How to Find Investment Funds for Cash Flow

Every investment book that I have ever read has read like a how to guide on how to invest in certain assets or sources of cash flow yourself. And when I work with entrepreneurs, they often feel like they have their business and they're going to take their profits and start an entirely new business that invests in real estate or whatever investment that they're excited about. No one told me that there were opportunities to just partner with other businesses that specialized in certain sources of cash flow so I could participate in the benefits of that investment without actually having to be active in that business. I wish someone had told me that these types of opportunities were available. So I asked Mauricio to talk about how funds were structured, how how investors partner with these types of businesses, and where it might fit into an entrepreneur's and an investor's portfolio. Here's what we discussed. So let's make this super practical and actionable for those of you who are desiring cash flow. Because what I want entrepreneurs and high achievers to know is that these types of funds exist and can be a part of of your portfolio. And full disclosure, these types of funds, including Mauricio's fund, are a major focus of my portfolio. In fact, I think I have more allocated for cash flow funds than anything else in my portfolio. So this is something I believe in. This is something that if you look at my balance sheet, I have a significant amount of interest in. So full disclosure, I invest very heavily in these types of funds.

So.

So I don't think most people think about.

Putting their money with businesses that are funds that pay out their investors as their primary way of investing. Because when you think about investing in real estate, you think about doing it yourself. That's what most people think about. Or if you think about investing in really any asset class, the temptation, especially for entrepreneurs, is to say, I'm gonna go out and learn how to do this. And so we go down these rabbit holes of, oh, that's a good idea, your business looks pretty good, so I'm gonna pursue this. So how does it actually look to invest in one of these funds? Because obviously you don't take investor cash and pay out investors unless you're making a profit, right? And asset class is only as good as the businesses that are in it, because behind every investment is a business. So how does it actually look from the investor and business perspective of when someone gets involved in investing?

When someone gets involved in one of our funds or a fund in general, the first thing to keep in mind, it is 100% passive. So you're not in a situation where you're having to do any of the work. You know, a lot of businesses want to roll up their sleeves and get involved in the decision making on stuff. That is what we're there to do. So it's a passive investment. You essentially do your due diligence on the front end, which is key. Just making sure that we're legit. And whatever investment you're going to make, you want to make sure you do your due diligence first. But once you're done with the due diligence, you essentially invest in the deal which you're investing alongside other people and ourselves. We think of, of our investors as partners and you're getting a monthly, we call it mailbox money, but it's literally a monthly check these days it's an ACH wire, but it's just a monthly check that comes in every single month that you don't have to worry about so that you can then focus on building your empire, whatever business you're involved in.

And why are you able to do that? Meaning why is the fund, whether it's you or somebody else, able to pay out a predictable rate of return?

Yep.

Great.

Two reasons. One, again, mobile home parks right now are cash cow. So there's plenty of cash to go around even on the, on the monthly, on the monthly stake. But where we really, I think differential differentiate ourselves a little bit from other mobile home park funds or investments is that we focus on acquiring sort of the distressed properties. We have a full, you know, we have a construction company, we have a property management company that's nationwide. And so we're able to go in and acquire mobile home parks that are full, 30, 40, 50% occupied that the current investors don't, I'm sorry, the current owners don't want to deal with, don't have the capital to improve them. Just they're a lot of times legacy investors. Legacy owners. And so we're able to take these parks and turn them around pretty quickly. And so we create an immense amount of value on those parks. And so upon exit, that's really where we really get paid on the back end because we've hopefully created so much value to the park, increase the value of the park that we can then extract through a refinance or even a sale a tremendous amount of value on the back end. So it's all about value creation for us. And so we're happy to pay out 10, 12% because obviously we're making more than that on the back end.

Yeah, makes sense. So the just like, to be clear, this is not a startup. Like, you're not raising money to scale a business. You and your partners have been in this for quite some time.

We're actually top 100 owner operator in the U.S. i mean, we've scaled it pretty quickly. We've been doing this for three years now, but we went basically from zero to top 100 in the last three years. So we're not one of the smaller players. But we also, we're basically in. The mobile home park industry is very fragmented. And so we're basically, the way I view it, we're in the process of consolidating that fragmentation. So we're just acquiring and we want to move up pretty quickly and get to top five here in the next three to five years.