Has anyone invested in a mobile home park fund. If so, what is the minimum investment and what type of returns can I expect ? Thanks !!!
Expect at least 20% IRR AFTER all fees. Sometimes they don’t factor in their fees when listing their projected IRR which can have a significant impact on your actual return.
Feel free to DM me and we can talk further
It depends on the fund. Some start at 8% and go up to 20%+. It may require you to be an accredited investor as well.
I’ve posted this elsewhere, but I’m invested in all 3: Frank and Dave’s, Jefferson Lilly’s Park Street Partners, and Kevin Bupp’s Sunrise Capital Investors Fund 1. All pay an 8% preferred return and take 50% of the cash flow, refinance proceeds, and sales proceeds (which I now feel is high). Frank and Dave communicate with investors every week or two. The other guys are lacking in communication: Expect something quarterly.
Not sure I buy the 20% IRR mentioned above. I am expecting more like 15%, but I hope I’m wrong.
Thanks to all that responded, much appreciated. Marc, these are some of the funds I’ve been looking at so far. Do you happen to know the minimum i can invest ? Also, do you know anyone else who has invested with them in the past who was happy with there returns. Thanks
I believe you also have to be an accredited investor. Perhaps someone can say if that is not true.
I am an investor in F&D’s funds from when they were smaller and accepted non-accredited investors. They do not do so now. You must be accredited. I am very pleased with the performance of my capital.
Minimums are in the range of $10-50k. Note that there are funds that are"closed" and others that are open to new investment and past performance does not guarantee future results.
A little nit picking - my understanding is as follows: the funds pay a preferred return on your invested capital, which is returned to you if there is “excess” cash. So after that is returned, only the remainder of your investment is earning the preferred return. Example: you invested $80k and got $2000 quarterly or maybe not timely but after 10 quarters you get a total (non compounded) of $40k. That’s your preferred return of 10% of $80k for 2.5 years ($20k) plus an additional $20k of your capital back. So now you only get $1,500 per quarter because it’s 10% of $60k preferred.
Then once all preferred returns are caught up and the capital is paid back to investors, all future distributions (including sales proceeds or refinances) are paid out 50/50 with the sponsors until liquidation of the fund.
But all of that cash to investors comes out after fund management takes fees e.g. 1% for acquisition, disposition, loan guarantees, etc.
Nevertheless I would have invested more if I could have. I expect the total gain, without reinvesting the dividends, to be 100% over 5? years which compares favorably to alternative investments with that time horizon and risk.
Thanks Randy, Brandon, and Tony for your input, i will definitely look into this further.
I have invested in both Frank & Dave as well as Park Street partners fund. I completely agree with the comment about communication. Happy with the Frank & Dave’s fund and their communication. It is easy to talk to the managing partners. In my experience, Park Street Partner’s investor communication has been very poor and there are no signs of improving. The experience and track record matters a lot!