Kevin Bupp on Getting Started in CRE, MHPs, Parking Lots, and Cash Flow
Aug 27, 2024
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In this discussion, Kevin Bupp, a principal at Sunrise Capital Investors, shares insights from his focus on mobile home parks as an affordable housing solution. He details strategies for enhancing MHPs and the importance of niche markets for new investors. Kevin also covers effective deal-finding methods, balancing broker relationships with direct owner transactions. Plus, he reflects on building a successful team in commercial real estate and the lessons learned from developing his brand through podcasting.
Mobile home parks present a unique investment opportunity due to their declining supply and increasing demand in affordable housing.
New investors should focus on mastering a single asset class, allowing for greater knowledge and informed decision-making in real estate.
Building trust and maintaining relationships with property owners are essential for sourcing investment deals in the competitive commercial real estate market.
Deep dives
Diminishing Supply in Mobile Home Parks
Mobile home parks represent a unique investment opportunity due to their diminishing supply. Unlike other asset classes, mobile home parks are facing more closures and redevelopments each year than new constructions, leading to a favorable supply-demand dynamic for investors. This rarity positions mobile home parks as a potentially lucrative market for those looking to invest in real estate where demand is steadily increasing. Consequently, investors can benefit from the stability afforded by fewer available options in the market.
Background and Evolution of Investing
The speaker shares a personal journey beginning with a first investment at the age of 20, which sparked a lifelong career in real estate. Over the years, a diversification into various asset classes led to accumulating substantial experience, ultimately focusing on mobile home parks and parking lots. The comparison between multifamily investments and mobile home parks highlights the efficiency and affordability mobile home parks offer, particularly in areas where affordable housing is in demand. This pathway reflects how persistence and strategic choices contribute to significant growth and expertise in the industry.
Advice for Aspiring Investors
A strong emphasis is placed on the importance of focus for new investors entering the real estate market. Rather than spreading oneself thin across multiple asset classes, dedicating time and effort to mastering one area is highlighted as key to success. The speaker encourages aspiring investors to choose an asset class that resonates with their interests or market dynamics, reiterating that success can be achieved across various real estate sectors. This strategy allows investors to gain in-depth knowledge and ultimately make more informed decisions.
Investment Criteria for Mobile Home Parks
When searching for mobile home park investments, the focus is primarily on properties with a minimum of 100 sites, particularly in favorable geographical locations. The buy box criteria include assessing economic conditions, historical performance, and potential for value addition through operational improvements. Factors such as median home prices and local demand for affordable housing play crucial roles in the decision-making process. Additionally, the speaker notes the significance of careful consideration regarding utilities and market demographics in determining the ideal investment opportunities.
Innovative Strategies for Finding Deals
The speaker discusses evolving strategies for sourcing investment deals, noting a shift from primarily off-market acquisitions to a balanced approach between broker relationships and direct owner transactions. A significant aspect involves building trust and maintaining connections with mobile home park owners over many years, allowing for successful deal closures. By conducting targeted outreach and leveraging existing networks, the speaker emphasizes the potential to discover lucrative opportunities, even amidst a competitive landscape. This proactive engagement reflects a comprehensive understanding of market dynamics and the importance of relationship-building in commercial real estate.
Enjoy this episode with Kevin Bupp, principal at Sunrise Capital Investors. In this discussion, Jonathan and Kevin discuss Kevin extensive and diverse portfolio, why he's now focused on mobile home parks, how to add value to MHPs, and how he built his personal brand.
