Stabilized Income vs Value-Add?
As we select assets to put into our fund we want to be aligned with the goals and risk tolerance of our investors.
- Year 1-2-3 Cashflow: 8.8% – 14.3% – 8.8%
- Year 7 “Top Speed” Cashflow: 11.8%
- Year 7 Total Return: 134%
- Lower Risk/Reward profile than “Stabilized Income”
- Quicker cashflow
- Year 1-2-3 Cashflow: 2.0% – 6.8% – 10.4%
- Year 7 “Top Speed” Cashflow: 12.2%
- Year 7 Total Return: 152.6%
- Higher Risk/Reward profile than “Stabilized Income” Model
- Higher total returns after first few years
*Proforma above is of one value-add park. Fund will consist of multiple parks.
*Proforma above is of one stabilized park. Fund will consist of multiple parks.
In the end, as an investor you need to ask yourself how does this fit within your larger personal portfolio?
What type of risk/reward profile would be ideal for your mobile home park assets?