Ground Up Mobile Home Park Development with Jim Glasgow of Palace Way Management LLC

May 17, 2022

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Welcome back to the Passive Mobile Home Park Investing Podcast, hosted by Andrew Keel. On this episode of the Passive Mobile Home Park Investing Podcast, Andrew talks with Jim Glasgow of Palace Way Management. Jim and Andrew have a great discussion about various topics including: property zoning needs for manufactured housing, different housing types and the need for affordability, ground up development processes, budgeting within a ground up mobile home park development and also what backlogs and supply chain constraints there are in the current construction market and how this is effecting real estate.

Jim has over a decade of experience in real estate investing and syndication. He also has experience on the corporate side as an executive and business owner. His experience in real estate includes residential properties, mobile home park investing, commercial real estate properties, land, real estate development, and construction. He is a general partner at Palace Way Management and Palace Way Syndicates and is currently developing mobile home parks and industrial business parks in Texas.

***Andrew Keel and Keel Team Real Estate Investments (Keel Team, LLC) do not endorse any interviewee. This interview is for informational purposes only and should not be depended upon for investment purposes. ***

Andrew Keel is the owner of Keel Team, LLC, a Top 100 Owner of Manufactured Housing Communities with over 2,000 lots under management. His team currently manages over 30 manufactured housing communities across more than ten states. His expertise is in turning around under-managed manufactured housing communities by utilizing proven systems to maximize the occupancy while reducing operating costs. He specializes in bringing in homes to fill vacant lots, implementing utility bill back programs, and improving overall management and operating efficiencies, all of which significantly boost the asset value and net operating income of the communities.

Andrew has been featured on some of the Top Podcasts in the manufactured housing space, click here to listen to his most recent interviews: https://www.keelteam.com/podcast-links. In order to successfully implement his management strategy Andrew's team usually moves on location during the first several months of ownership. Find out more about Andrew's story at AndrewKeel.com.

Book a 1 on 1 consultation with Andrew Keel to discuss:

A deal review
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Click Here: https://intro.co/AndrewKeel

Talking Points:

00:21 - Welcome to the Passive Mobile Home Park Investing Podcast

01:40 - Jim's journey into real estate and an overview of his portfolio

07:41 - Jim's process to developing the numbers for his ground up development budget

10:10 - The types of housing Jim prefers on his mobile home park lots

14:22 - Market study and analysis

16:25 - Jim's partners

17:20 - The contract process

18:47 - Important advice for limited partners or passive investors in mobile home parks

21:23 - Zoning restrictions

26:23 - Getting a good rate of return

30:00 - The origin of Jim's startup money

32:30 - How long will the backlogs last

35:08 - Reaching out to Jim Glasgow

35:52 - Conclusion

Links & Mentions from This Episode:

Jim's email: edwardjim59@yahoo.com

Palace Way Management: https://palaceway.com/

Keel Team's official website: https://www.keelteam.com/

Andrew Keel's official website: https://www.andrewkeel.com/

Andrew Keel LinkedIn: https://www.linkedin.com/in/andrewkeel

Andrew Keel Facebook page: https://www.facebook.com/PassiveMHPinvestingPodcast

Andrew Keel Instagram page: https://www.instagram.com/passivemhpinvesting/

Twitter: @MHPinvestors

Quotes:

"[Larger deals and ground up developing mobile home parks] really need to be a hundred units or higher to make the numbers work, and 250-500 is the sweet spot for development and because of the cost of development." - Jim Glasgow

"The cost of the home, single wides are going to vary from installed with skirting tied down, with a storage room in the backyard, front porch, back porch, two car parking space and we're looking at about $60,000-$80,000 on a single and we're looking to from $70,000-$110,000 on a double." - Jim Glasgow

"It's rapidly becoming the in-thing to do and it's going to be happening all over the United States. Over the next five years, you're going to see a lot of new mobile home park developments." - Jim Glasgow

"When you're buying into a development, you're buying the wholesale. You're not paying retail." - Jim Glasgow