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Mobile Home Park Investors with Jefferson Lilly & Brad Johnson

The Mobile Home Park Investors Podcast is the world’s first podcast dedicated to mobile home park investing. This weekly podcast explains the intricacies of this unique real estate niche and details why an investor would want to own a mobile home park, either directly or through a real estate fund. Current manufactured housing community owners will find this podcast helpful in improving their mobile home park’s operations and profitability. The Podcast is hosted by Jefferson Lilly and Brad Johnson who are the co-founders of Park Street Partners, a private real estate investment firm focused on mobile home parks. The company seeks to deliver its investors superior cash flow returns by acquiring and investing in undervalued mobile home parks. Park Street Partners does this while helping to solve America’s affordable housing crisis by improving communities and increasing the supply of housing in the markets it operates in.
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Now displaying: April, 2016
Apr 28, 2016

Welcome to episode 18 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Today, Jefferson and Brad follow up on episode 17, which was all about taxes and only briefly touched on depreciation. Today’s episode will focus exclusively on depreciation and will get into details on why mobile home parks are such a great tax strategy to legally shelter income through accelerated depreciation.

 

Key Takeaways:

[1:35] It doesn’t really matter how much you make, it matters how much you keep.

[2:41] “Mobile home parks are just land.” “There are no assets to depreciate.” “Land is not depreciable; therefore mobile home parks have no depreciation.” - WRONG!

[3:42] Jefferson gives a rundown of what this asset class actually is.

[4:09] On average, you can probably depreciate about 75-80% of the mobile home park’s purchase price.

[4:31] Not only do parks kick off a lot of cash flow relative to other asset classes in real estate, but the vast majority of that income is tax-free.

[5:58] What does it mean to have 75% of the purchase price of a mobile home park depreciated? 

[8:12] How to go about analyzing how much depreciation you will have on your mobile home park.

[12:01] Once you’ve established what your non-depreciable land value is, then you know everything else is going to be allocated to an asset or to goodwill.

[14:08] Resources available to value your property include firms specializing in cost segregation and some appraisers.

[16:23] How to think through segregating out improvements and whatever leftover goodwill...In the end, don’t forget to take your depreciation.

[18:32] While it’s nice to make a high return, what matters the most is the after-tax returns. 

 

Mentioned in This Episode:

Park Street Partners www.parkstreetpartners.com

Mobile Home Park Investors www.mobilehomeparkinvestors.net

deals@parkstreetpartners.com

Park Street Partners - Investment Opportunities

Park Street Partners - Resources

Mobile Home Park Investors

Mobile Home Park Investors Group on LinkedIn

Send your deals to: deals@parkstreetpartners.net

Apr 21, 2016

Welcome to episode 17 of the Mobile Home Park Investors podcast hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Today, Jefferson and Brad discuss taxes and share helpful tips to help you save on your mobile home park property taxes. Listen in for advice on tax depreciation, how not to pay double taxes on your ‘wheel estate property,’ preparing your CPA for the April 15th deadline, miscellaneous business expenses, and more.

 

Key Takeaways:

[1:39] Today’s episode will cover depreciation briefly. Check out episode 18 for a more in depth discussion on tax depreciation.

[2:18] You can save on your taxes by segmenting out the component costs of any mobile homes that come with your park.

[4:36] Jefferson shares another tax saving idea. 

[8:45] Brad shares tips, especially for 1st time mobile home park owners, on getting your CPA prepared for the April 15th deadline.

[10:36] Jefferson and Brad always advise purchasing your property in some sort of an entity such as a LLC. 

[13:29] What is a promissory note income?

[15:13] What is rent credit income? 

[16:18] Miscellaneous and other types of business expenses for tax deductions. 

[18:14] What other types of expenses are really good for the ‘wheel estate property’ business?

[19:57] Talk to your CPA to make sure you understand how your tax basis is being adjusted every year.

[21:37] A 1031 exchange is always a good idea. Upcoming podcasts will feature a 1031 exchange expert who will step us through the 1031 process. 

 

Mentioned in This Episode:

Park Street Partners www.parkstreetpartners.com

Mobile Home Park Investors www.mobilehomeparkinvestors.net

deals@parkstreetpartners.com

Park Street Partners - Investment Opportunities

Park Street Partners - Resources

Mobile Home Park Investors

Mobile Home Park Investors Group on LinkedIn

Send your deals to: deals@parkstreetpartners.com

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