Storage Wins EP481: Part 2 - Self-Storage vs. Mobile Home Parks: Which is the Superior Asset Class for Dispositions & Financing?
In Part 2 of this four-part masterclass, we have four great real estate investors who are invested in two different asset classes: Self-storage vs. Mobile homes. On the Self-Storage side, we have Scott Meyers and Michael W. Wagner and on the Mobile Home side, we have Kevin Bupp and Ryan Narus. These four guys battle it out and break down which asset class is best in areas of Acquisitions, Dispositions, Financing, Management, and Construction! This episode dives into dispositions and financing. Btw, all donations that come from this episode will go to fund We Are Graces, a charity in Guatemala that's close to Alex's heart.
Key Takeaways:
- Be sure to listen to Round 1!
- How has the downturn affected these two asset classes?
- Mobile home parks guys start first and talk about dispositions.
- Why do mobile home parks have such a big upfront investment?
- It's easier than ever before to acquire a mobile home property and leverage debt to get it.
- A smaller investor can make a killing if they do decide to exit out.
- Why is self-storage a superior asset class when it comes to dispositions?
- The asset class with the lowest default rate is self-storage.
- Self-storage works well in both good and bad economies.
- Michael shares a personal disposition story on his self-storage units.
- Let's lean on the data. The mobile home guys' rebuttal.
- You don't need a broker for both asset classes.
- The self-storage guys have some comments about why mobile homes are not the superior asset class when it comes to dispositions.
- Storage is an expanding industry.
- Banks will lend on self-storage first, not on mobile homes.
- Let's dive right into financing! Self-storage goes first.
- You can get loans up to 90% on your self-storage property.
- Self-storage will never shut down. There are also no evictions. The law is on your side.
- Mobile homes have Fanny and Freddie in their corner.
- It's true. Mobile homes are about 10β15 years behind when it comes to leveraging debt and loans.
- Every dollar Ryan puts into the mobile home space, he gets $4 in return.
- Self-storage guys' rebuttal.
- What's the difference between a 1-star vs. 5-star mobile home park?
- Tune in next week for the next round of self-storage vs. mobile home debates!
MENTIONED IN THIS EPISODE:
Connect with Scott: Selfstorageinvesting.com
Connect with Michael and plug into The Storage Rebellion Community
Connect with Kevin: Kevinbupp.com Connect with Ryan: Archimedesgrp.com
IMPORTANT: VOTE for who won the Debate by Making a Donation to Graces, and Gain Access to All the Valuable Self-Storage & Mobile Home Resources
ASCEND:
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"There are only approximately 42,000β49,000 mobile home parks in existence. It's a niche asset class."
"The asset class with the lowest default rate is self-storage, historically, because we do well during good times and very well in a bad economy."
"Mobile home parks on average are trading at sub six caps, even in secondary and tertiary markets. The demand is outpacing self-storage."
"Storage is the new iPhone and mobile home parks are the fax machine."
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