The Best Ever CRE Show JF3492: The 4 Key Points of Underwriting, the State of Self-Storage, and Investing Through Market Cycles ft. Ryan Smith
Mar 27, 2024
Ryan Smith, principal at Elevation Capital Group, discusses his real estate journey, investing in self-storage and mobile home parks, underwriting process, and navigating through market cycles. He shares insights on market selection, post-COVID investment trends, strategic rent increases, and community-driven investing approach.
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Four Key Underwriting Points
- Ryan and his wife created underwriting models for multiple asset classes to identify the most promising ones.
- They focused on four key points: cash flow, predictability, capital appreciation, and tax benefits.
Choose Quality Mobile Home Parks
- Focus on high-quality, larger mobile home parks with mostly resident-owned homes for stable income.
- Avoid parks with many park-owned homes due to high home maintenance and eviction costs.
Contrasting Mobile Home Parks and Storage
- Mobile home parks provide predictable, stable cash flow as residents often own their homes.
- Self-storage offers elastic income with the potential for rapid rental rate increases.