Feedback for Sunrise Capital Investors

[Fred Scott]

Sunrise Capital Investors - Mobile Home Park Investment Fund

I've seen a few posts about them here but none of them actually talks about what the actual annual returns have been.
They are advertising heavily for passive tax deductions which is fine but what are the actual returns over a period of (say) five or ten years?

If I invested 100K today, they are currently providing anywhere from 60 to 72% passive tax deductions due to cost segregation, depreciation, etc.  which is great.  But what are the actual returns on the investment?  I'm looking at it long term and will not need the equity anytime soon.  

Just want to make sure the folks running this are not buying helicopters and jet planes with our investment.

Comments welcome.   

Thanks,

Fred.

[Roger D Jones]

Well... they are who they are.  The PE investment feeding frenzy that started up 15 years ago as TOH parks started getting gobbled up is starting to slow as supply tightens.  This feeding frenzy has driven up park prices and there are fewer and fewer Mom and Pops to take advantage of.  The big stuff is gone and if anything does come available Mom and Pop know what it is worth.  I question when these PE groups start wanting to unload their newly inflated parks who is going to be willing to purchase them with no further upside.  

There North Carolina purchase leaves me scratching my head.  When PE investment groups start using terms like 'sweat equity' on near empty parks I get nervous.

[Jordan Moorhead]

Quote from @Fred Scott:

Sunrise Capital Investors - Mobile Home Park Investment Fund

I've seen a few posts about them here but none of them actually talks about what the actual annual returns have been.
They are advertising heavily for passive tax deductions which is fine but what are the actual returns over a period of (say) five or ten years?

If I invested 100K today, they are currently providing anywhere from 60 to 72% passive tax deductions due to cost segregation, depreciation, etc.  which is great.  But what are the actual returns on the investment?  I'm looking at it long term and will not need the equity anytime soon.  

Just want to make sure the folks running this are not buying helicopters and jet planes with our investment.

Comments welcome.   

Thanks,

Fred.

 They're a credible operator. I have not invested with them but have known Kevin for years and have seen them work hard on many deals.

[Fred Scott]

Thank you, Roger and Jones, for your feedback.

I was tempted to invest but their minimum investment is 100K.  I would have preferred a smaller 50K to begin with. 

[Fred Scott]

@Roger D Jones:  Any insights on why the North Carolina purchase in Fund IV makes you nervous?

[Roger D Jones]

Quote from @Fred Scott:

@Roger D Jones:  Any insights on why the North Carolina purchase in Fund IV makes you nervous?

They paid 3.7 million for this property at 29% occupancy.  Park has experienced a mass exodus over the last 20 years with no explanation why.  Their plan is to raise rents (on the poor remaining souls, improve infrastructure and exert some sweat equity.  How are they going to fill the park?  "Leverage infill opportunities"... Typical PE investor double speak.