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
Analyzing Billions of Transactions to Understand Consumer Behavior - Michael Babineau and Kevin Hale
Mike: Kevin was a group partner when you did YC in the summer 2015 batch. What idea did you apply with? Kevin: Our basic idea at the time was really to use credit card data to help investors make better investment decisions. I think one thing that is act…
National Geographic Takes on New York Fashion Week | Fit for a Queen | NYFW
[Applause] Queens is a project about female leadership, not only in front of the camera but behind the camera, telling a story about nature in a new way. And there couldn’t be a better time in history right now to be getting that message across. The titl…
Ask me anything with Sal Khan: April 21 | Homeroom with Sal
Hi everyone, Sal here from Khan Academy. Welcome to our daily homeroom livestream! For those of you who don’t know what this is or what Khan Academy is, Khan Academy is a not-for-profit with a mission of providing a free, world-class education for anyone,…
The West Indies and the Southern colonies | AP US History | Khan Academy
[Instructor] When we think of British colonies in the Americas before 1776, we tend to think of the 13 colonies. Those colonies that were located along the eastern seaboard of North America and which rebelled as a group in the American Revolution. But if …
Sardine Feeding Frenzy | 50 Shades of Sharks
NARRATOR: What’s more thrilling than a shark? A mob of them. Sharks might have invented crowdsourcing. Every year between May and July, billions of migrating sardines come to spawn off the coast of South Africa, catering one of the largest feeding frenzie…
Michael Reeves Just Ruined Investing
Hey guys, so we gotta have a serious talk. Just recently, Michael Reeves made a complete mockery of the entire finance community by using a stock-picking goldfish to beat the market, and it worked! Somehow, the guy who builds beer-peeing robots was able …