Investment Strategy
Our investment strategy focuses on revitalizing properties facing a range of challenges, such as deferred maintenance, low occupancy, management issues, high collection balances, and vacancy.
Overview
Our Strategy
We employ proven systems and professional management, along with vertically integrated solutions, to breathe new life into these properties. This approach not only improves the property for tenants but also maximizes the value for all investors involved. Our team brings a comprehensive suite of services to each project, which provides us with a significant competitive edge.
These services include:
- Asset Management
- Property Management
- Construction Management
- Advanced Accounting & Reporting
- Manufactured Home Sales
- Manufactured Home Title Management
- Manufactured Home Financing
- Tax Strategies
- Capital & Investor Relations
By integrating these capabilities, we are able to fully optimize income and returns for every property we manage.
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Advantages To Investing In Alternative Property Types:
Why we invest in mobile home parks...
Mobile home parks represent a unique and compelling investment opportunity within the real estate sector. Here’s why:
Limited Competition
Municipalities rarely approve new mobile home park developments, effectively creating a protective moat against new competition. This scarcity adds to their value as existing parks continue to thrive without the threat of new entrants.
Decreasing Supply
Despite their often attractive infill locations, many mobile home parks are being redeveloped for other uses, further reducing the number of available parks. This diminishing supply makes existing parks even more valuable.
Increasing Demand
Industry Consolidation
The mobile home park industry is experiencing significant consolidation. Many of these parks were developed between the 1950s and 1980s, and as the original owners retire or pass away, there emerges a pressing need to sell. Traditionally, the industry has been characterized by its antiquated systems and a lack of efficient data.
However, professional investors are now entering the market with the aim to optimize these assets’ performance, thereby enhancing their investment appeal. This shift is increasingly attracting lenders, investors, and supportive services, pushing the industry into maturity. We are in a unique period where there is a finite window before the majority of these communities are owned by professional operators and most of the intrinsic value has been realized, pushing sellers to demand top market prices. This process of consolidation represents a once-in-a-lifetime opportunity that we are actively capitalizing on.
Efficient Operating Model
Mobile home parks typically exhibit a lower expense ratio compared to most other property types, a key financial advantage for investors. In mobile home parks, investors own the land and essential infrastructure, as well as any common area amenities, but not the individual homes themselves. Since the homes are usually owned and maintained by the residents, this significantly reduces the overall maintenance and repair responsibilities for the park owner. This unique aspect of the business model not only minimizes operational costs but also enhances profitability by shifting much of the upkeep responsibility to the tenants.
Abundant Value Creation Opportunities
There is an abundance of mobile home parks available below market value right now, offering substantial equity creation opportunities. Often managed as lifestyle businesses, these parks have suffered from minimal reinvestment and maintenance, leading to a decline in property quality and the presence of lower-quality residents.
As professional investors, we leverage these conditions to acquire properties at below-market prices. By addressing deferred maintenance, making physical improvements, and introducing professional management with good customer service, along with implementing other industry best practices, we are able to transform these communities into more desirable living environments. This attracts residents who are willing to pay full market rents. Our strategy not only allows us to purchase these properties at significantly discounted prices but also to enhance the property’s condition, thereby maximizing cash flow and increasing the overall value for our investors.
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By investing in mobile home parks, we capitalize on these dynamics to offer our investors both security and profitability in a very niche sector of the real estate market.
Why we invest in Self Storage
Self storage investments offer numerous advantages that make them an attractive component of a diversified real estate portfolio. Here are some key reasons:
Recession Resilience
Self storage has historically proven to be recession-resistant. During economic downturns, individuals and businesses tend to downsize or relocate, increasing the demand for storage space. This inherent stability makes self-storage a safe investment during various economic conditions.
Low Overhead Costs
Compared to other types of real estate investments, self storage units require relatively low maintenance and operational costs. The absence of frequent renovations, complex management requirements, or expensive upkeep contributes to higher net operating incomes.
High Demand
As consumerism continues to grow, so does the accumulation of goods, leading to an increasing need for storage solutions. This trend is bolstered by the downsizing of living spaces, particularly in urban areas, and the increasing mobility of the general population.
Flexible Management
Self storage facilities can be efficiently managed with minimal staffing, which can further reduce operating costs. Modern technology, such as automated gates, surveillance systems, and online booking systems, enable effective remote management and enhance user convenience.
Scalability
The high number of units in one property provides tenant diversification and the flexible nature of self-storage also allows for flexible expansion within existing facilities to meet growing demand.
Diverse Revenue Streams
Beyond basic storage rentals, self storage facilities can generate additional income through the sale of related goods like boxes, locks, and packing supplies, as well as through vehicle storage, document archiving services, and more.
Value-Add Opportunities
There are numerous ways to enhance the value and performance of a self storage facility, from physical improvements and security enhancements to implementing advanced marketing strategies and revenue management systems that optimize rental rates.
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By investing in self-storage facilities, we tap into these strong market trends to deliver stable and rewarding investment opportunities to our investors.
Why we invest in long-term stay RV communities...
By investing in long-term RV communities, we benefit from the growing industry demand, an alternative affordable housing product, and provide our investors with stable income, efficient management, and attractive returns.
Steady Revenue
Long-term RV communities offer more stable and predictable income streams compared to transient parks, as tenants typically rent spaces for months or even years at a time, reducing turnover and vacancy rates.
Lower Management Industry
With fewer daily check-ins and check-outs, long-term RV communities require less intensive management compared to transient parks. This stability allows for more streamlined operations and reduces labor costs.
Community Cohesion
Long-term stays foster a stronger community environment, leading to higher resident satisfaction. A close-knit community can increase tenant retention and create a more pleasant and secure atmosphere.
Consistent Cash Flow
The long-term rental agreements typical in these communities provide consistent cash flow, making financial planning and budgeting more straightforward for owners.
Reduced Seasonal Fluctuations
Unlike transient parks that may see significant seasonal variations, long-term RV communities typically enjoy more consistent occupancy throughout the year.
Amenity Utilization
Residents staying for the long term are more likely to use and appreciate on-site amenities such as laundry facilities, community centers, and recreational areas, justifying the investment in these facilities.
Interested In Learning More?
By investing in long-term RV communities, we benefit from the growing industry demand, an alternative affordable housing product, and provide our investors with stable income, efficient management, and attractive returns.
Track Record
Since 2013, he Equity Growth team has established a proven track record of successful investments in the mobile home park, RV park and self storage industries.
During that time we’ve acquired over 25 commercial real estate investments and have grown from nothing to approximately $100 million in investments.
Over a decade of focus and commitment to the mobile home park, self storage, and RV Park markets has given us a unique advantage in being able to identify excellent opportunities and execute our business plans to increase value and the cash flow of the properties.
This allows us to deliver outsized returns to our investors while also minimizing risk so we can help our investors to grow their equity and receive consistent cash flow.
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Total Acquisitions
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Years In Business
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Full-Cycle Deals
Invest with your self-directed IRA or 401K.
For Retirement Account Qualified Investments & Self-Directed IRA’s