Welcome to episode 29 of the Park Street Partners’ Mobile Home Park Investors podcast, hosted by Jefferson Lilly, as Brad Johnson is off this week. This week, Jefferson dives into three hypothetical scenarios and offers practical math on whether you should build your mobile park home from scratch or purchase a pre-existing mobile home park. And he covers using Berkshire Hathaway's 21st Mortgage CASH program (or equivalent) to infill your mobile home park with mobile homes. Find out more by listening to Jefferson's detailed analysis.
Key Takeaways:
[1:10] Today's topic is about why you should never build a mobile home park from scratch!
[3:05] Do you want to buy an up and running property or build it? Jefferson goes through three different scenarios.
[4:35] Let's talk numbers with these three hypothetical scenarios.
[13:00] What would your first year of business look like if you built from scratch?
[21:10] What happens if you pay for your mobile homes using Berkshire Hathaway?
[27:00] If you bought an already established mobile home business, what would the cost come out to be?
[32:50] Being generous with the numbers, if you try to sell your mobile home property after 5 years, your IRR will be -9% every year.
[36:15] If you bought an already established mobile home business, you would have made 23% per year.
[38:40] What's the liability if you were to use Berkshire Hathaway?
[45:45] When would it make sense to buy a mobile home from scratch?
[47:15] There's a big difference in being in the affordable housing business vs. being in the construction business.
Mentioned in This Episode:
Park Street Partners www.parkstreetpartners.com
Mobile Home Park Investors www.mobilehomeparkinvestors.net
Park Street Partners - Investment Opportunities
Park Street Partners - Resources
Mobile Home Park Investors Group on LinkedIn
Email your deals to: deals@parkstreetpartners.net
