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New Mobile Home Parks cannot be built despite increasing demandTampa, Fla., March 1 While mortgage financing is in general more difficult than in years past,bank lending for mobile home parks has become virtually non-existent. Cash buyers of mobilehome parks compete only with other cash buyers. For the first time in over the 20 years that Ihave been in the business, cash buyers are acquiring mobile home parks in good neighborhoodswith ROI in the high teens, said Andrea Ciuba, CCIM and Managing Member of GlobalCommercial Real Estate Services, a commercial brokerage and property management companyspecializing in mobile home parks.With one out of four home sales in Florida the result of a foreclosure, previous homeowners arebecoming tenants in large numbers. Mobile home communities offer a lifestyle that many preferover apartments and the cost is usually more affordable.But due to the fact that most zoning in Florida no longer permits development of mobile homeparks, the supply cant grow to meet demand. At the same time, banks arent lending on theseproperties. The old adage that Cash is King rings truer than ever. A couple of our listingssound unrealistic. But fact is trumping fiction. For example, weve got a lakefront listing pricedat 17 cap and another property near good schools for 18 cap. Both manufactured housingcommunities are in good, single-family neighborhoods, said Janel Rand, Director of Sales atGlobal Commercial Real Estate Services.Under Florida law, most Mobile Home Parks today fall under a provision called legallynon-conforming. Its similar to grandfathering. Development of the mobile home park waslegally permitted prior to a change in the law but the change in law would no longer allow re-development of the park, said Mrs. Ciuba.The real estate boom caused a lot of mobile home parks to be converted to higher-end uses.Though quite a few of the senior living properties are still around, we just dont have enoughof the types of parks that are suited for working class families. Now that people really needaffordable mobile home living, the rental supply isnt sufficient, said Mrs. Ciuba.Communities in which the manufactured homes are rented out by the park owner are commonlycalled Chapter 83 parks while lot rentals are typically called Chapter 723 parks. The Chaptersrefer to the relevant Florida statutes. Chapter 83 properties are more often legally-non-conforming and generally much more profitable, said Mrs. Ciuba.Its great value for cash buyers and those arent empty words; Im using savings that Igenerate from brokering and managing mobile home parks to buy small legally non-conformingmobile home parks for myself, said Mrs. Ciuba, who is also managing member of AffordableRentals LLC.Many states have sufficient supply of working family mobile home parks and others have rentcontrol factors that depress rents. Not so in Florida.With rising interest rates and higher down payment requirements, hard-working people cantbuy. Mobile home park living offers residents their own driveway, no apartment above theirceiling and often a tool shed and a yard for the kids to play in. Florida is a great place to invest.No state income tax, no state inheritance tax, sunshine and beautiful weather, said Janel Rand.About Global Commercial Real Estate ServicesGlobal Commercial Real Estate Services, LLC is an Investment Brokerage Company serving allof Florida. We provide consultation, management, acquisition, and disposition services for alltypes of Commercial Investment Real Estate. We specialize in manufactured housing communitysales, management, leasing, market rent analysis, due diligence and 1031 tax exchanges.To learn more, contact:Andrea Ciuba, CCIMLicensed Real Estate Broker352-584-3108andrea_globalccim.comhttp://www.globalccim.com
Highest ROI for Cash Buyers of Real Estate - Manufactured Housing Communities in Florida
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