Chris Koerner

So I genuinely, I don't understand why people buy single family homes because like buying a small RV park costs the same, but it's significantly more profitable.

And more flexible because your risk is more distributed amongst five to ten tenants as opposed to one tenant that could go bankrupt or disappear in the middle of the night.

So with this $5,000, I would call every small RV park in my area, preferably within a three-hour drive.

I would just find them on Google Maps.

This would take a little more time because we can't allocate any of this budget to the finding of the park.

We've got to do that very manually with our iPhone and our internet connection, okay?

I'm going to find, in my experience, for every 100 parks I find, about two or three of them can be a really good deal, okay?

So if I get 100 people on the phone, I know I can find one good deal from that with seller financing because we can't use any of this to buy the park either.

We've got a lot of constraints.

I'm going to use, let's say...

$2,000 of these dollars for my due diligence.

I've got to get inspections on the park.

I've got to get a title policy on the park to make sure it's not a scam, to make sure that the owner who says they own it actually owns it.

And then with the remainder of the money, I need some operating capital.

I need to be able to pay the power bill to maybe trim some trees to get the park looking nice on day one.

And then to actually buy the park, I need to set up creative financing with the seller.

And the best way you can do that is by building a relationship with the seller, building some trust with them, showing them that you're going to take good care of the park.

Now, the unit economics on this, let's say you buy a park for $200,000.

In the real estate world, they're valued on a cap rate basis, which is the profit of the park divided by the asking price of the park.

So if I buy a park for a 10% cap rate, that means it's going to make $20,000 a year of profit, and it's going to cost me $200,000.