EP 06: Why The Power of Real Estate Investing Lies in Mobile Home Parks with Paul Moore
Updated: Oct 23, 2019
Today’s guest is Paul Moore. Paul is an author, podcast host, investor and Co-Founder of Wellings Capital, an income and growth-focused commercial real estate investment firm. After graduating with an engineering degree and then an MBA from Ohio State, Paul entered the management development track and later became a successful entrepreneur. Paul began investing in real estate in 2000, where he flipped over 50 homes, 25 high-end waterfront lots, appeared on HGTV’s House Hunters, rehabbed and managed rental properties, built several new homes, developed a subdivision, and started two successful online real estate marketing firms. In this episode, we find out why mobile home park investing is Paul’s latest passion and why it is a powerful force in real estate today.
Paul shares some startling stats on mobile home parks in the US today and gives some valuable advice on how to best approach and manage these unique properties. In addition, Paul shares his “21-point checklist” on what to look for in sponsors when vetting them and why your gut is your best ally. This section of the interview is packed with practical advice for you to try out at your next sponsor meeting.
Key Points from This Episode:
How corporate owners affect the value-add of multi-family today.
How to capitalize on self-storage facilities and mobile home parks in the US today.
Using New York’s latest rent laws as an opportunity for investing in mobile home parks.
Why it’s super important for investors to get to know their syndicators and operators.
The 21-point checklist: What to look for in sponsors while you’re vetting them.
How a sponsor treats their staff can tell you a lot about how they will treat their investors.
Is your skin in the game? The key question investors need to ask their sponsors.
Learning how to trust your gut and look your sponsor in the eye in every meeting.
Why a preferred return does a couple of things that are bad for the investor.
If a sponsor takes more risks they can potentially hurt the investor and the deal.
Prefs hurt sponsors today because deals are not performing the way they’re underwritten.
Tips on how to manage 1970s mobile home parks like a well-oiled machine.
Why the power of real estate investing lies in mobile home parks, according to stats.
Discover how you can drive appreciation at a mom-and-pop-purchased facility.
And much more!
“When you have a lot of money, you have a huge opportunity to invest. But you also have a huge opportunity to get ripped off.” — @PaulMooreInvest [0:02:10]
“93% of multi-family over 50-units have a corporate owner, which often means the value has been wrung out.” — @PaulMooreInvest [0:07:43]
“When we meet with sponsors, we are looking for a really good gut feeling. We don’t ignore that.” — @PaulMooreInvest [0:18:20]
Links Mentioned in Today’s Episode:
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The Real Estate Investing Experience Podcast - https://podcasts.apple.com/us/podcast/the-real-estate-investing-experience/id1481520260