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EP 210: Why Mobile Home Parks Are the Next Big Thing in Real Estate Investing with Chris Larsen
Manage episode 430712522 series 3487308
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Christopher Larsen is the founder and Principal of Next-Level Income. Since “retiring” after 18 years in the medical device industry, he now dedicates himself to guiding others to financial independence through education and strategic investments. With over 20 years of real estate expertise, Chris began his journey at 21, acquiring his first single-family rental while pursuing degrees in Biomechanical Engineering and Finance at Virginia Tech. Since then, he's navigated diverse real estate ventures, from development and private lending to syndicating over $1.5 billion in commercial properties since 2016. Based in Asheville, NC, Chris, his wife, two boys, and their spirited Viszla, Lucy, embrace the outdoors and the rich food and culture of the region. Chris embodies the Next-Level lifestyle, where financial freedom meets adventure on the path to success.
Keywords
Chris Larson, Next Level Income, real estate investment, financial freedom, professional cyclist, single-family properties, multifamily properties, mobile home parks, affordability, pride of ownership, roll-up strategy, significant returns, mobile home parks, institutions, investing, risks, park-owned homes, tenant-owned homes, returns, due diligence, bucket list, book recommendation
Takeaways
Financial freedom is essential for living life on your own terms.
Investing in mobile home parks can provide significant returns and is supported by demographic trends.
Mobile home parks offer affordability and pride of ownership for residents.
The roll-up strategy in the mobile home park business can increase the value of a portfolio.
Mobile home parks are a unique asset class that can round out a real estate investment portfolio. Institutions typically require a minimum check size of $5 million to $10 million to invest in mobile home parks.
The risk of municipalities closing down parks is low if the park is in compliance with regulations and if it provides affordable housing.
Banks and institutions prefer parks with a higher percentage of tenant-owned homes rather than park-owned homes.
Investors can expect high single-digit cash flow and high teen returns from mobile home parks.
Due diligence questions for passive investors include determining the asset class and strategy, evaluating the operator's experience, and understanding the worst-case scenario and exit options.
Chris recommends the book 'The Secret Life of Real Estate and Banking' by Philip Anderson as an important educational resource for passive investors.
Chapters
00:00 - Introduction and Background
05:32 - The Correlation Between Sports Discipline and Real Estate Success
09:49 - Transition to Medical Device Sales
13:17 - Transition from Single-Family to Multifamily Properties
23:53 - Focus on Mobile Home Parks
27:09 - Benefits of Investing in Mobile Home Parks
29:29 - The Roll-Up Strategy in the Mobile Home Park Business
30:30 - Institutional Investment in Mobile Home Parks
31:29 - Risks and Drawbacks of Owning Mobile Home Parks
35:24 - Park-Owned Homes vs. Tenant-Owned Homes
39:05 - Expected Returns for Investors in Mobile Home Parks
44:43 - Important Due Diligence Questions for Passive Investors
48:43 - Chris Larsen's Bucket List Items
Connect with our host, Randy Smith, for more educational content or to discuss investment opportunities in the real estate syndication space at www.impactequity.net, https://www.linkedin.com/in/randallsmith or on Instagram at @randysmithinvestor
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