This guy replaced his salary AND his wife's with....
Mobile home parks.
Here's his playbook, I'm going to use to buy one...
Come along for the ride (wink)...
Mobile home parks.
Here's his playbook, I'm going to use to buy one...
Come along for the ride (wink)...
@jwdonald1 did the whole stock investing thing for years as his salary went up.
But he realized his assets were invested but they weren’t working for him. He was doing the work.
So he started looking for low-priced assets that cashflow.
Enter his first trailer park....
But he realized his assets were invested but they weren’t working for him. He was doing the work.
So he started looking for low-priced assets that cashflow.
Enter his first trailer park....
They wanted to home school their kids & travel the world.
Small problem. Her boss wasn’t too into it. She had a 9-5 as a teacher.
So he looked for assets not too expensive, you could use debt for, simple to understand, and could make at least $20kish a year (her salary).
Small problem. Her boss wasn’t too into it. She had a 9-5 as a teacher.
So he looked for assets not too expensive, you could use debt for, simple to understand, and could make at least $20kish a year (her salary).
Mobile home parks: Where to start?
#1 He took a course on investing in them,
#2 started dragging his family to visit them.
#3 Then finally pulled the trigger.
Then bought another. Then enough to replace his income. Then enough to have a manager run his portfolio #NBD.
#1 He took a course on investing in them,
#2 started dragging his family to visit them.
#3 Then finally pulled the trigger.
Then bought another. Then enough to replace his income. Then enough to have a manager run his portfolio #NBD.
And it turns out Justin isn’t alone.
Why are PE funds rolling these bad boys up in record levels?
Why are PE funds rolling these bad boys up in record levels?
The Pros:
- Cities don’t typically want mobile home parks and try to redevelop them.
- Only about 44k in the US. Limited resource = opportunity.
- Least consolidated asset class in real estate. This means a lot of mom-and-pop shop owners.
- Cities don’t typically want mobile home parks and try to redevelop them.
- Only about 44k in the US. Limited resource = opportunity.
- Least consolidated asset class in real estate. This means a lot of mom-and-pop shop owners.
Pros Contd:
- Typically bought at a high cap rate. Fancy for they make the most $ at lowest price.
- One of lowest default rates in RE, so loans are pretty easy to get.
- You can use accelerated depreciation.
Ahem, le-what? Means you get a great way to write off your taxes.
- Typically bought at a high cap rate. Fancy for they make the most $ at lowest price.
- One of lowest default rates in RE, so loans are pretty easy to get.
- You can use accelerated depreciation.
Ahem, le-what? Means you get a great way to write off your taxes.
Cons:
- PROPERTY MANAGEMENT - you are managing a mobile home park after all
- not chump change, cheapest buy in is a couple 100k
- not the 1st inning anymore, people are investing in this game
- lots of ins and outs to learn... I wouldn't buy blind
- PROPERTY MANAGEMENT - you are managing a mobile home park after all
- not chump change, cheapest buy in is a couple 100k
- not the 1st inning anymore, people are investing in this game
- lots of ins and outs to learn... I wouldn't buy blind
His first mobile home deal: How do these deals look?
Justin put down 15% or $65,000 (on a property worth about $633k)
He profited $2k per month, or $24,000 a year
- cash on cash returrn of 36%
(Wtf is that? It shows you how fast your investment $ returns to you)
Justin put down 15% or $65,000 (on a property worth about $633k)
He profited $2k per month, or $24,000 a year
- cash on cash returrn of 36%
(Wtf is that? It shows you how fast your investment $ returns to you)
Second deal: Tip – a little larger every time as you learn the business
He put down 15% or $75,000 on a slightly larger deal
- profited $3,375 per month, or $40,500 a year
- cash on cash returrn of 56%
Then rinse and repeat, often selling at substantial multiples.
He put down 15% or $75,000 on a slightly larger deal
- profited $3,375 per month, or $40,500 a year
- cash on cash returrn of 56%
Then rinse and repeat, often selling at substantial multiples.
How you can invest like him 👉 ways to play it
Let’s say you fancy yourself a regular mobile home landlord.
#1 Learn from Someone Else’s Losses:
Sign up for a Mobile Investing course. Then go to a conference, or ask for a consulting call with an expert.
Let’s say you fancy yourself a regular mobile home landlord.
#1 Learn from Someone Else’s Losses:
Sign up for a Mobile Investing course. Then go to a conference, or ask for a consulting call with an expert.
I’d also go a bit ham reading a bunch of resources like these:
Article: wealthfit.com/articles/mobil…
Entire University/Podcast etc: mobilehomeuniversity.com/index.php
Bigger Pockets podcast: biggerpockets.com/blog/lessons-i…
Youtube Mobile Rabbithole:
Article: wealthfit.com/articles/mobil…
Entire University/Podcast etc: mobilehomeuniversity.com/index.php
Bigger Pockets podcast: biggerpockets.com/blog/lessons-i…
Youtube Mobile Rabbithole:
#2 Find A Guide:
After I took a week or two and became a 30 second expert on the asset class, I’d want to know some players. So I set up a call with Justin to sit down and go through all of them in-depth. I asked for him to co-vet the deal with me.
After I took a week or two and became a 30 second expert on the asset class, I’d want to know some players. So I set up a call with Justin to sit down and go through all of them in-depth. I asked for him to co-vet the deal with me.
My suggestion, find some players from the biggest investors in the space and see if you can pay them to help you.
This is when you LinkedIn stalk like a mfer, searching for mobile home park experts. It’s not the HOW it’s the WHO. Find your who.
This is when you LinkedIn stalk like a mfer, searching for mobile home park experts. It’s not the HOW it’s the WHO. Find your who.
#3 Find A Deal:
Go on loopnet, or mobilehomeparkstore.com (real creative name), or google a super creative search like “mobile home parks for sale.” Rocket science, I know.
Go on loopnet, or mobilehomeparkstore.com (real creative name), or google a super creative search like “mobile home parks for sale.” Rocket science, I know.
Some of the investing metrics are usually on the listing:
cap rate (how fast do you make your money back)
size, # of spots
value add services
price
Others you have to ask about, such as:
financials
expenses
tax returns etc
cap rate (how fast do you make your money back)
size, # of spots
value add services
price
Others you have to ask about, such as:
financials
expenses
tax returns etc
How I’m Playing It?
I’m going to buy one.
Something smaller probably $1M or less.
Because I believe in affordable housing, I’m going to make it cool while it profits. I’ll report back.
Just out there buying mobile home parks and cashing checks.
I’m going to buy one.
Something smaller probably $1M or less.
Because I believe in affordable housing, I’m going to make it cool while it profits. I’ll report back.
Just out there buying mobile home parks and cashing checks.
Want the full breakdown and a playbook we're going to do on mobile home park investing...
You know where to go..
contrarianthinking.co
You know where to go..
contrarianthinking.co
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