BiggerPockets Real Estate Podcast

BiggerPockets Podcast 246: Surviving the Coming Crash, Earning 20% Returns, and Buying Mobile Home Parks with Kevin Bupp

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When most investors hear the words “mobile home park,” they turn and run the other way. But not today’s guest, who’s found incredible success buying (and repositioning) mobile home parks. You’ll learn how Kevin Bupp got his real estate started with single family homes (eventually owning hundreds) and how that led to major problems in the last real estate crash. You’ll also find out how he’s making sure the next crash is different. Discover the incredible power of mobile home parks in generating huge returns in this less-popular real estate niche by learning Kevin’s story. If you are looking to generate huge amounts of cash flow, this is an episode you can’t afford to miss!

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In This Episode We Cover:

  • The difference between trailer parks and mobile home parks
  • How Kevin got started
  • Why to not choose single family homes
  • How to “stress test” your deals
  • How (and why) he got into mobile home parks
  • The target market for this investment
  • Some objections to owning a mobile home park
  • The average vacancy Kevin deals with
  • Tips for financing mobile home parks
  • The challenges of analyzing mobile home parks
  • How a mobile home park is valued
  • Advice for adding value to parks
  • What you want to consider when investing mobile home parks
  • How to find mobile home parks
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Tweetable Topics:

  • “There’s like a million and one ways to make money in real estate. You just have to pick one and give it some time.” (Tweet This!)
  • “We want to be in front of the sellers when they either decide to sell or need to sell.” (Tweet This!)
  • “Everyone goes through challenges in their business.” (Tweet This!)
  • “Tomorrow probably will provide the answer if you don’t give up today.” (Tweet This!)

Connect with Kevin

Real strategies that work for real people seeking to build wealth through real estate investments. Co-hosted by Brandon Turner and David Greene, this podcast provides actionable advice from investo...
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    Don Spafford Investor from Idaho Falls, ID
    Replied over 3 years ago
    Thanks for focusing a show on mobile home parks. Interesting stuff. Is it just me or does Kevin look a little like Brad Pitt in the video? I think this is the second celeb look-alike interview.
    Don Spafford Investor from Idaho Falls, ID
    Replied over 3 years ago
    @kevin bupp I have a question since it was not brought up in the podcast. Are there occasions when it may be better to buy land and start a mobile home park rather than buying an existing one? Or more likely with a manufactured home park. Say you are able to acquire 5+ acres at a really cheap price in a good growing area, but then only develop it a bit at a time as needed for expansion. Add some nice amenities like a splash pad or mini golf as mentioned in the podcast, or something to make people want to live there, maybe even place a few new units on the land to entice people to buy those to start living there and expect that more will come. Would that make any sense? I see the benefit of buying established since the units are already there and usually if they are park owned would have depreciated so you get them at a discount. But at the same time if you can get new land really cheap and if you can build it up new and create it so that it is a high demand community, it could grow and bring in higher cash flow for being a nice clean community with no previous bad history to try to correct. I hope that all makes sense. Thanks.
    David Krulac from Mechanicsburg, Pennsylvania
    Replied over 3 years ago
    Hi Don, It depends on lots of factors including where you are located, and how restrictive the zoning ordinances are. One factor that affects Mobile Home parks as well as Tiny Houses is that many zoning have minimum square footage requirements which limits MHP/TH. One of the reasons that Kevin Bupp said that most parks were developed from 1960 to 1980, is that it is very hard to develop parks in many areas. If you are in a rural area with either light zoning or no zoning then you probably be able to develop a new park. But with rural parks you’re probably dealing with wells and septics or building a small sewage treatment plant. Also in rural areas they may require larger lots like 1 acre per house. A Land Development attorney told me that to develop a new park here, expect to take 5 years and have to go to court against the municipality to get it approved.
    Jeremy Woodson from Scottsdale, Arizona
    Replied over 3 years ago
    Good morning, I work for an investment company that works solely with Mobile Home Parks. We give investors the opportunity to invest in a turnkey investment that provides them with 5 years of passive income at a rate of up to 15% annually. This has been fairly successful as my partner and I have completed over 150 deals since the beginning of the year but we do not own the parks. We have a strategic partner that owns the parks or gives us exclusivity in particular parks in which we are the only ones that can work this way. Now what we do with the investors money is purchase the manufactured home, rehab the home and move it into a park (if necessary). Once this process is complete, we then reach out to our buyers and seller finance each home for 5 years. This allows us to keep cash flowing our investor each month or each quarter and allows a low-mid income family own a home rather than having to rent!! It is an all around win, win, win if you think about it! Now that I kind of explained what it is we do, @kevinbupp do you have any tips or tricks on how to find more investors for this type of scenario? We have an extensive buyers list and parks that are ready for more of our mobile homes, but finding investors to believe in the manufactured homes market has proven tough even though it is completely turnkey. I would truly appreciate any feedback and would happily answer any questions you may have! Thank you
    Crystal Salton Flipper/Rehabber from Atlanta, GA & S. FL
    Replied over 3 years ago
    What happens when a owner defaults on their lot fee?
    Don Spafford Investor from Idaho Falls, ID
    Replied over 3 years ago
    Yeah, I was thinking the same thing. If they own the mobile home, and don’t pay the lot, do you just put a lien on their house? Or can you force them to move their trailer/home out? Is there an eviction process that lets the park owner take ownership of the home if the lot fee is not paid?
    Beth L. Investor from Hagerstown, Maryland
    Replied over 3 years ago
    What was the name of the service that he said he used to leave messages on cell phone VMs?
    Sam M. Rental Property Investor from Los Angeles, CA
    Replied over 3 years ago
    Sam M. Rental Property Investor from Los Angeles, CA
    Replied over 3 years ago
    Please, please, PLEASE bring as a guest the Los Angeles-based real estate investor that Brandon Turner mentioned in this podcast.
    Sedriah F. from Charleston, SC
    Replied about 3 years ago
    @kevinbupp Since you don’t own the mobile home how do you keep the neighborhood up? Make sure that the lot renters are keeping the home updated and exterior nice?
    Anthony Middleton from Columbia, Sc
    Replied 8 months ago
    Amazing episode, alot of gems for grabbing.