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I'm going to guess on the record before reading article: debt based financing of the sale, PE firm steadily increases rent and lowers investment into facilities
by kfarr 6y ago
I'm going to guess on the record before reading article: debt based financing of the sale, PE firm steadily increases rent and lowers investment into facilities, bankruptcy and evictions ensue
- quickthrowman 6y agoIt’s the standard PE playbook, and you’re correct. In this case, they wait for the tenant to default on the ground rent, then seize the mobile home and resell/re-rent it. Repeat ad infinitum. The manufactured home itself depreciates in value like a car or RV, so even if you don’t get fucked by your landlord, you get fucked on depreciation. At least in an apartment you don’t pay for maintenance or depreciation!
- throwaway0a5e 6y ago> then seize the mobile home and resell/re-rent it. Repeat ad infinitum. That's basically the Buy Here Pay Here(TM) car lot business model.
- jjoonathan 6y agoAnd remember, kids, this creates value, because the market weights value according to wealth.
- mywittyname 6y agoYou should read the article, it's very well done. I mean, yeah, family-owned trailer parks have been "under-utilized" for decades, and you're pretty spot on in what is involved in properly "utilizing" them. However, there's a human side to it as well. Plus, there's a plot twist where Republicans introduce bills in a state to enhance tenants' rights.