Mobile Home Park Investing Picking Up Speed – Charlotte Dunford #5342

Summary: I sit down and catch up with Charlotte Dumford, who specializes in mobile home park investing. It has been a great yet challenging year for people in this industry, but mobile home parks have picked up great speed in 2021. Charlotte’s company is working on creating a monopoly within a niche, and the coming year looks very promising for this industry. Tune in for more.

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Listening to the financial survival network i’m terry lutz and today is the last day of november of 2021 and it’s time to take a look back to see where we’ve been and hopefully with that perspective in mind you’ll be able to figure out where you’re going with us is charlotte dunford jones creek capital is her company and specialize in mobile home park investing

Charlotte it’s great to have you back on the show so 2021 quite a year a year of well we could all we all have our opinions of what kind of year it was but the question is or uh what can we learn from 2021 and how will that help you going into 2022 right thank you for having me on the show again um 2021 has been a really um you know great year and at the same time

Challenging year for me and for a lot of people in the industry because of the labor shortage and a lot of different issues caused by the pandemic and a lot of different issues in our economy 2021 has been a rocky year but at the same time a very fruitful year we were able to acquire uh the multiple parks and at a you know at great price points great deals and

This is a great preparation to manchester uh john’s creed capital into 2022 where we will be looking to establish uh funds to acquire um more parks and at a faster speed and just really scale our business so so that’s i would in a nutshell i would say 2021 has been extremely exciting and at the same time a fruitful year for us all right so the parks that you

Acquired what kind of multiples you’re paying on them uh what do you mean multiples yeah um rent roll etc here yeah so in 2021 is interesting because um you know for mobile home parks right it’s it really picked up speed and it is become so popular in 2020 and 2021 that has racked up prices for you know bigger parks but for the niche that we’re in i usually you

Know i would tell people that wumba home parks we’re in a niche within the niche so mobile home park itself is ready and niche it’s not a multi-family it’s not single family it’s a special niche asset class and for for us we’re in the small to medium level parks which is another dish so because of that we’re able to get a cap rate of always at eight percent and

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Above and sometimes even higher and so that was um really i think pleasantly surprising uh for for for us because we thought that you know the beginning of 2019 you could probably get parks at 10 but in 2020 you know and 2021 you know especially these 121 since uh this asset class has become more heated you know it’s getting harder and harder and more competitive

To get things at uh eight and above cap rate but we’re able to negotiate and get those deals at higher cap rates and in really really solid little deals in great markets so that that has been that has been really uh really good interesting uh why do you think uh this uh segment the sector is overlooked uh yeah is it the big boys uh just aren’t interested well i

Think you know big boys are always going to be interested in bigger larger really huge deals with a very aggressive you know strategy and then the big boys also have a lot of money so uh they have millions and if not billions of dollars from you know big time investors banks and those are the wall street boys we’re talking about and they’re importing their money

They’re ruthless you know getting their money into really really big fancy parks sometimes you know hundreds of lots uh usually above 150 lots and even not higher so they’re interested in those because the stability that it offers they have so much cash on hand they can buy everything with cash or with really good leverage uh with with a lot of money if you have a

Lot of capital and cash is king and you can put a lot of cash into the deal and get you know you they’d be going in at a four percent capital five percent cap rate they’d probably be buying you know a property in california where they don’t care about the return as much they they care more about the stability so that’s what the big boys are after and for us it’s

You know i would say i wouldn’t say it’s overlooked the competition is still there but i would just say that we are in the space enough to have the experience needed to operate park like this to give us that competitive edge and we’re after that because um we and then myself and my partner were firm believers in escaping the competition and um there’s one book

He’s my favorite book by peter thiel he’s the author and he’s also a silicon valley investor co-founder of paypal and he he has this really interesting theory in the book and i believe it is that there is the reason the business fail is because they failed to escape competition and the reason a business succeed is because they’re able to create a monopoly within

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A niche so that really we’re really you know putting that philosophy to work and that’s this is why we’re after this niche and you know i would say it’s not ignored certainly not ignored by us and people are you know the big boys are after a different type of thing and we’re after a different type of thing they’re completely different products so being so unique

And being different creates that competitive advantage because they praise them monopoly because being monopoly meaning that you are the mono the only person in this niche big enough in the market share so that’s things the uniqueness of this brings monopoly therefore brings success to business right i see and uh this makes a lot of sense so what’s uh what’s up for

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A look and sign up for notifications stock is traded on the canadian stock exchange ticker symbol m-i-s for more information and to sign up for notifications go to mstango.com this is the financial survival network the information you need to thrive now more than ever so this year has been a ton of growing in our mobile home park portfolio we’re actually in the

Process of exiting one of the parks that we bought 1.5 years ago and to really show traction and show our investors that this what this asset class can do and for 2022 we are ready to take the business to a new level by creating a fund that with maybe more capital to acquire more parks and to further uh you know to diversify our investors portfolio and attract

New investors and pretty much our customers and um you know that that way we will be more efficient um and uh this creates a kind of your skill as you know the more parks under one roof costs become less and um so that will be our primary goal for 2022. all right so what about demand still people uh pining to uh to call your parks their home yes yes definitely

And i think in this time in this time of i think inflation and the social i guess um you know just our society is facing a lot of affordable housing crisis and um you know in those difficult times people are more likely to call us to move their home into it and i think for us it’s important the most important thing about home park is to whether big or small is

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To create a sense of community just like a neighborhood because the pride of ownership is the determining factor of the stability of your park and um you know mobile park is more like a kind of a homeowners association kind of thing and making sure the neighborhood is sound and and everybody is a good stakeholder in the business okay so uh so looking forward

Here you’re raising capital is that the deal yes yes yes absolutely and the raising capital you know it’s really what we serve our our two primary uh primary customers are you know our tenants we’re providing good housing options good quality american dream homes uh to our tenants uh and then and then another primary audience the customers are our investors and

Our investors you know the product that we deliver is the return on their investment and we want to make sure that their investment first of all is secure and with potential to grow and that’s what we’re always looking to do and you know as john’s crew capital primary service is to provide that return on investment so we’re always looking to attract more customers

And to show them um how good our products are and just how well we can do in this sector not primarily in 2020 and 2021 our strategy wasn’t really to bring as much profit as possible through javascript capital but to show everyone and to show our current customers our current investors just how good we are and how capable we are to really make them feel that this

Is a great great choice and great steward for their money right all right well hey interesting developments in the mobile home park space uh charlotte people want to find out more about you connect with uh connect with you on the web how do you do that yeah so the best way to reach out to us would be to go did you go to our website at johnsgreatcapital.com and

Uh there is a form there and please feel free to sell it out and i will reach out usually within the hour so all right excellent hey questions for charlotte shoot us an email kl kerryletts.com hey uh best of luck to you in 2022 charlotte and we’ll talk to you again soon sounds good thank you so much thanks for listening to carrie lutz’s financial survival network

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Transcribed from video
Mobile Home Park Investing Picking Up Speed – Charlotte Dunford #5342 By Kerry Lutz’s Financial Survival Network