Best Real Estate Investing Advice Ever

Jack Martin got his start in real estate by working in land development and building houses in his early 20s. He then transitioned to the apartment space, which he thought would be his long-term retirement vehicle until he discovered mobile home parks.

 

Today, Jack is the co-founder and managing partner at 52TEN, a vertically integrated firm that focuses on acquiring and improving underperforming manufactured housing communities. In this episode, he discusses the four main ways mobile home parks are excellent, recession-resistant investment options.

 

 

1. Affordability

When times get tough, mobile home parks are an affordable option for those who can no longer afford high rent payments. “The reason why most people are attracted to moving to a manufactured housing community is because it’s the most affordable living solution in America,” Jack says. “Anytime you get the most affordable option, you’re going to have a higher degree of recession resistance than anything else.”

 

2. Low Tenant Turnover

The average length of stay in manufactured housing communities is 15 years, Jack says, versus a 12- to 18-month average for apartment communities. This provides stability and consistent cash flow for property owners in the event of a recession. 

 

3. Tenants Own Their Homes

All of the tenants in Jack’s manufactured housing communities own their homes. That means that if they are hit hard in a recession, they are able to sell their home and extract enough money to get them back on their feet. If those same tenants lived in an apartment, they wouldn’t have anything of their own to sell in times of economic difficulty. 

 

4. Extra Incentive to Pay Rent

Because Jack’s tenants own their own homes, there is a major incentive to stay current on their lot rent payments. In the rare occasion that a tenant decides to default, the penalty is the forfeiture of their home. “Let’s say you own a home that’s work $50K,” Jack explains. “It doesn’t make any economic sense at all to skip a $500 monthly lot rent payment to potentially risk your $50K home.”

 

Jack Martin | Real Estate Background

  • Co-founder and managing partner at 52TEN, a vertically integrated firm that focuses on acquiring and improving underperforming manufactured housing communities.
  • Portfolio:
    • GP and LP of 1,000 sites across seven properties
  • Based in: Scottsdale, AZ
  • Say hi to him at:
  • Best Ever Book: The Secret Life of Real Estate and Banking by Phillip J. Anderson
  • Greatest Lesson: The importance of a long-term vision, and always doing the right thing.

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Direct download: JF2955_Jack_Martin.mp3
Category:general -- posted at: 3:00am EST