In this special episode, we dive deep into 3 case studies on Mobile Home Parks in which we successfully went full cycle on.
In this episode, we provide a detailed overview of how to passively invest in Mobile Home Parks.
This episode is part of an ongoing webinar series that my team and I have been hosting where we invite a rotating panel of manufactured housing industry experts to discuss the state of our industry as it relates to not just the corona pandemic but also the general outlook of the manufactured housing industry and how you can not only survive, but ultimately thrive no matter what the current state of affairs are in our country.
In this webinar we were joined by, Kolman Bubis, a top broker with Sunstone Real Estate Advisors and Brandon Turner, who is the founder of Open Door Capital.
This episode is part of an ongoing webinar series that my team and I have been hosting where we invite a rotating panel of manufactured housing industry experts to discuss the state of the MHP industry. More specifically, as it relates to both the corona pandemic but also the general outlook of the manufactured housing industry. We'll discuss how you can not only survive, but ultimately thrive no matter what the current state of affairs are in our country.
In this webinar we were joined by, Don Vedeen, a top broker with Northmarq Manufactured housing division and Jeff Moss, who is Director of Loan originations for Bond Street Capital.
This episode is part of an ongoing webinar series that my team and I have been hosting where we invite a rotating panel of manufactured housing industry experts to discuss the state of our industry as it relates to not just the corona pandemic, but also the general outlook of the manufactured housing industry. Additionally, we go into detail on how you can not only survive, but ultimately thrive no matter what the current state of affairs are in our country.
In this webinar we were joined by, Keven Enger, a top broker with Capstones Manufactured housing division, and MJ Vukovich, who is a senior VP of mortgage brokerage services for Bellwether Enterprise
In this episode, we'll be speaking with the CEO of Performance Equity Partners also known as PEP, Scott MacNeil
Performance Equity Partners is a residential mortgage lender who offers creative financing options to manufactured home community owners who need a funding source for individuals seeking home ownership.
This webinar is jam-packed with actionable, real-time info for investors. Our team is bringing together MHP experts from all areas of the industry to provide a comprehensive outlook and help you successfully navigate through uncharted waters.
You guys spoke and we listened. This webinar is jam-packed with actionable, real-time info for investors. Our team is bringing together MHP experts from all areas of the industry to provide a comprehensive outlook and help you successfully navigate through uncharted waters.
Andrew is the owner of Keel Team, LLC and his team currently manages 16 manufactured housing communities across six states – AR, IL, IN, IA, OH, PA and TN. 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.
In this episode we have the pleasure of speaking with, Kevin Easterly. Attracted to the allure of massive double-digit returns and seemingly can’t lose opportunity, Kevin bought into his first and only park after doing very little due diligence. This proved to be Kevin’s biggest and most costly mistake to date and one that provided him many life lessons that have carried forth in other future successful business ventures. Tune in as we dissect everything that Kevin did wrong with this first deal and how you can avoid making the same mistakes when buying your first park.
Click Here to Gain Access to the Newly Revamped Deal Finders Formula
In this episode of the Mobile Home Park Investing Podcast, Kevin welcomes Gene Norman. Gene is a senior meteorologist and the VP of marketing at HazardCall. HazardCall is a system developed for manufactured homes wherein any community can give their residents alerts and notifications that help them make decisions about approaching impactful weather events such as tornadoes, hurricanes, thunderstorms, and ice storms among others.
Gene explains how and why HazardCall came into fruition and discusses the value in their messaging system that comes from procuring their services. Gene also provides a step by step illustration of HazardCall’s system and how it works. Kevin and Gene also talk about pricing, extra features, and other details about HazardCall.
“One of the biggest challenges of course, is telling people what to do when there’s an emergency and where they should go and that they should even have a plan.”
“When your phone rings at 2 in the morning, you’re likely going to pay attention to that and we got urgent messaging that tells them there’s a storm threat but it also gives them instructions on what they should do.”
“If the community manager finds out from the local emergency officials or from the power company that the power will be back on at such a time, we can type out that message on their phone and all the residents who were displaced would get that.”
“It doesn’t happen everyday so we’re not calling everyday but when those things are happening in your neighborhood, when the phone rings then we’ll get your attention and hopefully that will incite and send you to take the safety action that you need. Each unit, so to speak, can have up to two numbers assigned to it.”
“The biggest challenge a home community owner will have will be collecting resident information. But once you do that and put it into the system, you know maintaining this is fairly easy to do and we help you every step of the way..”
Discussed in this Episode:
5:40 What is Hazard Call?
13:06 The messaging system and weather alerts
18:57 Gene explains how their system works [see link to presentation slides]
26:36 Gene talks about “PR insurance” and other system features
Today's episode of The Mobile Home Park Investing Podcast delves into the all-important topic of due diligence. Host Kevin Bupp is joined by Jethro van Aardt, the Director of Operations at Sunrise Capital Investors, and they break down the many moving parts and processes of due diligence--from kick off to title transfer.
Due diligence is one of the most critical aspects to master when diving into the niche of mobile home park investing. It has its own unique set of nuances and to be aware of, as well as opportunities and usual skeletons in the closet to watch out for.
"Due diligence process, it's a pretty thorough process and a lot of sellers often get intimidated by it. They're worried that you're going to uncover something and it's going to completely throw the deal out so they get kind of secretive, which is pretty strange. It's counter-intuitive."
"The offsite phase is critical. We need to know that we have the exact information. For example, simple things like the exact address of the property, the exact pad count, how many homes are abandoned, how many homes are resident-owned, how many homes are rented by tenants, etc etc. So it's verifying a lot of information."
"DD is really just a long checklist and it's following that checklist and obviously you start off with the most critical things and, if you can get through those critical things from the top to the bottom, then you reassess and understand do you move forward or not."
"Sometimes these places look really nice from the outside. When you get inside, they're in really bad shape. You need to understand the quality of the resident base. If anybody is prepared to live on the floors, you know that person's not paying the rent and they're probably going to skip the town in the middle of the night."
"Unfortunately that's one of the painful things sometimes is that you can do all that prep work and offsite, think that you've covered everything but there's still going to be skeletons and that's why the onsite is so crucial."
Discussed in this Episode:
This episode of Mobile Home Park Investing features MAI Appraiser and manufactured housing expert Erik Hanson. He is Executive Vice President of Midwest Appraisal Group, a real estate appraisal and consulting firm with offices in La Crosse and Madison, Wisconsin.
Erik specializes in mobile home parks, franchise hotels, and convenience stores. He also earned his MAI Designation from the Appraisal Institute in 2014, where he serves on the board of directors as vice president and educational chair for the Wisconsin Chapter.
Kevin and Erik dive into industry and rental trends, cap rates, sales activities going on now, and predictions for the industry in the coming years. Erik also shares a couple of stories from his experiences in the mobile home park industry.
"Definitely the new buyers are far more aggressive. I don't know if that's a good thing or not but it seems like they're really willing to pay all those cap rates and maybe buy in an area that doesn't make a whole lot of sense."
"I think a lot of it is the supply side is so small right now for anything that's out on the market that people just tend to gobble up whatever they can find."
"It seems like it's a little more accepted now on the park-owned homes side, especially on the newer homes--the older homes is still kinda hit or miss--but the newer homes it seems like if they can't get them sold, they're willing to rent now."
"We also look at it from a rental side. If the rents are exactly the same but one tenant's got to pay 150, one tenant's got to pay 40 in addition to rent, you have to consider that especially if there's vacant sites in those parks."
"You got to buy a couple of parks on your own first before the brokers are going to even consider you. Get your track record kind of in order before you start reaching out there."
Discussed in this Episode:
New people in the industry: Trends and experiences
Appraising homes and risk assessment
Case study on utilities
Trends with market rents
Noteworthy stories on the field
In this episode of The Mobile Home Park Investing Podcast, Kevin Bupp speaks with manufactured housing finance expert Jerry Muir. He is Managing Director at Greystone working with the Agency Lending Team with a primary focus on building out and expanding their manufactured housing lending platform.
Jerry is a 25 year veteran of Fannie Mae and, during his time as Director of Multifamily Credit underwriting Fannie Mae, was responsible for a 12-state southeast region.
He had dual roles in developing and managing the manufactured housing community lending platform. Impressively, he has overseen north of 10 billion in financing.
"You might not have the prettiest homes in there but if it's a well-run community, it's stable, it's going to do well."
"Our manufactured housing community, because you've got so much stability because it costs so much for a resident to take his home and move it to another park (I mean it could be in excess of $7000), they're not just going to move down the road like in the multifamily property."
"If you've got a tier 2 loan on the property and you want to do a supplemental, you would get tier 2 pricing on the supplemental, basically."
"Their regulator, the FHFA, basically restricts the amount of business the two agencies can do and they call it cap or uncapped business. An uncapped business is they can do as many loans as they want in that space."
"They really open to more people and make it more affordable for them to get into a home and get into a park, no question about it.
Discussed in this Episode:
Developing MHC at Fannie Mae
Differences of Fannie Mae and Freddie Mac
Supplemental Loan Program explained
Future outlook of Fannie Mae
Detailed overview of Greystone in the MHC space
In this episode of The Mobile Home Park Investing Podcast, Kevin Bupp hops on a call with real estate expert Matt Ricciardella, managing member of Crystal View Capital, a private investment firm with a focus on value add real estate.
Since its inception in 2014, the firm has raised almost $17 million of equity capital and has approximately $60 million in assets under management with a specialized focus on manufactured housing and self-storage asset classes.
Matt also goes into fine detail about recent successful projects and how his company manages all the different asset classes they handle from across the US.
"In my hunt for finding deals that would yield the best cash flow, I kinda came across mobile home parks and self-storage as the key assets that I wanted to focus on since those properties yielded the highest free cash flow out of all commercial real estate classes that I came across and underwrote."
"These opportunities are available to all of us. You've got to dig--especially now you've got to dig even harder--and then you've got to have the wherewithal to recognize that there is that untapped, hidden value."
"Once you've added value and you've maximized that value, it's time to look to exit."
"Through the years, we've been kicked down the street and that's the only way I think we've learned and we've learned from our mistakes and as a result we've implemented some of these strategies that has made us successful managers of mobile home communities."
"The best thing I can tell you is to take action. Go out there, make it happen, start looking at opportunities, get educated."
Discussed in this Episode:
This episode features MAI Appraiser and MH industry expert Chuck Schierbeck, a senior valuations specialist with Colliers International and an expert on commercial property evaluations like preparation of appraisal reports, supply and demand analysis, financial and site feasibility, and overall market examination.
Chuck gives us an insider's view of the biggest changes in the industry since the recession. He also shares his views on trends and risks that are the shaping the future of mobile homes.
"So what happened sort of in the 2000's all the way up to today is people, owners started to have them figure out how to sell homes in their communities, finance them, do all that. So owners have had to become more than just property owners. They've had to become retailers, lenders, things like that."
"If you're not built to dig up the dirt and put in the roads, you're not comfortable doing that, the same thing goes back to the smaller homes. I don't think the industry is built for that yet."
"The question is with these different trends, what does my market want?"
"The ideal thing is you got a community, trying to sell homes, you open the rentals, get your property filled out with whatever methods you can, and then try to turn those rentals into owners. And from zero, that would be the model that I would say."
"I think there is some risk in increasing interest rates. I don't know that it's impending... people thought it was going to go up and then it didn't."
[05:15] Chuck's background and how he got into the business
[10:43] Big industry changes since the recession
[21:07] Discussion on trends (tiny homes and rentals)
[36:32] Creating additional ancillary income streams
[45:56] Risks to the industry in the future
Today's podcast features Jethro Van Aardt, Director of Operations at Sunrise Capital Investors. He has an extensive background in commercial real estate and asset management.
Jethro talks on how he’s implemented processes which produced multiple benefits to consolidation planning, better organization, cost savings, and higher quality of coverage, while also spearheading their insurance project.
"That's what it boils down to. That's why you want to choose your broker first. You also want to be sure that you've got the right person servicing you."
"Like everything in life, you get brokers that are small, they don't have access to products that the big corporates would have."
“But generally, I'd say about between 800 and a thousand pads is when you really could start seeing some great pricing efficiencies and really the brokers would start getting excited. Anything smaller than that, you know, it's going to be difficult to get the brokers excited because it takes a lot of work on their side too."
"Guys would never do this product if they felt that their clients were at risk or the entire industry was at risk."
"Insurance is a complex product. When you are going out there and you're comparing your different products, just make sure you're comparing apples to apples."
Discussed in this Episode:
In today's podcast, founding member of MH Park Advisors Skyler Liechty shares his in-depth knowledge of the mobile home park investment industry. He is a third generation park owner and also runs other businesses like MHC Leads.
Skyler discusses his processes to address issues with new owners moving in, handling market-dependent homes, and finding new investment opportunities.
14:15 "Doing that on a scale, one might not be all that challenging. Two, more challenging. You start talking about five or ten or twenty as the example we used, there's lots going on there and it's much more difficult than what it seemed when you first set out."
15:39 "Everyone has their opinions about what's a better way. Us personally, we tend to like that lease with an option to purchase program simply because from an operational and functional standpoint, it's a lot easier if you have a problem with the resident."
16:18 "Once you decide what strategy you're going to go with, then that dictates what the process to execute on that plan is."
30:49 "Most people, they may call, they may email, but the biggest communication source we found was text messages."
44:40 "When people are looking for a home or a place to live or an apartment, whatever it is, it's immediate. They are looking right now. You call them two days later, it's not a hot lead anymore."
47:09 "I tend to believe that most transactions are relationship-driven."
07:12 Introduction to Skyler Liechty and his entry into the mobile home park business
10:50 Discussion on the biggest challenges for new investors
14:29 Using strategy to master current processes and create an efficient system
19:34 The lease option program of Skyler for new homes explained
28:32 What is MHC Leads and how does it work?
42:13 How to integrate with existing software and programs for smooth workflow
45:36 Discussion on finding investment and acquisition opportunities
53:02 Roles of brokers in the mobile home park industry
In this episode of The Mobile Home Park Investing Podcast, Kevin shares the mic with Paul Bradley, founder of ROC USA.
Paul started ROC USA to solve a big problem for homeowners living in mobile home communities. Traditionally, individual homeowners wouldn't be able to secure financing to purchase and collectively own the communities they live in.
With the help of Paul's nonprofit however, ROC USA helps residents form a co-op structure, secure funding from vetted sources, and provide leadership training and support to help co-op leaders effectively run their communities.
Enjoy this episode as Paul discusses the resilience of Resident-Owned Communities, and how ROC USA can provide a structure that allows an exit strategy for the private community owner.
[1:53] Paul's Background
[8:59] What was Paul's first Co-Op Deal like?
[12:37] When is it in the best interest of a Co-Op to revert back to private ownership of their community?
[16:00] Who is the seller to a Co-Op?
[28:03] Closing Thoughts.
In this episode of The Mobile Home Park Investing Podcast, Kevin shares the mic with Tim Kelly, Founder of Kelly Investment Group in Pensacola, FL.
Kevin began his investing career by house hacking while still serving full-time as a Chief Petty Officer in the United States Navy in Pensacola. With a few more multifamily deals under his belt, Kevin “switched teams” so to speak to investing almost exclusively in Mobile Home Communities -- some of which include Mobile & Troy Alabama.
Enjoy this episode as the two dissect the strategies for raising funds for your first deals, and other due diligence principles.
[6:05] What is Tim’s background?
[10:35] Why did Tim switch from Multi-Family to Mobile Home Parks?
[14:24] What was Tim’s first deal like?
[26:03] What is Tim & Kevin’s thoughts on Park-Owned Homes?
[39:31] What’s Tim’s criteria for a “Good” Deal?
[41:29] Tim’s final closing thoughts.
In this episode of the Mobile Home Park Investing Podcast, Kevin shares the mic with Michael Renz; An Environmental Geologist and Founder of Renz & Associates, INC.
Michael’s Renz’s boutique firm specializes in the conduction of environmental studies for sites potentially impacted by pollution by hazardous materials, and providing remediation for any potential problems. Examples include cleanup from oil spills, leaking underground storage tanks, ruptured pipelines, dumpsites and the like.
Every investor needs to understand the importance of conducting an environmental survey on their property before a purchase, as it can carry a potentially huge liability. Enjoy this episode as Michael covers what to look for, and various stories from working in the field.
[6:23] Michael’s Background
[15:55] What’s the strangest discovery Michael has made during an examination?
[24:48] What is the average turnaround time and cost of a Phase I environmental study?
[29:08] When is a Phase II environmental study initiated?
[34:08] What kind of questions do buyers need to ask a firm for an environmental assessment?
In this episode of the Mobile Home Park Investing Podcast, Kevin shares the mic with Andrew Lanoie; Founder and Principal of Park Place Communities and Four Peaks Partners based in Scottsdale, Arizona.
Andrew’s background is markedly different from most investors, originally holding a career in artist management in the entertainment industry of SoCal.
After the 2008 financial meltdown and seeing his parents lose significant wealth however, Andrew began to seek answers to why this happened to better shield himself from future events.
Andrew now manages a portfolio of manufactured home communities across the country, and is passionate about fostering a team around Park Place Communities and Four Peaks.
[7:18] At what point did Andrew get interested specifically in Manufactured Home Communities?
[9:59] What have been the biggest changes Andrew has observed in the MHP market?
[17:05] What was Andrew’s first MHP deal like?
[21:52] What is Andrew’s thoughts on Park Owned Homes?
[32:14] What’s Andrew’s long-term strategy?
[35:31] Andrew’s final closing thoughts.
In this episode of the Mobile Home Park Investing Podcast, Kevin shares the mic with Kurt Kelly; Mobile Home Insurance Expert based in Texas.
Often times, insuring your investment property will not come through a large insurance house like State Farm. There are many special cases mobile home park owners will need to account for in order to ensure all bases are covered.
Kurt goes through the list of 10 major pitfalls park owners face when choosing insurance, and how to deal with them.
[7:07] What is Kurt’s background?
[12:29] What is the first biggest mistake park owners make when finding insurance?
[22:34] Is there a point where you can actually overinsure?
[39:20] What is Data Breach and Discrimination coverage?
[51:22] Kurt’s final words of wisdom
When purchasing a new mobile home park, You will inevitably face many objections from sellers before reaching a close.
In this episode of the Mobile Home Park Investing Podcast, Kevin and Charles discuss the Top 10 Objections they’ve faced in their years of experience acquiring parks, along with how to handle each one.
[2:09] #1: Capital Gains Taxes
[8:39] #2: Income Loss
[14:49] #3: Property Burden
[18:12] #4: Tainting Reputation
[21:17] #5: Unfinished Business
[26:35] #6: Losing Purpose
[31:25] #7: Skewed Reality
[42:29] #8: Employed Family Members
[45:55] #9: Seller wants you to Pay for Upside
[55:43] #10: Price is too low
In this episode of The Mobile Home Park Investing Podcast, Kevin shares the mic with DJ Pendleton, Executive Director of the Texas Manufactured Home Association.
The Texas Manufactured Home Association is one of the most active and oldest manufactured home associations in the country, tasked with passing laws favorable to its parties and repelling laws that hurt members of its association.
Aside from serving as the lobbying arm representing mobile home community owners and their manufacturers, DJ also helps to provide resources and conferences beneficial to its members.
[3:03] What is DJ’s background?
[3:47] What is the history of the TMHA?
[7:32] How can community owners stay on top of local laws?
[13:48] How was the North Carolina Association able to get around local ordinances?
[20:01] How did the Texas Association come through for victims of Hurricane Harvey?