October 10, 2024

What Should I Know as an Investor in Mobile Home Parks? Top 10 Crucial Questions

When you’re deciding where to invest your money, it’s not just about finding a good opportunity—it’s about finding the smart one. You want an investment that works hard for you while spreading risk, providing steady returns, and giving you a chance to grow your wealth over time. That’s where Suncrest Capital comes in with their open-ended fund for mobile home parks and RV communities. Not sure what that means? Don’t worry, we’re here to break it down in a way that makes sense, even if you’re not a seasoned investor.

The beauty of Suncrest’s fund is that it offers diversification right from the start. This means that the money you put in isn’t tied to just one property. Instead, it’s spread across several mobile home parks and RV communities. If one park isn’t performing as expected, the others help balance it out, keeping your investment on solid ground.

What Makes This Open-Ended Fund Stand Out?

Here are a few standout features that make Suncrest’s open-ended fund worth considering:

Preferred Returns: You’re first in line for profits, with an 9% preferred return before Suncrest shares in the profits. Even then, investors still receive 65% of cash flow above and beyond the initial preferred return. Over time, they’re aiming for a total return of more than 20%, giving you a solid path to grow your wealth.
Built for the Long Haul: The fund is designed for long-term wealth building. Properties are held for about 10 years, allowing them to appreciate in value. As a bonus, refinancing the properties means more money gets unlocked for future deals, without you needing to put in more capital.

Why Is Investment Timing So Important?

Here’s something that sets this investment apart: timing. Traditional funds often have to raise all their money upfront, and then they’re pressured to quickly find properties to invest in. But Suncrest does things differently. They only raise money when they’ve found a great property that’s worth investing in. This means no rushed decisions and no bad investments just because there’s a deadline looming.

No Dilution: One of the coolest parts? As more properties are added to the fund, the value of your investment grows. But—and this is important—future investors won’t dilute your stake. They’ll pay more to get in at that point, but your original investment remains just as valuable, if not more.

More Flexibility: We all like a bit of flexibility, right? After two years, you can start accessing your money if you need to. This is a huge perk compared to other long-term investments that lock you in for the entire ride.

Before you commit to any investment, especially something like a mobile home park syndication, you want to ask the right questions. You don’t need to be an expert, but having a clear understanding will help you feel more confident about where your money is going.

1. What is Suncrest Capital’s Investment Strategy?

Suncrest Capital has a clear and smart strategy: they focus on buying undervalued mobile home communities and RV parks, often finding them through off-market deals. Their goal is to stabilize these properties and generate at least an 8% cash-on-cash (CoC) return in the first year, with a target of 10% average over time. Once these properties are optimized, they refinance to fund future deals, continuously growing the portfolio. This approach ensures steady growth and more potential profits for investors like you.

2. What Kind of Returns Can I Expect?

This is a question every investor asks—and for good reason. Suncrest targets a return of more than 20% internal rate of return (IRR). Plus, you’re looking at that 9% preferred return, meaning you’ll see profits before anyone else. As the properties are improved, your investment value rises, creating even more potential for growth.

3. What Are the Risks?

Every investment comes with risks, and Suncrest’s fund is no different. The main risks involve market fluctuations, challenges in operating the properties, and whether the refinancing strategy pans out as expected. But here’s the upside: mobile home parks are seen as recession-resistant because they offer affordable housing. RV parks with long-term tenants or four-season tourists, also provide steady cash flow. Suncrest specifically picks properties that have built-in stability, helping to manage those risks.

4. How Does This Open-Ended Fund Work?

This fund operates differently from a traditional closed-ended one. Instead of raising a lump sum of capital upfront, Suncrest raises money gradually as new properties are found. You’re investing in shares of the fund at the current market price, which protects early investors from dilution. What’s great about this is that it gives the team time to wait for the best opportunities instead of rushing to buy properties just to meet a deadline.

5. How Easy Is It to Get Out of This Investment?

You’re not locked in forever. There is a two-year lockup period to allow time for initial growth, but after that, you can start redeeming your investment if you need to. Just remember, redemptions are subject to the availability of funds, but this flexibility is rare in long-term real estate investments.

6. How Are Distributions Handled?

Once the fund starts generating returns, you’ll receive distributions based on the fund’s performance. That means you’ll get regular income, and if you choose, you can reinvest those earnings back into the fund to compound your growth over time. This is called a dividend reinvestment plan (DRIP), and it’s a great way to keep your investment working for you.

7. Will My Investment Be Diluted?

Nope! Suncrest’s structure makes sure that new investors pay a fair market price when they join, so your share of the pie stays intact. This means your ownership percentage won’t decrease as the fund grows, giving you peace of mind that your stake won’t get watered down.

8. What Are Economies of Scale, and How Do They Benefit Me?

Suncrest often acquires multiple properties in similar markets, like in Springfield, MO. By owning several properties in the same area, they can reduce operating costs, save on taxes, and maximize cash flow. This approach increases profits and makes the whole portfolio more valuable when it’s time to sell.

9. What Are the Tax Benefits?

You’ll get tax advantages, too. Since you’re part of a real estate investment, you can benefit from depreciation and capital gains treatments. Suncrest’s fund is structured similarly to a mutual fund but comes with the tax perks of direct property ownership. In simple terms: you get to keep more of your profits.

10. How Much Do I Need to Invest, and How Long Should I Hold?

The minimum investment is $50,000, with an average hold period of 10 years. This might seem like a long time, but it’s designed to maximize the value of the properties and generate steady cash flow for you along the way. Long-term holds often lead to more substantial returns, making this a good option if you’re looking to grow your wealth over time.

Your Next Steps Toward Smart Investing

Now that you’ve got a clear understanding of the opportunities, benefits, and safeguards of investing in mobile home parks through Suncrest Capital’s open-ended fund, you’re one step closer to making a savvy investment decision. With its focus on immediate diversification, preferred returns, and long-term growth, this fund is designed to help you build lasting wealth while offering flexibility and protection.

If you're ready to take the next step toward smart investing, don't wait! Visit our Investor Portal to start your journey, or feel free to reach out via email at or call (888) 750-8050 with any questions. We're here to guide you every step of the way.

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