Passive Mobile Home Park Investing

Interview with Brian Spear of Sunrise Capital Investors

5 snips
Jun 18, 2024
Guest
Brian Spear
Brian Spear, Co-founder of Sunrise Capital Investors who runs multiple mobile home park funds, discusses the evolution from flips to long-term holds. He covers building an in-house ops team, operational challenges and scaling property management. Brian also talks about recent acquisitions, buying with a margin of safety, and regulatory and political risks facing the sector.
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INSIGHT

Why Sunrise Pivoted To Long Term Holds

  • Sunrise shifted from buy-fix-sell to buy-and-hold to prioritize tax efficiency and long-term cashflow for investors.
  • Brian compares the shift to Buffett's evolution: favoring durable income and avoiding depreciation recapture and pressured 1031 timing.
ADVICE

Build Vertical Operations Not Third Party Management

  • Build an in-house vertically integrated team rather than rely on third-party managers because outside operators often fail to care as much as owners.
  • Sunrise now has ~50 staff including a full-time CFO and director of operations to scale across states.
INSIGHT

Operations Are The Growth Bottleneck

  • The main bottleneck in MHP growth is operations: finding deals and capital is easier than operating dozens of scattered parks.
  • Managing parks across 18 states requires scalable systems, processes, and the right team to avoid a train wreck post-close.
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