Free Mobile Home Park Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $750,000 for the acquisition of a mobile home park while showcasing the expected financials and operations over the next three years. The Mobile Home Park, Inc. (“the Company”) is a New York based corporation that will provide high quality mobile home living spaces to tenants in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
As stated above, the Company intends to launch its operations with the acquisition of an existing mobile home park. The expected rent roll for this 25 lot mobile home park is $340,000 per year, which includes rent fees, late fees, and other ancillary income including the facility’s onsite Laundromat. The Mobile Home Park will generate enough positive cash flow to cover both the interest and principal payments for the debt capital sought in this business plan. The third section of the business plan will further describe the services offered by the Mobile Home Park.
1.2 The Financing
Mr. Doe is seeking to raise $750,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
It is the goal of the Company to create a business that provides tenants with high quality and affordable mobile home living spaces while providing a steady stream of operating and passive investment income for Mr. Doe.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the real estate management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
Management intends to expand its property base through reinvestment and several additional financings. This additional capital will be used to acquire and manage several other mobile home parks and residential properties. Management sees a significant opportunity to develop and expand in this market as housing prices have become seriously depressed over the last two years to the point where Mr. Doe feels that properties can now be purchased for undervalued prices.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Mobile Home Park, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Mobile Home Park requires $750,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Mobile Home Park, Inc.
2.5 Exit Strategy
In the event that Mr. Doe wishes to sell the Mobile Home Park to a third party, he will contract a real estate brokerage firm to market the property to potential buyers. Based on historical sales prices of mobile home parks, Mr. Doe expects that the property will appreciate to have a value in excess of $850,000 by the third year of operations.
3.0 Products and Services
Below is a description of the revenue centers for the Mobile Home Park.
3.1 Rental of Mobile Homes
The primary source of revenue for the Mobile Home Park is the rental of the 25 units located on the property that Mr. Doe intends to acquire. Each of these units produces an approximately monthly income of $600 to $750 depending on the size of the mobile home. The Company will have an onsite manager that will be given a free of charge mobile home to live in and a $20,000 annual stipend. This onsite manager will oversee the general operations of the property, showcasing vacant mobile homes to potential tenants, and secure leasing agreements for people that want to rent the Mobile Home Park’s units. Mr. Doe will be in daily contact with this manager to ensure the proper operation of the property.
3.2 Ancillary Fees and Income
The Company will also generate secondary revenues from late fees on rent and income from the Company’s onsite coin operated laundry center. Aggregately these two income streams will provide Mobile Home Park, Inc. with approximately 10% of its revenues.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the mobile home park industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Delinquencies and defaults on sub-prime and Alt-A mortgages issued over the last five years have increased dramatically. As such, the result has been a substantial decrease in the value of real estate across the United States. The market has seen serious corrections in price. This trend is expected to continue through out 2008 as the credit markets and the real estate markets adjust to the new risk pricing. As real estate prices have decreased, the opportunities for people with cash to purchase properties have increased dramatically. Prices for real estate can only decrease but so much, and by acquiring properties now, Mobile Home Park, Inc. will realize a tremendous upside over the next three years as the housing market stabilizes.
4.2 Industry Analysis
In the United States, there are 19,000 companies that operate in a real estate investment capacity by sourcing funds from private investors/banks with the intent to engage in real estate related activities. Each year, these companies aggregately generate $22.8 billion dollars per year and provide jobs for more than 20,000 Americans. Payrolls for these employees have exceeded $1.3 billion dollars year during the last five years. Specifically among mobile home parks, aggregate rental and fee income in each of the last five years have exceeded $3 billion dollars.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Mobile Home Park, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Develop relationships with real estate agencies/brokerages that specialize in mobile home rentals.
• Established connections with lenders, banks, and investors.
5.2 Marketing Strategies
Management intends to use qualified real estate brokers and agents to assist placement of mobile home tenants for the Mobile Home Park property. Additionally, the Company will use print and media advertising to showcase the available units that the Company is offering. The internet has become a very popular platform for property sellers, real estate brokers, and real estate developers to showcase their developed (including mobile homes) properties to the general public. Management intends to use the full marketing capability of electronic advertising to generate sales among the Company’s mobile home units. The Company will use major internet real estate databases such as loopnet.com and the multiple listing services (MLS) to bring the Company’s yet to be rented units to the attention of prospective real estate agents.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Mobile Home Park, Inc. will have an annual revenue growth rate of 5% per year
• The Owner will acquire $750,000 of debt funds to develop the business.
• The loan will have a 30 year term with a 7% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are sensitive to changes in the general economy. As discussed in the fourth section of the business plan, the housing and real estate market are currently in distress. However, with real estate prices at undervalued prices, Mr. Doe feels that acquiring a mobile home park now will allow the business to reap substantial income and capital appreciation over the next five to ten years once the real estate market completes its correction
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis