Drudge Retort: The Other Side of the News
Tuesday, July 09, 2019

Wallace said large firms continue to try to prey on homeowners in mobile home communities. This year, the state Legislature passed new regulations to curb it.

"The owner of the mobile home community or the manufactured park will not be allowed to increase rent above 3 percent per year," she said.

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error? sighs....

Mobile Homes: Last Week Tonight with John Oliver

www.youtube.com

Private Equity Firms Rapidly Investing in Mobile Home Parks

There is a growing trend among some of the largest private equity firms and institutional investors to acquire assets in the manufactured housing sector, according to a 2019 report put together by three housing advocates groups: Private Equity Stakeholder Project, Manufactured Housing Action and Americans for Financial Reform Education Fund.

www.usnews.com

It's turned into quite the scam... even Donald must be impressed. Everyone from huge equity firms to individual flippers are taking advantage of a captive market of mostly lower income and retired people trapped on leased land. Kinda like cattle in a slaughter house.

Oliver's expose is both chilling and darkly funny.

#1 | Posted by Corky at 2019-07-09 12:05 PM | Reply | Newsworthy 1

The interesting part was how he described the way that "mobile" homes aren't really mobile in that it usually costs more than the home is worth to move it, depreciate over time even if well maintained, and are basically cars that you live in. People think that moving out of an apartment into a mobile home is a smart choice, purchasing a bit of independence, but what winds up happening is they become tied to an investment that ends up costing them more in the end than it was ever worth.

#2 | Posted by Hagbard_Celine at 2019-07-09 12:11 PM | Reply | Newsworthy 2

@ about 9:28 in the vid in #1, Oliver gets into this guy, Frank Rolfe, who has a Trump U. like Mobile Home Investment U.

"That lack of mobility of tenants is attractive to investors, because they quite literally have a captive audience. As Frank Rolfe, a mobile home investor, put it, buying a mobile home park is like owning "a Waffle House where everyone is chained to the booths," which Oliver suggested was a good idea for Jordan Peele's next horror movie."

time.com

#3 | Posted by Corky at 2019-07-09 12:11 PM | Reply


@#1 ... There is a growing trend among some of the largest private equity firms and institutional investors to acquire assets in the manufactured housing sector ...

In the NYC region (not necessarily just the city itself) private equity has been buying up "starter homes" that go onto the market.

To me the reasoning looks along these lines:

The next generation of homebuyers is leaving college greatly in debt, so it will be very difficult for them to conjure up the required down payment to purchase a house. Therefore they will be looking for houses to rent. That's where private equity comes in. They are buying up the starter homes and setting them up to be rental properties. They are figuring to get 10 to 15 years of very profitable income from this scenario.

Meanwhile, the supply of starter housing is slowly drying up.

#4 | Posted by LampLighter at 2019-07-09 12:17 PM | Reply | Newsworthy 2

#2

The depreciation, especially in a land lease park is apparently often worse than a car. If it's on private land or a deed restricted land ownership community, there is some hope that the value of the land can mitigate some of the depreciation.

There is a movement to pass laws, as Oliver mentions, that would allow community residents the right of first refusal to buy a community that is being put up for sale.

mhphoa.com

www.csmonitor.com

time.com

Good for upstate NY addressing the issue.

#5 | Posted by Corky at 2019-07-09 12:20 PM | Reply

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