Finance is math applied to money. For the investor, a basic working knowledge of financial math goes a long way in comparing different investment opportunities. But for most, the nomenclature of finance can seem daunting. Probably the most mystifying of all the financial ratios is the IRR, or the Internal Rate of Return. Not only is it one of the more opaque of the financial calculations that go into investment analysis, it is arguably the most important metric to understand in comparing like investments. The IRR is included in the Investment Summary of just about every syndication deal regardless of the underlying asset. So, you can run from the IRR, but you cannot hide. It’s time to face i
In my continuing efforts to identify some of the most alluring alternative real estate investment asset classes, mobile home parks continue to be near the top. I like multi-family value add apartment investing as a core holding and self- storage and mobile home parks to provide some unique diversification around the edges. The interest stems from long term demographic trends favoring more renters, need for affordable housing, our desires to keep things which all buffer these asset classes to some extent from economic downturns. We’ll focus here on MHPs (often called Manufactured Home Parks). I’ve outlined below the 7 reasons I like this asset class: 1) Demand for Affordable Housing Incre
