A Brighter Definition of Affordable Housing.
Why Manufactured Housing Communities?
We like the manufactured housing community (MHC) industry for the same reasons Warren Buffett and Sam Zell probably do
(given they both have made a lot of money in the MHC industry)…
Commercial real estate has historically outperformed the S & P 500. Further, manufactured housing community REITs have outperformed office, retail, multifamily, hotel, and healthcare REITs as of late. This is partly due to the fact that manufactured housing community investments are recession resistant (many downsize to more affordable housing during bear markets).
Commercial real-estate is generally bought with the buyer(s) intending for the asset to appreciate. Manufactured housing communities can achieve this when operated correctly – with key variables that catalyze appreciation including: professional management, regular upkeep, inflation, growing metro populations, and the limited inventory of affordable housing.
Did you know an estimated 10,000 baby boomers are retiring each day? With the baby boomer business owners now reaching retirement age, there’s a plethora motivated sellers – some of whom we’re probably negotiating with right now. Additionally, the industry has been relatively untouched by REITs when compared to multi-family.
~50-75% Profit Margins
Very few industries can boast higher margins. This is due to the lack of line item expenses a manufactured housing community has – combined with the stability of the revenue. Manufactured housing communities are notoriously known for their ability to cash flow with great returns. Our ability to find and manage great deals can move this number closer to 70% (something that is extremely rare in other industries, or even multi-family apartment investments – given this asset class generally has more capital expenses).
With real-estate, multiplying money is possible when you (1) find and choose the right deal that can achieve value appreciation and (2) have a team to properly operate the property. Why? Simple: leverage. We expect to be able to buy a $10M property with $2M to 2.5M of capital. Excluding the cash flow and other benefits gained over our long-term hold of the asset, appreciation on a $10M property would be – by definition – approximately 4X greater than the appreciation on $2.5M property.
The List Goes On
(1) Amortization – paying down the debt and increasing equity, (2) tax write-offs from depreciation, (3) high interest-to-cap-rate spreads, (4) park expansion possibilities, (5) government policy has largely stopped the development of new manufactured housing communities keeping the supply down, and (6) most of the communities we target are off market (found via industry networks we’re a part of and effective acquisition tactics) – thus, purchase prices are easier negotiated and broker fees are avoided, (7) the list goes on and on…
If you are a broker or owner looking to sell a property, please email us at email@example.com or fill out the general inquiry form at the bottom of the page.
The attributes we look for in an acquisition candidate include:
- 80+ lots
- City water/sewer
- Metro size of 80k+
- Not in verified flood plain
- All cash closing or deferred payout structures offered
Founder / CEO
In-House Legal / M&A
Real Estate / Property Mgmt.
Invest With Us
As we transform the affordable housing industry via world class operational procedures and next level care for our customers, our mission is to provide investors access to highly profitable real estate deals – without them having to find the deal, fund the entire deal, close the deal, manage the property, find a buyer for the property when selling, and everything else in between. Most investors don’t have access to a team of financial, legal, real estate, and property management professionals to make sure everything runs smoothly. This makes it impossible for most individual and institutional investors alike to really reap the rewards of real estate investing. Along with providing the best quality of affordable housing for our tenants, we started Brighter Living Properties to give investors (from our family & friends to massive foreign funds) access to lucrative deals in the manufactured housing industry.
To inquire about investing please email us at firstname.lastname@example.org or fill out the invest form and we will get back to you.