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
Howard Marks: 5 Strategies to Outperform the Market in 2021
Or number five, you can try to look for exceptions. What I call special niches, special people, who hopefully can produce a good return with safety in a low return world. But those people are truly exceptional and not easy to find. What inning do you see…
How Trees Bend the Laws of Physics
Sometimes the simplest questions have the most amazing answers. Like how can trees be so tall? It’s a question that doesn’t even seem like it needs an answer. Trees just are tall. Some of them are over 100 meters. Why should there be a height limit? I’ll…
Inspiration Through Photography | National Geographic
These quests are a challenge for these photographers, but they’re also a way to help them frame their experience. All three of them bring something unique; I think that’s what’s so rewarding about these assignments. They were put to the test. People surro…
How To Influence Decision Makers
I’m proud to announce the YC 2024 fall batch applications are due by August 27th. We’re doing this because of overwhelming demand from Founders to start doing the batch immediately instead of waiting for winter ‘25. Our applications are now open. The batc…
Constructing exponential models: half life | Mathematics II | High School Math | Khan Academy
We’re told carbon 14 is an element which loses exactly half of its mass every 5,730 years. The mass of a sample of carbon 14 can be modeled by a function m which depends on its age t in years. We measure that the initial mass of a sample of carbon 14 is 7…
The Middle colonies | Period 2: 1607-1754 | AP US History | Khan Academy
Over the course of the 1600s, the English continued to settle along the eastern seaboard of North America. Now, we’ve already talked about the settlements at Virginia and those of Massachusetts, and a little bit about the settlement of New York, which was…