Mobile Home Parks
We try to highlight all the different ways you can diversify your portfolio, especially if you're still working.
If you were seeking a way to gain passive income with a high yield, you'll want to check this episode out.
Jonathan Tuttle fund manager at Midwest Park capital, where he provides accredited investors with exclusive access to high yield investment in the mobile home park vertical. You may have never thought about investing in mobile homes.
Jonathan previously served as the President of the Midwest for Yale Realty and Capital Advisors. Yale is the preeminent boutique Manufactured Housing brokerage firm in the United States where the team of 5, had completed 2 Billion in closed brokerage real estate transactions and evaluations in this niche sector. He pivoted to acquiring these assets with accredited investor capital as the fund manager at Midwest Park Capital, a mobile home park real estate fund.
In this episode we’re discussing…
· [2:21] How fortunate he was, his dad was a real estate guy. Growing up he had three real estate brokerage offices and how he developed this business
· [3:47] The resilient of these mobile parks, and how the riches are in the niches
· [5:34] This is an incredible asset, and how it’s compared to different asset classes that have actually gone up in value this year
· [8:30] How this kind of asset still has the stigma
· [9:26] There’s a couple of different business models that you want
· [12:14] The similarity with multifamily, the expenses involved, and the advantages
· [14:13] How does he bring on investors, and how capital works
· [16:27] Understanding this passive, and what’s the return yield
· [18:27] They provide an affordable way to help people make and extra income
· [21:32] ow The advantage of this market niche
Jonathan’s Top Tips
· “It's such an incredible asset. They just have data that came out about a week ago from green sheet data, which aggregates all institutional data from all different commercial, you know, different asset classes, and the only two that have actually gone up in value this year”
· “And or if you're looking from an investor's standpoint, you're developing a subdivision if you're developing subdivision might as do multifamily hotel, or even a residential subdivision at that point, cuase you're not gonna get your return for three or four years, we rather buy mobile home park this cash flowing right away”
· “Some of the benefits you see in the factory from the tenant side. From the Buster side, it just has this resilience because the lot rents are one third the price of a house in the same town and one half the price of the apartment. So, the cost for it, it serves that need for affordable housing”
· “That's kind of like equity. For the tenant side, it's really beneficial for them to own it, because they're saving all this money in the taxation. And the average tenant says 14, 15 years, and then you're basically getting the same on equity, you don't have all the repairs, the park owner maintains the grounds besides their yard. You have all those advantages”
· “Land improvements, well, the land the streets, and actually every house, especially in the Midwest, we focus on the cement pads, that's considered land improvements, you could write off 65 to 75% at 15 years. If we do on the houses and it's not, then it's 27.5, like multifamily. You could write off when you acquire it. It's one of the most advantageous tax structures I think it is the most advantageous for real estate”
· “We provide a way, affordable way to help people make an extra income, especially now with COVID, especially now people losing jobs serve as affordable housing, you already have a huge demand once you get a home”.
· “They just want a clean, affordable house, they don't, they're looking for a luxury apartment less. That's that niche, there's a market for that too.
· “They're saving all that money in rent, taxes, and they get the same school, same fire and they have their own yard. And the same time you're making potentially a six-figure income and we've done it many times on our parks”
Mike’s Top Tips
· “But let's say you keep talking about resiliency, and that's very important. And today's market and believe me, I know, I've really changed just in my aspect in the hotel business on what to buy. And I've just completely changed my criteria, and even different avenues”
Resources about Jonathan
Facebook Instagram LinkedIn Website Midwest Capital Park
About Jonathan Tuttle Topics & Expertise
ABOUT JONATHAN TUTTLE
Having an extensive real estate background, knowledge, and experience that started very early growing up in a real estate family where his father was a general contractor for over 80 custom homes including being selected as a preferred home builder by Inland Real Estate. In addition, learning from his father who had over 30 house flips, owning multi-family apartment buildings, parcels of land, manufactured housing communities, as well as owning and managing a few residential real estate offices in the suburbs.
Jonathan previously served as the President of the Midwest for Yale Realty and Capital Advisors. Yale is the preeminent boutique Manufactured Housing brokerage firm in the United States where the team of 5, had completed 2 Billion in closed brokerage real estate transactions and evaluations in this niche sector. He pivoted to acquiring these assets with accredited investor capital as the fund manager at Midwest Park Capital, a mobile home park real estate fund.
Midwest Park Capital is a private real estate investment firm providing accredited investors with exclusive access to high yield investment in the mobile home park vertical. Our fundamental strategy is to assemble a diversified portfolio of low risk, high cash flow mobile home park assets with the goal of delivering capital preservation consistent quarterly cash on cash income paired with equity growth.