Best Risk-Adjusted Returns
Per Green Street, MHPs are expected to produce the best risk-adjusted return of any property type. For decades, MHPs have outperformed other real estate sectors. With the highest long-term same-store NOI growth projections of any property type, MHPs are well-positioned to outperform for the foreseeable future.
Lifetime Cash Flow
High-quality, irreplaceable real estate should never be sold, which is why the fund has no expiration date. Investors receive quarterly cash flow distributions, allowing them more time with their families. The stable cash flow generated by mobile home parks and parking facilities reduce investor risk and ensure consistent and predictable passive income.
Inflation Hedge
Warren Buffett claimed that investing in residential housing “is a way in effect to short the dollar” an excellent strategy in an inflationary environment. Mobile home parks have outperformed every other real estate sector for several decades. This strong performance shows no signs of slowing down, with rent growth well above inflation (while maintaining occupancy).
Recession-Resistant
Both MHPs and parking have a long history of being affected far less than other asset classes in the past recessions. Long-term guaranteed leases create reliable revenue in parking, and MHPs outperform during recessions because demand for affordable housing actually increases as the economy tightens.
Diversification
Because real estate investments tend to behave differently than typical stock and bond investments, adding them to a portfolio may provide broader diversification, enhance returns, and increase income levels. The Fund intends to diversify across assets, geographic regions, and asset classes.
Significant Tax Benefits
The tax code favors real estate investors. MHPs in particular are remarkably tax-efficient since the majority of the purchase price can often be depreciated in the first year. Investing passively allows you to get the cash flow and tax benefits of owning real estate, without the headaches of being a landlord.
