TGCI 14: Managing 100+ people to owning Mobile Home Parks. What are MHPs?

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Episode 14 – Managing 100+people to Owning Mobile Home Parks…How Did I Do It?

Show #14 - Satish Atlure - Episode Art

Summary

In this episode, Pancham interviews Satish Atluri, COO of Parkway Communities. Satish shares some interesting details about a little known asset class – mobile home parks, and reveals how you can earn terrific returns for you and your investors.

This show starts off with Satish sharing how he transitioned to real estate investing. After making his first real estate investment in 1995, Satish discovered mobile home parks in 2015.
So, what is a mobile home park? As a mobile home park owner, what are your responsibilities? And, how is the government encouraging this little-known asset class? 

Next, we discuss the huge supply-demand mismatch for this asset class. What sort of returns can earn from mobile home parks? Is investing in a mobile home park far more lucrative compared to single-family and multi-family investing? 

PanchamHeadshotTGCI
Pancham Gupta
TGCI 14 - Satish Alturi
Satish Atluri

We wrap up this show with our “Taking the Leap” round. This is a show you do not want to miss. Tune in now! 

Show #14 - Quote Art

Timestamped Shownotes:

  • 00:20 – Are you aware of the diverse investing niches within real estate?
  • 01:03 – Pancham introduces Satish to listeners
  • 02:22 – How did Satish get started in real estate investing?
  • 04:00 – How did Satish end up investing in his first mobile home park that is earning him annual returns of 40%?
  • 07:11 – What is a mobile home park? Satish explains in simple terms
  • 08:14 – As an owner of mobile home parks, is Satish responsible for home maintenance as well?
  • 10:24 – How does the lot rent for mobile home parks compare to apartment rent?
  • 11:16 – How the government encourages mobile home parks by charging reduced taxes
  • 12:31 – Are mobile homes comparable to traditional homes as far as living standard is concerned?
  • 13:35 – Understanding the star rating system for mobile home parks
  • 16:25 – How can investors find the right deal for a mobile home park
  • 18:10 – Do you need a license to operate a mobile home park?
  • 18:53 – Why did Satish invest an additional $600,000 to upgrade a mobile home park in Ohio?
  • 21:18 – Considering the excellent value proposition, why aren’t more mobile home parks being built in the United States?
  • 22:20 – Taking the Leap
    • 24:25 – When was the first time you invested outside of the Wall Street?
    • 25:17 – What fears had to overcome when you made your first investment property?
    • 28:28 – Can you share one investment that did not go as expected?
    • 31:50 – What is one piece of advice that you should give to people thinking of investing in the Main Street?
  • 33:50 – Satish shares his contact information
  • 34:45 – Sign up for Pancham’s Gold Collar Investor Club
  • 36:46 – Got questions? Get in touch with Pancham

3 Key Points:

  1. Overview of the mobile home park asset class in the United States
  2. Mobile home park investing vs. apartment investing – how do they compare?
  3. Understanding the responsibilities of a mobile home park owner

Get In Touch:

Read Full Transcript

Introduction

Welcome to The Gold Collar Investor podcast with your host Pancham Gupta. This podcast is dedicated to helping the high paid professionals to break out of the Wall Street investments and create multiple income streams.

Here’s your host Pancham Gupta.

Pancham: When I started investing in real estate, I never thought that real estate can be so diverse. As I grew into my investing career, I found out that there are so many niches in real estate. One such niche is Mobile Home Parks. My goal for this podcast is to educate you on what Mobile Home Parks are. You may not realize it but I’m sure that most of you may have seen one in your life. It’s usually a big area that you may have seen along the highway or even in a neighbourhood with a lot of mobile homes or trailer homes. Believe it or not, you can make an excellent return by owning doors. If managed properly, these parks can be cash cows. Today I have invited a person who left a shiny corporate career of managing a hundred plus people to owning and managing Mobile Home Parks. Satish is the chief operating officer of Parkway communities and currently oversees manufactured housing communities in eight states. Always striving to improve profitability at the same time focusing on tenant’s delight. Satish entered the industry in 2013, after 20 years of senior management experience in the information technology industry, Satish work as a vice president in SOA, SDA, Incorporated, acquired by Akamai, and head of software testing for North America, and he will attack it until 2013. Satish was recognized for his ability to lead large teams and successfully closed business deals worth over 250 million. Satish, welcome to the show.

Satish: Thank you Pancham, how are you doing? 

Pancham: Good, are you ready to fire up my listeners break out Wall Street investments?

Satish: Absolutely. Yes.

Pancham: Great. So, before we begin, do you want to give a quick overview of how you started out in this business?

Satish: Yeah sure, Pancham. This started around 2010 when, you know, when things were coming out of the recession, and you know, we looked at the market. We both my wife and we wanted to do something different than what we have been doing for the past 20 years in the IT and banking industry, but we decided we were having dinner with one of my colleagues. Her name is Julie. But she owns 120 properties, single family homes, condos in Florida. It was interesting. I asked her what is the best performing asset that you have? And she said that it was a mobile home park. Now, I have never seen her mobile home park. I’ve never been in one, right, and yes, I did see these large structures being towed on highways, the single-family homes, but that’s about that was my experience. But started getting to know, started to understand about this asset class and visited nearly a hundred plus Mobile Home Parks in a very short timeframe. Nice. Whenever I was traveling, I would extend my stay, stay there for over a weekend and look at the Mobile Home Parks in the neighbouring areas. They are really interesting. That’s how I got my start, and we started Parkway Communities nearly five years ago, and my wife Indira, she takes care of the finance and accounting and I do the operations.

Pancham: Oh, great. So, diving into this a little bit when you said, you know you visited a hundred parks, like, when was the first time you actually said, “Okay, you know what this is the part that I want to buy, let’s go for it”.

  

Satish: It was not like this is the park that I want to buy, but it was what are the parks that are there in the market that I could buy. So luckily, what had happened is our park was available for sale. It was listed in Loopnet, and it was there for several months, I was really surprised, and I called the broker and they talked to them, it took a long time to close the first deal Pancham. It was very slow going, and it took nearly a year and a half to close the first deal that was in Fort Worth, and it’s a very small 31 space park, but it has returned a very good rate of return…which is upwards of 40%.

Pancham: Wow.

Satish: So happy with the investment that we made in 2013. So that was the smallest part that we have in the portfolio now.

Pancham: Do you still own it?

Satish: Oh, yes, we still own it. I really feel Pancham that, you know, I compare my mobile home parts to the oil fields. Right, the oil fields may dry up, but mobile homes, you know, the affordability, the vertical housing demand is not going to drive anytime soon. So, I took [inaudible] when you can get the eggs.  

Pancham: That is so true.

Satish: Yeah.

Pancham: You know, 40% may sound very foreign to people invest in the stock market, and that’s not, you know, that’s pretty much dividends not really the appreciation, this is like the money in your pocket every year, year after year, 40% of your initial cash invested, right?

Satish: That is correct. That is the hard cash that we invested, but it does are more than 40% every year.

Pancham: Nice. So, you mentioned something 31 spaces. My audience actually have no idea about what Mobile Home Parks are, can we start from very, very basic on what these parks are who actually lives in it. And what are the whole dynamics around it?

Satish: Sure, by the way, I use Mobile Home Park, you know, trailer Park or manufactured housing community, depending on who I’m talking to, if I’m talking to a plumber, and I want a very good deal, I tell him that it’s a trailer park. With investors, we talked about manufactured housing communities. But not quite a long time ago from Warren Buffett used an Acronym called NIMBY, stands for “not in my backyard”, NIMBY. So, basically what Warren Buffett says if any asset class that people don’t want to own or don’t want to be associated with or don’t want to have that in your backyard that is usually has a lot of you know, the higher profit margins. And the trailer parks which is Mobile Home Parks, you don’t want that right next year home because it has this stigma that was driven by the trailer boys trailer parks and all the sitcoms that came about in the 70s and 80s. So, having said that we like to own mobile home parks and we make sure that we put a lot of investment back into that and remove try to remove that stigma for a trailer park. So, what it is, you know, what is a mobile home park? Just think of a mobile home park, you know, bed land with it’s like a parking lot but parking lot for mobile homes, and it contains spaces to be occupied by manufactured homes. Each space has the utility connectors like the electricity, water, sewer hook-ups, the gas hook-ups, and basically the mobile home owners who are the residents or the tenants, they pay the lot rent or the space rent. Just like a car parking, you would pay the space for parking the car. Now the big difference between the car parking lot, and this is the car is there for an hour or a day or a few days, and whereas the mobile homes, they are there for nearly forever. So, you’re calling a lot on these homes. Now, the community, which is the mobile home park owner, they are responsible for maintaining the roads, the infrastructure, right the water sewer lines. Now they’re not responsible, at least in our majority of the parks, you are not responsible for the maintenance of the homes, because the homes belong to the residents, not us. Though when you compare the profit margins with apartment complexes, it is much higher like 20%-25% higher than apartment complexes. So that’s another reason that it’s a great investment to be in.

Pancham: So good. So, let me ask you this, you mentioned 31 spaces before so mobile home parks, whenever you talk about Mobile Home Parks and brokers or your investors, that’s how you classify them. It’s 31 space park, not a 31 home park. Correct? As opposed to the apartment building where you say 31 apartments as opposed to you know, 31 residents or 31 spaces. You know, I don’t even know what you would say over there.

Satish: You brought up a good point bunch of because let’s assume there is 100 space Park tonight. Um, it is very important to understand if there are homes physically occupying on those hundred spaces, right? So, that’s one question that we have to ask the brokers. The second question is, how many of those homes are actually resident owned homes? And how many of them are park-owned homes? Because we can still operate a Mobile Home Park with Park-Owned Homes. But it is more intensive. It can become like an apartment complex. Because you’re not responsible for the maintenance inside the home. We tend to gravitate towards parks which are resident owned homes because they’re a lot more stable, and even the longevity I have heard from several park owners is 7 years to 9 years for a resident-owned home versus the if it is a Park-Owned Home, it may be about nine months to a year. 

Pancham: Oh, a huge gap.

Satish: Yeah, huge gap.

Pancham: Okay, so the lot rent, right? Is there a lease here? Like an apartment building, we have a 12 months lease or two years lease? Do you have leases here for each and every lot? Long term leases? How does that work?

Satish: Um, yeah, we do have leases Pancham. The big difference between apartment complexes and manufactured housing communities is the lot rent is a lot, lot lower than the apartment rents. Right, it can be nearly half to one-third of the apartment rents. For example, in the Dallas Fort Worth Metro, a three-bedroom, two baths would be going for about $1400 to $1500 per month. Whereas you can live in a three-bedroom, two bath that you can buy for around $7000-$8,000 or $10,000, a second i.e. used home and pay large rent around $450 to $500 per month, and you have your own backyard, you park right next to your home, and it is your home you can do whatever you want inside your home, and the taxes are also very less. So, the government is actually helping the affordable housing, especially the Mobile Home residents to pay fewer taxes. In fact, the taxes in Texas, if the value of the home is less than $25,000 is around $50 per year. 

Pancham: Oh, wow. So how much you mentioned, the home is about $25,000…total cost?

Satish: The used home you can buy it for $10,000 to $12,000.

Pancham: Oh, wow. Some of the ones that we have sold for $7,000 a nice. You know, two-bedroom, two baths, three-bedroom three baths usually get more money around $12,000 to $15,000. So again, depending on the age, depending on the size, it varies quite a bit. A new three-bedrooms two baths, you can buy it for about $35,000, and it takes about $10,000 to $12,000 to setting it up and getting it ready for the prospect to occupied.

Pancham: So inside of this for my listeners and never seen one mobile home inside, physically they look exactly the same from inside the way you would have a regular home or there is a difference?

Satish: Let me go back two years when this was 2012 and I took my mom to a Mobile Home Park, and I said, “Hey, Mom, you know, one of the residents is actually selling the home”. So why don’t you check it out? So, my mom and we went inside we lifted the home, and she came out and she said, “This home looks better than yours”. So, I live in a stick built home. So, once you walk into a home, this home can be just like any home.

Pancham: Wow.

Satish: How well you’re maintaining it, you know, brand and it’s really nice. Some of these homes are kept maintained much better than the regular stick-built homes.

Pancham: I see. Okay, so how do you classify Mobile Home Parks? You know, are there very, very good parks to let’s say parks which are not so good? Like how do you classify them, and like you know, are there is there any rating scale for them?  

Satish: There is like a subjective rating scale. So that is probably the closest that you can say that there is a rating to the Mobile Home Parks.

Pancham: I see.

Satish: There are no A-B-C ratings like in the apartment complexes as such. There are star ratings.

Pancham: I see.

Satish: So, I’ll give you the high-level view, I may be a little bit off here and there, but I’ll give you what I think the star ratings are. One star rating would be no roads. Right? Pretty much dirt roads and all the homes are not skirted or minimally skirted homes. By the way skirting is the one that goes the bottom of the, you know, covers the wheel and the axles.

Pancham: That I see.

Satish: That is the skirting for a mobile home.

Pancham: I see. So that you don’t see the wheels and the axel from the house.

Satish: Yes, so it’s covered by a material called a skirt. So that’s one star, two stars, two and a half stars will be primarily single feet wide homes, and the single wide homes they are basically 14 feet or 16 feet wide. Whereas the double wide are about 24 feet to 28 feet wide.

Pancham: I see.

Satish: And they are much a lot more spacious than a single wide. So, the two to two and a half stars would have been asphalt roads may have a playground. Most of the parks that we have in the country, I think they are around two between two and three stars. They may have an office or the manager might be working from our community from Mobile Home, their own home. For a three-star park, three-star to four-star park there, at that point in time you’re looking at more amenities and bigger homes like the double wide homes. So, four-star park would probably have about 40 to 50 double wide homes, and they would have a playground, they would have a swimming pool, a clubhouse. Those are all the amenities that, you know three-star to four-star parks would have. In a five-star park, they are basically all the double wide homes, nearly 80% to 90% of the double-wide homes, and you may have a gym, you may have a gym, in addition to the amenities that I just mentioned, and they are just you know resort communities. Some of these homes, like in California are about half a million dollars.

Pancham: Oh, wow.

Satish: So, they’re really expensive homes. Again, primarily targeted towards rich clientele, and those would be the five-star parks. Most of the parks that we own are two to two and a half stars. Because we feel that the…again, we don’t want to go into that, no star or one-star Mobile Home Parks. We like to be between two and three-star area.

Pancham: Okay, so what are some of the things you need to be careful about before you invest in Mobile Home Parks.

Satish: You know, there are a lot of things that can go wrong, Pancham. A lot of things that can go wrong, and it is very important to know and understand pretty much in the first few days how to buy infrastructures. Right? You don’t want to walk into a situation where it is in a master gas…master-metered gas.

Pancham: What does that mean?

Satish: What that means is think of your, you have a park and you have gas service that you are actually providing to your tenants, and you’re paying, your utility company directly for the usage of the entire park. Now what happens, more often than not is there is a leak…there’s a leak the gas leak in one of the lines because of the corrosion or because of various reasons, and what is that happens, you know you have to, you know, switch off the entire gas line gas for the entire community is right. Now they have to call up the lumber and get it fixed. It turns out to be very expensive. 

Pancham: Yeah. 

Satish: So that and also, well water. We don’t have any parks in our portfolio that have well water. No, that does not mean that they are bad or anything. It’s just that you have to be careful that the water may dry up, and you do you have a plan B the water dries up in your well.

Pancham: Right.

Satish: And the third thing that we look at is you know, infrastructure is very important for us, you know, to really understand how much it would cost if anything might go wrong. We started when we start operating. I have a really good story about that. I’ll go into that in a minute, and some of the parks don’t have any licensing. Some of them, you know owners decide to add more homes and then it is licensed park.

Pancham: You mean permitting. Is that same as like permits?

Satish: Yeah, yeah, the same as permits, and in Texas or in Iowa in other places, you know, there is no license as such to operate a mobile home park, but you will when you talk with the tax assessor, then you will know that it is, you know, legally conforming or legally non-conforming asset and they will let it run as long as they’re running as a Mobile Home Park.

Pancham: I see. Okay, you were talking about a story. You wanted to talk about a story?

Satish: Yeah, yeah. So, we bought a park in, in Ohio. Ohio is a very highly regulated state. So that’s one thing that you have to be careful about whichever state that you walk in. You absolutely need to know what the pros and cons are. Nothing bad about Ohio. That is just that it is more regulated, and you have to put more effort into handling those licenses, permits and other things that go with highly regulated states. But we, when we looked at the infrastructure, we knew that the water lines were actually bad. We thought that we could call American Leak Detection or one of these Leak Detection companies and find those water leaks and fix them. And at the same time, we decided that okay, what is the worst case scenario? You have to always look at the worst case scenario, and the worst case scenario was to replace all the water lines in that part, and that could be about $600,000 to $650,000.

Pancham: Wow.

Satish: So, you know, we started calling the leak detection agencies and they gave us the recommendations, we fixed we took care of it. But still, the bad thing about water lines is once you put a patch on one end, it is going to look at the weakest link, right? And it starts spouting from there. So, we start looking at it and in and for 45-50 space community, it’s actually our water bill is around $24,000, and much more than what you were charging for rent. So, we decided to immediately…you know, we understood that it was the worst-case scenario vehicle, we go and went ahead and changed the water line. We got a great deal on the water line. So, that worked out great, and now the infrastructure is fantastic. The park is actually cash flowing very well, and the tenants are very happy because you know, the, when the infrastructure is good, the tenants are also happy because they know that if there is a water leak, it is on their end, but not on the main lines. They can fix it quickly.

Pancham: Great. So, it sounds like Mobile Home Parks can be very cheap to live in.

Satish: Yeah.

Pancham: And can be very cheap to afford, you know, it’s very, very affordable. So, why are they not building? Or are they building more mobile home parks?

Satish: So, I read a study about how many Mobile Home Parks was being built. Now in 2016. Um, I don’t have the data for 2018, but in 2016, there were three Mobile Home Parks that were built in the entire country.

Pancham: Wow.

Satish: And before that, it was still in the single digits. So, the reason is, the government is not making any money, right? So, the taxes are very low, the government is not making any money, and also the stigma of a mobile home park does not fare well with the city. So, there is a saying that if a city allows you to build a mobile home park, you don’t want to build there. Because either the economy’s not good or the land is way too far from the metro area. That is the reason why a lot of these Mobile Home Parks have not been built. Now, actually, I’ve been hearing this year, there are few very good operators who are actually building mobile home parks in the Fort Worth area as well as in the Colorado State of Colorado, just handful of the probably one or two in Colorado and one or two here in the Fort Worth area. I mean, it is very, very hard. The city will be against you, the people, your neighbours will be against you, if you want to build a mobile home park. It is just not that easy. To build a Mobile Home Park in a metro area as much as it is easy to build an apartment complex.

Pancham: Nice. I think I need to start looking into Mobile Home Parks, and it sounds so good. No competition what so ever in terms of new supply coming in. So, that makes it very, very enticing. So, thanks for sharing all of that. Anything else you would like to add before we go to the next section of our show?

Satish: Yeah. I think the reason why we went into the Mobile Home Park business, Pancham is, again, being in the technology area, things move so fast, right? You know, Intel knows that every 18 months, the chipset is evolving twice, you know, it has to be twice faster than it was. And one of the things that we wanted to do is, if we were going to move from IT and the banking industry towards Mobile Home Park, we really did not want competition. Right? We do not want Google, Facebook, Microsoft, Amazon these big bears coming in and eating our lunch like they’re doing for another competition. Right? So, would they compete with us in the Mobile Home Park business? I don’t think so.

Pancham: Great.

Satish: Yeah, and that’s one of the reasons why we went into this business.

Pancham: No, it’s a great, and it’s a great time for you guys to get into that 2012-2013 probably was the best time ever for any real estate to get into the real estate was good and you manage it well, you probably made a lot of money, too. Great. Let’s go to the next section of the show, which I call, “Taking the leap” round. I asked these four questions to every guest on my show. My first question is, When was the first time you invested outside of Wall Street?

Satish: This was in 1995-1996.

Pancham: Oh, wow. What was that?

Satish: It was buying a condo there, and we wanted to rent that out. But what we came to know is when we rent a condo, you don’t make much returns on that. But you know that then we rented out our own condo that we lived in. So, again, those are we started pretty early, we wanted to we have always been on the real estate side of things.

Satish: Yeah. 95 seems like you were already into this, like 15 years before you got into Mobile Home Parks.

Satish: Yes.

Pancham: Wow, that’s pretty amazing. Pretty amazing. So, what fears did you have to overcome when you first invested outside of the Wall Street and you bought that condo for rental purposes?

Satish: I think you know, in a bunch of if you don’t mind, you know it is just taking so much chunk of money. Right? It is not like buying, you know, a hundred shares of stock that is trading at $40-$50. 

Pancham: Correct. Absolutely.

Satish: I am not going to put in $40,000-$50,000, sometimes hundred thousand dollars into that asset, and now if the economy goes down, which happened in our Chicago condo, then you’re not making any money for more for over a decade, and that is a long, long time. And that’s why you know, for all of our learnings that we had. Now, we are so happy that we’re investing in a Mobile Home Park, which are recession resistant, by the way. 

Pancham: Yeah. So, like, what fears did you have? The fear of investing so much money, that was that the fear or whether it was an illiquid investment? You know, you cannot just click a button and get out of it.

Satish: Yeah, that was a fear that we had, because we knew that it was going to be a long-term investment. Just buying something in real estate is we are not flippers, never have been in our investments. So that was one concern that we had that if you are buying a condo, it’s going to be there for a long time. The second risk was it is just that, you know, I think the interest rates were a little bit higher at that time, and it was not that bad. Not like it was in the 1980s. And the third risk was the economy. Right? We were not sure how the economy would actually work out, and if that would…when we wanted to sell would we be caught in the bad economy time frame, that you will not be able to get your money back. But those are the concerns that we had, and especially the condos get hit, I think pretty bad when the recession goes down.

Pancham: Right.

Satish: When they start coming back up? They are probably the last ones that come back up.

Pancham: Yeah, no. I call condos at a very high highest level of you know, real estate investment which gets hit the first.

Satish: Yes.

Pancham: Whenever there’s a downturn, and they will, yeah, they will go up as well, quicker. But they get hit the first and the volatility over there is very, very high and then the assessments don’t even talk about that.

Satish: Yeah, actually, $260 to $270. Ridiculously high assessments.

Pancham: You know, I actually owned a condo where suddenly I got a bill for $2300 because something was going on and I had to pay, and no other option.

Satish: Yeah, the seller that we bought the condo from…Similarly they were it was around $3,000 because they had to change the roof, and there was an emergency meeting in them in their condo…in the condo.

 

Pancham: Yeah. All right. All right, let’s move on to our third question, which is can you share with us one investment that did not go as expected?

 

Satish: I think the North Foot, you know, I shouldn’t talk the name of the company, but the part where this part is actually based in North Foot, Ohio, and you know, I have changed the infrastructure being so bad at the worst case became true. Right. So, you know, frankly, we were scared, what’s going to happen. We had the money to invest, but we did not want to invest that much amount of money. Actually, after doing your due diligence, talking with other Park owners, we did not have to shell out that much money to replace the water lines. So that was that was a scary moment, and I think my point is, there are two ways that you can make money in real estate. One is you buy the asset at a good price or even if you have paying more, as long as you have a good horizon of increasing your rents, then you will make money. But if you are paying more and you can’t raise the rents, then you can’t survive in real estate. So, we have been lucky and we have been, you know, we have turned down. For every investment that we make, we turned down probably 70 to 80 or nearly 100 Mobile Home Parks, because they just don’t meet our criteria. But that doesn’t mean that there are not many good opportunities out there. It was just that our criteria are very stringent.

Pancham: Yeah, make sense. So, my last question is what is one piece of advice would you give to people who are thinking of investing in the Main Street that is outside of the Wall Street?

Satish: So, we have been investing in Wall Street since 1993, to all the way to 2013 when we liquidated all of our 401k all of our IRAs and invested all that money into Mobile Home Parks. And the reason is, Pancham we felt that the mutual fund managers they make money irrespective of whether their customers make money or not.

Pancham: Absolutely, this is my one of the biggest pet peeves and not only that there is so less transparency when it comes to fees and all that.

Satish: Yeah, and like Boris Barbara says that Tails I win, heads you lose. That is what the partnership is with the mutual…the finance people, with the mutual fund managers, and they win in it’s withdraw whether you make up any or not. And after investing in mutual funds for 20 years, we actually had lost money in our 401k, and we said that you know, we can better take care of our own money than giving it to someone else. So, it was scary to begin with. You know, buying our first 31 space part putting so much money and you know, we were signing the sales, he you know, the purchase papers, and I look at my wife and my wife looks at me and said, “Man, this may turn out to be the most expensive education that we got”. 

Pancham: But, you know, imagine if you wouldn’t have done that versus now you’ve done that. 

Satish: Yeah. 

Pancham: It’s a whole different ballgame. Your entire life trajectory has changed. What advice would you give to people who are thinking…I know you diversified, you liquidated all of your mutual funds and all that. What would you tell people who are have not been anything but invested all of them in my name 401k is and only Wall Street products?

Satish: It is hard for them to move their money from Wall Street because that is what they have been hearing. Especially the last few years, the S&P 500 has been doing very well. But it is a good time. But good times are going to come to an end. Right? And also, you have to find a good operator and an honest operator, and it is very hard for…At least if I was when I took my money, I actually went to the mobile home park owners and said hey, “I would like you to invest my money”, and everybody said no to me because they were happy with the returns that they were getting. Right? So, that’s when we started investing our own money, and we also take investments from others usually our friends and family. I think I think it is it is hard for anybody to trust it think outside of Wall Street because there’s so much, there are so much advertisements that go on and so many books so much TV channels that talk about Wall Street, but there are a lot of other asset classes that actually give you double-digit returns.

Pancham: Absolutely.

Satish: And you have to know the person who’s taking your hard-earned money, you have to know their background. You have to make sure that they have done it with their own money before they take your money. Right? I’m not saying it is easy but to the everybody should find an asset class that is outside of Wall Street as quickly as possible because I’m really scared of how high the Wall Street, you know S&P 500 indices are right now. It is very scary.

Pancham: Yeah, it is very scary. So, Satish how can listeners reach you?

Satish: Yeah, Pancham we have a website. It is www.parkwaycommunities.com. They can go there. It’s a family run operation me and my wife are operating from the corporate office right now. They can call me at my mobile number 214-763-6830 or they can email me at satish@parkwaycommunities.com and Satish is spelled as S-A-T-I-S-H.

Pancham: Yes, we will put that in the show notes as well for listeners to take that and email you so guys if you have any questions about Mobile Home Parks, Satish is a very good resource. Thanks for sharing all your knowledge today, Satish, and it was a pleasure having you on the show.

Satish: Sure. Thank you. It was great having you.

Pancham: Great having you, thanks.

Satish: Thank you, bye.

Pancham: If you are an accredited investor, and have been thinking about putting your money to work for you, then I have good news for you. I have created an investor club which I call The Gold Collar Investor club. I will be putting together investing opportunities exclusively for the group. These are the opportunities where I have done the due diligence for you and will be investing my own money alongside you. If you are interested, please sign up on thegoldcollarinvestor.com/club I repeat thegoldcollarinvestor.com/club. I will reach out to schedule a 30-minute phone conversation to discuss your investing goals. Once you sign up. This can be a good opportunity to diversify and take some chips off the hands of Wall Street to produce some passive income, and in case you are wondering, what is an accredited investor credited investor is someone who has earned more than $200,000 as filing single or more than $300,000 filing jointly for the last two years. Another way to qualify as an accredited investor, if your total network is more than $1 million excluding your personal home, it includes your stocks, 401ks, IRAs, cards, etc. Just not the equity in your personal home. If this is you, I would highly encourage you to sign up. Thanks for listening. If you have questions email me at p@thegoldcollarinvestor.com that’s p as in Paul @thegoldcollarinvestor.com this is punch I’m signing off until next time, take care.

Thank you for listening to The Gold Collar Investor podcast. If you love what you’ve heard and you want more of Pancham Gupta visit us at www.thegoldcollarinvestor.com and follow us on Facebook @thegoldcollarinvestor. The information on this podcast our opinions as always, please consult your own financial team before investing.


Show #14 - Satish Atlure - Episode Art

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