yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

The Mobile Home Economics | Explorer


2m read
·Nov 11, 2024

[music playing]

  • Frank Rolfe?
  • Yes.
  • Billy Mintz.
  • Hi, Billy. How are you?

BILLY MINTZ (VOICEOVER): Frank Rolfe's company is the fifth largest owner of mobile home parks in the United States.

BILLY MINTZ: Beautiful place.

FRANK ROLFE: Thank you very much.

BILLY MINTZ: Wow. Show you in here. Our motto is kind of we provide a clean, safe, affordable place to live, just like it is here. Micro-housing is hot. You just have a whole lot of people who just can't afford to buy a house today. It's almost impossible for people. So we're like, by far, the least expensive form of detached dwelling there is. I mean, some homes you'll see are like $2,000 for the entire home.

BILLY MINTZ (VOICEOVER): Here's how Frank's business works. He buys old mobile home parks, makes basic repairs, gives them a fresh coat of paint, and then puts homes on the market. Basically, you're repositioning properties, bringing them back to life. And everybody's happy.

BILLY MINTZ (VOICEOVER): He owns the land, so whether he rents out the homes or sells them, residents pay a lot fee of around $250 to $375 per month, providing Frank with a steady stream of revenue.

So this is a unit for sale?

It's for sale or rent. Renting this is $550 a month. But if you want to buy it, we'll sell it you for $500.

OK, so hold on a second. To rent it, it's $550.

Right. But to buy it, it's less.

Yes. Then how does it work for you financially, though?

Well, on paper, it looks pretty stupid, right? Because I've poured thousands of dollars into the house and I'm going to take a loss on this house of probably $3,000 or $4,000. But just to have someone on this lot, this lot is worth probably $30,000 with someone in it and it's worth nothing with somebody not in it. Our big focus is we want to be in the land business.

Right. So we're willing to take hefty losses on the homes just to be in the land business.

BILLY MINTZ (VOICEOVER): It's not much different from how the mobile home business started.

[music playing]

During World War II, a slapdash prototype of mobile homes housed soldiers and factory workers. After the war ended, small mom and pop shops set out to make the rickety World War II model a more permanent, affordable housing alternative, buying cheap land, installing homes, and then charging lot fees to the residents.

But the difference was that these mostly family-owned parks usually didn't raise rents. But after 2007, the demand for cheap housing skyrocketed and people like Frank saw an opportunity.

Our industry has been a contrarian bet on a poorer America, and that bet's been paying off really big the last eight years, right? Whereas our customers are the $10 to $50 per hour folks, there's no other options out there for those people.

More Articles

View All
Exclusive: Is This the Skull of Slave Rebellion Leader Nat Turner? | National Geographic
[Music] It is my honor, uh, to present, uh, this uh, remains to you. Being able to hold that piece of his body that he couldn’t own for himself, we’ll be able to treat it with the respect and honor that is due. That we’re going to be able to give him the …
We deleted social media for 3 days- Mental Glow Up Diaries Episode 3
Social media is the best example of a double-edged sword. If you can use it effectively for your favor, it can be life-changing. You can learn a bunch of new things, you can make friends, you can even make money out of it. But social media facilitates an …
Charlie Munger on Investing in China and Alibaba Stock
All right, we’re back with more from Charlie Monga’s recent Q&A session at the Daily Journal Corporation’s annual shareholder meeting. So, last time we spoke about Charlie’s thoughts on inflation and interest rates. Um, I’ll link to that video if you…
2015 AP Biology free response 8
An individual has lost the ability to activate B cells and mount a humoral immune response. Part A: Propose one direct consequence of the loss of B cell activity on the individual’s humoral immune response to the initial exposure to a bacterial pathogen.…
The Ebola Virus Explained — How Your Body Fights For Survival
What makes Ebola so dangerous? How can a virus overwhelm the very complex defense system of the body so quickly and so effectively? Let’s take a look at what Ebola does. (Theme music) Ebola is a virus. A virus is a very small thing. A bit of RNA or DNA a…
Integrating An EVIL Shadow | Carl Jung
Hello everyone! November 2019 is over, which means that it’s time for another Q&A. As you may know by now: this is the public Q&A. There’s also a Patreon edition for those who want to support my work. In this public edition, I’m going to talk abo…