4 park portfolio in Peru, IN

[James Park]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Peru.

Purchase price: $1,150,000
Cash invested: $200,000

I own a portfolio of 4 mobile home parks in Peru, IN. Aggressively looking to buy more parks to reach my goal of 1,000 units. Looking for good partners who are as gung-ho about this space as I am!

What made you interested in investing in this type of deal?

The demand for affordable housing is endless. And the demand will keep going up as our housing crisis gets worse every year. This is a recession proof business, easy to manage once stabilized, and highly profitable!

How did you find this deal and how did you negotiate it?

I bought my first two parks with nothing done. Just assumed the bank loans. The next two parks I purchased with seller financing

How did you finance this deal?

Assuming bank loans and using seller financing.

How did you add value to the deal?

We are cleaning the parks up and rehabbing homes to rent to tenants. We will also be bringing in a large number of new homes.

What was the outcome?

We are still going through Phase 1, which is rehabbing the park owned homes. Phase 2 is next year. We hope to have the parks stabilized by the end of 2022. From there, we can keep them for cash flow, or sell them for millions more than we bought them for!!!

Lessons learned? Challenges?

It is certainly not easy to turn around a distressed park. We learned so much in the process, the most important one being to be properly capitalized (have enough money) before taking on a project like this. We've learned alot about how to hire the right people and how to deal with the city. We are just getting started in our journey and getting better every day!