Interview with MHP Loan Broker Judah Aderet of Princeton Capital Group

Passive Mobile Home Park Investing

Welcome back to the Passive Mobile Home Park Investing Podcast, hosted by Andrew Keel. On this episode of the Passive Mobile Home Park Investing Podcast, Andrew talks with Judah Aderet of Princeton Capital Group. Judah’s background is in finance and his experience with mobile home community lending gives him keen insights and a unique perspective. Andrew and Judah talk about tips for Limited Partner passive investors, Judah’s perfect mobile home park, and mistakes that new manufactured housing community operators make. Judah also shares his knowledge about financing mobile home parks for operators and investors. Andrew and Judah also talk about some tips and buzzwords that new passive investors might not be familiar with yet.

Judah is the Principal and Founder of Princeton Capital Group, a commercial real estate loan broker with a specialty in manufactured housing communities. Judah has closed 40 manufactured housing community loans over the last 12 months and 150 over the last five years!

***Andrew Keel and Keel Team Real Estate Investments (Keel Team, LLC) do not endorse any interviewee. This interview is for informational purposes only and should not be depended upon for investment purposes. ***

Andrew Keel is the owner of Keel Team, LLC, a Top 100 Owner of Manufactured Housing Communities with over 2,000 lots under management. His team currently manages over 30 manufactured housing communities across more than ten states. His expertise is in turning around under-managed manufactured housing communities by utilizing proven systems to maximize the occupancy while reducing operating costs. He specializes in bringing in homes to fill vacant lots, implementing utility bill back programs, and improving overall management and operating efficiencies, all of which significantly boost the asset value and net operating income of the communities.

Andrew has been featured on some of the Top Podcasts in the manufactured housing space, click here to listen to his most recent interviews: https://www.keelteam.com/podcast-links. In order to successfully implement his management strategy Andrew's team usually moves on location during the first several months of ownership. Find out more about Andrew's story at AndrewKeel.com.Are you getting value out of this show? If so, please head over to iTunes and leave the show a quick five-star review. I have a goal of hitting over 100 total 5-star reviews by the end of 2021, and it would mean the absolute world to me if you could help contribute to that. Thanks ahead of time for making my day with your five-star review of the show.

Would you like to see mobile home park projects in progress? If so, follow us on Instagram: @passivemhpinvesting for photos and awesome videos from our recent mobile home park acquisitions.

Talking Points:

00:21 - Welcome to the Passive Mobile Home Park Investing Podcast

01:30 - Judah’s backstory and journey into mobile home park community lending

06:19 - The most important things passive investors need to look out for

10:19 - What matters most when getting a mobile home park financed

12:38 - The lending options available for manufactured housing communities and mobile home parks

15:09 - Qualifying for agency lenders, occupancy, and the difference between agency and other options

25:26 - Loan-to-cost and how operators can better understand this

30:55 - Adding a spread to terms given by lenders

34:43 - Judah’s perfect mobile home park

35:32 - Common mistakes new operators make (in terms of financing)

36:02 - Future hurdles in the manufactured housing industry

37:10 - Princeton Capital Group

39:54 - Getting a hold of Judah

40:54 - Conclusion

Links & Mentions from This Episode:

Judah’s phone (call or text): 848-222-0738

Judah’s email: [e-mail]

Keel Team's official website: https://www.keelteam.com/

Andrew Keel's official website: https://www.andrewkeel.com/

Andrew Keel LinkedIn: https://www.linkedin.com/in/andrewkeel

Andrew Keel Facebook page: https://www.facebook.com/PassiveMHPin...

Andrew Keel Instagram page: https://www.instagram.com/passivemhpi...

Twitter: @MHPinvestors

Quotes:

“I would say an LP has to look out for something very similar to what they look out for when they're looking into a multifamily deal. Whether it's the operator’s experience, the returns, making sure that the sponsor, the GP is being conservative in his expectations of expense growths, rent growth, and all of that.” - Judah Aderet

“The cream of the crop is obviously the agency loans. Those are non-recourse, no personal guarantee loans with the long-term fixed stat, whether it's 10 years, 12 years, 15 years.” - Judah Aderet, on lending options

“With banks and national banks or regional banks—there are plenty of national banks that can count park-owned home income. Some of them need to take the homes as collateral because they're counting that income, and some don't, which are like diamonds in the rough.” - Judah Aderet

“I don't want to be spending any money on the bones of the park, water lines and sewer lines are fixing up—real structural issues.” - Judah Aderet