Blog Summary:
Mobile Home Park Investing Value Add with Ray Fang
Mobile home park investing value add strategies are becoming a powerful path for investors seeking strong returns, recession resilience, and alternative commercial real estate opportunities. In this episode, Ray Fang shares how he built a portfolio of nine mobile home parks and three industrial parks in under three years, while still working full time as a CFO. His insights highlight why mobile home parks continue to stand out as a niche asset class with high demand, limited supply, and favorable long term fundamentals.
Why Ray Fang Is Winning in Mobile Home Park Investing
Ray Fang’s engineering background, corporate finance experience, and analytical skill set positioned him perfectly for mobile home park investing value add opportunities. After moving to Florida, he conducted a thorough two year study of multiple commercial asset classes before committing to mobile home parks and industrial flex. His 10–10 goal of multiplying his net worth 10x in 10 years led him to search for recession resistant assets with strong cash flow and scalability.
Ray explains that the U.S. has a massive shortage of affordable housing, creating consistent demand for mobile home communities across all market cycles. Because cities rarely approve new mobile home parks, existing properties experience ongoing scarcity, preserving long term appreciation potential. He also emphasizes the significant tax benefits due to accelerated depreciation and cost segregation.
How Ray Executes High-Return Value Add Strategies
Many of Ray’s best deals began as distressed, poorly managed, or under-rented mobile home communities. His value add process typically includes safety upgrades, full property cleanup, new fencing, new skirting, fresh paint, security cameras, and consistent enforcement of community rules. By improving the environment within the first 90 days, Ray builds tenant trust before adjusting rents to market levels.
Ray shares examples of dramatic repositioning results. One park purchased for $1 million with seller financing was improved with $100,000 in renovations, converted to online payments, and resold 18 months later for $2.4 million. This created a 500% return on invested capital, illustrating the power of combining operational improvements with below market acquisitions.
Scaling Through Seller Financing, Operations, and Partnerships
A major theme in the discussion is how seller financing has unlocked scale for Ray’s team. Nearly all of his parks were purchased creatively with modest down payments and flexible terms. This allowed him to avoid the insurance challenges associated with lending on mobile home parks in Florida. By choosing to self-insure the physical homes and setting aside reserves, he kept leverage high and avoided restrictive underwriting hurdles.
Ray also explains how partnering with experienced operators, particularly his business partner Joe White, enabled him to expand into industrial flex properties. Their first industrial acquisition, a 77,000 square foot building in Sanford, Florida, was purchased for just 5 percent down with a 40 year amortization schedule. They are now repositioning it as a modernized facility for their growing manufacturing business.
Guest Bio: Ray Fang
Ray Fang is a commercial real estate investor based in Orlando who specializes in mobile home park value add and industrial flex properties. With a PhD in engineering, an MBA from NYU, and over a decade in corporate finance, Ray blends analytical rigor with a hands-on operational approach. His portfolio includes nine mobile home parks and three industrial parks, totaling over 110,000 square feet. Ray is also the CFO of a manufacturing company and a dedicated member of the Warrior Group.
If you want to hear the full conversation and detailed insights, watch the podcast video or read the complete transcript below.
What is mobile home park investing value add?
Mobile home park investing value add refers to strategies investors use to increase the income or value of a mobile home park, such as raising lot rents, improving infrastructure, reducing expenses, or adding amenities.
Why are value add strategies important in mobile home park investing?
Value add strategies allow investors to maximize returns by increasing cash flow and property value, often creating a competitive advantage in markets with stable demand.
How can I identify value add opportunities in a mobile home park?
Look for underperforming parks with below-market rents, deferred maintenance, outdated amenities, high vacancy rates, or inefficient management practices.
What are common value add strategies for mobile home parks?
Common strategies include lot rent increases, adding or upgrading utilities, improving roads and landscaping, adding community amenities, and streamlining property management.
How do I finance a mobile home park value add project?
Financing options include traditional commercial loans, seller financing, private equity partnerships, or bridge loans, depending on the scope of improvements and investor experience.
What risks should I consider when doing a value add mobile home park investment?
Risks include resident turnover, local regulations on rent increases, unexpected infrastructure costs, and market demand fluctuations.
How long does it take to see returns from a mobile home park value add strategy?
Returns vary, but investors typically see increased cash flow within 12 to 24 months, depending on the scope of improvements and lease adjustments.
Can small investors get started with mobile home park value add investing?
Yes, small investors can participate through partnerships, syndications, or by starting with smaller parks, gradually scaling as they gain experience and capital.
Disclaimer: This summary was written with the help of AI and reviewed by Rod’s Team.
00:00:28:24 – 00:00:48:15
Rod Khleif
Welcome back to multifamily rock stars. Now, these episodes are where we deep dive into our guest deals and give you some practical and actionable items for getting started and doing your first deal, especially if you’re brand new to commercial real estate. And I used to say, especially if you’re brand new to multifamily, but we’ve been introducing a lot of other asset classes like last, the last show we did with senior housing.
00:00:48:19 – 00:00:58:02
Rod Khleif
This one is going to be about mobile home parks and, industrial flex space, industrial parks. As always, I’ve got my co-host, Mark Nagy with me. Yeah.
00:00:58:02 – 00:01:09:01
Mark Nagy
That’s why I’m so excited just to learn something new. I was I mean, you’re almost at 1200 episodes here, right? And like, I really talk about these these different asset classes. So it’s cool to have a guest where we’re going to learn about this stuff.
00:01:09:03 – 00:01:27:22
Rod Khleif
Yeah. No, I, I, I’m really looking forward to this. So I’ve got Ray Fong on the show today. Is a warrior that joined actually just under a year ago at the Orlando bootcamp, I believe. And, Ray is Ray is a rock star in the business. Already in mobile home parks and industrial parks. So we’re going to have a lot of fun today.
00:01:27:23 – 00:01:29:12
Rod Khleif
Welcome to the show, Ray.
00:01:29:14 – 00:01:32:03
Ray Fang
Thank you. Rob. I’m glad to be on the show.
00:01:32:05 – 00:01:54:03
Rod Khleif
Oh, well, I’m. We’re glad you’re here. So why don’t you give us a little background on your, you know, maybe, I don’t know if you’ve always been in real estate or if you were in something else before real estate. If you could maybe briefly describe that, if that’s the case, and then why you got into real estate and then just kind of bring us current with your, with your, real estate investments and portfolio.
00:01:54:03 – 00:01:56:01
Rod Khleif
So please take it away, my friend.
00:01:56:03 – 00:02:29:13
Ray Fang
My name is a Ray fan. I live in Orlando. I’ll start my, experience in real estate and go back to my background. My, side hustle in commercial real estate actually started in November 2022. My focus area has been in mobile home parks and industrial parks. So in the past three years, we have acquired, a portfolio of, nine mobile home parks and then three industrial parks.
00:02:29:15 – 00:02:34:06
Ray Fang
The three industrial parks add up to about 110ft².
00:02:34:08 – 00:02:36:14
Rod Khleif
110,000ft².
00:02:36:16 – 00:03:13:06
Ray Fang
Correct. Behind that, 110,000ft². All in Central Florida. And then my, specialties are really, in deal sourcing negotiations and, and underwriting. Also, I learned a lot in the past few years in operations of commercial real estate. My background before joining, or switching to, real estate was, in corporate finance. And then before that, I was a, material scientist specialized in semiconductors and then microcomputer chips.
00:03:13:08 – 00:03:40:05
Ray Fang
I worked at IBM for over ten years, and then I moved from New York to Florida five years ago. I have an MBA from New York University and then a PhD in engineering. So over the past 20 years, I have reinvented myself multiple times. And then the latest reinvention of myself is, gradually switching into, commercial real estate.
00:03:40:07 – 00:03:41:03
Rod Khleif
I love it.
00:03:41:05 – 00:03:48:19
Ray Fang
I have a full time job, by the way. And, I’m a CFO of adult core manufacturing company in Florida, Central Florida.
00:03:48:21 – 00:04:11:00
Rod Khleif
So you’re not very smart? Yeah. Yeah. Slack from slacker. We got a slacker on today. Yeah. No. Wow. That’s impressive, buddy. That’s very impressive. The fact that you’ve got that much of an educational background and, you know, and and, you know, and then you shifted to real estate. So what caused you to want to shift to real estate with with that pedigree?
00:04:11:00 – 00:04:15:10
Rod Khleif
Because that’s a very impressive, you know, resume that you’ve got there, my friend.
00:04:15:12 – 00:04:49:04
Ray Fang
Yeah. Thank you. I think it started from five years ago. I decided to, set myself a a plan. A very simple plan. I called it 1010, which means I wanted to ten times my net worth in ten years. Started from there. I spent about two years to explore different options because I knew, if I continue the W-2 job, I’ll be fully consumed by, by a full time job.
00:04:49:04 – 00:05:19:04
Ray Fang
I wouldn’t be able to have the bandwidth to embark on additional, income and also to reach my goal. That’s why I look into different investment areas, including stocks including crypto, including commercial real estate. After some research, I decided to go, in the direction of commercial real estate investment. Even within the commercial real estate investment arena.
00:05:19:08 – 00:05:53:15
Ray Fang
I studied different types of, commercial real estate, including apartments, multifamily, storage also included some distressed note, investment. Also mobile home parks. So that’s how I learned, mobile home parks from then. So basically, after two years of research and study, I set my direction to continue on commercial real estate and decided that’s a main, remedy.
00:05:53:15 – 00:05:59:21
Ray Fang
I’m going to, the main venue. I’m going to continue to, reach my 1010 goal.
00:05:59:23 – 00:06:16:08
Rod Khleif
Yeah, I love it. You probably already reached it, basically, based on the numbers you just throw out there. You know what, mobile home parks? I mean, I know the answer, but I’d like you to tell them instead of them hearing it from me because I. I know I studied mobile home parks literally for years. My brothers own numerous parks.
00:06:16:08 – 00:06:29:17
Rod Khleif
My best friend owns is, I think he’s 17th largest in the country, mobile home park operator at this point. So, it’s something I know a lot about. But I want them to hear it from you. So why mobile home parks?
00:06:29:19 – 00:06:43:23
Ray Fang
I think the mobile home parks itself has a, is in this unique, asset class. There’s a very, high demand of affordable housing across the nation.
00:06:44:04 – 00:06:45:10
Rod Khleif
And a shortage.
00:06:45:12 – 00:07:25:01
Ray Fang
And then a huge shortage in supplies. So that creates a large opportunities for us to step in and then to work on it, and then therefore, probably later on when we talk about the returns, it has huge, ROI investment returns at the same time, because there’s a shortage of supplies and because large mobile home parks have been bought out by large institutional investors and developers, and across the nation, it’s very hard to get approval to, develop new mobile home parks.
00:07:25:03 – 00:07:31:21
Rod Khleif
Oh, nobody wants them in their backyard, I mean, nobody, it’s just, you know, it’s so. Yeah, I get it. So that.
00:07:31:21 – 00:08:09:16
Ray Fang
Creates a very large scarcity. Basically, that means it will be down the road. The appreciation of the mobile home parks value will be tremendous. Additionally, I think it’s a niche market because the specific demographics of tenants may, discourage some investors to step in. So that creates additional, barrier to entry. On top of that, I have to talk about the tax benefit of mobile home parks, because mobile homes are having shorter depreciation life between 5 to 15 years.
00:08:09:18 – 00:08:39:20
Ray Fang
So where’s the ride cost segregation study and the bonus depreciation. That tax benefit is huge. Yeah. For my for myself personally I think a big factor is also the recession resistant because when the economy goes downturn people will be downsizing from large houses to apartments from apartments who, maybe mobile home parks may maybe the last resort of their, dwelling.
00:08:39:22 – 00:08:55:15
Ray Fang
So that creates a good, risk mitigation for my other part of my, commercial real estate portfolio, which is industrial parks. So that works very well in terms of my portfolio asset allocation.
00:08:55:17 – 00:08:56:08
Rod Khleif
Yeah.
00:08:56:10 – 00:09:18:07
Mark Nagy
Yeah, that’s very interesting. So so what have been some of the struggles that you’ve dealt with. Right. Because in my mind, when I think mobile home parks, you know, I think we’re probably all picturing like trailer parks that are beat up and bad tenants. So you mentioned all the good things about it. What have been some of the bad things that you’ve noticed about it over the past few years?
00:09:18:09 – 00:09:51:19
Ray Fang
The challenges really are, the dealing with the specific demographics of the tenants. So it’s very operationally heavy, lots of maintenance and then deferred maintenance and then repairs and then delinquencies in rent, connections. We have gone through that multiple times. But once you have a system set up and then you don’t mind to take on that heavy operations on mobile home parks becomes very sexy.
00:09:51:23 – 00:09:53:06
Ray Fang
Even they look like.
00:09:53:08 – 00:10:13:20
Mark Nagy
You know, so and you say, well, that real quick, real quick when you say repairs, are you talking about repairs to the actual homes? Because I know some people just own the land and have people park on those homes and they don’t do any repairs. So are you actually owning the actual homes on the land as well? When you’re doing these properties?
00:10:13:22 – 00:10:22:11
Ray Fang
Correct. And now I’ve got a mobile home portfolio. Almost 90 or more than 90% of the mobile homes are owned by us.
00:10:22:13 – 00:10:41:09
Rod Khleif
So that’s very unusual. Be correct that that’s very unusual. Right. I will tell you, you know, the, the the business model that most of the larger operators that I’ve had, you know, people like Frank and Dave, Frank all here on my couch, I’ve had in fact, I should have had you come here and just do it here.
00:10:41:10 – 00:10:55:24
Rod Khleif
My studio in Sarasota. I don’t even think about that. But anyway, since you’re so close. But, you know, I’ve had Frank. We’re all here. I’m sure you know, that is, I’ve had, you know, and of course, Kevin Bob, I don’t know if, you know, Kevin is one of my best friends. He owns many, many parks.
00:10:55:24 – 00:11:07:12
Rod Khleif
And their model is is is is not to have park owned homes just because of the maintenance and everything. So I have a question for you. Do you self-manage or do you have a do you have a management company manage for you?
00:11:07:14 – 00:11:27:22
Ray Fang
I self-manage I can’t even handsomely self manage the first, a few acquisitions myself because I had zero experience before. So I wanted to immerse myself and do all the daily operations to learn, all the details. Before I hire a, park manager.
00:11:27:24 – 00:11:49:09
Rod Khleif
Yeah, well, I will tell you a park or even before a park manager also. Oh, interesting. So not just a property manager or a manager on your parks. Well, so again, obviously your cash flow is going to be higher doing it the way you do it, but so is the brain damage. Because of these, these these mobile homes are not well built and they have tons of maintenance.
00:11:49:09 – 00:12:09:12
Rod Khleif
And of course, that demographic just beats the, you know, what, out of out of their homes. But listen, if it works, it works. I, I can tell you, I, I, I, I don’t envy the way you’re doing it because I know what’s involved. Because I’ve had lots of d class homes and and, and problem demographic properties.
00:12:09:12 – 00:12:13:11
Rod Khleif
But, you know, if you’re making it work. God bless you. Well.
00:12:13:13 – 00:12:25:05
Mark Nagy
Let’s talk about that. How do you make it work? What’s what’s the deal? Or is there is there a value at play that you’re doing on these, or are you just coming in and managing it better than the previous owner? What are you doing on this?
00:12:25:07 – 00:12:55:24
Ray Fang
So pretty much all the nine mobile home parks are value add place. Meaning when we buy them they look really rough. And then that’s why we buy them at a relatively reasonable price. I wouldn’t call it bargain price, but we in our underwriting process, we anticipated certain amount of capital expenditures to spend. The mobile home park improvements.
00:12:56:01 – 00:13:24:06
Ray Fang
So we basically, within 90 days, we would send out a notification letter to all the tenants and lay out. Exactly. We wanted to improve the park and then execute on it by the not by the end of 90 days, the tenants would observe the improvements of the park. By then we also tell them the rent will be brought up to the market.
00:13:24:06 – 00:13:35:06
Ray Fang
Rent. That’s the overall strategy we executed across all the nine parks. And then the returns, have been really, Oh, okay.
00:13:35:08 – 00:13:49:01
Rod Khleif
Okay. And so now you’ve got nine parks. Are they geographically close together or are they spread out quite a bit? You know, from a management standpoint, you know, how far are they away from where you live and whatnot?
00:13:49:03 – 00:13:59:23
Ray Fang
Yeah. We purposely, decided to only focus, Central Florida. So all the nine parks are located within two hours a drive from Orlando.
00:14:00:00 – 00:14:00:17
Rod Khleif
I see,
00:14:00:19 – 00:14:11:05
Ray Fang
We did that on purpose because we knew is going to be extremely operational. Have we wanted to be able to drive to the park and then to take our actions? We wanted to take.
00:14:11:07 – 00:14:26:20
Rod Khleif
Gotcha. So in these parks, do you had now have individual park managers in each one that get free rent or whatever? Do you do you have that or do you have one regional manager or how do you do? How do you how do you structure the management at this point? Just curious for my own.
00:14:26:22 – 00:14:35:20
Ray Fang
Evolving, in terms of park managing style over the past few years, we learn so much. We have so much stories to tell. But,
00:14:36:00 – 00:14:36:14
Rod Khleif
I’m sure.
00:14:36:17 – 00:15:13:07
Ray Fang
We started from, taking, individual, park managers who left. It walk and most of them were, the park tenants that did not work out very well. So we had so many headaches. Eventually we decided to have, one centrally located, asset manager to oversee the entire portfolio. And then she will be taking, assigning, repair tickets, assign, maintenance crew and address all the tenants issues.
00:15:13:09 – 00:15:23:13
Ray Fang
So we’re gradually building up a team, and then that would be actually my next step to build a strong team and then scale up.
00:15:23:15 – 00:15:41:05
Mark Nagy
So what sorts of things are you actually doing in those you mentioned you’re improving the parks just for the listeners. What are those specific things? Is it safety? Is it are you actually renovating the actual mobile homes? Like what sorts of things specifically are you doing to increase the value on them?
00:15:41:07 – 00:16:06:09
Ray Fang
Yeah, well, I’m using the first puppy purchased as one example. It’s located in Gibson Tan, area in Florida, which is, like ten minutes away from downtown Tampa. Before we bought it, the park looked extremely rough, and then all the fence around the park fell down and then there’s homeless people. There’s drug addicts around in and out of the park.
00:16:06:11 – 00:16:32:02
Ray Fang
And then it’s it’s almost a d-minus park. I would say. So when we bought it, we knew what exactly had to be done because we knew there were kids left in the park. We want to make the park a safe place. So the first thing we did was to install brand new vinyl fences around the park to keep it safe.
00:16:32:04 – 00:16:58:05
Ray Fang
And then we set up cameras. We cleaned up the park deeply, and then we repainted the entire park, including every single unit. And then we also went into each park to, make some updates because the park had to be owned by an aged, owner for years and years. And then they were at that stage wanted to be completely passive.
00:16:58:05 – 00:17:16:24
Ray Fang
That’s why the rent were way below the market. They pay for that working living condition, but it’s not a safe working and, living condition. So we stepped in. We did all the improvements throughout the park and we we kept the park in a stellar condition for for you since we bought it.
00:17:17:01 – 00:17:18:17
Rod Khleif
How many homes on that park?
00:17:18:19 – 00:17:20:05
Ray Fang
22 units.
00:17:20:07 – 00:17:51:12
Rod Khleif
Okay. And and I, a lot of times when you fix up mobile homes, you improve the skirting around the bottom. A lot of times that’s beat up and looks terrible. You, you put that skirting back in before you paint. I’m assuming you probably did things like that as well. And, okay. Well, no, that sounds very interesting. And obviously you’ve you’re going to have the most affordable, option for the demographic in that area with, with a park like that, if, if you’re just renting them, yes, you’re going to have collection issues, lots of collection issues.
00:17:51:12 – 00:18:18:21
Rod Khleif
You’re going to have lots of problems with that. And, you know, occasional crime and things like that. But, I’m sure your returns are fantastic. So let’s shift gears for a minute. I mean, again, I, I know how hard you’re working because I’ve had D-class properties, and I know what you’re doing. But listen, if if you can make it work and you’ve got a good regional asset manager that can that can take a lot of the heavy lifting.
00:18:18:21 – 00:18:35:08
Rod Khleif
And she’s, you know, she’s got integrity and responsible. Then then. Fantastic. Now, let’s talk about actually, before we shift gears, talk about how you financed these things. Did you syndicate did you do it with with Hip National Bank? How did you how did you buy these things?
00:18:35:10 – 00:19:04:04
Ray Fang
Yeah, that’s a good question. The first, first park we purchased was through traditional bank financing. Because we didn’t know better. Obviously, it’s a relatively longer process than we had anticipated, but we had it down. And after that, all the remaining parks were acquired through seller financing. So the process was extremely easy. And then with the seller, you can negotiate any terms you want.
00:19:04:06 – 00:19:23:24
Ray Fang
Some of the parts of the approach right away is extremely, low down payment and the favorable interest rate as well. So we figured out that’s the best route as well. And then on top of that, there’s some challenges, insurance, which is a big challenge in Florida. If you go through the traditional bank financing.
00:19:24:03 – 00:19:41:19
Rod Khleif
Especially for mobile home parks, because hurricanes love mobile home parks. Yeah. I remember when Hurricane Charley hit Charlotte County. Sorry. Just as an aside, let me share this. And I was actually in Los Angeles at a Tony Robbins event. And my team’s like, you need to get back here right away. I’m like, the event just started. I’m not leaving.
00:19:41:19 – 00:20:00:12
Rod Khleif
They’re like, Roge, you need to get back here right away. So I got back. I had 360 houses in Port Charlotte, Florida. Every single one of them was damaged heavily. But I drove by. I came down here about the day or two after it happened, and I saw a couple of mobile home parks, and they literally looked like a bomb had gone off.
00:20:00:12 – 00:20:14:00
Rod Khleif
And there’s no way anybody could have survived if they were in them. So yeah, insurance companies do not love mobile home parks because that’s like Dorothy. They just fly away when the when the heavy wind comes. So tell me how you dealt with that issue.
00:20:14:02 – 00:20:38:11
Ray Fang
So we basically understood the issue. And then we, decided not to have those mobile homes insured because for obvious reasons. And then we also knew exactly how much it would cost for us to build a brand new mobile home if that completely destroyed. We compared the numbers with, we think it’s more reasonable for us to take down the risk and set aside reservations.
00:20:38:11 – 00:20:40:15
Ray Fang
Our reservation fund.
00:20:40:15 – 00:20:41:14
Rod Khleif
Reserves? Yeah.
00:20:41:16 – 00:20:50:16
Ray Fang
Reserves. Yeah. To make sure in the if in the, severe weather conditions, we could rebuild those homes.
00:20:50:18 – 00:21:05:09
Rod Khleif
No, that’s that that’s prudent and that works. And the only you’re only able to do that with seller financing, because if you had bank financing, there’s no way to allow that. They’d want them insured. So, so so let me ask you this. How’d you find these deals?
00:21:05:11 – 00:21:36:03
Ray Fang
At the very beginning, we did not have any, sources to feed us deals or off market deals. We basically went open market. So first, few deals we bought from the online listings. I’ll go back to explain why we chose mobile home park own homes. Because we didn’t have choice. All of the ten. No home parks have been taken.
00:21:36:05 – 00:22:06:23
Ray Fang
And if we want to enter this space. So we had to take on the challenges. Given they are hard to manage, they need extra work. But, we figure out a model. So even with majority of the park owned, homes parks, we still can make this work. So after we acquired a first a few, parks, we joined the Mobile Home Park Owners Association in the Tampa area so that basically got us into a inner circle.
00:22:07:00 – 00:22:33:10
Ray Fang
At the same time, some of the agents knew we were active on the market. We started to feed us off market deals. Gotcha. Yeah. And on top of that, I think, we started to, reach out to more people. And then because of the network is broader and more inner circle. Now, we can get better and juicy deals nowadays.
00:22:33:12 – 00:22:53:17
Rod Khleif
Nice, nice. You know, I I’ll tell you, just as an aside, when I was going to get into this business, the mobile home park business, I literally had six virtual assistants geocoding, mobile home parks in the entire country. And so what we would do is we’d go on Google Earth, and a lot of mobile home parks are misclassified in the county records.
00:22:53:22 – 00:23:09:23
Rod Khleif
And so we’d I’d have them fly around, literally fly around on Google Earth. They’d, they’d find one mobile home park, they’d fly around it and see if there were any others, they would classify them. You could geocode them and then we I had them break down the entities that own them, and we were going to mail them. And I ended up not doing it.
00:23:09:23 – 00:23:32:12
Rod Khleif
But I literally had six Vas working on it for a year. And, I actually ended up giving that list to Bertie Brandon from Biggerpockets. He and I cut a deal for it, but that’s as an aside. But so again, I’ve spent a lot of time working this business. And and love it. So I tell you what, let’s let’s shift gears to your industrial.
00:23:32:14 – 00:23:39:01
Rod Khleif
If you don’t mind, and I think that was your first deal as a warrior. Was that $6 million industrial park? Yes.
00:23:39:03 – 00:23:40:00
Ray Fang
That’s correct.
00:23:40:02 – 00:23:42:16
Rod Khleif
Yeah. Tell us about that.
00:23:42:18 – 00:24:14:23
Ray Fang
That was mainly sourced by my business, my business partner. When I look at my, experience and journey over the past three years in commercial real estate, it is, extremely valuable to have a strong business partner, working with me. His name is Joe White. I would, appreciate his all the help and then support through the entire investment journey, I had the strength to bring on the table.
00:24:15:00 – 00:24:41:18
Ray Fang
Bring value to the table about mobile home parks. And then he’s been working on industrial parks with me, so we totally, together built the entire portfolio. This deal, is in Sanford, Florida, which is in suburban, Orlando area, 77,000ft². And then we had it under contract for 6 million, and we purchased it with only 5% of down payment.
00:24:41:20 – 00:24:42:22
Rod Khleif
Wow, wow.
00:24:42:24 – 00:24:47:11
Ray Fang
And then even better, 40 years of amortization.
00:24:47:13 – 00:24:54:22
Rod Khleif
Wow. Oh, wow wow, wow. That sounds that sounds like that sounds like a hug loan right there. Holy cow. That’s fantastic. Good for you.
00:24:54:22 – 00:25:06:03
Ray Fang
Square foot. Purchase price was $77 per square foot versus the current market in Orlando area of 120 plus dollars.
00:25:06:04 – 00:25:10:22
Rod Khleif
Well, there’s there’s a little value out there. Holy cow. Nice, nice catch, buddy.
00:25:11:00 – 00:25:38:06
Ray Fang
But that’s another value add opportunity. It’s not the building was in a rough shape, so in the past ten months, we’ve been working on renovating the, the building. Joe has been the leading, partner, working on that task because of his construction background. So far, we’re in this brand new office. We actually move our company into this new facility.
00:25:38:08 – 00:25:39:07
Ray Fang
00:25:39:09 – 00:25:49:21
Mark Nagy
So why did you come to work with us then? You know, having such a successful background, CFO, you know, having a background in mobile home parks already. Why did you come and work with us?
00:25:49:23 – 00:26:17:22
Ray Fang
I think my knowledge and experience in commercial real estate is really limited. I was a little busy five years ago, and when I started my journey three years ago, after the first purchase, joining the event, November last year, was very eye opening to me. Matt, rod and then awesome wires in the event, all their success stories has been extremely inspiring.
00:26:17:24 – 00:26:35:13
Ray Fang
They really opened up my, aperture or my view to look at commercial real estate because there’s so many ways to be successful. I’m glad I joined the group and I had been having networking with the Warriors. It’s been extremely invaluable for me.
00:26:35:15 – 00:26:46:14
Rod Khleif
Just kind of kind of you to say that a please continue, but I love the fact you use the word aperture. I’ve never I’ve never had someone be that technical with the view. I love that. Anyway, please continue.
00:26:46:16 – 00:27:08:04
Ray Fang
Yeah. I think, for me, I also learned, when we wanted to scale, we wanted to learn from the best of the best in, in the industry. And then I think Ross Group and the Warriors group had the best talents in the commercial real estate. Especially when it comes to scale up, and build up a strong team.
00:27:08:06 – 00:27:36:24
Ray Fang
Which is the next goal, of my my plan. We wanted to build a strong team. So we want to be able to take on from here to the next level. Team building. I have to learn from the team, from the Warriors group and from rod. And then we would learn all the, experiences and success stories to be able to be more and, creative, to take the portfolio to the next level.
00:27:37:01 – 00:28:02:15
Rod Khleif
Thank you for those kind words, Ray. That’s very kind of you. So let me say this. If you’re considering getting some more guidance so that you can experience the life you want this year or next year rather than later, or maybe you just thought you could be more effective with our help in the warrior program. Text the word crush to seven, two, three, four, or five and see if the program might be able to help you overcome any challenges that you have so that you can accomplish what you want.
00:28:02:17 – 00:28:18:08
Rod Khleif
You know, with lifetime cash flow, which obviously is the name of this podcast. So again, text crush to 72345 to apply and let’s see if it’s a fit. So, Ray, where are you at now with that industrial park? Give us an update. How long have you owned it?
00:28:18:10 – 00:28:20:02
Ray Fang
Since December last year.
00:28:20:04 – 00:28:21:15
Rod Khleif
Okay, so not even a year.
00:28:21:16 – 00:28:46:00
Ray Fang
Okay. Yeah, we spent the last, ten months, renovating and then getting the building permit, and then that’s a long process for us. And most followed up with the, process of getting the permit and getting inspections down. As a matter of fact, my business partner, Joe White, has been devoted his entire time, to overseeing the project.
00:28:46:02 – 00:28:53:18
Ray Fang
And then we are in this new facility, now, and we moved in ten days ago.
00:28:53:20 – 00:28:56:03
Rod Khleif
Oh, nice. Congratulations.
00:28:56:05 – 00:29:17:16
Ray Fang
Thank you. And then Joe is a business owner, so this is a part of the plan to grow the company as well. And we, basically outgrew the prior facility. And then that’s one of the reasons we together purchased this new facility to, bring the company, the manufacturing company to the next level.
00:29:17:18 – 00:29:18:18
Rod Khleif
Very nice.
00:29:18:20 – 00:29:29:17
Mark Nagy
What do you think is going to be the best asset class moving forward then? Do you want to stick with industrial over the next few years? Are you still hunting mobile home parks? Multifamily. What’s the what’s your strategy?
00:29:29:19 – 00:29:44:12
Ray Fang
I think our strategy will be continue to build industrials and the mobile home park portfolio. Moving forward, I think those are still the most, sexy, asset class within commercial real estate. We have that.
00:29:44:12 – 00:29:50:14
Rod Khleif
Word just scares the hell out of me when you use that word around mobile home parks. But thank you.
00:29:50:16 – 00:29:55:02
Mark Nagy
Is it because the cash flow? Is it the cash flow? That’s sexy. Yeah. Why? Is it sexy? Yeah.
00:29:55:05 – 00:29:55:23
Rod Khleif
00:29:56:00 – 00:30:24:21
Ray Fang
Yeah, I can give you one example. We we bought a park. So now working with the Pure home, mobile home park owners in Tampa area, we bought it for $1 million, and then 18 months later, we sold it for $2.4 million. Wow. And then in the purchase, it was a seller finance. So we only put down 200 K as a down payment.
00:30:24:21 – 00:30:50:17
Ray Fang
We spent 100 K to renovate the park, and then within 30 days, we converted that park into online payments for the convenience of rent payment. And almost 100% of the tenants sign up for that within the 30 days. So everything’s automated. No paper check, no cash flowing around. Obviously we did a lot of work, as we promised in the announcement letter.
00:30:50:17 – 00:31:11:20
Ray Fang
And then to make sure they understood we are serious there to, to improve the park. So they saw the results were winning to, to pay the higher rent. And then 18 months later, $300, $300,000 investment turned into $1.5 million. That’s why I said it’s sexy.
00:31:11:22 – 00:31:28:08
Mark Nagy
A 500% return in 18 months. Yeah, I’d say that’s pretty sexy. So great for people that want to reach you. Maybe they’re interested in mobile home parks. They want to chat, connect, ask you questions about your experience, whatever. Where can they do that?
00:31:28:10 – 00:31:36:04
Ray Fang
They will. Welcome to email me at Direct Capital mp@gmail.com.
00:31:36:06 – 00:31:37:07
Rod Khleif
Very nice.
00:31:37:09 – 00:31:38:08
Mark Nagy
Thank you for doing that.
00:31:38:10 – 00:31:59:08
Rod Khleif
Yeah let’s rea listen this has been a lot of fun. And and very, very educational for, for my listeners and, and, you know, insightful because they hear they hear so much about apartments and it’s nice to hear about other asset classes. And again, I love mobile home parks, too. Don’t get me wrong, I it’s absolutely do.
00:31:59:08 – 00:32:20:17
Rod Khleif
That’s why I’ve spent years working on them. And so and I love industrial too. I mean, that’s it’s a fantastic asset class, both of them. Right. And and I love senior housing, which is something I’m getting into. I mean, there’s just so many exciting, so many exciting vehicles to make money in commercial real estate. So it’s it’s just a real treat.
00:32:20:19 – 00:32:39:10
Rod Khleif
But listen, I want to I want to thank you for coming on today. Ray. It was great to see you. And, I’m certain that I’ll have you on again in a couple of years when you’ve got, you know, 1,000,000ft² of industrial and a thousand homes instead of 280. So thank you so much for sharing some wisdom today, my friend.
00:32:39:12 – 00:32:45:20
Ray Fang
Thank you for having me. Rod. Looking forward to seeing you again. We’re driving distance to each other, I love that.
00:32:45:20 – 00:32:53:11
Rod Khleif
Yeah, yeah. Anytime you’re on this side, reach out to my team and let’s grab a meal. I’d love to spend some time with you, so just let me know, okay?
00:32:53:13 – 00:32:53:21
Ray Fang
Thanks.
00:32:53:21 – 00:32:57:03
Rod Khleif
All right. Thanks, man. We’ll see. We’ll see you later, guys. Thank you.
