Mobile Home Park Syndication Strategies with Tim Davis
Mobile home park syndication has become an increasingly attractive strategy for real estate investors looking for affordable housing opportunities, strong cash flow, and value add potential. On this episode of Multifamily Rockstars, Tim Davis shares how he transitioned from single family rentals into multifamily investing and ultimately completed his own mobile home park syndication deal. With decades of experience in construction, property management, and brokerage, Tim breaks down how investors can uncover overlooked opportunities and structure profitable real estate deals even in today’s challenging market.
How Tim Davis Built a Real Estate Investing Career
Tim Davis began investing in real estate at just 18 years old after purchasing his first rental property. What started as an accidental landlord experience quickly evolved into a lifelong career in real estate investing. Over the years, he expanded his expertise through construction, brokerage, and property management while building a portfolio of rental properties throughout Central Florida.
Today, Tim owns and operates a real estate brokerage and property management company managing hundreds of rental units. He also invested passively in nearly 700 multifamily units as a limited partner before stepping into syndication himself. His experience highlights how long term consistency, practical knowledge, and networking can help investors scale from small residential properties into larger commercial real estate opportunities.
Why Mobile Home Park Syndication Stands Out
One of the most valuable lessons from the conversation is why mobile home park syndication has become such an appealing investment strategy. Tim explains that affordable housing demand continues to grow, particularly in markets like Central Florida where rental rates have risen significantly. The mobile home park he acquired offered below market rents, operational inefficiencies, and significant upside through better management.
Rather than following the traditional mobile home park model where tenants own their homes and pay lot rent, Tim’s strategy involved park owned homes. This approach created more operational responsibilities but also gave his team greater control over renovations, tenant quality, and rental income growth. By improving tenant screening, addressing deferred maintenance, and raising rents to market levels, the property’s cash flow improved substantially within the first year.
Key value add strategies discussed in the episode include:
- Replacing poor tenant screening systems with professional management
- Renovating deferred maintenance issues on older mobile homes
- Increasing below market rents while maintaining affordability
- Removing non paying tenants and improving occupancy
- Structuring investor returns through preferred equity payments
The deal ultimately raised approximately $2 million from investors in less than 30 days, demonstrating strong investor appetite for affordable housing investments and creative real estate syndication opportunities.
Finding Off Market and Overlooked Deals
Another major takeaway from the episode is how Tim Davis sourced the mobile home park opportunity. The deal was discovered on the residential MLS through a broker who primarily handled residential properties. According to Tim and Rod Khleif, this is an often overlooked strategy that can uncover hidden commercial real estate opportunities before institutional buyers find them.
Because many residential agents do not fully understand how to market multifamily or mobile home park assets, investors willing to dig through residential listings can sometimes find highly discounted deals. Tim identified the opportunity while presenting a “deal or no deal” underwriting exercise at a local real estate investing group.
This conversation reinforces the importance of:
- Building relationships with residential real estate agents
- Reviewing MLS listings consistently for overlooked commercial assets
- Leveraging underwriting knowledge to identify hidden value
- Moving quickly when unique opportunities appear
For newer investors, this serves as an important reminder that great deals are often found where others are not looking.
Navigating High Interest Rates and Creative Financing
The episode also explores how rising interest rates have impacted multifamily investing and commercial real estate acquisitions. Tim discusses how financing challenges have slowed transaction volume while simultaneously creating buying opportunities for investors prepared with capital and strong relationships.
Creative financing strategies such as seller financing and syndication equity structures are becoming increasingly important in today’s market environment. Tim’s mobile home park acquisition was financed entirely through investor capital rather than traditional bank financing, allowing the partnership to provide preferred returns directly to investors while avoiding difficult lending conditions.
Rod Khleif also explains how many operators are struggling with bridge loans, adjustable debt, and expensive rate caps, creating distress across the multifamily sector. According to the discussion, this environment may present one of the best buying opportunities investors have seen in years.
The Importance of Networking and Multifamily Education
Throughout the episode, Tim Davis emphasizes the importance of education, mentorship, and networking when scaling into larger real estate investments. After years of experience in residential real estate, he joined Rod Khleif’s Warrior program to learn multifamily syndication and expand his investment network.
Tim credits much of his growth to surrounding himself with experienced investors, attending real estate networking events, and partnering with people whose strengths complemented his own. While his expertise lies in construction, deal structuring, and problem solving, he actively partnered with analytical underwriters and operators to strengthen his investment team.
For investors looking to transition into larger commercial real estate deals, this episode demonstrates how combining practical experience with mentorship and strategic relationships can significantly accelerate growth.
About Tim Davis
Tim Davis is a real estate broker, licensed general contractor, real estate investor, and property management operator based in Central Florida. He has over four decades of experience in construction and real estate investing and currently manages hundreds of rental units through his brokerage and management company. Tim has invested in nearly 700 multifamily units as a limited partner and recently completed his own successful mobile home park syndication focused on affordable housing and operational improvements.
If you want to hear the full conversation and detailed insights, watch the podcast video or read the complete transcript below.
Mobile Home Park Syndication FAQ
What Is Mobile Home Park Syndication?
Mobile home park syndication is a real estate investment strategy where multiple investors pool capital together to purchase and operate a mobile home park. A syndicator or sponsor manages the acquisition, financing, renovations, operations, and investor relations while passive investors provide funding in exchange for ownership shares and potential returns.
Why Is Mobile Home Park Syndication Popular in 2025?
Mobile home park syndication has gained popularity in 2025 because affordable housing demand continues to increase across the United States. Rising home prices and apartment rents have pushed more residents toward manufactured housing communities, creating strong occupancy rates and stable cash flow opportunities for investors.
How Does Mobile Home Park Syndication Work?
In a mobile home park syndication, the general partners identify the investment opportunity, secure financing, manage renovations, and oversee operations. Limited partners invest capital into the deal and typically receive preferred returns and profit distributions without handling day to day management responsibilities.
What Are the Benefits of Investing in Mobile Home Parks?
Mobile home parks can offer several benefits including consistent cash flow, lower tenant turnover, reduced competition compared to multifamily apartments, and strong demand for affordable housing. Many investors also appreciate the value add potential through operational improvements, rent increases, and occupancy optimization.
What Is the Difference Between Lot Rent and Park Owned Homes?
Lot rent communities involve tenants owning their own mobile homes while paying monthly rent for the land underneath. Park owned home communities are structured more like apartment complexes where the operator owns both the homes and the land. Park owned homes can generate higher revenue but often require more maintenance and management.
How Do Investors Make Money Through Mobile Home Park Syndication?
Investors in mobile home park syndications typically earn income through cash flow distributions, preferred returns, property appreciation, and profit sharing during refinancing or sale events. Returns depend on factors such as occupancy rates, operational improvements, financing terms, and market conditions.
What Makes Mobile Home Parks Attractive During High Interest Rates?
Mobile home parks often remain resilient during periods of high interest rates because they provide affordable housing options for tenants. Investors can also find motivated sellers, seller financing opportunities, and underperforming assets that create strong value add potential despite tighter lending conditions.
What Should Investors Look for in a Mobile Home Park Syndication Deal?
Investors should evaluate occupancy levels, tenant quality, rent growth potential, deferred maintenance, infrastructure condition, management experience, financing structure, and market demand. Understanding whether the community contains tenant owned homes or park owned homes is also critical for assessing operational risk and profitability.
Can Beginners Invest in Mobile Home Park Syndication?
Yes, beginners can invest passively in mobile home park syndications as limited partners. This allows investors to gain exposure to commercial real estate without actively managing properties. Many investors use passive investing as a way to learn the business before eventually becoming operators themselves.
Why Are Mobile Home Parks Considered Recession Resistant?
Mobile home parks are often considered recession resistant because affordable housing remains in demand regardless of economic conditions. During financial downturns, many renters seek lower cost housing alternatives, which can increase demand for manufactured housing communities and stabilize occupancy levels.
00:00:59:18 – 00:01:24:24
Rod Khleif
Welcome back to the new version of Multifamily Rockstars. And maybe you haven’t heard, but because of feedback, because we’re always asking for feedback from you guys and the fact that we’re always trying to make things better, you know, constant and never ending improvement. We’ve decided to make these episodes more deep dives into our guests deals, and really give you more practical and actionable items for you to get started and to actually for yourself to do your own first deal, especially if you’re new to multifamily.
00:01:25:02 – 00:01:28:24
Rod Khleif
Now, of course, I’ve got my co-host, Mark Nagy here with me. Hey, Raj, what’s going on?
00:01:28:24 – 00:01:38:09
Tim Davis
I don’t know about you, but, I’ve been super busy with so many, price reductions on deals lately. My whole inbox is filled with brokers lately, so things are going that way now.
00:01:38:09 – 00:01:57:06
Rod Khleif
We’ve got a we’ve got a deal under contract in San Antonio that just an absolute screaming deal. In fact, on that note, let me just say this. If you’re accredited, text the word partner to 72345 to check it out. I mean, it’s it’s extraordinary. The one next door sold for 137,000 a door, and we’re getting this one for 100.
00:01:57:12 – 00:02:17:17
Rod Khleif
It’s just an unbelievable deal. Deals are starting to come. Well, listen, we’ve got a great interview for you today. He’s actually a bestselling author. His name is Tim Davis, and he’s a real estate broker. He’s a licensed GC building contractor, real estate investor. And he owns and operates his own, real estate brokerage and property management company.
00:02:17:19 – 00:02:35:17
Rod Khleif
He’s got, you know, he’s in quite a few doors as a limited partner. Almost 700 is limited partner. He’s got his 60 doors himself that he owns himself and, and he’s done his syndication on a mobile home park, which we haven’t talked about before here, which is. Which is unusual. Not unusual, but unusual to be on this show.
00:02:35:19 – 00:02:39:01
Rod Khleif
So, his name is Tim Davis. And, welcome, brother. Good to see you.
00:02:39:04 – 00:02:40:11
Mark Nagy
Thanks, rod. Appreciate it.
00:02:40:12 – 00:02:54:10
Rod Khleif
Glad you’re here. Glad you’re here. So why don’t you take a few minutes and just kind of give us some background on you? You know why? Real estate and, you know, kind of kind of bring us from a little bit about your past and bring us current.
00:02:54:13 – 00:03:18:19
Mark Nagy
Sure. Yeah. So I, I kind of fell into real estate when I was really young. I, I was, 18 when I bought my first rental property, and it was kind of an accident, accidental landlord back then. But it really intrigued me because I was, you know, 18 years old, married with a couple of kids, and, and we were,
00:03:18:21 – 00:03:24:02
Rod Khleif
Wait a minute, wait a minute, wait a minute, wait a minute, wait a minute, wait a minute. Did you say 18 and married with a couple kids?
00:03:24:04 – 00:03:24:12
Mark Nagy
Yeah.
00:03:24:15 – 00:03:27:05
Rod Khleif
Holy cow, you didn’t waste any time, brother.
00:03:27:05 – 00:03:52:18
Mark Nagy
Well, got married young, but, Yeah, I dropped out of high school, got married, and we were struggling, and. And I was able to buy my first rental property, and I actually bought it from my dad, who was, assembly God minister. He he, tried to get into real estate, but he he just didn’t make it. So he sold me my first rental property, which was pretty cool.
00:03:52:18 – 00:04:23:23
Mark Nagy
And I love the experience of getting, cash flow from it. And so I started working on, learning more and more about it as I went on. And so I’ve been doing this for quite a long time, 40, 40 to 43 years now. Wow. And wow. It’s been great experience and really and enjoyed my real estate journey of, work through construction.
00:04:24:00 – 00:04:51:10
Mark Nagy
And I did a lot of construction in my early days and then, worked, worked into actually getting my brokerage license probably 15 years ago and started a property management company, and we managed about 500, rental properties in Central Florida. And I started buying up a lot of rental property myself. And, and, right after the crash of 2008, 2009.
00:04:51:12 – 00:05:34:23
Mark Nagy
And, and so, was able to kind of semi retire about five years ago. And then I joined the warrior program probably three, three years ago because I really wanted to learn about, multifamily and really get into that. I had not been in that space in the past. And so, that’s when I jumped in as an LP, several deals and, and then we just did our very first, syndication on our own with, small mobile home park, which I thought was kind of interesting because it would have been hard to finance that through a bank.
00:05:34:23 – 00:05:57:21
Mark Nagy
So we ended up, getting 100% of the funds from our limited partners, and we’re giving them the, preferred rate of return from day one. We started giving them their preferred rate of return, just like we would have been paying a bank for, for a loan. So we decided to send them the money instead. And it’s been a pretty good, pretty good deal.
00:05:57:21 – 00:06:02:10
Mark Nagy
Everybody’s enjoyed that. They’re really, anxious to do the next deal with us.
00:06:02:10 – 00:06:06:00
Rod Khleif
So nice. Now, are you in Lakeland or where are you?
00:06:06:01 – 00:06:11:12
Mark Nagy
Yeah, yeah, I live in, like, I’ve been in, like 1976, so I’ve been here a long time.
00:06:11:13 – 00:06:27:19
Rod Khleif
Oh, you said Central Florida, and I’m like, yeah, that’s about as central as I could think of. Good guess. Okay. I didn’t know that. Or if I if you told me, I’d forgotten. Forgive me, but, forgot what I had for breakfast already. So. But. So you started in 2008, and nine. That’s good timing. Yeah. Good for you.
00:06:27:21 – 00:06:39:21
Rod Khleif
You know, I was I was hiding under a rock then, and, Yeah. So, so, you know, you’ve been in the warrior program. Have you been to a warrior event where we do the networking, all that business?
00:06:39:21 – 00:06:42:22
Mark Nagy
Absolutely. I go to every single one that you have.
00:06:42:24 – 00:07:01:05
Rod Khleif
All right, all right. Well, the reason I’m asking is we just had an interview, and, and, you know, she talks about being overwhelmed there in the networking piece, you know, because I tell everybody, do you want your superpower? Go meet other people. That’s one of the biggest benefits, would you agree of the of the of the events like that?
00:07:01:07 – 00:07:18:18
Rod Khleif
Now, guys, you can do this on your own. Go to meetup groups, go to, you know, get out there and meet people. But you’ve got to, you know, in this business, you got to line with people that shore up your deficiencies and, and and you know, you get get these symbiotic relationships like the most common is somebody that’s analytical with someone that’s outgoing.
00:07:18:20 – 00:07:25:15
Rod Khleif
But you know what? What is your experience been in the in the whole networking piece. So do you find that’s a skill set of yours?
00:07:25:17 – 00:07:55:24
Mark Nagy
Yeah. I love I love networking with, the guys at the warrior, especially lunchtime and dinner time. Those are some of the best times because you get together with them and just start talking about deals, finding out what they like to do. You know, as, as far as is my, superpowers, I guess we call them. And in the warrior program, you know, I’m, I, I’m a I love the structured deals, and I love to, solve problems.
00:07:56:01 – 00:08:08:05
Mark Nagy
I am not the detail guy that’s going to crunch the numbers and, you know, but I’ll look over the numbers once they’re once they’re there. But I’m I’m not the guy that’s gonna do all the underwriting.
00:08:08:07 – 00:08:08:21
Rod Khleif
Same here.
00:08:08:21 – 00:08:10:07
Mark Nagy
Probably the same, like.
00:08:10:09 – 00:08:18:15
Rod Khleif
Same here. Oh, yeah, I know, I listen, you know, we just throw those guys in a row in a room with a spreadsheet and throw a raw meat in once in a while. Keep them happy.
00:08:18:15 – 00:08:39:06
Tim Davis
Right now, walk me kind of through that process of figuring that out, because obviously you did a bunch of passive investing as an LP and then obviously, you know, you did the deal. What was the what’s the idea on the LP deals? Was that so that you could learn and kind of help figure out your super power, or was it just getting rid of some cash that you had that.
00:08:39:06 – 00:09:05:22
Mark Nagy
Well, yeah. No, it it was, you know, when I joined the program, you know, I wanted to get involved right away. And so I started talking to my coach and different people in the program, and, and they they suggested, you know, join, LP deal. So I was kind of anxious to do one. And, I think I jumped into one that that was kind of not well thought out.
00:09:05:22 – 00:09:26:17
Mark Nagy
But, you know, interestingly enough, it it ended up turning out real well. I’m thinking about it. I’m getting actually, they’re they’re giving us back our capital this month, and we’re getting about a 22% return on our investment, annual investment for 15 years. Yeah.
00:09:26:22 – 00:09:29:16
Rod Khleif
So I wouldn’t bitch about that too much. Yeah, yeah.
00:09:29:19 – 00:09:47:04
Mark Nagy
And, not at all, but but it was kind of a, it was kind of a weird deal. Wasn’t a warrior that that did it at first. I think he did join the program after a while, but but I was anxious to get into a deal and it was close by my home. It wasn’t too far away, so I.
00:09:47:05 – 00:10:06:14
Mark Nagy
I jumped into it and I had to help the guy along quite a bit because I do have a lot of it was a conversion, motel to to multi-family conversion interest. Oh, wow. Got a lot of experience in construction. So I knew I knew what he was facing. And so I helped him out a lot on that.
00:10:06:16 – 00:10:16:24
Mark Nagy
Even as an LP, I didn’t have any, you know, I didn’t have any responsibilities as a GP, but I kind of helped him through some, some issues and got them straightened out.
00:10:16:24 – 00:10:23:20
Tim Davis
And you’re a good LP to have as a passive investor. I bet he’s, he’s thankful that he brought you in on that deal then. Yeah.
00:10:23:22 – 00:10:46:02
Rod Khleif
Yeah. You know what types of listeners, would be able to relate to you, do you think? Tim, you know what? You know, we’ve got so many different personality styles, that listen to this show. You know, we’ve got analytical people, we’ve got, you know, more outgoing people, we’ve got more process driven people. We’ve got business owners and, you know, everything in between.
00:10:46:02 – 00:10:46:23
Rod Khleif
So.
00:10:47:00 – 00:11:08:11
Mark Nagy
Yeah, I who do you I, I think people that can relate to me are probably people that have like entrepreneurs that have gone through this. The school of hard knocks. You know, I meet a lot of guys at the Warrior program who are engineers. They got degrees and all this stuff. I don’t have that. I’ve just been in the school of hard knocks.
00:11:08:11 – 00:11:24:18
Mark Nagy
I’ve been through it and, you know, and so that’s that’s the that’s the kind of guy, you know, or guy or girl. It’s like, if I can do this, anybody can do it, you know, that kind of that kind of thing. That’s the way I look at it.
00:11:24:18 – 00:11:32:17
Tim Davis
So out of curiosity, what what made you decide to even join a group like ours instead of continuing with the, the School of hard knocks and multifamily?
00:11:32:19 – 00:11:56:24
Mark Nagy
I’m one of those people that I love to to continually educate myself. I’ve always been, self educator. And and I know one thing that if I can jump in to a program and I have, a teacher or a mentor or somebody that I can, that I can follow behind, that I can do what they’ve done or, you know, something similar to it.
00:11:56:24 – 00:12:12:04
Mark Nagy
And so that’s why I joined the warrior program, because I, I had read Rod’s book and I had, you know, watched some of the podcasts and been familiar with what he had done, how he came to area, in Polk County.
00:12:12:06 – 00:12:15:04
Rod Khleif
I sure did. Oh, that’s funny there. That’s right.
00:12:15:06 – 00:12:23:02
Mark Nagy
Yeah. I was really impressed with your presentation. Those those next. And okay, that’s why I joined.
00:12:23:04 – 00:12:39:06
Rod Khleif
Yeah. I think the last time I was a little annoyed because I drove I mean, it was like two hours each way for me. And there were like 13 people there. I’m like, oh my God, are you kidding me? And I didn’t get home till like, midnight. Yeah, I remember now. That’s funny. That’s really funny. So let me.
00:12:39:07 – 00:12:57:00
Rod Khleif
Yeah. Let me ask you this. What do you think is your superpower? You know, because we talk about superpower. We use that word because everybody that, you know, this is a team sport, you bring your superpower to the team and you align with people that you know that that are, you know, stronger where you’re not as strong. What what what do you think you bring to a team, buddy?
00:12:57:04 – 00:13:01:05
Rod Khleif
I mean, besides construction, we know you’re great at that, obviously, because, you know, you mentioned.
00:13:01:05 – 00:13:25:02
Mark Nagy
Earlier that the the construction knowledge is one of the things that, that I can bring to the team. You know, helping structure deals. I know a lot of people, too. I can bring a lot of capital to the to the table. That’s how I did the, mobile home park. You know, those were all people that I knew that put together.
00:13:25:07 – 00:13:49:19
Mark Nagy
And, we raised, you know, about $2 million in 30, 30 days or less. Nice. You know, so those are some of the things that I can I can bring to the table if, you know, if somebody wanted me to come alongside them and help, definitely understanding construction is probably one of the strongest things that I have.
00:13:49:21 – 00:13:50:17
Rod Khleif
Yeah.
00:13:50:19 – 00:14:08:15
Tim Davis
Speaking of this deal, correct me if I’m wrong on any of this. You have kind of a an interesting story jumping into this of how you found this deal. I think you you mentioned you found it, you were underwriting an Atari, I think, and you liked it. Tell the story about how you found and where you found it, where you even got the deal from.
00:14:08:15 – 00:14:11:08
Tim Davis
And then we kind of jump into the deal further from there.
00:14:11:10 – 00:14:35:10
Mark Nagy
Yeah. So. So I am the focus group leader for a different CPH or a different, Ria it’s called the Central Florida Real Estate Association. It’s from Orlando, and I’ve been the focus group leader for the landlord ING group. They have this group, we meet once a month and we, we talk about landlords and being a landlord and different issues like that.
00:14:35:12 – 00:15:02:24
Mark Nagy
So one of the, or twice a year, I usually have, have it set up where we do a little segment called Deal or No Deal. And for that I, we do some real quick underwriting. It’s nothing that it’s, you know, it’s nothing real intense. But we I give them some ideas of how to look at a deal and determine whether or not there’s potential there that you want to look at a little bit closer.
00:15:03:01 – 00:15:29:24
Mark Nagy
And so I found several several like duplexes, quads, you know, different things on the MLS. And I actually found two mobile home parks, and it was on the Multiple Listing Service. And I was like, man, let me take a look at these. So we took a look at them and as I was presenting them at, at the focus group and we were going through the numbers, I was like, there might be a deal here.
00:15:30:01 – 00:15:51:16
Mark Nagy
And so I actually started looking at it a little bit closer, and I actually put both of the mobile home parks under contract and started our due diligence on both of them. One of them dropped out. It was it was not, not represented properly because the guy that was trying to sell it, I think he’s trying to pull a fast one on us.
00:15:51:18 – 00:16:17:18
Mark Nagy
But the other one, it was a mom and pop and, it was hard to get some of the information out of them, but that being, that I’ve done this a long time and I’ve, you know, I’m pretty good at and negotiating. I actually pulled the information out. Got it got it all put together, did our underwriting and, and I felt pretty confident that this deal was something that we could do.
00:16:17:18 – 00:16:25:22
Mark Nagy
So we went ahead and move forward and and, closed it in May of last year, and it’s been a pretty good deal.
00:16:25:24 – 00:16:46:21
Rod Khleif
I’ll tell you when you, find a deal that it’s hard to get the information on, get excited because everyone else gives up. Oh, yeah. And and and and if you if you push through, you know, you can you can find a phenomenal deal that way. And that’s pretty interesting how you found that deal. Talk a little bit more about the actual asset.
00:16:47:01 – 00:17:02:05
Rod Khleif
You know. And what let’s do. We can talk about mobile home parks a little bit. I know quite a bit about them, although I’ve never owned one. My brother has owned hundreds of, of spaces and has been involved in the management of thousands of spaces. So I know a lot about the asset class.
00:17:02:07 – 00:17:14:05
Mark Nagy
Well, one one interesting thing, I do have some mobile home experience because, back when I was 18, 18 to 25, I worked in a mobile home factory, so I actually. Oh, no kidding. Now they’re put.
00:17:14:05 – 00:17:24:11
Rod Khleif
Together in Central Florida. Yeah, yeah, they have them there. It’s like they just there’s like a conveyor belt. A frickin mobile. Homes go down the line and they add things all the way down the line. Oh that’s awesome.
00:17:24:16 – 00:17:31:07
Mark Nagy
I actually had a little bit of experience, so I know how they’re put together. But anyways, cheap.
00:17:31:09 – 00:17:33:19
Rod Khleif
Yeah, but like.
00:17:33:21 – 00:17:56:16
Mark Nagy
Yeah, but, this one, all the mobile homes are owned by the park, so it’s, it’s all like having an apartment complex. We had to we had to do our due diligence by inspecting these things because there was some deferred maintenance. And I saw quite a bit of it, but I wasn’t scared of it because I know how they’re put together, and I know what what to do to fix them.
00:17:56:22 – 00:18:14:04
Mark Nagy
And, the, the tenants that they had were very, had very bad habits. Let me put it that way. So we, we had to really start just culling them out as soon as we got in there.
00:18:14:07 – 00:18:17:07
Tim Davis
Like what? Like paying late or not paying on time.
00:18:17:07 – 00:18:49:01
Mark Nagy
Like, what’s paying it all? Paying late, not paying at all. Yeah, there was there was quite a bit of issues. I don’t think that 50% of the people were not qualified to be in there. Wow. Because Mom and Pop that were running before they they had a very poor system of, of qualifying people. And we’ve got a professional management company that, that, that we that I own and, and so we, we know how to actually do that.
00:18:49:01 – 00:19:10:12
Mark Nagy
So we were able to turn it around pretty quick. We still got about 2 or 3 units that that need some rehab. And then we’ll have it all full by the end of this first quarter. But, it it’s a little challenging at first because of the, of the bad habits and the, you know, the, the clientele that was in there.
00:19:10:14 – 00:19:31:19
Rod Khleif
Well, I’ll tell you, you know, the common business model is not to do what you’re doing. It’s to actually convert them to lot rent and have them on the home that, you know, and all that. What you’re doing is, is more challenging. And I you know, that’s why when you told me it was a mobile home park, I asked you if you lived near it because you’d be managing and you told me I had a management company, which of course makes that a whole lot easier.
00:19:31:19 – 00:19:57:00
Rod Khleif
But, you know, they are they are tough to manage and and typically with a mobile home park, you, you know, I wouldn’t consider one of us. It was at least 50 spaces so I could have an on site manager. And so that’s why I asked the question. And like I say, you know, my knowledge of these things is, is as you go in, you’d see if the numbers make sense, if you can sell them the home and then they’re paying you, you know, a fee for the home.
00:19:57:00 – 00:20:05:17
Rod Khleif
And they’re paying you lot rent and all that. And and that’s a more common approach. But, you know, with a management company, with a management company, you can make it work. Yeah.
00:20:05:19 – 00:20:24:10
Mark Nagy
Yeah, I’ve seen the approach that you that you’re talking about I’ve seen that before. The only problem that I see with with that sometimes and depending on the, the condition of the mobile homes, if they’re in rough condition already and you sell them to somebody, they’re not going to maintain them and they’re just going to probably go downhill.
00:20:24:12 – 00:20:48:22
Mark Nagy
So yeah. So, you know, what we’re doing is, is doing some repairs, doing some, some, fixing the deferred maintenance that was on all of them and trying to get them up to speed. We could convert it later once we, you know, once we get them all in good operational order. But, for right now, but, you know, we’re we’re doing all right.
00:20:48:22 – 00:20:51:10
Mark Nagy
The way we, we have is working.
00:20:51:12 – 00:21:08:17
Tim Davis
Well, I see your five year projections here on this deal. You’re almost going to double double rents. Which would be crazy. And from what I’m hearing, again, you correct me if I’m wrong. If we could go a little deeper, it sounds like it’s very similar to a multifamily value add and that you’re just managing it better, increasing rents, bringing in new tenants.
00:21:08:17 – 00:21:14:06
Tim Davis
Is that the entire play on this deal, or is there something else that’s bring it on so high that we’re missing?
00:21:14:08 – 00:21:38:22
Mark Nagy
No, I mean, it was under the the rents were low when we got it. We knew they were low. And that’s what made it appealing because we knew we could get higher rents. But it’s still affordable living. You know, it’s not this is not even like your average rent. Polk County I think it’s about $1,500. So we’re around 1100, per door there, maybe a little bit more.
00:21:38:23 – 00:21:41:13
Rod Khleif
But single wides are double wide.
00:21:41:15 – 00:21:42:22
Mark Nagy
They’re single wides.
00:21:42:24 – 00:21:44:20
Rod Khleif
Oh wow. And you’re getting 1100.
00:21:44:22 – 00:21:47:16
Mark Nagy
Holy crap. Yeah, I know, wow.
00:21:47:20 – 00:21:49:05
Rod Khleif
I don’t even know what to say to that.
00:21:49:05 – 00:22:04:23
Tim Davis
Holy cow. Now that’s funny that you mentioned this deal was on the MLS. Was this with a commercial broker that this just happened to be overlooked, or was this with a residential broker that came across this deal? How how did this deal get overlooked, do you think by other investors.
00:22:04:23 – 00:22:16:15
Mark Nagy
The the broker that had it was a friend of the owner. So yeah, she was she was more a residential residential realtor.
00:22:16:17 – 00:22:47:23
Rod Khleif
She really and that’s that’s actually I sorry to interrupt. That’s actually a ninja trick honestly, is to get aligned with residential brokers in a market. I can tell you it’s really interesting that where it’s at, because, you know, Kevin Bup is right. He is that he had a mobile home park, course. And all of that stuff. And I, I was actually went to one of his events in Orlando, which is right down the road, and we went to look at a like a 100 and some space park that he had bought, in orange, orange something, Florida.
00:22:47:23 – 00:23:10:12
Rod Khleif
It was I just know it was Orange County. I feel like it. Then the city name had orange in it. But anyway, it was $2 million and he found it in the residential MLS because the broker didn’t have a clue what to do with it. You know, by the way, guys, what what what happens is someone will buy a house from a residential broker, but maybe they’ve got a mobile home park in this case, or a ten unit, eight unit six unit 20 unit.
00:23:10:14 – 00:23:30:03
Rod Khleif
And they’re going to go to that residential broker to sell it, who hasn’t got a freaking clue how to sell it. So they’ll throw it in the residential MLS and you can get phenomenal deals. So, you know, one of the things I teach in my bootcamp is connect with a residential broker in your submarket. And, and you can, you know, you can get deals nobody else has seen.
00:23:30:05 – 00:23:32:17
Rod Khleif
So yeah. All right. That’s good.
00:23:32:19 – 00:23:39:18
Tim Davis
The best way to do that Tim, you can give your advice. Did you yourself have access to the MLS or did you have a broker that.
00:23:39:18 – 00:23:43:00
Mark Nagy
You worked on? I’m a licensed broker. Yeah okay.
00:23:43:02 – 00:23:44:16
Tim Davis
So you had direct access then.
00:23:44:22 – 00:23:45:05
Mark Nagy
Yeah.
00:23:45:06 – 00:23:49:06
Tim Davis
So that kind of gave you a little bit of an advantage just digging into the MLS yourself then.
00:23:49:08 – 00:23:50:05
Mark Nagy
Right.
00:23:50:07 – 00:24:00:16
Tim Davis
But I would say another good tip. Just on top of that, if you don’t have access, find a residential agent or somebody that can give you access. So that way you can find those people because otherwise it’s rough.
00:24:00:18 – 00:24:11:17
Rod Khleif
Oh hold on not not give you access necessarily, but put an alert in that if any multifamily property hits the MLS, they’ll let you know and you’ll take care of them. They’ll write the contract.
00:24:11:17 – 00:24:12:15
Tim Davis
Depends where you live. Yeah.
00:24:12:15 – 00:24:22:23
Rod Khleif
No no no. Yeah yeah. So, okay. So let me ask you this. What’s a hot topic in multifamily that everybody’s talking about right now?
00:24:22:23 – 00:24:45:14
Mark Nagy
The the hottest topic that I’ve seen lately is, you know, the interest rates being so high, it’s it’s made it very difficult. So financing has made it difficult for to make the numbers work. You know, that’s why, you know, I was looking at your deal. In fact, I think I’m going to invest in in your, deal in San Antonio.
00:24:45:16 – 00:24:48:20
Mark Nagy
Yeah. Because you got that, That’s doable.
00:24:48:22 – 00:25:06:21
Rod Khleif
Well, yeah. Yeah. I’ll describe that deal real quick. So we’ve got a 296 unit asset a mile away from this, one mile and a half away, and this is 200 units, and these units are much nicer than the one we have, which is always in the 90% plus range occupancy. I mean, the units are larger. They all have fireplaces.
00:25:06:21 – 00:25:27:03
Rod Khleif
They all have washer dryer hookups, none of which we have in the other asset. And this on a lake. We’ve got 37 units on a lake. But but we’re assuming a four and a four plus percent interest rate. That’s still got seven years on it. Which is a fantastic loan. So it’s, it’s great debt. 37 units on the lakefront.
00:25:27:03 – 00:25:46:23
Rod Khleif
If I didn’t say that already. You know, it’s a it’s a nice. And the unit that built that. I’m sorry. The, asset next door sold for 137,000 a unit, like a year and a half ago. One across the lake. Sold for 120,000 a unit. They’re same vintage. And this. We’re getting this one for 100. I mean, it’s a screaming deal.
00:25:46:23 – 00:26:05:22
Rod Khleif
So very, very exciting. I need some work. We gotta roll our sleeves up. We’re putting a ton of CapEx into it, a ton of renovation cost. But I mean, they’re going to be really nice. And we’re done. So very excited about it. And yeah, by the way, if you’re a, an accredited investor, text the word partner to seven, two, three, 4 or 5 and let’s talk about it because we still got a little room left.
00:26:05:22 – 00:26:26:22
Rod Khleif
I mean, it’s getting close to being full, but there’s still some room left on it. Yeah. You know, you talk about the debt and, you know, it’s, it’s it’s creating opportunity and there are deals coming. So, you know, I think, if if there was a time to get in this business, it is right frickin now because we’re already seeing the deals, and and there’s going to be a lot more.
00:26:26:22 – 00:26:29:04
Rod Khleif
So you know, very exciting, exciting time.
00:26:29:04 – 00:26:36:07
Mark Nagy
That one right now. Close, close by that, we got some seller financing available on it at 5%.
00:26:36:09 – 00:26:54:21
Rod Khleif
So see, that’s happening more often too because it’s the sales are way down. So what we’re talking about with this bad debt guys is, you know, if you’ve got loan that’s coming due or you’ve got one of these bridge loans that’s adjustable and you’re getting killed with the payments, you know, if you either have to sell or refinance neither one or easy.
00:26:54:21 – 00:27:18:10
Rod Khleif
Right now, sales are down 8,590%. Number one, refinancing is hard because you have to pay what’s called a rate cap. And I’ll give you an example of what’s happened with rate caps. If you were in 2020 and you had a $100 million loan and you wanted to cap the interest rate for three years at 3%, okay, three year rate cap, 3%, that was around $23,000 in 2020.
00:27:18:12 – 00:27:37:14
Rod Khleif
Okay, that same rate cap today. Alyssa’s still eight months ago when I saw this. So it’s probably worse than that now. But $300 million loan for one year is 2.3 million. Okay, to give you an idea. And you got to buy these two to to manage the the risk on these loans. And people don’t have that kind of money.
00:27:37:14 – 00:27:56:15
Rod Khleif
And then, you know, because the interest rates have gone up and their payments have gone up, they don’t qualify to refinance anyway. So a lot of deals that are in big trouble. So, you know, again, we’ve, we’ve set up an opportunity fund to, to, to, you know, hopefully capitalize on some of these deals. And, you know, I think, I think there’s a lot of opportunity coming.
00:27:56:15 – 00:28:07:15
Tim Davis
So yeah. Tim, tell us about that without giving maybe specifics on location, anything like that. What tell us about this deal. Is that a multifamily deal? Why are they selling. Where did you find it.
00:28:07:17 – 00:28:41:20
Mark Nagy
Yeah it is yeah I won’t I won’t give too many details because we don’t have it under contract yet. We’re still in the beginning process, but it’s, it’s a group of duplexes that, guy built, years ago with when he was building another community. And I think there’s 150, 158 or something like that. And so he he’s got it’s free and clear and, he, he built it along with this other community that he actually sold off.
00:28:41:20 – 00:28:48:09
Mark Nagy
And he kept this community, and he’s been renting it out, and he’s just, tired, landlord ready to to move.
00:28:48:09 – 00:28:58:13
Rod Khleif
Oh, my God, what a screaming deal. Holy cow. How exciting is that? Well, listen, let me ask you a question. You know, I know you joined the warrior program. How have you enjoyed it? Has it been good?
00:28:58:15 – 00:29:12:03
Mark Nagy
Absolutely. Yeah. Yeah, I really enjoyed it. I go, every time you have one of the warrior only pro, the events I really like those. Yeah, the other ones are good too. But the warrior only events are phenomenal.
00:29:12:05 – 00:29:30:16
Rod Khleif
It’s all warriors, and it’s an incredible group. By the way, guys, if you’re interested in applying to the program, text the word crush to seven, two, three, 4 or 5, and, and that’s how you apply text crush to seven, two, three, 4 or 5. You know, I think my warriors own somewhere between 180 and 190,000 units that we know of.
00:29:30:16 – 00:29:34:17
Rod Khleif
We can’t keep track anymore. But, it’s it’s not insignificant. And by the.
00:29:34:17 – 00:29:44:17
Tim Davis
Way, on that topic, we have a warrior event coming up in two months, in Florida. So if you’ve been considering something like this, now might be a good time because we’ve got one coming up here shortly.
00:29:44:19 – 00:29:58:06
Rod Khleif
Yeah. In April. Yeah. Now we’ve got a warrior event here in Sarasota, which it’s an awesome venue that we do it at to the west. And it’s been a lot of fun. We’ve been there 2 or 3 times already, so. Yeah. Yeah. Well, anyway, Tim, thanks for coming on the show, brother. That’s been a lot of fun.
00:29:58:06 – 00:30:12:18
Rod Khleif
I really appreciate you sharing your wisdom. And, you know, looking forward to seeing, seeing where you were at a year or two from now, which I’m sure will be extraordinary. And that deal you’re working on sounds familiar. You get it? Yeah. Take care. Brother, I appreciate you.
00:30:12:18 – 00:30:14:11
Mark Nagy
All right. I’ll see you in April.
00:30:14:13 – 00:30:16:08
Rod Khleif
All right. Thanks. Thanks. Take care.
