Our guest for today’s show is Sam Hales, a private equity fund manager and founder of Saratoga Group. Since 2011, Sam has worked in single-family, multifamily, office, and industrial asset classes. He has done land development entitlement and even owned a boutique hotel too. Mobile home parks have become his main endeavor though since he started buying them in 2017 and Sam currently owns an impressive 18 with another 9 under contract.
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He is a father of 10 kids too, so certainly knows a thing or two about systems! In our conversation today, you’ll hear how Sam moved from single-family into mobile home parks through the Five Star Bank, and how his background as a software engineer factors into his strategies for locating and managing deals. Sam is an avid believer in utilizing apps to streamline the processes for his many parks in dispersed locations. He also shares more about the types of brokers he works with, and how they have helped him locate such good deals. He talks about buying in opportunity zones and shares some of the processes involved in doubling the basis points of the parks he buys as well. Finally, we hear why mobile homes park assets show market durability, and Sam’s secrets for success, looking after investors, and uplifting the communities he manages. If you’ve been interested in mobile home parks as a version of the multifamily game and delight in unique systems this is the episode for you.
Key Points From This Episode:
- The asset classes Sam has owned as a real estate private equity fund manager.
- Sam’s process toward owning 18 mobile home parks with 9 more under contract.
- Why Sam moved from single-family into mobile home parks: yields and ease of management.
- The role Five Star Bank played in getting Sam interested in mobile home parks.
- Software and other tools Sam has developed such as a web crawler for scouting deals.
- The processes Sam uses to locate and buy new parks involving a special broker relationship.
- What Rent Manager and Show Mojo do to help Sam in advertising and management.
- Why Sam buys in ‘opportunity zones’: political intent and low investment risk.
- How Sam doubles the developed value of his parks by upgrading them in different ways.
- Challenges around filling communities and changing their identity.
- How new homes and 10-year lease contracts work to double the basis points on Sam’s parks.
- Why well managed mobile home parks will weather the downturn as assets.
- What AvidXchange has done to automate Sam’s invoicing process thus improve his business.
- Ways that Sam looks after investors: anecdotal updates and more.
- The number one contributor to Sam’s success: pursuing gaps in the market.
- What Sam has done through IXL to give back to the community.
[bctt tweet=”If you have created a nice community, you’ve created a place where people want to live, then yes, you are going to be fine during these downturns. — @SaratogaGroup” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Sam Hales
Sam Hales is a private equity real estate fund manager with $65M+ AUM and founder of the Saratoga Group. He has 15 years of real estate and management experience in distressed asset workouts, land development, redevelopment, and lease options. Aside from being the lead investor/developer in the entitlement and development of large tracts of land, Sam has been actively purchasing single-family properties in the Sacramento and Bay Area markets since 2009. He has developed/purchased office buildings, industrial buildings, multi-family buildings and is even developing a boutique hotel. Since 2017, the focus at Saratoga Group has been the purchase, revitalization, and operation of mobile home parks. Sam is passionate about helping local communities and is an active member of the Auburn Economic Development Council. He currently sits on the board for Auburn Sutter Faith Hospital and volunteers with local Boy Scout and Church youth groups. Sam received his MBA from The Wharton School of Business with an emphasis in Finance and a BS from BYU in Chemical Engineering.
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