The December 2020 Commercial Real Estate Investing Newsletter

How To Obtain Financing On An RV Park

Nobody buys an RV park for cash – at least not anyone trying to maximize their yield on the investment. While buying without debt may make you feelsafer since there’s no risk of foreclosure, the truth is that the ability to obtain sensible debt is what makes real estate the #1 source of wealth in the U.S. Debt allows you to buy RV parks that are roughly 5 times bigger than you could with just cash, and then the spread between the interest rate and the cap rate is what allows you to hit 20%+ cash-on-cash returns given the right ingredients. So how do you obtain financing on an RV park?:

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How True Investment Grade Storage Assets Are Different Than What The Media Tells You

Not all self-storage facilities are created equally. Well, they may be built the same, but there’s a whole lot more to a storage property being “investment grade” than just metal walls and roll-up door. And the entire self-storage “media” often point you in the wrong direction regarding what you should be buying and what you should avoid. So what makes up an “investment grade” property? Let’s explore that issue.

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Billboards Are Like Riding A Bicycle – Only More Profitable

We’ve all heard the old adage that once you learn to ride a bicycle you never forget it. Well, the this is also true with the entire “out-of-home” advertising industry. The skills from one segment of the industry are the same in the other sectors – it’s very efficient in that regard. So what are the skills that you need to know in order to start a billboard business?

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Billboard Mastery Podcast: Episode 13 - When An Advertisement Becomes A Liability

As a billboard owner, you are the official gatekeeper of the content on your sign. But sometimes your choice of content can cause extreme problems – possibly even start in motion the eventual loss of your billboard location. In this Billboard Master podcast we’re going to review how an advertisement can potentially get you in a lot of trouble and how to avoid this situation. In a politically correct America, this topic is more important than ever before.

Listen To Episode 13

RV Park Mastery Podcast: Episode 17 - The Simple Way To Make Good Decisions On Buying An RV Park

Buying an RV Park – like buying any asset – is a stressful experience filled with doubts and concerns. However, there is an easy way to get around this hurdle and make informed, accurate decisions that you can feel good about. In this RV Park Mastery podcast we’re going to discuss a simple method we developed years ago to make buying an RV Park a scientific decision based on math and risk assessment and not just gut feel. If you’re buying an RV Park, you want to learn this method.

Listen To Episode 17

Self Storage University Podcast: Episode 15 - The Power of Bonding In Attaining Great Storage Deals

There is a force in deal making that is more powerful than money. And that force is “bonding”. In this Self-Storage University podcast we’re going to explore bonding from its origins to how to create it and how to harness it to make amazing self-storage deals possible. If you want to put together storage deals at low prices and with seller financing, then you should be extremely interested in this topic. In fact, bonding with the seller – more than any other activity – has been the catalyst to some of the best storage deals of all time.

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"Ask Me Anything" with Frank Rolfe from December 2020

80% of world economists predict the next U.S. Great Recession will begin in 2021; 2020 was just a prelude to the main event. But what is it the right course of action for you? For that matter, how does a mobile home park even work? To answer these questions, we hosted an Ask Me Anything event.

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Mobile Home Park Mastery Podcast: Episode 176 - The Simple Science Of Making Money

Science involves distilling events down to a formula – so what is the simple formula for making money with a mobile home park? In this Mobile Home Park Master podcast we’re going to examine what the key profit drivers are and unveil some simple formulas to help you understand the potential that many properties have to deliver significant gains. Unlike calculus, this is math that you get paid for.

Listen To Episode 176

If You Thought 2020 Was Bad – It’s Only Going To Get Worse In 2021

Prior to the pandemic, most economists predicted the next U.S. recession would begin in 2021. However, they still do. Effectively, the Covid-19 outbreak was simply a prelude to a larger economic event, which historically always falls immediately following the U.S. Presidential election. In this case it’s all about the final reckoning of the debt of those businesses that failed (hotels, restaurants, retail stores, etc.) coupled with displacement of workers in non-essential industries and state/cityfiscal calamity as the result of plummeting tax income. The bottom line is that if you think it’s all upside in 2021, you’re not aligned with economic models and probability, nor are you being realistic. Talk is cheap – and we heard a good bit of it during the election – but the fact is that America is well positioned to go further down the tubes in 2021 and with perhaps greater acceleration.

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The 2020 Frank & Dave Christmas Show

The Frank & Dave Christmas Show only comes once a year. It’s time to put 2020 behind us and this show should put you in the holiday spirit - mobile home park style.

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Mobile Home Park Mastery Podcast: Episode 175 - The Potential Impact Of What The Economists Are Saying

Economists are paid to make predictions – and they make a lot of them. Most of them are fairly off base, but when you aggregate them and take the average you start to get a better picture. In this Mobile Home Park Mastery podcast, we’re going to take recent economist surveys regarding the U.S. economy and overlay those on the potential impact to mobile home park investing.

Listen To Episode 175

The Three Steps To Making A Huge Return On Investment With An RV Park: And The Science Behind It

An RV park is, by definition, an income property – it’s value is based on how much income it produces. Some sectors of real estate offer low returns and others higher. But to really make impressive returns a property has to provide some simply tools to drive the numbers to a high level. And RV parks offer these tools. So what are the three steps to making a huge return with an RV park?

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The Power Of Leverage On A Self-Storage Facility: An Economic Model

One of the greatest tools in self-storage investing – the most powerful of them all – is leverage. The simple existence of sensible leverage on a storage property can spike the return up significantly as well as to allow the buyer the ability to own something far beyond their typical budget. So how does leverage work as a beneficial tool to make money with a storage facility?

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How To Screw Up A Billboard Investment

Making money is the goal of building or buying a billboard sign. However, if you don’t know what you’re doing you can actually lose money instead of making it. So what are the top six ways to screw up your billboard investment and make it go from cash producing to cash losing?

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Remembering Tony Hsieh For Being A Trailer Park Pioneer

Tony Hsieh is known for being the founder of Zappos, as well as personally funding the renaissance of portions of Las Vegas. But I will remember Tony for a different reason, and one that has received zero media attention. As a trailer park pioneer.

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RV Park Mastery Podcast: Episode 16 - White Lab Coats Needed

Science is defined as “the intellectual and practical activity encompassing the systematic study of the structure and behavior of the physical and natural world through observation and experiment”. So how can you apply that lofty goal to RV parks? In this episode of the RV Park Mastery podcast series, we’re going to drill down on the science of evaluating RV parks and bringing factual discipline to the emotional process of investing.

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Mobile Home Park Mastery Podcast: Episode 174 - The Five Historical Eras Of Mobile Home Park Construction

Cars have gone from steam to gas to electric. Planes have gone from propeller, to turboprop to jet. And mobile home parks have also evolved over time. In this Mobile Home Park Mastery podcast we’re going to review the basic evolution of the mobile home park and how it impacts investing in this sector.

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Mobile Home Parks And Inflation: A Love Story

“Inflation” is defined on Wikipedia as “a general increase in prices and fall in the purchasing value of money”. In mobile home parks it has a different definition: “the ability to raise rents and produce higher values while being fully protected from economic danger”. In a nutshell, inflation is a friend to mobile home parks. Why?

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Risk Vs. Reward With RV Parks And How To Fool The Pack

RV parks, like all real estate, offers higher yields in situations of higher risk. But this can also serve as a buying opportunity if you can find methods to lower the risk while keeping the higher yield. So how can you have the best of both worlds with an RV park?

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The Beauty of Scale With Self-Storage Customers

One aspect of self-storage facilities that gets little attention is the fact that it’s made up of tens or hundreds of little customers. This is not a source of frustration but actually an asset for those who own them. So what’s so great about having a ton of tiny customers?

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Mobile Home Park Mastery Podcast: Episode 173 - What's Really Happening to Our Costumers?

Economic upheaval. Shuttered businesses. Broken dreams. What’s the impact of what’s happening in America right now on mobile home park residents? In this episode of the Mobile home Park Mastery podcast, we’re going to look into the typical mobile home park residents and how they’re faring in one of America’s most difficult times.

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RV Park Mastery Podcast: Episode 15 - RVP Appraisals

There are several valuation methods that appraisers use – and we’re going to review each of them on this episode of the RV Park Mastery podcast. Between the cost approach, comparable sales approach and income approach, each has its place and some are more important than others. Since the goal of buying an RV park is to arrive at the fair price, understanding appraisals and their methods is a key part of the purchasing process.

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Self Storage University Podcast: Episode 14 - Storage Contract

The purchase contract is the document that spells out the deal you’ve cut with the storage facility owner. But there’s certain things it should always contain – and others it should never contain. In this Self-Storage University podcast we’re going to review what these items are and what potential benefits – or pitfalls – they bring to the table when trying to properly structure your deal.

Listen To Episode 14

Billboard Mastery Podcast: Episode 12 - Natural Advertisers

There are many potential advertisers for any billboard – but there is one that is the most natural fit. When you find the perfect advertiser you can attain a continual renewal rate, and you may not have to rent that sign again for years. In addition, the natural advertiser will be successful with it and always pay promptly, not wanting to lose the sign. In this Billboard Mastery podcase we’re going to review what makes for a natural advertiser and how to find them and rent them your sign.

Listen To Episode 12