My $1 Million Dollar Trailer Park Has Failed
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- Опубликовано: 25 ноя 2023
- You've been asking for a while where the trailer park videos have been, and here's the big update: I'm giving up and selling
@PaceMorby also came by to give me his input
I have laundromats down to a science. If you want to do laundromats as well click the link:
investmentjoytraining.com 
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I agree that the tiny home / park models don't have the same stigma as trailer parks. They say hindsight is 20/20. I hope you are more successful in the future. AND don't give up. There is a great need for small affordable housing.
Somewhere there's a boardroom full of Marketing Executives laughing their ass off at duping Millennials into the idea of tiny homes. Trust me they all go to trailer park status and the same white trash will move right in to your expensive tiny homes
It is always these same people screaming for affordable housing who trash the opportunities they get. Then they cry some more.
I love how honest you are about your situations and you're not click baiting us. That trailer park business seems very challenging and depressing. I really like the tiny house idea though!
Thanks! We've already done one tiny home elsewhere (Video on that somewhat soon).
Imagine being happy someone's scamming poor people
He wasn't nearly equipped enough to run a park, therefor it suffered. Plenty of nice parks that are ran well.
@@InvestmentJoycan I ask you a question would you go into the trailer Parks investments again now knowing what you know and make sure you don't make the same mistakes again because I still hear it's pretty good investment I once heard a woman owns 1,000 trailer Parks all over the Midwest so she's making a fortune heck you probably don't need to own that much probably a good ten to twenty trailer Parks depending on how many mobile homes you have in each trailer Parks like 30 or 40 trailer Parks
@@andrewmorales5485 yeah I'm not opposed to it I've already been asked to participate in another one and I have not turned it down at this juncture I'm not sure if it's going to just going to be an advisory role or more involved
I remember back when you first bought this in 2019, and I thought "glad that's not my baby". Some trailer parks can be decent, but this one was a problem child. When a park has gone downhill, it takes a lot of time, money, and patience to revitalize it. A lot of times the numbers are hard to get working favorably, especially with COVID economics coming into play.
I knew a trailer park flipper. He would buy a park, kick people out one by one and replace them with new trailers and tenants. He would go to all the local trailer home dealers and make them a deal to send new owners his way. He then would pave the park, which raised the value. Then he'd sell it. All he did was flip parks. Dude was rich.
and all he had to do was displace low income people... amazing!
I've lived in the trailer park im currently in for 7 years. Never late on rent. Never had a write up. I own my trailer. Even through the pandemic i payed it. The company bought over 60 new trailers. It costs over 1k a month. No amenities. Most of the trailers are vacant, and dont hold tenants longer than a year. 2 at most. If he raises the lot rent again ill move. Trailer parks aren't for middle class people that can afford 1k+ rent lol. They are for low income people. Trailer parks are also wrose than HOAs in a lot of ways.
Low income? 1k a month plus food gas and amenities? Get a grip.
@@coledude2548 That would be 1K (and more) a month, for nothing but the flat spot the trailer is sitting on. Water, gas/electric, all extra and often as not there will be some monopoly 'you can only get this crappy&expensive internet service because they have a contract' situation.
Glad things worked out for you. I do remember expressing my concerns over the quality of tenants when you bought it and wondered if you had purchased a nightmare in disguise.
It's come up a lot from where it was when I bought it. I'm confident the new owners will spend the time and money to make it profitable.
How old do you have to be to learn that no one likes "I told you so"? Beyond that why does it matter what some jerk on youtube thinks?
@@jerbear7952 I'm sorry if I hurt your feelings Karen. Google: Safe space ...you'll be fine.
@@jerbear7952
The signs were there, but I think everyone, including Investment Joy thought the signs weren't strong enough. We were all wrong.
Personally, I'm very picky about tenants. If I wouldn't live in a duplex with them, I don't want them in one of my 350k - 550k assets. I've always thought the people are everything. Garbage people = garbage income and garbage treatment of the property. But, I wanted to see Investment Joy succeed.
Ben Mallah made his fortune off of destructive, mentally broken college students on section 8. I thought maybe Investment Joy could make this work, too. Everyone has their own niche, but I guess this was just too much scum to take on.
Great video. Never liked older trailer parks because trailers aren't built to last, and the tenants almost always are a major headache: there's a reason for the stigma against trailer parks. Might work for someone else, but not for me. At least you came out of this more or less in the black, and your idea about tiny homes is intriguing. I suspect it'd attract a different quality of tenant and the construction is much better.
Yeah , similar size, just no stigma.
Not even sure I would do traditional tiny homes - something like Vessel E7s or Boxabls. Plus you don't want them just back to front, need some greenspace.
Trailers CAN last a long time, but usually RENTAL trailers do not. Rather do space rentals than own the units if you are doing trailers. RVs or modulars, same connections.
People like to hate on hipsters and trend-chasers, but those are all the kinds of people that pay their rent and treat things relatively nicely.
I'd take them over the kinds of people that get poverty-trapped in trailer parks.
They're traps for a reason. They suck in all the low IQs and druggies and that's just how reality is, whether people want to be honest about that or not. It's not "stigma" or "prejudice". It's mechanical fact. Dozens of millions of people that lost the genetic lottery have to land at the bottom somewhere. Trailer parks are one of those somewheres.
Yup, have the people own the trailers and charge lot rent. Less hassle.@@redwolfexr
That's a lie , it's how you take care of it
Made 400k in 4 years and trying to frame this as a failure....Love your videos, but this wasn't a failure, it just wasn't the win you had gone into it hoping for.
I got to 200k net napkkin math not 400 listening to this but there was also likely additional costs then shared for the overly simple story telling that YT viewers need.
Even if 400k - I am calling this a failure too - murderers and all of the risks and many months of hassle and putting out more than coming in for years is not worth it for ANYBODY. I don’t think ‘framing’ is occurring in this video.
Even the investors he used they could have done other deals more in line with the bulk of what he does and has down today and accomplished more & faster.
Give it a few days and read the negative comments
So little chance to lose money on value add real estate
@InvestmentJoy Read and laugh you mean? Keep on keeping on my man. Love the content.
People dont realize the stress and anxiety that comes with having so much in you can't easily back out without losing so much. I remember the hell i went thru in 21 building my mat... i can only imagine once the govt started eviction moratorium, you must've been losing your mind.
I liked how you dealt with it. Your ability to salvage was great.
Thanks!
He got lucky finding a sucker to buy it.
Theres a 55+ trailer park in my community that has owner-occupied trailers that are well maintained. Other than that, the other parks are section 8 types with the typical drama and crime.
It's a struggle in my part of Ohio. Stigma keeps most of the great tenants out.
Trailer parks in my area are like the 55+, clean and well cared for, they are just outside my county. There is only one area with trailers left in my county. Now as the trailers age and people move out or die, the trailers are removed and the deal with the county is the trailer lots are sold as new home lots. Profitable for the owner and the county can continue to upgrade the area.
It's a good idea to think about 55+ type parks as a potential solution. Thanks for sharing.
Young fools sometimes turn into old folks.
I think it depends. I visited a college classmate that recently retired. She lives in a trailer park, but I was surprised by what I saw. It was gated, with a front office, and playground for the kids. The trailers were huge with 3 car parking pads, large porches, and security guards driving the property. It felt more like a resort than a trailer park. Another great video, that helps put things in prospective!
There are some great, well managed locations out there! The bigger the park, the easier it is to afford full time on-site management.
What about a Senior only trailer park..would that work?
I think it was just really bad timing. Thank you for showing a failure. I like that, your honest Brandon. Your hard work, and showing your viewer's your highs and lows of the process and what it takes to make it is the reason why I watch your channel.
Wasn't there any recourse against the seller who had "switched" 15 or so trailers? I can't imagine their having taken such a risk to begin with. How could they have been so sure that you hadn't at least taken pictures, and noted the VIN's, after which you would have refused delivery of any that didn't match?
It's called "Due diligence". He didn't.
Rookie mistake.
@@dwightsmith5174 Except he's nowhere near a rookie, and how could anyone as a seller think they would get away with such a thing? It's like a used car dealer delivering the wrong car 15 times, hoping nobody will notice.
he blames everyuone but himself and the people who live there suffer---
@@mtsaz100 I thought there might be more to the story, because I would think no seller could have been so dumb as to try such a thing.
A simple 9 minute video with a million dollars worth of experience! 👍
Glad you liked it!
I got into real-estate about 30 years ago and 1 of the 1st lessons I learned was from a friend that had bought a trailer park. My friend had nothing but problems with the park because of the class of tenants that lived in the park. His problem made me seek out upper class properties which attracted upper class tenants which keep my properties in better condition, always pay and don't piss off the neighbors.
Yeah , and generally with my 'lower' end places i've done extremely well, even through the pandemic, however since the pandemic they've certainly done less-good.
I don't know about upper class tenants. I like having tenants who don't have the money to hire an attorney to sue me.
You cannot compete with the government protecting these people. Covid was completely one-sided with tenants, and absolutely screwed over every landlord out there.
@@marshall1068 that's why you don't "own" the property, you put it into a LLC, you put your home into a property trust, you build a wall around you and everything you own, that way, when some scum bag lawyer does their cost analysis to figure out if it's worth suing you , they tell their client they won't get anything from you
I was really hoping for an underdog story with this trailer park. Nonetheless, I'm glad to see you're at least not taking a massive loss on it. Can't wait to see what the future has in store for you.
This has definitely been the worst performing item in the portfolio. Plenty of wins on other ends that I'm hoping to talk about over the new few months. Thanks!
Don't go to tiny.
Maybe an old idea would be better? In the 1960s in suburban Maryland they made a whole bunch of 1000 sq/ft homes. Two bedrooms, one dining room, kitchen, living room. They also had a basement. You had to go up about 6 steps to get into the house. The basement was very basic. Washer/dryer and a nice storage area. Recently I looked at that old neighborhood. I was floored. A 1000 sq/ft house just sold for 390K. Trulia lanham/seabrook Maryland. Fowler lane area.
Those will cost you $150K to build today. You can put a modular prefab down for $80K. The main cost is the land you build it on, and if you build it on crap land they are work crap.
@@redwolfexr I just looked at putting some modular homes on some 10K land. It turned out it was cheaper to go with stick construction. A lot cheaper.
I had to abandon it because Maryland came up with Urban Developement Rights points. It's 1 point per acre and 5 points for a house. More if it's a larger house. Each point is last I knew, 5 grand - if you can get them. There is no guarantee you can get them.
@@robertthomas5906 Depends on the stick build, Boxable is about 50K for the house and VEssels are $50-70K (includes HVAC, appliance and auto-curtains) Does not include utility/prep/dirt/concrete.
I suspect you were looking at much larger modulars than those.
Sticks builds are $120K for 1000sq feet. (and that is builder grade materials)
@@redwolfexr You need to check your numbers. 50K for a boxable with roughly 324 sqft of usable space and the Vessel E7s which isn't currently available in the US? These are not viable options.
The Vessel E7s starts at 180K if you're able to mange importing, but slap another 30-40k in transport costs and import taxes. I mean f*ck; you're going to need to purchase your own shipping container (the steel vessel not the transport costs at ~5k) just to get it to the US. A Vessel E7s could easily cost you 250k-300k after site set up, transport, and tariff costs.
Pricing for a Boxable isn't much better, with roughly 320-350~ of usable space it is equal or more expensive than traditional construction without the zoning and regulation perks. Traditional construction avoids the stringent zoning requirements and regulations which come with mobile home parks. Boxable is a modular solution, but the international code book and zoning regulations consider it in the same category as a mobile home.
i mean its a trailer park, what did you really expect? jeez dude im stupid and even i think thats a terrible idea
Nice update and glad I subbed. Sometimes it's best to just go with what works, and take more vacations.
Bad timing (2020) that would be near impossible to predict. My first thought with an affordable trailer park is excessive baby sitting. The tiny home idea may have been good. Another thought is parking pads for extended stay RV catering towards transient work force. Leave reliable tenants be but expand towards rv parking pads.
That's what I've found in talking with successful operators. This is a struggle with small parks. The larger parks make enough to support on-site management.
Man been watching this channel since 2018 it’s crazy how far this came wonder if anyone remember when someone rob your laundromat and forgot you owned the newspaper’s
On reflection, I'd seriously consider buying into a tiny home community that is close knit and safety, and having lots of amenities. Tiny homes done the right way are the future.
Hey Brandon it's great seeing you posting videos again. It's been awhile I hope everything is going well.
Really great video thanks for the insight investment joy the quality of video and style top notch as always have been following since the first laundry mat lol
Thanks
I did a lot of work in that park for Justin and really enjoyed it. I think you did get stooped on the trailers from Columbus though
Appreciate the transparency on this instead of sweeping under the rug.
Don't rent the homes. Sell the homes and rent the lot the trailer sits in. Fixing the trailer after ever renter will put u in the negative real fast.
This gives me 2008 vibes. An investment that would have been alright or at least break even suddently goes south and fails due to world cirmcumstances. If COVID didn't happen, this trailer park probably would have still failed, but I don't think you would be giving up quite yet.
Hard to say, my repair/etc costs would have been a fraction. Most of the $ I spent on this was inflated.
A Tiny House park may invite better quality tenants and maybe some of the tenants may already own their Tiny House and just need a place to park it long term
I'm definitely interested in building a tiny development or a place for them to park, but we'll see how the next year goes.
What’s does it cost per unit to do something like that? Seems like a solid idea.
Thank you for your honesty
Love the transparency... thanks for sharing. A lot to learn here.
Thanks!
Excellent content. The good, the bad, the ugly, & the outcome... no glossing over or BS... TY
Thx
Chillicothe is a lost cause. My garage was broken into three times this year, probably the dudes that try to sleep in your landromat.
I don't feel it's a lost cause, but there's alot that has to happen to turn it around.
(Maybe so on the laundromat guys) Police were there last night.
This is why we do not rent our homes but sell them on contract instead. There are not many others ways to make easy money but mobile home parks are right up there.
I haven't watched you in a while (Idk why, videos just don't pop up for being subscribed).
But, I did watch you a lot when you were first getting this place and man you had problems from day 1. It was like trailer park boys meets cops meets your friendly local drug dealer.
It's great you made money. Any time you can get out of a headache/bad situation with a minor loss or better, take it and go to something else! Too many people get caught up in the time and effort they put in it, but that's gone. Good job Brandon.
Also, the covid thing screwed over pretty much every landlord. It's hard to evict people by default anyway. I think your idea of buying land and selling smaller houses is a good idea. I'm not a fan of tiny houses at all, but if the market's there....
Glad to have you back!
It's definitely gotten better, just not fast enough.
Thank you. It's definitely hard to feel like a win when you don't hit lofty goals you set out with.
We're getting better at testing. We have to understand what today's consumer wants.
Owning each trailer in a trailer park, rather than having each unit holder own their own trailer seems like a simmilar situation to a Apartment complex.. I like the owner occupied version as each little repair issue isnt the park owners exspense. Glad to see that someone with expirence and maybe a bigger maitience crew can take this over.
Thank you for sharing your experience! Great to see Pace Morby's point of view also. Was thinking throughout the video, "What would Pace do?" and boom, he shows up in the video haha
Pace is a rockstar. Hoping he comes back for the Pumpkin show next year and I'll find a big project to collaborate on.
I don't think I'd want to own the trailers. My grandparents had a trailer park in the 50's to the 70's, it only got started when a guy came into their ESSO station from the Midwest pulling a trailer and told them he was working on a construction project in Philly and needed a place to stay in his trailer. My grandfather had like 5 acres behind the garage and the guy asked about renting a spot. My grandfather told him there was no water or electric, and the guy said no problem, he'd put it in. One thing led to another and some other guy working construction moved in next to the first one. Ended up with like 20 trailers. The original guy that came bought some land from my grandfather and built a house. They all ended up being close lifetime friends.
Different world now. Too much gov regulation, and unfortunately a random person who pulls in to buy gas, is more likely to be a problem than an asset.
Thanks for being honest and sharing. You are a good guy!
Thanks!
For one, if I had bought trailers from someplace else, I'd have the serial numbers of those purchased trailers in a written contract so there would be no switch-a-roo.
Brandon,
Would you ever entertain the idea of an RV park? I know you mentioned if you had to do this over again you'd just buy land, or a existing trailer park with the intention of bulldozing, but what about a strictly RV(no mobile home) park?
I'm not opposed so long as I understand it better than I did this one
At least with an RV park, you are not dealing with deadbeat Pond scum drug addicts
@@bigman55434Depends on the park. If you allow long term RV renters you sure can have similar problems. There are some sketchy, crime ridden RV parks in my area.
I have a RV / Mobile home park. Keep the RVs no older than 10 years old, background check the tenants, stick to your rules, and keep your rents at market rate. You will attract the right folks and keep the problems away. The park owns a couple homes and the rest are tenant owned. We just started adding tiny homes and hope to add more if it works out. When buying a park as a mom and pop you have to play chess...keep the cash flow going while trying to figure out your next move that will increase cash flow without having to put more money into it.
@@marccocke9924 it's good advice, there was a whole segment that we didn't record with Pace morby or at least I don't think that we're able to show it where he was talking about his own trailer park that was in a very similar situation as mine. You're on the right thought process, the problem for for me has been it's been a very expensive learning process
I am so sorry this happened to you. I have followed you and your successes. Cannot believe this failed, but you are not a failure. Failures are people who never tried, you are a success as you took this as a "Learning Experience". I was following this Trailer Park as I believe they are one of the last affordable means to live.
My brothers own their small trailer in a park that has been around since all of our ages had a single digit. The owners kept hiking the lot rent and explained it to the tenants why...and told them all they were gonna sell the place.
When some big property company came around trying to buy the place my brothers and almost all of the other people who rented lots got together and bought the place and today my brothers own 1/36th of a trasiler park in FL and their rent only went up $80
You told the story very well, great footage and it flowed perfectly for a good watch.
Thankyou! Glad you enjoyed the video and the editing style. Hope to have many more coming soon!
Here in tn there are manufactures sub divisions. They are sold on .5 acre lots and only able to have manufactured homes installed all paved drive ways and underground electrical. It’s a nice how feel at an affordable price point.
I thought about a trailer park as an investment but then realized the type of tenants I'd be dealing with. Trailer parks have a reputation for a reason. That's not to say there aren't nice trailer park communities, it's just that the majority are not.
Been a follower and subscriber since 2018!
Much love from a fellow Brandon bro. 💪🙏♥️
Thanks for sharing this with us. Looking forward to your next investment. Glad you got out OK !
Thanks for watching!
People who live in trailer parks don't have a lot of money and can sometimes not be the ideal tentants for many reasons.
Sometimes our losses are the largest in time and missed opportunities. It looks like you were able to salvage it but I would not be counting on the checks from the new owners. They may face similar problems and default. I hope they don't for your sake, but going forward I would be cautious before spending the money from that park. Might be good to keep it set aside just in case you have to take over the park again if they default.
Interesting, I’ve been able to do well buying small parks in South Carolina.
I noticed that due to the pandemic, and the cost of living going up so high that good people will be forced to downsize.
Also more and more people are working from home.
Doing one or two homes over time has been much more manageable.
I’ll bring in a newer used home, do a lease with an option to purchase and then seller finance the homes to my tenants.
I’ve been able to create passive income and minimize the headaches.
Thats why you need to have an up to date lease on file for every tenant with a background check even if they have been in place for a while.
God bless you. Thank you for sharing
The first problem....trailer park.
Trailers have titles and vin numbers..the units shipped from Columbus werent checked on arrival?
Being a landlord is a tough road to go especially in a unfriendly landlord state. Maintenance adds up so get prepared.
Can't wait for the tiny home video.
Trailer parks are for lower income people you should have invested in an upscale RV park, privacy fences on each side of the slips with a back view of woods, mountains, and/or a lake. That way you get a to charge more, and after 3yrs after you notice how many don't fill most of the year convert those slips to tiny home RV rentals where you put stationary tiny home RVs in and rent those out to have options, then if you still can not fill 100% year round then take some slips out and make them primitive tent slips and/or RV spots. The more options the more likely you are to fill them and the better the view the more likely you are to fill them.
I bought my park during the same time as you and I'm dealing with some similar issues. Really hoping for a better year in 2024
The whole idea of just evicting everyone and trashing those old decrepit trailers and starting fresh def seems like the best idea in hindsight. The problem is, you are too nice. The investors who have been buying trailer parks in my area, starting with my moms park all the way back in 2006 have been ruthless. They come in, identify the decrepit tenant owned trailers and make them fix them or evict them. Any park owned trailers get fixed or trashed. Then the whole value add/rent increase happens. Glad to see you were able to find a deal to get rid of this albatross.
Thanks for the feedback. I just hate the idea of taking advantage of people. I'll never be one of those ruthless trailer park guys. I have a history of being too "nice" & not raising rent on existing tenants. It's hurt me in the long run. Fixing this, but also would advise people not to do it. Reasonable annual increases + market alignment on turnover is normal across my portfolio now.
@@InvestmentJoy
I try to stay under market value, but there's just things I can't budge on. There will always be increases, because the Fed is printing the dollar into zero, at which point, who knows what they'll replace it with. Obviously, I'm talking over the span of decades. We'll all be old men by the time the USD starts looking completely untenable.
If I really like a new tenant, I might use a temporary promotional "lag" that keeps me extra competitively-priced. I'm also very efficient, I have dog-proof floors, all LED lights, etc. I make sure that overhead stays low, and then I pass that down to the tenant by being so underpriced.
And... They still whine about rent increases, lol. Idk, it's a psychology thing I guess. I don't control this currency. Go burn the federal reserve down if you're so annoyed by inflation. Don't yap at me about it.
Great story! Way to turn this around into a positive. Didn't expect to run into Pace here, lol.
Thanks! Pace is great! Hope to find some opportunities with him in the future.
I ran a 300 unit mobile home park 35 years ago for my father. Renting the mobile homes doesn't pay as well as renting just the lot. This is because the lots aren't vacant like the homes pr have the upkeep expenses.
Part of me wonders if you did all of the investment, then walked away before it could actually generate a return.....
I want to see how the trailers and park look after everything is renovated.
Bro your story sounds like mine. I purchased my park in 2019 and sold it earlier this year. I’d have to have a smoking deal come across my table if I ever purchase a park again
sometimes breaking even isn't the worst thing in the world.
We run trailer parks like these and we always scrape them and start over with new homes that we finance to the tenets so far we have been really successful.
That seems to be the best way to do it.
good to see you back brother!
Your first mistake is renting trailers, you rent the spot not the trailer if they own the trailer they will not easily walk away from it!
This is why big organizations, builders, & Bankers do things In a Plan, and in Phases with goals being met before moving to the next phase. But you can beat the effects of COVID
Thanks for sharing the story. I remember watching when you first bought it.
Thanks for watching!
Thanks for watching!
well instead of trailer park. Consider and look into perhaps Tiny Homes? Could have Different Sizes, so alot of them could be Different prices and could even be Cheaper then brand new Mobile Homes
You should go to Missouri on the St. Louis side. There are plenty of houses for rent/sale in O'Fallon, Troy and St. Charles Mo.and there are houses that aren't livable that need people to fix them up and need someone living in them.
Hey Brandon, good to see you again! YT hasn't offered your videos to me for like a year. You look like you've lost weight! I was a pawnbroker in MN for a decade or so, and I'm sure we had the same kind of customers. While I had their collateral locked up on my premises, and was making a good ROI, in the end it just wasn't worth it to deal with "people of the spoon". High risk of stolen property and just general scumbaggery... Good luck to you in your future ventures, and if you're ever opening a tiny house park somewhere warm (not Ohio), I'm in!
In the 80's in another, not particularly wealthy state a colleagues father showed me that he was getting an honest 25% return after taxes on his trailer park as well as earning a 2nd salary for managing a 2nd park. One of the keys was that was this was his only full-time job. He wasn't able to engage in other real estate ventures at the time. I was very impressed but came to understand it's limits it could only be grown to a size that he could effectively manage. Still if he pulled his profits out gradually and invested them conservatively he would be able to retire very comfortably adding the capital recovered from the sale of his park to the return from his investments.
Love your idea of tiny homes! Had something similar in place and then tragedy struck.
Thanks
@@InvestmentJoyI would go with something a little bigger than tiny homes. Perhaps small homes for a retirement community. You could probably have them pre-fabbed & shipped. This way if you wanted you could just sell them off one by one. I would do small, but with a 1 car carport instead of garage. Maybe with a community backyard\park (no pool do to costs\liability). Some place with Muni water & sewer lines.
Be aware I think the possibility GFC 2.0 is coming in 2024 (Auto loan & CC delinquencies are rising fast)
Rehabs are always a lot more expensive than people expect. In retrospect, bulldozing everything and starting with new trailers/tiny homes would have been a much better option. This whole situation is really just something that you have to learn from. My uncle tried to rehab a rundown apartment complex, and he didn't have a good experience. He eventually made money when he sold it about seven years later. A guy with more experience bought it from him, moved all of the old tenants out, put about $1.5 million into the rehab, then leased the units out to higher-paying tenants. It honestly sounds similar to what happened with your trailer park.
I've had success in rehabs. There's always a risk that there will be more rehab than you estimate, but this was on another level. Some of the trailers were falling apart faster than we could fix them.
@@InvestmentJoy Those trailers looked like a nightmare, man. I obviously never saw them in person, but they looked really run down. I don't want to profile the people living there, but I can imagine that trailer park tenants are really rough on the units. I'm glad that you were able to get your money out of the trailer park and put it in your rearview mirror.
You are right they are tearing out trailer parks right and left. They are replacing some with double wide. There are far less trailer parks than there was ten years ago. We have full time camping parks and they are being tore out, reorganized....State camping parks are being changed and the price is going sky high. COVID people bought campers so many that it is difficult to get in. A lot of campers are going up for sale.
That was incredibly interesting.
I really enjoy your honesty about the messes you get yourself into and then find your way out of . I'm sure you know better property sellers than most , but Landio on YT has interesting properties once in awhile.
I get crazy deals all the time, the issue (Generally) is me not doing enough due diligence then having problems such as this.
The only way I’d buy a trailer park is if I could make it for the 55 and up community. I’m happy you have a buyer and are making a profit, I’m also sorry you had so many problems.
Thanks for watching. I have a few friends who are succeeding with the 55+ parks. Glad to move on to other projects.
@@InvestmentJoy good luck to you!
Is there a difference between Trailer Parks and Mobile Home Parks?
--Some places have an age limit (max) and size limit (min) of the dwellings.
How is that area in the summer and is land cheap? Is it OhiO, or Ohi-YA, there?
Thank you for your honesty--The scariest words you will ever hear: " I am from the government, I am here to help you."
"The government" wasn't too bad here on a LOCAL LEVEL, the federal level is what killed me. They sent their requirements to states and so many local entities were scared to death.
Failure of a trailer park…hmm that’s usually not a great business model unless it is a seniors only retirement community.
Is bare commercial land tough to sell? Just curious. Have got a large amount of acres actually in a neighboring state of yours, right across from major retailers on a busy road with 19k vehicles per day that’s taking a while to sell. It’s been on the market for nearly 2 years.
It's a lot of work and headache but you got out a better man. I'm sure not everybody could say the same.
Yeah, Ive met so many that feel they print money so I wanted to show the other side
When buying property, the deal has to be when you take possession, the property is empty. Do not inherit the old tenants. You can always screen them and rent them back their same unit if you want.
Bad tenants have way too much protection.
1 bad tenant can destroy years of profits very quickly. Between not paying rent, court costs to get them out, repairing the damages, finding new tenants. It all ads up VERY quickly.
It can be ever worse in a trailer park. Word gets around fast about bad people and you start losing good tenants if you dont deal with it fast.
The ending highlighted one of the most important things, location, location, location. Wages are pretty depressed in Ohio and rent on a traditional home is relatively low with plenty of supply.
Nope. Wages keep. Going up, demand is getting higher and higher.
But if all the areas gentrify, where do the poor people go?
We should do a joint venture in Spokane, WA
At 3:09 when you said "I got hammered with..." I thought you were gonna tell a story about how you got drunk with one of the tenants 😂
Thanks for sharing your story on the trailer park. My only investment in real estate would be REITs other than my personal property. People are naturally horrible.
There are some good funds and people out there. I've got a few friends who have success on groundfloor, but yes running deals and managing the project is not for everyone.
If i were to invest in a trailer park it would be a stricly 55 and older park with extensive background and credit checks. Think quality of tenants over quantity. As reputation builds so would your clients. Plus with everyone retired they would all look out for each other so not as much need for security and most drug addicts dont live that long so the problem kinda works itself out at that point
I am a real estate investor (rentals is my thing - section8) and I am super surprised that you thought this deal was good, generally when you gather low end tenants (lets be honest - good quality tenants wont live in a trailer) you should know that they will turn the place into trashland together, I mean like, think about it, its logical. Thats why I never buy multi units and put my section8 tenants in the same building.
How the heck do trailers get switched?
Thought it was was a good idea when I was younger. Buy land, slap a few trailers on it, set for retirement. Turns out it’s not that easy. Folks can’t or won’t pay rent. I’ll settle for a REIT ETF. Thanks for the video.
The problems you faced could likely be contributed to broken glass theory. A basic theory where 1 broken window, if left unrepaired will lead others to break more because they believe they will not be punished or caught. Trailer parks have a low bar of entry compared to wealthy communities. Even though you attempted to repair the park, the dice were likely cast long ago.
Location is primary. low rent areas never improve.
Bubbles lives there with his kitties.
We need more real estate investing videos like this
Should be more soon