Jun 17, 2022

Dylan Marma is the principal of The Requity Group, a vertically integrated real estate private equity company. He has been investing full time for the last 4 years and has been the lead sponsor of $90M in transactions. He says that there is one big expense that’s unique to manufactures housing communities and that’s vacancies. Vacancies are a big expense because they can really impact the long-term viability of the community. Listen in as he stresses the importance of understanding your income and expenses, your net operating income, in order to determine the value of a mobile home park!

[00:01 - 03:35] Opening Segment

• Suja introduces Dylan

• Dylan discusses the tremendous difference between mobile home parks and RV campsites in terms of length of residency and purpose

• He says that renting out land in mobile home parks or manufactures housing communities is a great business because there is only so much upkeep from the land itself

• He explains that on an RV camping ground, your main source of income is typically your nightly rates, which can be high cash flow

[03:36 - 10:59] Minimizing Vacancies In Order To Have Minimal Deliquency

• Dylan discusses that there are number of fees and expenses associated with owning an apartment complex, including lot rent, move-in fees, taxes, and payroll

• The management fee for a tenant-owned community can be from 5% to 6%

• The insurance cost can be around $60

• Marketing is minimal for tenant-owned communities, as it depends on the community’s status

• Dylan explains that there are many additional income streams that can be generated from RV rentals, such as selling food, golf carts, and parts and supplies

• He says that rent is typically the main sources of income for Rvers and there is usually minimal delinquency because people are usually paying in advance and trying to maximize your occupancy at all times

[11:00 - 20:28] Closing Segment

• Dylan shares that short term RV campgrounds are typically 40-60 % higher in income than long term campgrounds, but have a significantly higher expense ratio. 
• Dylan shares where you can get in contact with him (links below)

Quote/s:

“When you start going niche, and digging in. You can find providers that specialize in this and you can get some really attractive quotes.” – Dylan Marma

You can connect with Dylan through Website, Podcast, LinkedIn, Twitter, and email!

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