Tommy Dobczyk explains how a mobile home community generates cash flow and pays investors even at 50% occupancy. The key is owning the land and charging lot rent, which creates stable revenue independent of how many homes are there. Built-in financial buffers and in-house management control costs and protect returns.
Who is Katherine Bell
at 50% occupied. So we're only half full at that community and we're already cash flowing out of the gate enough to be able to send out distributions to investors. And that's just something that's very hard, if not impossible to achieve in a lot of other commercial real estate asset classes.
Again, this is the thing I love about renting dirt. Like it's just so much better for so many reasons. I love that. So I love the whole preparing.
Yeah. And so that's why, you know, we, we have the in house. Because the way I look at things, basically there's things within our control and there's things that are essentially out of our control. So the things that are out of our control, like interest rates, cap rates, supply chain issues, inflation, we can't control those things. So we build wiggle room into our underwriting so that we can handle those things. So it's, I suppose it's the way that we can control the uncontrollables by having that into built in behind our deals. And then the other things that are more in our control is the operations, the management, pushing the project along, et cetera, et cetera. And we have in house, property management, asset management, construction management and mobile home financing because we believe that we're going to do a better job than if we were going to work with third parties. So that's really the way that we control the controllables and the way that we control the uncontrollables as well.
