In the latest episode of The Mobile Home Parks, host Ferd Niemann discusses his experience as a mobile home park owner operator. Niemann shares a quote by Bill Gates that inspires his approach to work: “Give a lazy person a hard job because they’ll find an easy way to do it.” Although Niemann is far from lazy, he strives to work smarter, not harder. He shares his strategy of owning fewer parks but with a heavier workload to earn twice as much money and work half as much as his peers.
Niemann also discusses his investment strategy and the metrics he uses to evaluate deals, such as IRR (internal rate of return), pref (preferred return), cash on cash, and equity multiple. He believes in taking a bigger split to maximize returns for his investors while ensuring there is limited risk. Niemann also emphasizes the importance of evaluating the probability of a business plan succeeding and not solely relying on Excel spreadsheets, which can be easily manipulated.
Highlights of the episode:
00:00:37 Episode Introduction
00:02:20 Take a Bigger Split
00:07:50 Demoeding a Bunch of Homes
00:12:54 Abandoned Housing Process
00:16:59 Title Objection
00:20:31 Trapped Equity
00:25:07 Chopped Earnest Money
00:31:05 Getting Stuck on Taxable Hit
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