Does anyone have advice ( bullet points) for presenting potential private money lenders with the concept of lending on parks? I know on the first 3 contacts you can’t offer a specific deal or specific terms but how do you present the mobile home park opportunity in general?
I’ve honestly never even heard on that rule about the first three meetings. Anyways, my best advice to you is to get yourself registered to sit in on a few sponsor presentations. Wether it be apartment deals or MHP deals. First, you need to talk about the industry. Here’s a great example of some talking points: http://www.parkstreetpartners.net/mobilehomeparkinvestments/
Next, you should talk about all of the reasons why their capital is protected in the deal structure. This will be for the first timer who has never invested in a real estate syndication. You may get into some worst case scenarios and the remedies for them in those scenarios.
If you do not yet have a deal currently, you should put together a sample deal and present it. This way your potential investor can get a generic feel for what you are looking for, a feel for your strategy and management style, a feel for how you underwrite, what types of returns and holding periods you anticipate, what the minimums would be, your fund structure (e.g. deal specific, blind poole), etc. It’s a lot easier to talk about these sort of things when there is an example of a deal to use.
At the end of your sample deal you may also want to include a presentation on your acquisitions strategy so they can see that side of it as well.
Hot damn! Somebody actually reads our website!