors, teachers and mentors within the mobile park industry
  • Direct access to experienced and reputable lawyers, brokers, lenders and inspectors within the industry
  • A win-win approach to all interactions and relationships
  • A variety of investment opportunities providing attractive yields and flexible terms
  • Unsurpassed integrity and consistent accessibility to all of its stakeholders

let’s chat about mobile home parks.

Thanks for your interest in The Williamson Group. We look forward to connecting with you! Please leave your info in the contact form below and we will get back with you within 48 hours. If you would like to reach us sooner, please call 619.322.6283.