What if You Could Invest $100k Once, Make $20k/Year Forever? Here’s How In Mobile Home Park Investing with Jefferson Lilly

Jefferson Lilly

In Episode #251 Nathan interviews Jefferson Lilly, a millionaire who left his Silicon Valley job to become an expert in Mobile Home Park Investment. Listen as Nathan goes over the nuts and bolts of Mobile Home Park Investing with one of the industry’s leaders.

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Famous 5

  • Favorite Book? – The Snowball
  • What CEO do you follow? — Sam Zell
  • What is your favorite online tool? — Search Tempest
  • Do you get 8 hours of sleep?— Yes
  • If you could let your 20 year old self know one thing, what would it be? — How good this niche of real estate is…I would have started raising outside capital sooner.

Time Stamped Show Notes:

  • 01:20 – Nathan’s introduction
  • 02:01 – Welcoming Jefferson to the show
  • 02:15 – Why Jefferson left Silicon Valley to enter mobile home investing
  • 02:40 – “Warren Buffett was right” – Jefferson looked for value investments
  • 03:10 – Mobile home parks yield 300-400 basis points more than apartments
  • 03:30 – Jefferson was 39 with a $100k salary when he got involved with property investing
  • 04:30 – First deal was $450k, with an 80% loan from the bank – put down about $86k
  • 05:17 – Jefferson had almost $1 million saved at this point
  • 06:00 – First property earned about $45k each year
  • 07:00 – 40 filled lots; lot rents $110 per month. 24 vacant lots
  • 08:08 – Jefferson invested in buying and fixing used mobile homes to fill his vacant lots
  • 09:10 – The $20k investment in each used home was repaid by tenants at $600 a month
  • 10:00 – Rental income is about…
  • 12:00 – “If I’ve got $30k, what are the first steps I should take to find a deal?”
  • 12:30 – Get educated: resources at Park Street Partners
  • 13:00 – For $30k, look to buy a 5-space property, say $100k
  • 14:20 – “If you’re not earning 20% on your money, you’re doing something wrong.”
  • 14:50 – Any state that borders the ocean is a good bet
  • 15:30 – Look at places like LoopNet for starting deals
  • 16:30 – How do I value a mobile home park? Jefferson’s advice.
  • 18:00 – Going it alone vs. joining a fund
  • 20:00 – Park Street Partners runs an investment fund
  • 21:40 – They don’t charge management fees – they only make money if the fund does
  • 22:40 – Last year the business made around $5 million

3 Key Points:

  1. Do your research. If you’re moving into a new investing field, take at least 100 hours to really learn what you’re doing.
  2. Mobile homes have some of the best returns on investment of any property type
  3. Consider how much time you want to spend managing a property investment. If you’ve got the time and want more profits, go it alone; otherwise it’s worth looking into funds

Resources Mentioned:

  • Freshbooks – The site Nathan uses to manage his invoices and accounts.
  • Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible.
  • Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
  • Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.
  • Show Notes provided by Mallard Creatives

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