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The Stigma is Strong with Mobile Home Park Investing





SHOW NOTES


Welcome back to the Passive Mobile Home Park Investing Podcast, hosted by Andrew Keel. On this episode of the Passive Mobile Home Park Investing Podcast, Andrew talks about the 9th reason why you should invest in mobile home parks, and this is because of the HUGE stigma surrounding mobile home parks. Andrew will go over the bad reputation surrounding the asset class and why this is actually great for the few investors that aren’t scared away. In this episode, Andrew will also share some personal stories involving this topic as well.


Andrew Keel is the owner of Keel Team, LLC, a Top 100 Owner of Manufactured Housing Communities with over 1,300 lots under management. His team currently manages over 20 manufactured housing communities across nine states – AR, IA, IL, IN, MN, NE, OH, PA and TN. His expertise is in turning around under-managed manufactured housing communities by utilizing proven systems to maximize the occupancy while reducing operating costs. He specializes in bringing in homes to fill vacant lots, implementing utility bill back programs, and improving overall management and operating efficiencies, all of which significantly boost the asset value and net operating income of the communities. Andrew has been featured on some of the Top Podcasts in the manufactured housing space, click here to listen to his most recent interviews: https://www.keelteam.com/podcast-links. In order to successfully implement his management strategy Andrew’s team usually moves on location during the first several months of ownership. Find out more about Andrew's story at AndrewKeel.com.


Would you like the pre-investment checklist that I use to review mobile home park deals before I invest in them? We are offering this as a free gift if you go to iTunes and leave a five-star review. To get the pre-investment checklist, leave us a five-star review on iTunes and then send us an email at passivemhpinvesting@gmail.com. In the email, please tell us who you are, what screen name you used to leave that review, and we’ll send the pre-investment checklist, directly to your inbox.


Talking Points:

00:20 - Welcome back to the Passive Mobile Home Park Investing Podcast

00:31 - The stigma around mobile home parks

01:30 - The story of my first mobile home park capital raise

03:05 - Interesting tidbits about mobile home parks and safety

04:05 - In conclusion

04:34 - The pre-investment checklist


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Links & Mentions from This Episode:

Keel Team's official website: https://www.keelteam.com/

Andrew Keel's official website: https://www.andrewkeel.com/

Andrew Keel LinkedIn: https://www.linkedin.com/in/andrewkeel

Andrew Keel Facebook page: https://www.facebook.com/PassiveMHPin...

Andrew Keel Instagram page: https://www.instagram.com/passivemhpi...

Twitter: @MHPinvestors

TRANSCRIPT


Welcome to The Passive Mobile Home Park Investing Podcast with your host, Andrew Keel. This is the podcast where you can get the education you need to invest 100% passively in a highly profitable niche of mobile home parks.


Welcome to The Passive Mobile Home Park Investing Podcast. This is your host, Andrew Keel. Today, we’re going to discuss reason number nine why you should invest in mobile home parks. Number nine is because mobile home parks have a huge stigma. The average American investor is not seeking out mobile home parks like they are apartments, bitcoin, and large-cap stocks like Amazon, Facebook, and Uber.


This is due primarily to the fact that mobile home parks aren’t sexy, and they also usually aren’t something you would want to brag about with your friends at the local country club. The stigma has been magnified 10x through TV shows like Trailer Park Boys, 8 Mile, and Cops that have given mobile home parks a bad name. This scares away most investors. As cap rates for apartments get more compressed, the risk gets higher and higher, but the artificial stigma surrounding mobile home parks keeps the MHP cap rates consistently higher.


I have a funny story about this. On my very first mobile home park deal, which was a nice 67-lot mobile community in Edwardsville, Illinois, which is located just outside of St Louis, I got the deal under contract not knowing exactly where I was going to get the cash needed to close on the property. I knew I had a few options, but I didn’t have anyone in particular lined up to invest with me.


So day one, I went with what I thought at the time was the best option, and I set up a lunch with the wealthiest guy my family knows. This gentleman hit it big and made a ton of money. He happened to coach me in basketball when I was younger, so we had a good existing relationship. He has a nice house on the lake, he has a Ferrari, and the G-Wagon to go with it.


We went out to lunch and I started telling him about the opportunity, the expected returns, and how I thought it was a very nice […] investment. About halfway through the conversation, he stops me, and I will never forget what he said. He goes, “Andrew, I love you bud, but there is no way in hell that I’m going to invest in a trailer park with you. That deal went on to create a 74% cash on cash return and all initial capital was returned in 24 months.


Thankfully, I didn’t give up after hearing no from my first option. One interesting tidbit on mobile home parks is that the majority of mobile home parks are uniquely safe. A 2014 study done by the Department of Criminal Justice at the University of Nevada found that trailer park sites showed the lowest rate of violent crime calls for service compared to non-manufactured dwellings. What’s more, the physical layout of the communities themselves works to protect the residents. That’s right.


In mobile home communities, the housing layouts usually create clear sight lines, which allow neighbors to have a direct view of the nearby homes. And this is invaluable in reducing property crime. That’s directly from the study. Also, the close housing proximity in manufactured housing communities creates a community of guardians making illegal activity much easier to detect.


In conclusion, I love this quote by investor Robert Helms, host of The Real Estate Guys Radio Show. Robert says, “Live where you want, and invest where it makes sense.” That’s it for today. Join us next week for an episode on the attractive financing options available for the acquisition and refinancing of mobile home communities. Thanks for tuning in.


Would you like the pre-investment checklist that I personally used to review mobile home park deals before I invest in them? We are offering this as a free gift to those of you who go to iTunes and leave our podcast a five-star review. To get the pre-investment checklist, leave us a five-star review on iTunes and then send us an email to passivemhpinvesting@gmail.com. In the email, please tell us who you are and what screen name you used to leave that review, and we will send out the pre-investment checklist directly to your inbox. It's that easy. Once again that email address is passivemhpinvesting@gmail.com. Thanks again for tuning in.

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