CFD 541 – Ryan Narus On Mobile Home Park Investing

May 30th, 2019

-Wake Forest University undergrad degree in Psychology/Statistics. 

-MBA also from Wake Forest University with concentrations in Business Analytics, Operations and Marketing.

-Former award winning car salesman, selling over 800 cars in 4 years, then author of the book “Car Deal Hacks” discussing how to buy a car for the best price using Psychology.

-Self taught in Spanish (es malo pero funciona).

-Co-Founder of Archimedes Group LLC, an owner-operator company that specializes in Mobile Home Parks with equity in 8 MHPs (roughly $20MM in purchase prices) spanning over 500 lots all acquired within the last 3 years.

-Started with nothing: no money, no experience, and no network.

Podcast Highlights

●   Who is Ryan Narus?

Ryan Narus is a kid who does not quit. In his own words he’s a boring, vanilla, Irish Catholic kid who just shows up everyday and puts in a little bit of work. Apparently Ryan was a lazy kid who never really cared until around grade 10, at which point he had a fire lit under his butt that has been pushing him forward ever since.

If he had to pick one moment, it was back during his freshman year of highschool. Ryan grew up watching Tim Duncan play basketball and grew up as a Wake Forest fan because that’s where he father taught. After taking his PSAT’s in ninth grade and falling well below the cutoff point, Ryan knew he was staring down the barrel of not going to his dream school. That sparked his motivation to turn things around.

Ryan had the excellent luck to graduate in 2009 with a Psychology degree and the intention to go into sales. Unfortunately/fortunately for him, the only job he could get was selling cars. He went on to sell over 800 cars in 4 years and write a book on how to buy a car at the best price using Psychology. After spraining his ankle, Ryan realized that the job was not sustainable in the long run and even if he made it to the top he wouldn’t want the lifestyle.

If you don’t know who you are and what you like, you will quit. Clarity leads to power, the power to decide and act. Lack of clarity creates confusion.

●   From Car Sales to Mobile Home Park Investing

When Ryan first started talking about real estate and mobile home park investing, both his dad and his wife were against it. If your significant other is not on board with what you’re trying to do, Ryan brought on his wife to his podcast to discuss the matter and it’s a good episode to listen to.

Mobile home park investing matches Ryan’s skill set like a glove, which is why Ryan focuses on them. He loves operations and organization and speaking to people face to face. Maybe more than all that, he loves helping people. Mobile home parks have allowed Ryan to do things that he wouldn’t have been able to do with other forms of real estate. The value add that he brings to his tenants wouldn’t be possible with retail or self storage.

Understand your customer is not your investors. You make your investors happy by generating a strong return and you do that by pumping your properties full of value, not ripping your tenants off. A lot of people getting into mobile home parks because they think it’s easy and profitable, but ultimately the tenants are the ones who pay for that kind of mindset.

● The Future of Mobile Home Parks

Equities are completely overpriced and investing in real estate is now the sexy thing to do now. Huge amounts of money are pouring into the major markets and that’s pushing out the little guy. Ryan believes the future is going to change. Interest rates will probably climb back up and people will get into mobile home park investing thinking it’s easy money and will find out they overpaid.

Ryan wants people to come into the industry but not because it’s a chance to just make a lot of money, he wants to see people that want to help make it better.

● Ryan’s Takeaway

There are four things: You’re going to self assess, you’re going to learn, you’re going to love, and you’re going to sacrifice. It’s not going to happen quickly. Once you discover who you are, start looking and learning and networking. Once you identify whatever your dream business is, you have to have the courage to take a big bet on yourself and sacrifice. Once you’re full time, you will find deals and opportunities. When you’re 80 years old, are you going to look back and say “I’m glad I stayed at that job!”? Of course not.

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