Passive Mobile Home Park Investing Interview with Mobile Home Park Sales Broker Kris Wessel of NAI Martens
Welcome back to the Passive Mobile Home Park Investing Podcast, hosted by Andrew Keel. On this episode of the Passive Mobile Home Park Investing Podcast, Andrew talks with the extremely accomplished and knowledgeable Mobile Home Park Sales Broker Kris Wessel, Senior VP at NAI Martens.
Kris Wessel has over twenty years of commercial real estate experience, with a particular emphasis in manufactured housing communities. He has been associated with Mobile Home Park community transactions dating back as far as 2008 and has cultivated a client list of more than 1,500 active buyers for the mobile home park real estate asset class throughout the midwest and southeastern United States.
In today’s episode, Kris and Andrew discuss the history of the Mobile Home Park sales market and what has changed in the current 2023 market as of this recording. Kris shares with us the importance of due diligence, his take on the mobile home park investment market in the midwest, and why mobile home park operations can be the most difficult part of the industry.
***Andrew Keel and Keel Team Real Estate Investments (Keel Team, LLC) do not endorse any interviewee. This interview is for informational purposes only and should not be depended upon for investment purposes. ***
Andrew Keel is the owner of Keel Team, LLC, a Top 100 Owner of Manufactured Housing Communities with over 2,500 lots under management. His team currently manages over 40 manufactured housing communities across more than 10 states. His expertise is in turning around under-managed manufactured housing communities by utilizing proven systems to maximize the occupancy while reducing operating costs. He specializes in bringing in homes to fill vacant lots, implementing utility bill back programs, and improving overall management and operating efficiencies, all of which significantly boost the asset value and net operating income of the communities. Check out KeelTeam.com to learn more.
Andrew has been featured on some of the Top Podcasts in the manufactured housing space, click here to listen to his most recent interviews: https://www.keelteam.com/podcast-links. In order to successfully implement his management strategy, Andrew’s team usually moves on location during the first several months of ownership. Find out more about Andrew’s story at AndrewKeel.com.
Book a 1 on 1 consultation with Andrew Keel to discuss:
- A deal review
- Due diligence questions
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- Mistakes to avoid, and more!
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Talking Points:
00:21 - Welcome to the Passive Mobile Home Park Investing Podcast
01:39 - How Kris Wessel got into mobile home park investment sales
05:26 - Transaction volumes and the current trailer park sales market
13:09 - Cap rate changes in the Midwest
15:24 - Commercial bank debt terms
18:45 - The hair on the deal
20:32 - Big institutional buyers versus smaller MHP investors
22:03 - Planning ahead for the future
26:04 - Why mobile home park operations are so difficult
27:44 - Vetting potential mobile home park investment partners
31:26 - Evaluating the assumptions: raising LOT rent, infill, and sales models
35:20 - Good demand for affordable housing
38:52 - Underestimating the mobile home park industry
40:50 - Reaching out to Kris Wessel
41:30 - Due diligence on mobile home parks
41:53 - Conclusion
Links & Mentions from This Episode:
NAI Martens - Manufactured Housing Communities: https://naimartens.com/mhc-3/
Keel Team's official website: https://www.keelteam.com/
Andrew Keel's official website: https://www.andrewkeel.com/
Andrew Keel LinkedIn: https://www.linkedin.com/in/andrewkeel
Andrew Keel Facebook page: https://www.facebook.com/PassiveMHPinvestingPodcast
Andrew Keel Instagram page: https://www.instagram.com/passivemhpinvesting/
Twitter: @MHPinvestors
Quotes:
“The demand for mobile home communities since that very first one has really been unabated and and really has grown.” - Kris Wessel
“I guess the good news is that if we're getting mixed signals, then hopefully it isn't climbing way higher.” - Kris Wessel
“We've seen people that got into the business and maybe underestimated the operation side.” - Kris Wessel
“Do your diligence on the operator and their track record and if that's strong.” - Kris Wessel