Direct Mobile Home Park Ownership with 3rd Party Property Management is Not Passive

Welcome back to the Passive Mobile Home Park Investing Podcast, hosted by Andrew Keel. On this episode of the Passive Mobile Home Park Investing Podcast, Andrew talks about how direct ownership of a mobile home community with third party property management is not a passive way to invest in mobile home parks. It is easy to be sold on direct mobile home park ownership, but don’t be fooled, direct mobile home park ownership is NOT passive. Make sure you know what you’re signing up for, Andrew goes into the reasons why this is actually a very active form investing. Andrew also addresses his concerns about third party property management in the mobile home park space.

***Andrew Keel and Keel Team Real Estate Investments (Keel Team, LLC) do not endorse any
interviewee. This interview is for informational purposes only and should not be depended upon
for investment purposes. ***

Andrew Keel is the owner of Keel Team, LLC, a Top 100 Owner of Manufactured Housing Communities with over 1,400 lots under management. His team currently manages over 20 manufactured housing communities across ten states – AR, GA, IA, IL, IN, MN, NE, OH, PA and TN. His expertise is in turning around under-managed manufactured housing communities by utilizing proven systems to maximize the occupancy while reducing operating costs. He specializes in bringing in homes to fill vacant lots, implementing utility bill back programs, and improving overall management and operating efficiencies, all of which significantly boost the asset value and net operating income of the communities.

Andrew has been featured on some of the Top Podcasts in the manufactured housing space, click here to listen to his most recent interviews: https://www.keelteam.com/podcast-links. In order to successfully implement his management strategy Andrew’s team usually moves on location during the first several months of ownership. Find out more about Andrew's story at AndrewKeel.com.

Book a 1 on 1 consultation with Andrew Keel to discuss:

• A deal review
• Due diligence questions
• How to raise capital from investors
• Mistakes to avoid, and more!

Click Here: https://intro.co/AndrewKeel

Would you like to see mobile home park value add projects in progress? If so, follow us on Instagram: @passivemhpinvesting for photos and awesome videos from our recent mobile home park acquisitions.

Talking Points:

00:18 - Welcome to the Passive Mobile Home Park Investing Podcast

00:30 - Direct ownership of a mobile home community is not passive

01:35 - Reason 1: Rent collection

01:50 - Reason 2: Filling vacancies may take longer

02:10 - Reason 3: Submetered water/sewer/utility expense recapture

02:38 - Reason 4: Violations for liability concerns

03:11 - Concerns from third party property management companies

05:55 - This is not a passive business

06:22 - Recommendations for passively investing

06:40 - Conclusion

Links & Mentions from This Episode:

Bigger Pockets website: https://www.biggerpockets.com/

Mobile Home University website: https://www.mobilehomeuniversity.com/

Keel Team's official website: https://www.keelteam.com/   

Andrew Keel's official website: https://www.andrewkeel.com/ 

Andrew Keel LinkedIn: https://www.linkedin.com/in/andrewkeel 

Andrew Keel Facebook page: https://www.facebook.com/PassiveMHPinvestingPodcast

Andrew Keel Instagram page: https://www.instagram.com/passivemhpinvesting/

Twitter: @MHPinvestors

Quotes:

“Repair costs should remain consistently lower compared to other asset classes, but your time and money will more than likely be allocated elsewhere to make up for it.” - Andrew Keel

“[With direct mobile home part ownership] collections must be pursued consistently, on a monthly basis from about five percent of our tenant base.” - Andrew Keel

“Also, possible back taxes on the mobile homes add an extra item to add concern.” - Andrew Keel

“There are gurus right now that are actively pitching investors on direct mobile home park ownership, with the notion that this is a passive business and that you only need to write ten checks a month to keep it running. I want to let you know that this is unfortunately not true.” - Andrew Keel