Confidence with respect to return of capital begins with the intrinsic performance characteristics of mobile home parks (MHPs). Simply put, MHPs are more capable of weathering an economic storm than other real estate, so the risk of loss is significantly less.
The use of a neutral-party referee also reduces sponsor risk, as the fund administrator monitors all financial aspects of the mobile home park fund. This includes 100% portfolio monitoring, accurate distributions of cash flow, transparent reporting, return of capital, and waterfall management.
By doing what we promise: to be a good steward of investor capital. That means reporting and distributing every 90 days like clockwork, and delivering tax documents in a timely fashion. It means keeping investors informed at every step of the way and allowing direct access to principals at all times. It means being responsive and working to assist investors when a problem arises.
Yes. Our first full-cycle deal closed in 2020, where investor capital made a 31.86% annualized IRR. Our second full-cycle deal closed in 2021, where investor capital made a 31.61% annualized IRR. We have established a conservative culture and tend to under-promise rather than overhype our mobile home park funds. Our goal is to over-perform on every park, and so far, we have been able to accomplish that.
Never. When considering a new opportunity, we try to “kill the deal” rather than attempt to make the underwriting work. Those deals that prove to be “hard to kill” become candidates to acquire. It’s an approach that reduces the number of properties we acquire, but it allows us room to over-perform on the ones that make the cut.
Yes. Mobile home parks are more tax efficient than most other real estate with respect to both straight-line and bonus depreciation, granting significant passive losses to investors. Learn more about bonus depreciation.