Table of Content
- Ep #6: Part 3 of The Biggest Mistake Investors Make When Buying Their First Park and How To Avoid Them.
- Ep #112: Managing the Covid-19 Pandemic with Fellow Mobile Home Park Investor Andrew Keel
- The Mobile Home Park Investing Podcast - Real Estate Investing Niche
- #520 MHP: The Top Ten MHP Seller Objections
- Ep #117: SPECIAL EPISODE – MHP Industry Updates via Town Hall Webinar #4
You’re going to have someone there, unless it’s a really small asset, but we’re talking 50, 100, 150 doors. You’re going to have someone, a presence there on site that’s going to help manage that day to day. So, that park owner doesn’t own the mobile homes. Their responsibilities to maintain the infrastructure. So, the water, sewer lines, the roads, and the lighting, common areas and things of that nature.
So, you got a month, maybe two months in worst case scenario of no revenue net, that particular unit. So, that doesn’t exist in any mobile home park to where the resident owns the actual home itself. It’s very capital-intensive to go buy homes and bring them back in and to create a sales program to fill your community back up.
Ep #6: Part 3 of The Biggest Mistake Investors Make When Buying Their First Park and How To Avoid Them.
I was going to school, going through the motions, but I didn’t really know what I wanted to do. I didn’t know what I wanted to sink my teeth into. So, going to school, tending bar part time. In this special episode, we'll run through our personal insights on Warren Buffett's annual letter to shareholders. Welcome to thee podcast that will teach you how to successfully invest in and build steady streams of passive income from the highly lucrative niche of Mobile Home Park Investing. According to the SEC, you are an accredited investor if your annual income exceeds $200,000/year ($300,000 if filing jointly) OR you have a net worth of greater than $1 million excluding your personal residence.
He traveled a lot and I was attracted to that and I want to know what he was doing. David invited me to a three-day boot camp down in Philadelphia of how to fix and flip and create a rental portfolio of single-family homes. I took him up on the offer and to me, it was the light bulb. Now with that being said, the model kind of evolved over the years and some park operators or owners have chosen to go a slightly different path than the original where they don’t own any of the homes.
Ep #112: Managing the Covid-19 Pandemic with Fellow Mobile Home Park Investor Andrew Keel
But other than that, I mean, they’re both multifamily, but they have a lot of similarities and a few things that are different. And there’s no shortage of third-party management companies across the US that specialize in managing multifamily assets. That is not the case in mobile home parks.
I shouldn’t have, looking back, I wish I had to start buying when there was all that blood in the street but it was my blood, too. It’s hard to step outside of that bubble and get comfortable again. Kevin Bupp has been an entrepreneur all his life. He completed a degree in business at a small community college in PA, but eventually decided to focus all of his energy on real estate.
The Mobile Home Park Investing Podcast - Real Estate Investing Niche
I’d saved up some money tending bar, bought my first junker, rehabbed it with some of his guidance and went on to do the next one and so on and so forth. I was having a lot of fun and started to make money at it. With over two decades of experience, Mr. Bupp also educates investors how to locate, negotiate, and acquire commercial real estate to generate cash flow and legacy wealth for their families. He shares his experience through “The Mobile Home Park Investing Podcast” and the “Real Estate Investing for Cash Flow” podcast, which provide listeners with insights into his investment philosophy. My whole thing on my research and everything I’ve seen in the note space is I’ve never been just a note guy.
For example, we’ve interviewed a few guys that owned parking lots throughout the US and our business is parking lots but we’re parking mobile homes. Lots of these folks I’ve interviewed have own parking lots where you parked cars, surface lots or parking garages. That is probably one of the most passive investments I could think of. The bowling alley is another one, again, car washes and things of that nature. There are many different ways to make money in real estate. So, that’s where the scaling challenge comes in, whereas with multifamily, you could go by 2,000 doors, and they’re all off to a property management company.
#520 MHP: The Top Ten MHP Seller Objections
It sounds like you do the same thing in searching for these investment opportunities in the form of the parks. You have to go outside your geographical area to go where the better buys are. The key differences between investing in mobile home parks and multi-family units. Kevin Bupp is a Florida-based Real Estate Investor, top iTunes podcast host, and serial entrepreneur with over $150 million of real estate transactions under his belt. So, we’ve seen over the past year, cap rates have compressed, south of that of multifamily. My operating partner, Birge and Held Asset Management have a twelve-year track record creating sustainable wealth for over 2000 investors through high-quality multifamily investments.
When I looked at LinkedIn, we had about 96 common people. It’s interesting how this business works. I love the fact that LinkedIn and podcasts can bring people together with the way it does. He’s over in Tampa area in Florida and he’s in an area that I’ve always been intrigued with.
We raise capital from investors for the equity component and then leverage it with somewhere between 65% and 75% loan-to-value debt in a first lien position. During that period of time, I met an individual through a mutual friend. I wanted to be the multifamily guy and I had lunch with Randy because I love meeting new people. I can’t tell you that I had this grand vision of business that I wanted to start at that point in my life.
Number one, we couldn’t take them all down ourselves and number two, raising money for each individual deal when we had five or six in the pipeline didn’t make logistical sense. That’s when the fund was created or born. They’ve helped us progress forward as an industry as a whole. As far as the financing side of it, when you’re speaking to the financing and the communities themselves, they are involved in a very small scale.
So, that’s something that we are signed up with, in every market that we’re in. On the flip side of that, we’ve got loss of income or the business interruption insurance that would essentially pay us for up to 18 months if we experienced a severe loss. But really the big challenge is getting those lots reoccupied. Again, not get banking on FEMA to do it.
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