Cash Flow Diary guest Frank Rolfe has always had an interest in earning money. Right out of high school he jumped into business. To get into business school he had to write an essay and he did well. It opened his mind to the possibilities and after a short time he started a billboard company! He had zero experience and got turned down over and over. But Frank kept going. By the end of the first year he had the first three billboards under contract and ads placed on them.
Frank thought he’d do this billboard thing for a year, but decided to keep going. In his second year he had 14… in the third year more… until he was the proud owner of 300 billboards, making him the leader in billboard ownership in the Dallas/Ft. Worth area!
Now that his billboards were creating some killer cashflow, Frank found that he a whole lot of time on his hands. (There isn’t much to manage once the billboard is up and running… and you have the ad space sold.) So he started down another path.
Frank sat wondering what the heck he could do next. As Lady Luck and great timing would have it, Frank met a man who wanted to sell his mobile home part for an AMAZING deal. For $10,000 down and a total cost of just $400,000 with the seller carrying the remaining $390,000, Frank couldn’t turn the deal down. That was in Ft. Worth. The reason the seller was willing to sell is because he had inherited it and didn’t want to deal with it.
Frank was now the proud owner of his first mobile home park. Then he kept going. Now he owns many mobile home parks. He also talks about this topic a lot and shares information about how to get into this market. But he warns you that if this sounds interesting there are things you have to watch out for that can be very costly (and you want to avoid). Frank also says that you may be dealing with “rough” tenants, which means if you don’t take care of your properties the good tenants will exit and as your property deteriorates some interesting individuals will replace them… like carnival workers, street people, and others that don’t have a desire to be a part of society or the community at large.
That’s something Frank learned quickly when he took over his first few mobile home parks. Next he learned how to clean his parks up. He says that just because that lower level of tenant is in the park is not a reason to turn a deal away, but you have to set a minimum bar and set expectations for the new tenants you’ll bring in once you clean out the non-paying tenants or those who just don’t care about their living environment.
Listen to this highly informational podcast episode to learn why mobile home parks make great sense and also to hear how taking over a mobile home park can be much like being the new sheriff in town. You have to be a great manager and put good rules in place if you want the greatest returns! Learn more. LISTEN NOW.