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Join us as Kevin and I discuss the nuances of investing in parking lots and mobile home parks, as well as investing in syndication deals as a passive investor, and what to look out for when hiring a third-party property manager. 

Kevin is the Founder & CEO of Sunrise Capital Investors, which has a long track record of investing in mobile home parks, parking lots, apartments, offices, and single family homes across the US. He’s also the host of the Mobile Home Academy podcast and the highly rated Real Estate Investing for Cash Flow Podcast.

Helpful Links:

https://sunrisecapitalinvestors.com/

https://www.kevinbupp.com/

Episode Highlights:

• The parking lot industry is highly fragmented, run by a lot of mom and pop operators. Because of this, a lot of them are run using cash, which opens up a pandora’s box of employee theft.
• When Kevin hired third-party property managers interests were not aligned. The property managers were not profit driven and often went over budget on things. Kevin and his team ultimately determined that it was best to bring the property management aspect of their business in house so that they could ensure that they can continue to provide reliable, consistent returns to their investors.
• Sometimes mobile home parks are only licensed for a portion of the total lots that they are selling you. Always check with the city and county to determine the number of lots that are currently permitted.
• The underwriting for a deal is an imperfect process and always a best guess. If the asset is good and located in a good market, then it really comes down to the sponsor’s ability to execute the business plan. 
• When considering investing in deals as a passive investor (LP) you need to first look at the sponsor’s track record. How long has she/he been doing it? How many properties have they taken full cycle from acquisition to disposition? What does their personal balance sheet look like (i.e., do they have any personal assets to go after if the deal blows up)? What is the experience other investors have had that have been investing with the sponsor for several years already?