Table of Content
- Ep #3: The Step-by-Step Process of Researching & Identifying Fundamentally Sound Markets to Buy Parks In.
- Ep #108: The Everchanging MHP Landscape From a Industry Veterans Perspective – with Eric Hanson
- About Kevin Bupp
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- Ep #4: Part 2 of The Biggest Mistakes Investors Make When Buying Their First Park... and How To Avoid Them.
You’ve done multiple funds to finance these deals as well, which is a natural progression. Tell us a little bit about what you’ve done with the funds and where you are with that. That’s why I call being an A student a handicap to becoming an entrepreneur. A students don’t get to experience failure.
It took me about fourteen months to buy the first property, looked at a lot, made a lot of offers, got scared away from a few and bought my very first mobile home park back in 2012 up in Atlanta, Georgia. I still own that one and I proved the concept there. I bought another one and bought another one. We’re now in thirteen different states. We’ve got about 2,000 lots under the ownership and we’re the mobile home park guys. I wouldn’t say that we’re the only mobile home park guys but it’s a niche that fits us very well.
Ep #3: The Step-by-Step Process of Researching & Identifying Fundamentally Sound Markets to Buy Parks In.
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.
Back then, I was doing 100,000 mailers a month. We took all the practices that worked well and were successful back in the residential days and brought it over to the mobile home park spaces. We’ve been good at driving off-market opportunities and we had way too many coming in a couple of years back and it didn’t make sense.
Ep #108: The Everchanging MHP Landscape From a Industry Veterans Perspective – with Eric Hanson
The challenge this poses to scaling your investments in mobile home parks. Join the Cash Flow Investor Club today to get started on this journey with us and have your money go to work for you through passive real estate investing. Upon sign up you'll receive our free guide "10 Reasons Real Estate Syndications Are A Better Alternative." Yes and when that happened, it all went away. Berkshire Hathaway with Vanderbilt and 21st have helped push this industry forward.
It wasn’t what this bootcamp was about. But ultimately, I was just very intrigued by folks that I felt were very similar to me. They just knew something I didn’t know at that point in time. And they were doing deals where they were making $20,000 and $30,000 a pop and they were doing dozens of those a year and that just that just amaze me.
About Kevin Bupp
In a perfect world, Kevin, I want to be the parking lot owner. I want to be the place where they have to park their mobile home and these things aren’t very mobile, even though they’re called mobile homes. Once it leaves the factory and makes it into a community, it very rarely ever leaves. Some statistic says that 98% of the homes never moved to a second location. You can’t just hook them up to your pickup truck and tow them down the road.
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.
You’ve got to ask the management’s responsibility. But like to buy 2,000 units of mobile homes, you have to ultimately build out your own property management company. We created our first fund due to a large amount of opportunities we had at that point in time. We took them down inside that fund and started a second fund after the success of the first fund. It’s much more of an efficient process for us as well on the acquisition side rather than doing deal by deal.
You can't just hook mobile homes up to your pickup truck and tow them down the road. You don’t go in and buy individual mobile homes. You go in and buy the land and all of the necessary services around that land to maintain it and such. People come onto your properties with their own mobile homes. My parents were at work, 9 to 5, Monday through Friday, and David would happen to be around random days of the week, right? I think he maybe saw a 19-year-old at that time, a kid with no direction.
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.
I like being in the parking lot business. We rent parking lot spaces to folks that own mobile homes. It’s a beautiful thing and it’s become quite lucrative. So, what happens a lot of time, there’s two different instances that typically occur.
I wanted to know what the new landscape looks like. When I say I took a hiatus, I literally stepped away. So, you’ve got this weird period of time, where you’re probably feeding the beast, the property management company, in order to scale that business and get past that pivotal point.
There’s a much more of an elaborate process in that. In a mobile home park, they can have their own little standalone unit right there. They don’t own the land, but they own the home. They can have a little covered carport area so they don’t get wet when they walk in from the rain. And then they don’t have Susan next door vacuuming at 2 AM in the morning that they can hear.
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.
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