1. The magazine
for and about
Mobile Home
Park Investing!
In this power packed issue, the Marcus & Millichap team tell-all about:
• Wrapping up 2014 with the skinny on 1031 Exchange closing and taxes
• Doing the math for the value of money over time
• How to get the best from yourself and others
• How COBA7 is making waves for Land-Lease-Lifestyle
• An MHP Mortgage Broker tells how lending really works today
• What’s hot in mobile home park ownership TODAY! AND MORE...
Vol. 1, No. 4 (Fall 2014)
THE MOBILE HOME PARK OWNERS & INVESTORS MAGAZINE
2014 SPECIAL REPORT FINALE: AN MQ BRIEF ON 1031 EXCHANGE CLOSING & TAXES!
Tax Deferral Worksheet
Inspiring the Best in Others
Determining Your Future Worth
What NOI Means to Lenders
SAFE Strangles Lease-Options
Hiring: Employee or Contractor?
MQ INVESTOR PROFILE:
Commander in Chief of Land-
Lease-Lifestyle Intelligence &
Founder of COBA7®
Courtesy of Team Mobile
525 North Tryon Street
Suite 1600
Charlotte, NC 28202
PLUS: WHAT AN MHP MORTGAGE BROKER WANTS YOU TO KNOW
With Gratitude,
We Celebrate
1Year!
Thank You!
MQ

2. We couldn’t have done it without you, dear
readers! Thank you for seeing us through our first
year of publication of Mobile Quarterly, which we
commence with this issue. And how fitting that the
timing coincide with Thanksgiving? Your loyalty,
readership, and contributions have made this a great
first year for content and creation. For many this is
a favorite time of year. Fall festivals abound, there
is a crispness in the air regardless of where you
live, and that magical feeling starts to come over
everyone as we begin the official holiday season.
It’s even cold in San Antonio!
This issue, our celebratory one year in No-
vember, is jam packed with the most information
we have ever sourced and written about. We have
two interviews with professionals focused on dif-
ferent aspects of the MHP industry, our investor
profile will not only be inspirational but has real
value-added information for the future of land-lease
-lifestyle, we’re starting a two-part interview with a
MHP mortgage broker, we are finalizing our year-
long 1031 Exchange Special Report, I’ll be writing
a multi-part examination on motivation and perfor-
mance so you can get the best from your people in
2015, Curt and Stephanie have answered two perti-
nent issues on readers minds, and our returning
guest columnist writes about a legal topic every
MHP owner/operator needs to consider. It’s a lot
of great stuff to kick off your holiday season and
get you ready for a new year with new and continu-
ing goals for your investments.
Team Mobile thanks you for a fantastic
first year! We can’t wait to bring you the best con-
tent in Mobile Quarterly Vol. 2 coming next!
- Blythe H. Chambers, M.S.
Editor, Mobile Quarterly.
The Marcus & Millichap Team:
Curt Baker
A pioneer during the nationwide eco-
nomic and real estate crash of 2008 at a time
when lenders were unprepared to handle rec-
ord-setting numbers of “short-sales”, Stephanie
McAnuff made a name for herself in the area of
residential distressed debt workouts and nego-
tiation as a Certified Short Sale Specialist. Her
unique experience and expertise led her to be-
coming an Associate with Marcus & Millichap
and partnering with Curt Baker to form Team
Mobile with an emphasis on mobile and
manufactured housing communities.
A New York native with Carolina roots,
Stephanie relocated to North Carolina in 2000.
While Stephanie’s primary focus is the South-
east, her territory spans nationwide, and her ex-
pertise is understanding the unique requirements of the sale and marketing of
manufactured home communities. With her alignment with many professionals
in the industry she is considered a “one-stop shop” when it comes to selecting
contractors, used mobile homes, movers, and park management. She is a
member of Toastmasters International, The North Carolina Manufactured
Housing Association, and the North Carolina Board of Realtors.
In her free time, Stephanie enjoys athletics, cooking and reading, but
her heart is committed to giving back to the community and volunteering.
Stephanie McAnuff can be reached at :
Stephanie.McAnuff@marcusmillichap.com
(704) 831-4600 ext. 4628
With over 30 years of sales experience,
including 9 years as a mobile home park broker
and investor, Curt’s extensive knowledge and
expertise is at the helm of Team Mobile for Mar-
cus & Millichap’s North Carolina office. Curt
also owns a portfolio of mobile home rentals in
South Carolina and, therefore, understands first-
hand how parks operate, best practices on man-
agement, and how to successfully work with
park residents. As an industry veteran, Curt also
enjoys many longstanding relationships with
lenders in the southern region.
Curt is originally from Albuquerque, New
Mexico but is a graduate of Georgia State Uni-
versity with a B.A. in Business and a minor in
Language with fluency in Spanish. After graduat-
ing he lived and worked in Mexico as an international sales consultant. Curt is
also a member of Toastmasters International, The North Carolina Manufac-
tured Housing Association, and The North Carolina Board of Realtors.
In his free time, Curt is also an entrepreneur who owns a local surf-
shop and catching some waves at the beach is where you can find him when
he’s not making mobile home park deals for Marcus & Millichap clients.
Curt Baker can be reached at:
Curtis.Baker@marcusmillichap.com
(704) 831-4600 ext. 4631
Stephanie McAnuff
Editor’s Desk

3. Marcus & Millichap presents our listings for...
In This Issue:
Interested in making your property one of MQ’s Featured Properties? Call Curt or Stephanie for more information.
Ask Curt………...……………………………...
1031Closing & Taxes Quick Guide….....
1031 Tax Deferral Worksheet…….......
The Power of Representation..…..……...
Dear Stephanie……………………………...
Doing the Math: Net Present Value…...
MQ Investor Profile………………………….
Psychology: Getting The Best...………..
Hiring: Employee or Contractor?........
OUR COVER PHOTO
A parody of Normal Rockwell’s “Freedom From Want”
Sourced from the internet. Artist unknown.
Dear Curt,
I’ve been in the MHP business as a small owner-operator for about a decade, and
something that has never quite made sense to me is when calculating how much a
park is worth, why do investors and lenders not want to count the rental income
from park owned homes in the net operating income? It is an actual cash income,
so I would think that it has some value in the calculation and ultimate value of a
park.
- Perplexed in Pasquotank
Dear Perplexed,
It seems like it would be, I know. But there is good rationale behind what otherwise
seems illogical. That rationale is: lenders are hesitant to use the income from park
owned homes because it, in effect, collateralizes the used mobile homes, and over
time skews the actual value of the homes. The ground lease (think “Land-Lease-
Lifestyle” as George Allen, our Investor Profile this quarter calls it) is actually the
“true” income for the park, with the current street value of the homes if sold for cash
being added in. Financing a park while including this income, in essence, makes a
1995 metal/metal 3/2 Oakwood look like it’s worth $30,000, which we all know is
not the case! Mobile homes are like used cars, and rarely experience apprecia-
tion. The difference between a mobile home and a used car, in this example, and the
magic of a mobile home is that it can bring in $200-$300 per month for years, be sold
for quick cash to an investor, or just as easily sit empty and generate nothing if not
managed properly. The key is to find lenders who will admit a percentage of this
income in their underwriting. This is why when we do our underwriting we always
separate the difference between the lot rent and park owned home income – but show
it as “other income” in our analysis.
Get the difference for yourself!
Call or e-mail Curt today at:
(704) 831-4600 x4631
Curt.Baker@marcusmillichap.com
Ask Curt...Ask Curt...Ask Curt...Ask Curt...….p. 2
….p. 3
….p. 4
….p. 4
….p. 5
….p. 5
….p. 6
….p. 6
….p. 7
Located in a high-demand area for mobile homes, Rosewood Mobile
Home Park is a 125 space community with paved roads built in
1970 boasting 26 park-owned homes, and greater than 90% occupan-
cy—the highest in the area due to the park’s below average rents and
convenient location. The current NOI is $123,454 with a gross potential
rent of $231,000. Current cap rate is 10.29%.
Lumberton, North Carolina, the largest city in Robeson County, is a
well-established commercial hub for the southeastern part of the state.
This is a highly attractive area for expanding and relocating companies
for infrastructure, easy access to I-95 and the midway point between
New York and Florida, labor, services, and support from officials in all
13 municipalities of North Carolina. A major expansion is underway at
nearby Ft. Bragg & defense-related business is booming in the region.
Current total ROI is 23.3%. The property is being offered for $1,200,000.
Please contact CURT BAKER (NC Lic. No. 275726)
Curtis.Baker@marcusmillichap.com or (704) 831-4600 ext. 4631
The mobile home community of Mountain View Estates in Rutherfordton,
North Carolina is a 29 space, 100% park-owned, mobile home park built in
1979 nestled atop the ridges of the Blue Ridge Mountains enjoying the year-
round mild temperatures of the isothermal belt giving outstanding beauty and
views during all four seasons. All homes have recently been renovated, only
two are vacant, and all homes are individually metered. The current NOI is
$63,548 with a current gross potential rent of $122,460. Cap rate is 11%.
Rutherfordton is a town within Rutherford County, North Carolina. Downtown
Rutherfordton is listed on the National Register of Historic Places. Major em-
ployers in the area Carolina Community Care, Regtrol Division, Broyhill Furni-
ture, and WalMart.
Mountain View Estates is being offered on the basis of its current income with
a listing price of $577,500.
Please contact STEPHANIE MCANUFF (NC Lic. 270402; GA Lic. 358467)
Stephanie.McAnuff@marcusmillichap.com or (704) 831-4600 ext. 4628
Rosewood Mountain View Estates

4. Our exclusive 2014 Guide to Your Next 1031 Exchange will take you step-by-step to reap the rewards in time!
he finish line is just around the corner: your team has successfully conquered the deadlines, found the per-
fect replacement property(s) and the clock is ticking down the final weeks and days! What’s left? Closing and taxes.
With these two critical topics we draw our 2014 Special Report on the 1031 Exchange to a close. While you should
consult with your attorney and your tax advisor/accountant on these topics in depth, we are pleased to present you
with a very brief overview from information provided by 1031 Exchange experts and intermediary, IPX 1031, to get
you started by identifying the main issue and very briefly guiding you to code and statutes on main topics.
It may be surprising to discover that there is very little in the IRS code or Treasury Regulations about how to
treat the wide variety of expenses and closing costs associated with a 1031 Exchange. Utilizing the general rule that
the Exchanger must transfer all equity in the Relinquished Property to the Replacement Property the main issue then
becomes: whether the payment of typical sale and purchase settlement expenses out of the Relinquished Property
sale proceeds (exchange funds) will result in “taxable boot” to the exchanger. While we conclude our four-
part special report here, your work isn’t done yet! Be sure to consult with your attorney and accountant on the follow-
ing, and best wishes to all who undertook the unique challenges and rewards of a 1031 Exchange in 2014!
Treas. Reg. §1.1031(k)-1(g)(7): Payment of transactional items in a P/S typically appearing on closing state-
ments as responsibility of buyer or seller, such as broker commissions, prorated property taxes, recording fees,
transfer taxes and title company fees, may be paid from exchange funds and will not be construed as constructive
receipt of funds by the Exchanger.
Revenue Ruling 72-456: Transactional costs, specifically broker commissions paid are offset against cash
received in computing gain, and are added to the basis of the Replacement Property. Brokers commissions paid on
Relinquished Property reduce gain and offset boot, but if paid on Replacement Property they increase the basis of
the Replacement Property (as do intermediary fees). Loan fees, points, prorated mortgage insurance, loan appraisal
fees and other lender-mandated inspections not under the P/S contract are considered costs of obtaining a new loan
and may create taxable boot because they are seen as expenditures for benefits.
TAM 8328011: Prorated property taxes, insurance payments, rents and security deposits are considered
outside the exchange should not interfere with safe harbor. Exchanger may credit prorated tax payments or security
deposits to the buyer of the Relinquished Property as the equivalent of non-recourse debt. This payment can be
netted against liabilities assumed on the Relinquished Property.
Treas. Reg. §1.1031(k)-1(g)(6): Using exchange proceeds for expenses unrelated to the P/S of the exchange
properties can not only result in taxable boot but can cause the exchange to fail entirely as a violation. Exchange
funds should not be used to pay off any debt, credit line, or credit card that is not secured by the Relinquished Prop-
erty unless solid documentation exists showing how this debt did service the Relinquished Property.
By: Blythe Chambers
Q4 THEME
Making it to the finish line without any glitches in closing or surprises in tax deferral estimates.
Q4 FOCUS
Going into closing and possession fully aware of the regulations and codes that govern the vague
area of closing costs and taxes associated with a 1031 Exchange.
A BRIEF ON CLOSING & TAXES FOR THE
1031 EXCHANGE
“The Closing” by Jimmy Dyer, from the website of Wilson Law Firm: attorneys specializing in closings & 1031 Exchanges

5. 10 KEY 1031 RULES OF PLAY*
1. A 1031 is only for investment and business property.
2. Partnership interests in a business don’t qualify, but interests as
a tenant in common (TIC) in real estate do.
3. The IRS term “like-kind” doesn’t mean what you think it means.
You can exchange an apartment building for a ranch, or a mobile
home park for a strip-mall, etc., but there are traps so beware!
4. It’s hard to find someone with the property you want who also
wants to swap with you, so most exchanges are delayed
“Starker” exchanges between three parties and a middleman
who holds the cash in escrow for you and makes the “purchase”
for you. Remember: touch the cash and you kill the exchange!
5. Timing Rule 1: A replacement property must be designated in
writing to the middleman within 45 days of the “sale” of your
property. The IRS says you can designate up to three as long as
you eventually close on one of them (ie. exchange one for two or
three!)
6. The 200% Rule: But...you can designate more than three re-
placement properties (actually, unlimited) as long as the com-
bined fair market value does not exceed 200% of the fair market
value of the property you want to exchange. Conversely, you can
leverage your property for a more expensive property using the
same 200% rule.
7. Timing Rule 2: You must close within 6 months (180 days) of the
close of the sale of the old property.
8. “Boot”, or left-over cash after the acquisition of the replacement
property, will be taxed (likely as a capital gain.)
9. Don’t forget about mortgages and other debt on your property
and the replacement property. If no cash boot came back but
the liability decreases, that will be treated as income and it will be
taxed!
10. If your mobile home park is also your primary residence or any
residence of yours, it may get tricky with the IRS safe harbor
rule.
Much of the information for our 2014 Special Report was provided by
the 1031 exchange experts and qualified intermediary
Investment Property Exchange Services, Inc., (“IPX1031®
”),
with offices nationwide. For more information visit:
www.ipx1031.com
The Power of Representation...
Presents a special two-part Q&A with a
Pierce Redmond
Security Mortgage Group LLC
Based in Rochester, NY
Servicing the U.S.
www.securitymortgagegroup.net
Pierce Redmond has been in the MHP mortgage brokering busi-
ness for over 10 years. In this Part I Q&A we get to know Pierce
better, earn more about lender desires, and criteria for MHP’s.
MQ: Pierce, you graduated with an MBA from the Rochester Institute of
Technology and have been working at Security Mortgage Group since as a
mortgage broker with a focus on MHP’s. Why did you get into the MHP mort-
gage broker biz?
PR: I was fortunate to work with two businessmen, the founders of Secu-
rity Mortgage Group, who I look to as mentors and the rest is history!
MQ: So, you’ve seen MHP mortgage brokering through huge fluctuations
in the economy during those years.
PR: Yes, when the market tanked lenders were very conservative, but as
things improve they are becoming more aggressive. I would say “safe but ag-
gressive.” For instance, what we are seeing now is max LTV is at 75% and
lenders know a lot of people were dinged credit wise and are recovering, so
minimum credit score most lenders look for is 680 but they tend to want net
worth to be at least equal to the loan amount.
MQ: Are the lenders you work with open to new investors then?
PR: Yes, of course experienced investors with a track record make for an
easier deal but as long as the criteria have been there we have brokered quite a
few first MHP investments.
MQ: Let’s talk more about criteria. Can you give me a starting point?
PR: First, the minimum loan we broker is $500K. Lenders now tend to
consider these as “non-flexible’s”: paved roads, occupancy, utilities, park-
owned homes, and location. Aside from paved roads, which is either yes or no
because that is a “quality-issue” with lenders, and desiring less than 20% park-
owned homes, there are no hard-and-fast rules but rather lenders look at the
combination of these factors.
MQ: W hy is having over 20% park-owned homes undesirable and why do
lenders not count these towards total income of the park?
PR: It comes down to “is this a reliable income for the park?” In other
words, homes can be easily moved or converted to tenant-owned, so park-
owned home income is considered to be unreliable.
MQ: W hat are you seeing as today’s typical loan terms on an MHP loan?
PR: For loans above $1,500,000 we can typically do a 10 year term, 75%
LTV, 30 year amortization, non-recourse. For deals under $1,500,000 we can
usually do a 5-7 year deal, 25 year amortization, 70% LTV, and recourse.
Look in our Winter issue for a continuation of this Q&A including
trends and what Pierce wants you to know for your next deal!
* Information in this article is intended as an introduction to Tax Deferred 1031 Exchanges, not a substitute for legal and financial
advice and is not considered such advice.
ESTIMATING THE 1031 EXCHANGE TAX DEFERRAL
ON THE SALE OF INVESTMENT PROPERTY:

6. By: Blythe Chambers
Math WorkoutMath WorkoutMath WorkoutMath Workout
* Figures presented in this article are not actual and all content is used for basic and introductory demonstration purposes only.
Net Present Value =Net Present Value =Net Present Value =Net Present Value =
Follow along each quarter as we take you step by step
through the 101’s of a critical math equation in your
property financial analysis….
PVPVPVPV ———— InvestmentInvestmentInvestmentInvestment
Example: You’ve been sent an offering memorandum on a
small MHP that is peaking your interest. Expenses look good,
you can add value, and the locaƟon is great. But is the ROI
going to make the threshold for the investment over the
next 5 years? (NPV is typically calculated using a financial
calculator or a spreadsheet. Please see spreadsheet below.)
IniƟal Investment/Asking: $200,000
Annual Discount Rate: 12%
Current Cash Flow: $13,273
Step 1: Calculate Future Value for each year in the analysis
based on the current year cash flow of $13,273 and add your
assumed 12% inflaƟon (discount) rate. See (a) below.
Step 2: Calculate the present value of each year’s future
cash flow projecƟon, separately. See (b) below. The present
value of Future Year 1 cash flow is $11,468. (See Figure 2)
Step 3: Add all the present value cash flows together and
subtract the amount you would invest, in this case $200,000,
to get the Net Present Value. See (c) below. Table 2 shows
that NPV for this property is $15,128, which is greater than
the present cash flow of $13,273 and clears the hurdle for
the threshold to make the investment.
Result: The NPV is greater than the current cash flow and
therefore is projected to generate wealth above your capi-
tal! This would be a winning investment based on NPV.
hen it comes to valuing and evaluating the pro-
fitability of a property, perhaps the most im-
portant tool in your financial tool kit is Net Present Value
(NPV). Money has a time value which is a dollar earned
in the future is not as valuable as one earned today. For
instance, the mobile home park you purchased for $90k
in 1970 is listed today for $1.5M. NPV aims to answer
how much of that difference is profit value and how much
is due to time value (interest, inflation, and risk). Another
way of thinking of this is the classic business school
question: Would you rather have $100,000 today or
$1,000 a month for the rest of your life? NPV can show
precisely which is the better choice given (a) knowing
how long you will live (or how long you will hold the prop-
erty), and (b) the rate of interest you would earn if you
took the lump sum (or valuing of a stream of the proper-
ty’s future cash flows into one lump sum today.)
Defined: Net Present Value is the value of a stream of
future payments as one lump sum in today’s money by
measuring the effects of time and interest.
Key 1: When you think NPV, think investment
threshold when:
• Analyzing your current asset to determine the value
of the offer you would likely receive if you put it on
the market.
• Analyzing a potential acquisition to determine if the
seller has over-valued, under-valued, or fairly val-
ued the property’s list price & your potential for
wealth generation above capital investment.
Key 2: When calculating NPV, first you need the fol-
lowing basic ingredients:
• Your initial investment paid for the property
• The Present Value of a future sum of cash flows
• The annual Interest or Discount Rate
• The Future Value of the property’s cash flows
Key 3: Is the NPV meeting the cash flow (CF) thresh-
old or better?
• NPV < Current CF: Poor ROI (not wealth building)
• NPV = Current CF: Threshold (wealth building)
• NPV > Current CF: Positive ROI (wealth building)
Dear Stephanie,
I love to do lease-options on my park for
park-owned homes. It has been a win-win for me
and my tenants, many of whom would not be able
to own a home otherwise. It is profitable and helps
people realize a dream of home ownership. But,
with the SAFE Act legislation that was recently
passed is this going to kill the lease-option for
MHP owners and operators?
- Lease-Option Lois in LaFrance, SC
Hi Lease-Option Lois,
I understand your concerns. Doing a lease-option to
purchase has very attractive attributes for all parties:
asset, term, monthly payment, plus maintenance,
taxes, and insurance handled by the tenant-owner.
With an initial payment on an option price which is
typically Fair Market Value at the time of purchase, and
includes a credit for the option payment, it provides a
great opportunity for home ownership. But to recap for
all our readers, a lease-option to purchase is not to be
confused with the following: rent to own where you buy
upon receipt of the last payment, lease purchase with
an obligation to buy, security deposit with an interest
rate shown on an amortization schedule and used
along with a promissory note. Now, in days past, an
owner/operator could enter into a lease-option to pur-
chase, also known as “seller financing”, which consti-
tuted a mortgage/credit transaction and they retained
the title to the home by putting in place a promissory
note with an interest rate, term and an amortization
schedule. However, per your concern, today SAFE Act
legislation does not allow for this type of transaction
unless the owner/operator holds a SAFE Act li-
cense, which requires a lot of time and red tape, and
varies from state to state. Now why would this be im-
portant? To protect the consumer from unscrupulous
sellers acting on the desperation of others, not honest
MHP operators like yourself. A possible alternative to
originating a mortgage would be to rent the homes with
financing using a consumer/resident lease-option con-
tract. The characteristics of this type of transaction
would be to lease the home for a specified term with a
monthly payment which would include maintenance,
taxes, insurance, etc. The Option payment and/or
initial payment would be credited to the fair market
value of the home. How can I finance the balance of
the option price without originating a mortgage? Anoth-
er alternative used by owners/operators is to relinquish
title for unsecured promissory note when resident
exercises option to purchase after the resident has
proven themselves with years of good payment history,
relocation is unlikely and a promissory note helps
avoid SAFE Act licensing. In addition, the owners/
operators that have implemented the unsecured prom-
issory note have made it a practice to sit down with the
resident and to go over their ability to repay by going
over their debt-to-income ratio.
Send your questions for Stephanie to:
Stephanie.McAnuff@marcusmillichap.com
Dear Stephanie...Dear Stephanie...Dear Stephanie...Dear Stephanie...
The Quoted Corner:
“Strong reasons
make strong actions.”
- William Shakespeare
(a)
(b)
Note: NPV is most often calculated using a financial calcu-
lator and/or a spreadsheet. But this will show how it works.
Step 1: The future value of
the present cash flow is
calculated for each future
year in the analysis using the
discount rate chosen.
Step 2: The present value
of the cash from for each
year’s future value is calculat-
ed to see the value of future
dollars in terms of today’s
dollar.
Step 3: Sum all the calcu-
lated present values and
subtract the amount of your
investment to get the net
present value.
After the amount of your investment is subtracted from the sum of the present
values you can see where the NPV lies in terms of the threshold for making the
investment, which is the current cash flow. If the NPV meets or exceeds the
threshold then this is an investment that should generate wealth for you above
your capital and will be profitable. If it falls below the threshold, walk away.
(c)
Figure 1
Figure 2
In our next episode of Doing The Math we will examine how Net Present Value also forms the basis for other critical
financial calculations in your tool box, specifically Internal Rate of Return (IRR).

7. MQ Investor Profiles: George Allen
Founder & President of GFA Management, Inc & COBA7®
Leading MHP Industry Author and Creator of The Allen Report
MQ: Your dream wasn’t to be an MHP investor or “Land Lease Lifestyle” expert
but an initially disappointing but serendipitous opportunity led to a long career in
the mobile home park industry, and is now your passion. How did it all begin?
GA: I didn’t have a “dream job” growing up; I simply wanted the toughest chal-
lenge in the world. Being a pastor, what I went to college for, was a challenge
but even more tough was the opportunity to lead the Marines as an officer into
battle in Vietnam in 1967. However, with a wife and baby daughter to care for at
the time I toned it down a bit and joined as a Combat Engineer. After Vietnam I
retired as an LTC and was given an opportunity in the factory-built
housing business in Pennsylvania. The owner soon asked me to
start a plant in Indiana. It went bust during Arab oil crisis in mid-
1970s, so I worked for another home manufacturer, and segued
into property management, first with conventional apartments. In
1978 the brothers I worked for presented me with an opportunity
to turn around four problem-children “trailer parks.” I wasn’t happy
about it! I’d just been promoted to V.P. and had a different idea
about what I wanted. The MHP industry had no sophistication at
that time. But, I did it and I got them all in the black in two years
time. Turns out I had a knack for it. My wife, Carolyn, & I knew we
could do this ourselves and we started GFA Management, Inc., in
1980, and we, as she says, “Managed anything that didn't move!”
MQ: Tell me about your first MHP acquisition.
GA: We got a foreclosure carrying 500 rental home sites with only 100 occupied.
Paid $400,000 cash, moved in another 100 homes in two years, and sold it. I
actually didn't want to sell it but the buyer was passionate and paid what it'd
have been worth at 100% occupancy at the going rental rate at the time for
$2,500,000.00 cash. It was an offer I couldn’t refuse.
MQ: What’s your portfolio look like now? Any new deals on the table?
GA: I sold everything and focus solely on writing MHP investing textbooks, busi-
ness books, Allen Letter & Allen Confidential, and have recently rolled out CO-
BA7®
. I don’t invest anymore or plan to. But, I do own one “Land-Lease-Lifestyle”
community over in central Illinois that’s a “cash cow” and keeps me fresh.
MQ: You refer to MHP’s as “Land-Lease-Lifestyle” or “LLLCommunities.” Is
there a difference?
GA: Land-lease-lifestyle, a.k.a. manufactured home, is a term that describes
more accurately what this asset class is about: a specific kind of lifestyle for
customers of the asset where the investment is in the lease of the land beneath
their homes (or park-owned homes) as the core-business.
MQ: You’ve worked hard to spearhead the movement to ensure LLL investors
have the support they need by founding the association COBA7®
.
GA: 2014 was a very special year in our industry with the launch
of COBA7®
, which is short for Community Owners (7 Part) Busi-
ness Alliance®
. It is an informal alliance of businessmen and wom-
en with common interest in all aspects of manufactured housing
and the LLLCommunity real estate asset class. A huge part of the
alliance is ongoing and accurate statistical research and data for
our industry, professional publications, networking, deal-making,
professional education and certification via MHM®
, and perhaps
most importantly national advocacy as a true ombudsman for
LLLC owners. Our website is www.community-investor.com.
MQ: Surely you’ve had your own influences and inspirations.
Which people and books have been inspirations to you?
GA: They vary depending on my frame of reference at the time,
but USMC General Chesty Puller, Ken Boa in Atlanta, Karl Marlantes and his
book Matterhorn, and my all-time favorite book Education of a Wandering Man
by Louis L’Amour.
MQ: We may have to continue this interview in another issue because there is
so much I know our readers would like to know, but in closing, any parting words
of Allen-Wisdom on LLL investing, ownership and management?
GA: One—the first one who mentions the amount of money loses! Two—the
best managers, in my opinion, are often retired couples in a stable marriage with
another source of income or a young couple, just married, with a child. They will
work hard to prove to the world they can “make it happen”, for awhile anyway.
By: Blythe Chambers
ike the United States Marine Corps, George doesn’t do anything half-way. No, George does it 150%. And he always has, no matter what his
focus is at the time, and his focus is always on the opportunity to make a difference, going where the opportunity takes him, and taking leader-
ship by the reigns. From a successful career as a Marine Corps officer through the Vietnam War and retirement as a Lieutenant Colonel to turn-
ing failing multifamily properties around to Founding GFA Management with an unofficial motto of “We manage anything that didn’t move” to
becoming the leading author in the mobile home park industry to writing The Allen Report and most recently to the creation of COBA7®
, George
has become a recognized force and authority in the mobile home park, or Land Lease Lifestyle, investors’ community. George gathers no moss!
am about to save someone a lot of money. I am about to anger
some gurus. I am about to espouse truth based on both experiential
knowledge and rigorously tested scientific theory. Are you ready? The people
who benefit most from motivational seminars are not you. Really. You got a
buzz, an endorphin high, a fix; meanwhile, your dealer, I mean motivator,
got a nice paycheck! Not so long ago I was invited to watch a motivational
speaker and “mentor” promising wealth, happiness, cars, and lasting
success by following expensive programs (available at the back of the
room) challenge an audience to go beyond their limits and take a wood-
en arrow with a metal tip and drive it straight into their chests. He set
the audience up with a very scripted and well acted performance with
two assistants. He made himself look like a He-Man when he seem-
ingly got the courage after two “failed” attempts and drove his body
straight into the arrow, splitting the wood of the arrow into shards.
The audience gasped. Then, he gave everybody arrows. Audi-
ence members were whispering things like “hell no” to each
other. We partnered up and broke into small groups who
cheered us on and I happily went first, and since it was made
of what may have been balsa wood (they weren’t going to
tell us that) it felt like nothing. My partner, on the other hand,
actually had a panic attack and started hyperventilating
and crying, pleading, saying she was “scared to die.” The
group peer-pressured her. The “mentor” started scream-
ing at the fearful from on-stage, ripping his shirt off and
shoving multiple arrows into his bare chest, insulting
people with accusations that if they can’t do this then
they aren’t worthy of the gift of being here and he is
here for them! Trained social scientist that I am, this
was truly fascinating to witness, but fear crippled
my partner in a very real, and sad, way. Her ability to think and act rationally
had been completely overwritten by fear. I leaned into her ear and shouted
above the crowd: “Do you really think this company is going to risk litigation
for death or injury by you or their insurance company if this wasn’t just an
illusion?” She broke the arrow. Motivational seminars do work on some-
thing, but not on motivation. I’m not speaking of educational seminars
where you actually learn something of value and walk away motivated to
take action because of the potential your new knowledge, like investing
in mobile home parks by experts in the field, or learning NLP, for in-
stance. That is tangible information without emotional puppet strings.
Businesses send their sales force and their managers to motivational
seminars despite knowing the effects are short-lived and still expect
great performance in return. It doesn’t last for two main reasons:
(1) after the endorphins fade the sabotaging twins of fear and
insecurity rear their ugly heads again because they are deep
seated in the sub-conscious, and (2) something within the or-
ganization is chronically mal-conducive to satisfying the indi-
vidual’s core belief that the work they do will result in progres-
sively better intrinsic and extrinsic satisfaction in their life.
Business is tough, energy ebbs and flows, and who doesn’t
need a kick in the pants or a pep-talk every now and then?
We all do. Anyone who has coached a team or raised a
child knows this. Freud and Jung maintain we are never
far from who we were as children. There is a better
way to get the best out of people and it begins with
beliefs. As a MHP owner, it’s probably going to apply
to your manager. I’ll get to that next time with the
science of motivation and why I left out passion.
■ IT’S TIME TO GET REAL ■
By: Blythe Chambers, M.S. Applied I/O Psychology
MQ Investing Psychology: Getting The Best From Yourself & Others

8. Senior Broker,
Marcus & Millichap
Tampa, Florida
Thank you to our sponsors!
If you would like to advertise
with us, please call Curt Baker at
(704) 831-4600 ext. 4631 or
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AAAA
any park owners ask me wheth-
er they should set up their park manager
as an employee or as an independent
contractor (a “contractor”). The latter is
the easiest choice as it requires less work
on management’s part, no tax withhold-
ing and no workers compensation insur-
ance. Bingo! Sounds like a good choice.
But, which is the choice that is in compliance with the tax
law, the Fair Labor Standards Act and your state’s wage
laws? I’m going to focus on the legal side.
First, decide whether the park manager is an employ-
ee or a contractor? The courts consider the following
factors, among others:
• The degree of control exercised by the alleged
employer – the more the employer dictates what the
park manager does and when they do it, the more
likely they are an employee;
• The extent of the relative investments of the park
manager and the alleged employer – does the em-
ployer provides the tools of work, the workplace,
etc? If so, such is evidence that the park manager is an
employee;
• The degree to which the park manager’s oppor-
tunity for profit or loss is determined by the alleged
employer – the more the park manager can affect
their compensation, the more likely they are a con-
tractor. Or if the park manager only works for the
one employer, that’s evidence they are an employee;
• The skill and initiative required in performing the
job – the more the park manager is allowed to act
independently to manage the property and use their
own property management skills, the more likely they
are a contractor; and
• The permanency of the relationship – short dura-
tion working relationships are easier classified as
contractors.
Other factors such as what any written agreements be-
tween the parties say, and how they are paid now are also
considered, but less so than the economic reality of the
relationship. If the decision is borderline, the safe call for
management is to pay the worker as an employee. This
decision will likely keep management out of court over
workers compensation benefits and wage law violations
claims such as claims for overtime pay owed.
Second, if the park manager is an employee, can
management pay them a salary (exempt status) or do you
have to pay them hourly (non-exempt status)? Workers
labeled as “Administrators” or “Professionals” via either
educational training or work history qualify for exempt
status and thus can be paid a salary. Many park managers fit
that definition. However, for an employee to be salaried,
they must earn at least $455/week in compensation.
Thankfully, the “fluctuating work week” rule allows a non-
exempt employee to be paid a set amount regardless of
how many hours they work in a week. If this is the case for
your business, put it in a written contract.
An attorney who defends wage related lawsuits
recently told me he didn’t think there was such a thing as an
independent contractor anymore. This was said partly in
jest, but his message that wage related lawsuits are hard to
defend is real. This article serves as a basic overview of
federal employment and wage laws. It’s always best to
check with your CPA, lawyer, or Human Relations expert
for the best answers for you in the state where you oper-
ate.
Kurt D. Kelley, J.D.
President, Mobile Insurance
Kurt@MobileAgency.com
WHICH SHOULD YOUR MHP MANAGER BE? By Kurt Kelley, J.D.
MQ’s
Photo of the Quarter:
An ingenious space
expansion with a view in
Craven Co., NC