A Smart and Low-Risk Way to Get In On Mobile Home Park Investing

November 5, 2018

Everybody is talking about hacks these days. It's nice to discover those little tricks that make life easier. Personally, however, I want the big hacks. The hacks that change my life. 

 

My personal journey has gone from a house hack to a rental, and then to several rentals and then multifamily. It's been a great experience. Now I focus on investing in three different assets: multifamily communities, storage, and mobile home parks. I love the diversity they give me. I can invest across the country in different markets and own different assets that non-correlate in some respects. This has been my method of saving for retirement and building a portfolio that provides passive income. And so far it's been a winner. 

 

 

 

 

Mobile Home Parks are great investments and go nicely with a portfolio of owning several multifamily deals. But I think I've found the best way to invest in them without the headaches of management and the risk associated with cutting my teeth on a new asset class. Through investing in a Mobile Home Park Fund, I get low risk, professional management by a top 10 provider, and diversity across several markets from Arizona to Florida.

 

Why Mobile Home Parks

 

I'm very pro on mobile home parks for several reasons. One of the reasons is because of the limited supply. There is no question anymore that we have a crisis in our country for affordable housing. There just isn't enough for hard working Americans. We're shifting to a renter nation because many households cannot afford the mortgage on a house. Many of the mobile home parks in major cities were build decades ago and are home to some of the most attractive real estate locations. They have had time to see lots of great development around them as cities have grown up. They are well-located. Additionally, many cities are not allowing new mobile home park communities to be built. This restricts the supply and allows for price pressure to push up the value of these communities.

 

 

 

Another reason I love these investments is because the affordable housing shortage isn't going away. I wish that wasn't true for a variety of reasons, but as long as it's true, mobile home park communities that are well run, will always be in demand and have full lots. In many states, the stigma of living in a mobile park has vanished. Seniors are retiring to nice, well-run parks with amenities like pickle ball courts, swimming centers and biking clubs. Finally, and this part is interesting, the institutional investors and other big players in real estate investing are beginning to pick up these parks by the dozens. Wall Street is beginning to take notice. This is why I believe now is probably the best time to invest in a mobile home park fund. Many parks are run by mom and pop operators, but in another ten years I believe that balance will shift as Wall Street does what they did with the housing stock after the Great Recession. Many of the funds that are forming now will be sold to Institutional buyers like Real Estate Investment Trusts (REIT's) family offices or other large investment firms for their funds and portfolios. Who wouldn't want to be the seller to a fat Wall Street buyer? 

 

I know several guys who invest personally lots of time and effort to acquire mobile home parks. They're finding great deals. As for me, I'd rather be a capital manager. I don't want to be sending out letters to 1,000 mobile home parks operators. I'd rather join the pros who are putting a fund together and getting me a solid low-risk 20+% return. That's smart to me. It juices my retirement whether I use my Self-Directed IRA or just invest cash. And, it gets me a diverse portfolio (I own several multifamily and storage deals also), and none of the headaches of management. I love it! This is a great time to go after these assets!

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