Most real estate investors are looking at the wrong numbers. They get hung up on a 2% or 4% cash-on-cash return in year one and walk away from deals that could actually triple their equity. In commercial real estate—and specifically Mobile Home Parks—the real money isn’t just in the monthly rent; it’s in “forced appreciation.” If you don’t understand how a single $50 rent increase can add $90,000 in value to your property, you are leaving millions on the table.
In this episode, I’m joined by my long-time investment partner and former structural engineer, Cory Harrelson. Cory transitioned from working 80-hour weeks in engineering to managing a massive portfolio of over 500 pads (with a goal of 4,000 by 2035). We go “under the hood” of a live underwriting spreadsheet to demystify the math behind syndication. Cory shares his “IDEAL” framework for deal sourcing, explains why property tax reassessments are the “landmines” that kill most deals, and breaks down the four ways real estate actually pays you—most of which aren’t visible on a simple bank statement.
In this video, we cover:
- Stress Testing: How to use sensitivity tables to ensure your deal survives market shifts or interest rate hikes.
- The IDEAL Acronym: Cory’s 5-point checklist for initial deal screening (Infrastructure, Density, Economics, Age, and Location).
- Forced Appreciation: The specific math of how increasing Net Operating Income (NOI) exponentially raises asset value.
- The Tax Landmine: Why calling the county assessor is the most important part of your due diligence.
- Advanced Metrics: A deep dive into IRR vs. Equity Multiples and why Cash-on-Cash is often a misleading metric.
