Podcast Episode #11: Tim Kelly Talks MHP & POH To TOH

For servicemen on active duty mobile home parks can provide passive income. Here, Glenn And Jason interview Tim Kelly. Tim is a Chief Petty Officer in the Navy. He spearheads an initiative that educates active duty personnel on real estate. This could mean the key to financial freedom. Listen as Glenn and Jason discuss their shared experiences with Tim.

Active duty, passive income

Sadly, many veterans experience financial setbacks. Luckily, there are efforts to help enlisted members secure their financial futures. “There are a lot of great trainers and gurus out there. Things are constantly changing and updating,” says Tim. All aspects of the real estate industry can produce big profits if you do it right.  
Active Duty Passive Income, or ADPI, is the latest to explore this. Real estate offers many opportunities for passive income. Tim says it’s “one of the best benefits for military that aren’t being taken advantage of enough”. ADPI offers members extensive literature and podcasts to navigate the field. The program gives options for “house-hacking” with VA loans, investment tips, and more. Jason sums it up best. “I love that you’re showing people how to grow their wealth and serve their country. I think that’s very valuable.” For those on active duty, mobile home parks present a somewhat easier opportunity for entry.

Park owned mobile home vs tenant owned

After exploring other areas in the space, Tim recalls settling on Mobile Home parks. His first venture was a learning experience. He noticed “much higher cap rates, higher return,” and it was less crowded. This was due in part to the stigma surrounding mobile home parks. Many perceive them as crime-ridden. The group is out to break that stigma.
Tim says tenant owned home break the stereotype. Everyone has some form of ownership. This raises the incentive to maintain the community. Park home owners can focus on providing safe, pristine park conditions. This results in overall higher profit margins. Overall, there are several considerations when navigating mobile home parks. For more of the nitty gritty details on MHP functionality, take a listen to one of our earlier podcasts on the industry!

No mistakes, no growth in mobile home

The group discussed failing forward in the industry. They attest that simple due diligence can save you a lot of time and frustration down the line. His lasting advice is to “make contact with City Hall. Let them know who you are, what you’re doing. You’re going to need their help eventually.” Glenn backs this up. “They can make your life a lot harder. If you haven’t discussed your ideas with the city first, you can often learn a real hard lesson in there”.
The MHP stigma can restrict you here, too. If City Council suspects any allowance of criminal activity, you’ll be at a roadblock. City Council is less incentivized to build mobile home parks. Their revenues pale in comparison to other real estate. Apartment complexes would take higher priority. That’s why it’s imperative that you build a solid rapport with City Council. A good relationship can help to ensure fewer restrictions.

Active duty, mobile home parks

“There are traits from being in the military that transition well into business,” say Tim. The same goes for investing. The mobile home park industry is an opportunity for those on active duty to monetize what they do best. Get started investing today! Listen as Jason, Glenn, & Tim discuss this and more at length! 

Podcast Transcript

Jason Sirotin:
Hey, everybody. Welcome to the Mobile Home Park Expert podcast. I’m Jason Sirotin with Glenn Esterson, as always. Glenn, how you doing?

Glenn Esterson:
I’m doing fantastic as usual and just enjoying these conversations more and more with you, Jason.

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