Based in Southern California, Kort & Scott Financial Group, LLC is an owner and operator of manufactured housing communities. Since 1989, the company has acquired over 9,500 mobile home spaces and has developed a reputation for creating exceptional value in its projects.
America’s most aggressive NON-REIT buyer of manufactured home communities, the company is known for its innate ability to close transactions quickly and smoothly.
Platinum Acquisitions owns almost 10,000 mobile home spaces and apartment units spread throughout the West Coast, valued at well over $1 billion. We very rarely sell any of our assets and are always in a position to buy, regardless of if we are in an exchange or not.
The company specializes in the acquisition and management of multi-family properties, specifically mobile home parks, which offer affordable housing alternatives in desirable markets. We are arguably the most aggressive buyers in the industry and will pay aggressively for desirable assets. We have the financial strength and flexibility to make virtually any sensical deal work.
PlatinumAcquisitionsLLC.com (Kort & Scott Company Founded 2016)
Acquisition Criteria: Purchase mobile home parks in U.S. metropolitan areas with a population of at least 200,000 people, preferably within a one hour drive from a major airport. Avoid purchasing mobile home parks in cities where Mobile Home Park Space Rent Stabilization Ordinances (RSOs) are in force.
Note: As of 2015 KSFG no longer avoid cities with Rent Stabilization Ordinances (RSOs) as evidenced by recent mobile home park purchases in both the City of Carson (Jul 2015) and the City of Santa Clarita (Oct 2015).
KSFG have owned and SCM have managed the Granada Villa Mobile Home Park in Santa Clarita since approximately 2002, the demographic is predominately Hispanic. The mobile home park has 179 spaces – only 11 spaces remain under rent control.
First order of business based on historical business practices, increase existing mobile home space rents for new buyers to above FMRs (Fair Market Rents) in your area. For example, if your current space rent is $650 per month, and KSFG just purchased your mobile home park, you may see your space rent for new buyers increase to $950 per month.
Based on historical data, within the first 12 months after KSFG purchase, existing mobile home owners who are on month-to-month Rental Agreements may receive a ninety (90) day notification of an upcoming significant space rent increase (Cal. Civ. Code § 798.30).
See Corona La Linda Mobile Home Park which was purchased by KSFG in July 2015 and is now managed by Sierra Corporate Management (SCM).
Space Rent for new buyers purchasing resident owned mobile homes is now $950 per month – it was $650 per month in June 2015. Space Rents for existing mobile home owners will increase to $780+ per month since all residents are on month-to-month rental agreements. As a mobile home owner in a Sierra Corporate Management managed mobile home park, this is a dire situation to be in.
This excessive space rent increase immediately lowers the value of existing mobile homes considerably. Immediately after this type of space rent increase, resident owned mobile homes are very difficult to sell, almost impossible, even when deeply discounted below market value.
Convince mobile home owners to sign long-term leases (e.g. 15 years at 8.0%, 20 years at 7.0%, 25 years at 6.0%) which waive your rights to any current or future rent control ordinances that may be in force or implemented by your city (Cal. Civ. Code § 798.17).
There may also be legalese that locks you into a minimum 6.0% increase in space rent each year based on the 25 year long-term lease agreement. See the sidebar for more information about Sierra Corporate Management long-term leases and what you end up paying.
Wed, Dec 2, 2015 – It has been verbally confirmed (video recorded) during a Carson City Council meeting, by Mr. Abraham Arrigotti and counsel, that Sierra Corporate Management will offer residents, and/or potential buyers, cash and/or other incentives to sign long-term lease agreements which waive your rights to existing and/or future rent control protections.
Convert Senior Mobile Home Parks (55+) to Family Parks (All Ages), examples below. Increase monthly space rents and decrease amenities accordingly.
Increase water, sewer and garbage utilities each year.
Tustin Village Mobile Home Park – Example of Utility Increases
Increase of 137% for Trash and 296% for Sewer over eight (8) years.
Overbilling of utilities and improper meter estimations. Meters may only be read 4 times per year, with the other months being “estimates”. These estimates may be so high as to force some people to not be able to pay the rent, the mortgage and the estimated utilities. There have been reported instances of this practice leading to evictions and confiscation of mobile homes by mobile home park owners.
Reduce park maintenance to a minimum. Only address emergency situations and/or egregious situations reported by resident(s).
Lack of enforcement, selective enforcement, and/or total disregard of park rules and regulations by Sierra Corporate Management e.g. installing used mobile homes when the rules and regulations strictly forbid the installation of used mobile homes.
Interference by park management with sales of resident owned homes e.g...
SCM long-term lease agreements are usually 15 years at 8.0%, 20 years at 7.0% or 25 years at 6.0%.
If you sign a 25 year long-term lease with a 6.0% minimum rent increase compounded yearly, based on a starting space rent of $1,300 per month, at the end of 25 years, you will be paying $5,580 per month for your mobile home space rent.
Once you sign that type of long-term lease agreement, here is what you can expect to happen over the next 25 years based on a $1,300 per month starting space rent.
Year 13: Your mobile home space rent will DOUBLE in thirteen (13) years, based on a minimum 6.0% annual space rent increase, from the date you sign that long-term lease with Sierra Corporate Management.
Year 20: Your mobile home space rent will TRIPLE in twenty (20) years, based on a minimum 6.0% annual space rent increase, from the date you sign that long-term lease with Sierra Corporate Management.
Year 25: Your mobile home space rent will QUADRUPLE in twenty-five (25) years, based on a minimum 6.0% annual space rent increase, from the date you sign that long-term lease with Sierra Corporate Management.
Unofficially, there is NO State Agency that will assist mobilehome owners with the constant injustices taking place in California's mobile home parks.
Officially, the HCD (California Department of Housing and Community Development) is the State Agency designated to assist mobile home owners with Mobilehome Park Act violations dealing with health and safety issues related to the physical maintenance and operation of a park.
Unfortunately the HCD is understaffed and if your situation is not an emergency, they may or may not assist you. Based on information obtained to date along with this writer's experiences in dealing with the HCD, it appears that litigation (small claims, civil court) is your best option. You could also approach your City Council with the continual injustices taking place within your SCM managed mobile home park. Bring attention to the matter from City Officials.
You should still register your complaints with the HCD so that there is a properly documented paper trail on file with the State of California. Once you file the complaints, you may find that you need to perform multiple followup calls to the HCD office handling your complaints - be sure to get everything in writing. Do not accept anything verbally from HCD Inspectors, it MUST be in writing. If you're in Southern California, your complaint may go to the Southern Area Office located at 3737 Main Street, Suite 400 in Riverside, CA 92501-3337, 951-782-4420.
Important Note: Each mobile home owner should file a complaint with the HCD, this needs to be a group effort and not just one person filing the complaint on "behalf" of other mobile home park residents.
Complaint Assistance: If you require help with your mobile home park complaint submission, contact your HOA representative or you can contact the MHPHOA and we'll direct you to a representative for assistance.