David Shirkey is an investor focused on operating companies in the manufacturing space, mobile home parks, high cash value life insurance and more! He is also the leader of the Michigan Investor Group, a community dedicated to sharing investment knowledge and experience with others. In this episode, David talks about the high demand and low supply for affordable housing like mobile home parks, how networking has helped his investing and the importance of vetting the sponsor and being patient before making a second investment with a syndicator.
David talks about the high demand and limited supply for affordable housing in the US and new zoning for mobile home parks is very difficult. He sees this as an opportunity for mobile home park investors. He also discusses how networking has led to him to multiple opportunities for his business including connecting him to a mobile home park operator who became his partner in a mobile home park fund.
David also talks about vetting a sponsor. He begins by talking to people in his network to see if anyone has experience with the new sponsors, then he makes an appointment to talk with the sponsor, asks for track record and often goes to meet the sponsors in person. He also asks similar questions in different ways to see if the story stays consistent. He also usually does some research on LLC’s, GP’s and partners and sometimes does background checks.
Although it is difficult to wait, David tries to wait one year after investing with a new sponsor before investing again or recommending him to his network. This way he can get a good idea of the sponsor’s reporting, procedures and returns before he commits more capital to a new deal. David also mentioned the importance of investing with full-time sponsors and to be sure you are investing with operators rather than just marketers.
David also discusses using high cash value life insurance to invest in syndications. He uses the cash in his policies as an emergency fund first and opportunity fund second. David mentions some of the metrics to look for when evaluating mobile home park opportunities.
Podcasts David recommends:
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