Episode Transcript
[00:00:00] Speaker A: Welcome to RV Park Boss, a podcast for RV park owners. I'm your host, Jason Lafferty. This is a show where we dive deep into the challenges and rewards of park ownership and some funny stories along the way. This is a podcast sponsored by RV Park Pros and 78% of all parks are self managed mom and pop operations. And aside from location, there's also strong marketing, guest experience and proactive management which are the key success and profitability of any park. So if you're still trying to do this all by yourself, we do have a better way. RV Park Pros is a park management system that will help you maximize your occupancy in profits while optimizing your guest experience and retention, all without you having to be involved in the day to day. To learn more about how we can streamline your operation, go to rvparkpros.com again, that is rvparkpros.com and today's RV park boss is Josh Hasty, Director of Director of Research and Development for one of the largest meat companies.
And he has a history of flipping houses and mobile home parks in three or four different states. How are we doing today, sir?
[00:01:01] Speaker B: Doing well, man. Thanks for having me, Jason.
[00:01:02] Speaker A: Yeah, appreciate your time. I know we've been talking on Facebook a little bit for a year or so, sharing a few little tips and different things you were working on. So I'm glad that you're here.
But yeah, I just want to kick it off with a little question to kind of open up the conversation.
So what is one thing that you learned about RV parks that you didn't know until you own?
[00:01:25] Speaker B: How important infrastructure is to the success of your park?
[00:01:30] Speaker A: Right.
[00:01:30] Speaker B: So making sure that you have the right infrastructure, not just roads and electricity, but making sure you have the right water system set up. If you're on city water, great. That's a huge plus. If you're not, you dang sure better make sure that you know where your water is coming from and how it's going to be tested, how it's all going to work for your park. Obviously, everyone wants to have clean water, but there's a lot of different ways to get to clean, clean water. There's a lot of different rules and regulations depending on which county you're in, which state you're in, and whether or not you're in the city limits. So definitely, definitely need to understand where your electrics, where your electric's coming from, how your sewer is going to be handled, and how your water is going to be handled. Those are fundamental, right? If you don't have those, then you can't really build a park or you can't really manage a park because those are essential to life. So.
[00:02:21] Speaker A: Yeah. Yeah. Like, if it's water and it's a quality issue or it's a pressure issue or supply issue or anything, you know, that's just life's necessity in RV park. So I know you mentioned a little bit about dealing with TCQ in a well in Texas. Have you. Have you messed with Oklahoma DEQ for any wells?
[00:02:40] Speaker B: I have not. So our parks in Oklahoma are all on rural water or city water. And so we didn't. That was not an issue that we had tackled before.
And just because you have a local approval for a well does not mean that you have the state approval for a well.
[00:02:55] Speaker A: Yeah.
[00:02:55] Speaker B: And so that's a lesson that we learned pretty toughly in Texas. So we had. We had done everything that the local jurisdiction had asked us to do, and then that wasn't enough. And so we purchased a spot in Texas, just south the Bratz River. We thought, it's gonna be perfect. Went through all the local hoops, and then when it went up, when it got bubbled up to the state level, they basically rejected everything that the local level had said. And we still. Those two and a half years ago, we still do not have a park there in that land.
[00:03:24] Speaker A: Yeah. That's crazy. You would think that, you know, it's a government entity, so it's not very efficient, but you would think there'd be some kind of accountability or structure systems where the first local layer guy would be checking the boxes for, you know, because like, on septic, you have your. Your site of your licensed site evaluator. And so they're designing a system that they know TCQ wants to have.
[00:03:45] Speaker B: So you would.
[00:03:46] Speaker A: One would think, you know, the local guy would be like, yeah, I'm only going to prove something that these guys would want. You know, unless there's like, you know, there's a lot of talk about Lake Trap, not Lake Travis, a little bit farther south. You know, they're all running out of water.
What is that? New Bronzeville Sattler. You know, like, I'm talking about just. Just west of.
Of the Guadalupe River.
I forget the lake, but anyways, so they're dealing with, like, a lot of the drought for their 15 level. So they're having a lot of this past year, like conserve 75 of your water.
[00:04:22] Speaker B: So it's.
[00:04:22] Speaker A: That part's kind of scary, but it's just really unfortunate for you that, you know, like, the first local person didn't really set you up for success.
[00:04:32] Speaker B: Yeah, it was, it was frustrating because we were dialed in to go build a 68, 68 site unit site park that would have filled a pretty big need in that area because all the parks around there are, they don't have full hookups. Right. So they're, they're within the corps of engineers. So all the campsites, realistically, right. They have, they have water and electric, but they don't have a dumpling. So you have to go to a dump station. Then you can't live there forever. Right.
[00:04:57] Speaker A: And Right.
[00:04:58] Speaker B: With the property taxes in Texas, I mean, there's a lot of people that are being priced out of their homes.
[00:05:02] Speaker A: Right.
[00:05:02] Speaker B: A lot of really good people that, that are being priced out of their homes. And so we were legitimately thinking that we'd be able to fill a good void there, but we weren't.
[00:05:11] Speaker A: I know where you talk, where you speak of, and that's definitely a good little sweet spot.
[00:05:16] Speaker B: Yeah. And now there's. There's little spots popping up all over the place that I know just didn't follow the rules. Right. Like, there's just no way that they followed the rules. But there's. It doesn't seem to be any repercussions. And I was not planning on building a park that I couldn't eventually sell. And so we were, we were dialed in on the rules. And now we still don't have a park, but there's parks all around there popping up in the woods basically that have 20, 25 sites that are just kind of homemade. Homemade DIY jobs that people are living in and doing just fine. But it doesn't, it doesn't fit the rules that we were abiding by. So.
[00:05:51] Speaker A: Yeah. Yeah, man, that's crazy.
[00:05:53] Speaker B: Crazy.
[00:05:54] Speaker A: So are you, are you, do you have any others in the work or are you just kind of working?
[00:05:57] Speaker B: No, right now. So we have, so we have, we still own. We still own two mobile home park slash rv. So we have. Those are basically hybrids. Right. So we have mobile homes and RVs in both of those sites. So whether we own the RVs or we just rent the site, that's kind of how we've operated. So what we've found is that there's a big need for people to just have affordable housing.
[00:06:18] Speaker A: Yeah.
[00:06:19] Speaker B: And so like our RVs that we have, I mean, we essentially just operate those as a one bedroom apartment. Right. It has. Everything that you need is a one bedroom apartment, which we have the skirting on them. We have we have fixed water supplies, we have fixed sewer lines, like the actual 4 inch PVC pipe that's coming out so they don't have to go and mess with it.
We have small little stairs built on it above and beyond, just the RV stairs. And we rent those for 650amonth.
[00:06:46] Speaker A: Yeah, like, what year or kind of price point do you buy the RVs at?
[00:06:51] Speaker B: They're older, so early 2000s, late 90s. We kind of go in, spruce them up a little bit, make them a little bit nicer than what they were.
Our teams are pretty handy in construction. So we flipped. I don't know, I think we flipped about 40 houses in the last few years. And then. So we kind of know what people are looking for. We don't need to overdo it. You're not putting granite countertops in a 1990 camper. Right. So just making it dry, keeping it safe, keeping it warm and cool, making sure everything works. There's no leaks.
And we've had pretty good luck renting them out at 650amonth.
We have separate meters. So essentially what we did is we took all of our mobile home sites that were 80 to 85ft long, and we divvied them up into two spots. And so now instead of getting a $400 a month lot rent for one mobile home, now we get. We put in two campers that cost us six, seven grand each, and now we get 650 a spot. So it's 1300 bucks for that one single spot. So right when you're looking at a cash flow standpoint, I mean, I don't know of a better way to do it. The only kind of issue is sometimes dealing with the people that are willing to live in a 1990s model camper for their whole full time. They tend to. They tend to be collectors of things.
So we have to very much police their sites. I don't know why those people like to collect junk so much and just trash, but that's just been the hardest part.
The lower that you go in the totem pole, the harder the management is. But as long as you keep strict rules, then the cash flow is really good.
[00:08:25] Speaker A: Yeah, that could be tough because, I mean, it stinks for somebody. They don't have much storage. You know, they like things, but, you know, you got to get a house with a garage or. Or get storage, you know, that just covered.
[00:08:36] Speaker B: Yeah, or just put the stuff that's clearly junk in the trash can. Right. Like there's. You're not gonna fix.
[00:08:41] Speaker A: Oh, yeah.
[00:08:41] Speaker B: You're not gonna fix the broken flower pots you picked up on the side of the road.
[00:08:48] Speaker A: Yeah, that's. That's for sure. I think, you know, on the management side, that's definitely, definitely tricky too, because, you know, if you don't set the right expectation up front and then have some accountability, you know, next thing you know, you got a Honda Accord engine sitting on somebody's porch that you just built.
[00:09:03] Speaker B: Yeah, that's the, that's the tough part. Right? So. And, but I mean, realistically, everyone needs a place to live, right? And we're just trying to provide a solution for as many people as we can. It has to be good for both parties. If it's not, it doesn't work.
[00:09:15] Speaker A: Yeah.
[00:09:15] Speaker B: And so we have pretty strict rules that we, that we maintain and follow. Every now and then, like, a couple of weeks will go by and you'll just blink and it's like, holy cow, where'd all this stuff come from? You got to get it all out. People don't always like that. But I mean, we have to manage our park in a way that makes it look nice. So.
[00:09:33] Speaker A: Yeah, sure. Do you, do you take advantage of any depreciation on those RVs?
[00:09:38] Speaker B: Yeah, we. We cost SEG everything that we have or the RVs or whatever, and we take full bonus appreciation. So.
[00:09:46] Speaker A: Can I ask them, so on the bonus depreciation, are you doing the, like the park, like the utilities and everything?
[00:09:52] Speaker B: No, we didn't do the utilities on.
[00:09:54] Speaker A: The, on the recreational vehicle and on.
[00:09:57] Speaker B: The individual units that we own. Right. So, like, for instance, schedule.
[00:10:00] Speaker A: Do you use, if you don't mind me interrupting again, 100.
[00:10:02] Speaker B: We. We take 100 in year one. So, like, for instance, we can buy a brand new mobile home delivered, ready to move in, whatever, from Clayton.
So shout out to Clayton Holmes. Those guys do awesome products. And then my lending team at Vanderbilt, they do amazing work too, so.
[00:10:19] Speaker A: Nice.
[00:10:22] Speaker B: Yeah, I have a partnership with those guys. John Inman at Clayton Homes in Muskogee, Oklahoma. Got to give him a shout out. He's an absolute professional.
[00:10:30] Speaker A: Yeah, I think you. You shared his info with me before, and I spoke with him, he said.
[00:10:33] Speaker B: Professional, he's just amazing. So one thing that you run into in this, in this enterprise that you and I have developed is not everyone is professional. There's a lot of kind of fly by night guys. And so you got to really kind of sort through those. And unfortunately, those mistakes are generally expensive and leave you frustrated. So if you can, construction to maintenance, to partnerships, all of it. So, yeah, I mean sometimes those, those, those lessons are painful and frustrating, but you just got to weed through it. So when I find a professional like John, I always like to share him out. He's great. But what we do is we have it set up so we buy it, it's 10 down through Vanderbilt and then we can write off that whole home, that whole $60,000 in year one. Right. So it's a great deal for us. So. Yeah.
[00:11:21] Speaker A: Because you wouldn't want to do bonus appreciation on the park itself unless you knew that, you know, you weren't going to sell it for years.
[00:11:27] Speaker B: Correct. Yep. Correct. And then what we can do once, once we get those bonus depreciation, those homes depreciated, then we can put them on a long term note with our, it's essentially just a rent to own type program. And then, and then so that's kind of how we do it. And you don't have to recapture all that depreciation the second that you sell it. So like if I bought it because.
[00:11:47] Speaker A: If it's on a note and you were able to sell the park, then it's the next person guys note, you know. Yeah, that's exactly structure and you don't have, you don't have that recapture that can get kicked in on your taxes. So I like.
[00:11:58] Speaker B: Exactly right.
[00:11:58] Speaker A: That's pretty neat. Yeah.
[00:12:00] Speaker B: And in my W2 job I have to pay a lot of taxes and so my wife is set up as our real estate professional. And so I'm not sure how many of your listeners understand the impact and the power of being a real estate professional, but it's a, it's an absolute game changer. So if you. I'm not a tax professional so I can't give you any tax advice. Right. But if you're a, if you have a decent W2 income and your spouse does not have a, an income or a job, highly, highly recommend to look into what it takes to be a real estate professional. It's a set of lists that you have to qualify for. It's essentially what they call a tax test.
And those, those us being able to elect Hannah, my wife as the real estate professional has been an absolute game changer and helped us go a lot faster. So not having to give a third of my income every year to the government, really a little bit of big deal fast forwards us quite a bit. So yeah, we've got some pretty nice refund checks.
That's a good, that's a good point.
[00:12:59] Speaker A: You know because I'm familiar with the tax professional like I think it was like, so many hours or something. Like, you said pass the test pretty much, but I haven't really thought about it in a couple years of, like, what are. What are some scenarios that would really benefit somebody? And so I think that's pretty cool you just shared that. That how even if you have a part that's doing okay, but you just save that amount on your income that you're not having to give to the IRS is wonderful, you know, because I just. You just created an asset that directly, it didn't seem great, but with that, added bonuses, like, well, hell, yeah, let's do that again.
[00:13:34] Speaker B: Yeah. And then you can. You can offset a lot of income with buying mobile homes or buying nice, nice campers. Right. That it depends on where your location is as to what your strategy needs to be. If you're.
[00:13:44] Speaker A: Yeah.
[00:13:44] Speaker B: If you're in a really nice spot. Right. Like, people want to go camping, so buy a really nice RV or whatever. Right.
Put a little bit down, write it all off, and then use it as an Airbnb. I mean, there's just so many different ways that you can attack the tax code once you understand it that most people just forget about. Right. Like, if. If you tell me that there's a way that I can save 30 of my income just by learning, sign me up, dude. Like, there's no. There's no easier way to go get 30% more than to just learn the task tax code that is in. That incentivizes you to invest in real estate, invest in homes. Like, it's literally designed.
[00:14:22] Speaker A: Right.
[00:14:23] Speaker B: But most people just do not take advantage of what they can take advantage of.
[00:14:26] Speaker A: Yeah.
[00:14:26] Speaker B: So, yeah, yeah, yeah.
[00:14:29] Speaker A: The more you know. For sure.
[00:14:31] Speaker B: For sure. I mean, and the other thing is, not every CPA is created equal.
The CPAs that we've had, we've. That's been one of the hardest parts is finding a CPA that understands real estate and then also gets back to you. There's a lot of people that understand real estate, but don't get back to you. There's a lot of people that get back to you that don't understand real estate. So finding the, The. The combination of that has been a challenge.
[00:14:57] Speaker A: Oh, yeah. It's almost like. Almost like a rule of thumb these days. If you can find a CPA that's, you know, and you're in real estate, that's real estate friendly, and, you know, they could just jump on something. They don't. It sounds like they don't have a large portfolio, but the Guy you really need to talk to has already got 1500 clients. And, yeah, it's like a good contract. How do you find. How do you find that up and coming guy that's got just enough experience to do it. Right. But doesn't have a full book of business yet?
[00:15:24] Speaker B: Because, yeah, it's like the contractor, right? The good contractors are booked out a year and a half, right?
[00:15:29] Speaker A: Yep.
[00:15:30] Speaker B: Or you can't afford them because they know their worth. Right. Like.
And so it's just. It's just a balance of building your team, and it takes. It takes years to do it. We've been going pretty hard for five years.
We've done really well.
But still, there's. Every day, there's like, oh, there's something every single day. Right? And so I have a quote right here in front of me from Brandon Turner. It sits on my computer. Well, I can't see. I'm putting the wrong camera. Right. But it says, entrepreneurship is hard. Real estate is hard. Owning a business is hard. A 9 to 5 job is hard. Also, being poor is hard. Choose your heart, right? So I read that every single day, right?
Because every single day, no matter. No matter how well we feel like we're doing, you get kicked in the nuts every day, I think, by something that you can't make up. So.
[00:16:17] Speaker A: Right, Right. Yeah. Some little client problems, some breakdown.
You're going out.
[00:16:25] Speaker B: Yeah. The other day, somebody drove over a lid on my septic tank, which it's a gigantic septic tank, and we drove over it with something extremely heavy.
And no one confessed as to who it was. Like, you couldn't have hit this and crushed the entire septic tank and not known it, but.
[00:16:42] Speaker A: Right.
[00:16:43] Speaker B: The only three people that were there all swore up and down it wasn't me. I'm like, come on. Like, I know it was one of you three, right? There's no way it wasn't. Yeah, but you're all looking at me.
[00:16:54] Speaker A: Check your tire tread and see if anything.
[00:16:56] Speaker B: Yeah, so. So I have to eat that. Right. Because I can't prove who did it.
And I need to do business with those guys continuing to go forward. So guess who gets to eat that. That 800 septic tank lid? Me.
[00:17:10] Speaker A: Yeah, right, Right.
[00:17:11] Speaker B: You know, so it's just stuff like that that it's hard to. It's hard to understand until you're in the woods figuring it out.
[00:17:18] Speaker A: Yeah, for sure. So. So real quick to touch on, like, an RV, like purchasing some RVs for your. For your park. Have you found any, like, lenders? That will lend on RVs, because, you know, they're recreational vehicles. You know, lenders want something often want some more hard, tangible lands, mobile home parks. You can, I mean, mobile homes, you can always find those guys, you know, 10 down or something like that, or 20 down all day.
So I've seen some of that. But like my, my goals, because personally what I want to do is I, I think that I can have up to 20 of them between the few parks that I have and like buy one, get set the way I want it, put it on Facebook, marketplace, try to get it rented at which park, take it to that part, go buy another one, take it to that part, and then kind of work on a strategy to roll out 20 of them is my next goal. But my goal right now is like my only option is to cash pay for them, you know, six, seven grand here, plus some upgrade, six, seven grand here and just have to phase it out. But if there was a lender that maybe I can tie him into second lien position on one of my properties or something and they're like, yeah, well, we'll loan you 8%, 9% interest on 100 grand or something. I could just go buy 10 of them or 15 of them. I mean that would be a huge difference maker.
[00:18:31] Speaker B: The way that I've done it is I found private lenders, right? And so there's a lot of people that have a lot of cash sitting in the market at 8.
[00:18:40] Speaker A: What kind of terms would you, would you do on that? Because a lot of hard money stuff I've seen, you know, people want their money back 12, 18 months. So you got to have a way to either basically paying back or refinance or you know, the recapture, if you will, just the repayment.
[00:18:53] Speaker B: I would say it just depends, right? So you can't have your cake and eat it too, right? You're not going to be able to get a really low rate and have it over a long term at a small amount, right? So like, like I'm not going to lend somebody. Like I would, I do a decent amount of private lending. It's my favorite way to make money actually is to just write somebody a check and get 10%, 12% back over whatever, right? Like I would prefer to do that than have it in the stock market, right.
Just because I know it's coming. Like we have a documented piece of paper. I know it's coming. Especially if you tied me to the second lien position on a park. That's something that would be very attractive to me. But what, but what the general term is your price, my terms or my price, your terms. Does that make sense that things get.
[00:19:34] Speaker A: Used all the time? Single family homes, commercial, you know, negotiating with real estate?
[00:19:39] Speaker B: Yeah. I mean, it's a skill set that most people just frankly don't have. Right. But I guarantee you there's 10 people in your network today that would love to loan you 100 grand at 12% interest with probably one point or two points, right?
[00:19:53] Speaker A: Yeah.
[00:19:53] Speaker B: Put it out over three years, five years, whatever you want it to be.
Just it.
If you don't have somebody in your network, go to a local, Local meetup. Explain them. Explain to them what you're doing.
Go find the person that's been in real estate for 10, 15, 20 years. They understand what it is. They're probably tired of dealing with clients, and they would much prefer to just give someone that they can trust some money, see where that money's going, understand the business plan, and then if you can, tie them to a hard asset. Dude, I don't know why people wouldn't do that.
[00:20:23] Speaker A: Yeah, for sure, sure. Yeah. I like the way you explain that, because I was just starting to explore that, just to grow a little bit faster.
[00:20:30] Speaker B: But, yeah, and if you. If you got. So say you have 100 grand, right? Let's just do. Let's just do the math on what that looks like. So, yeah, I have a finance calculator on my phone. I use it 100 times a day. So you need the hundred thousand, right? Of it.
[00:20:43] Speaker A: Yeah.
[00:20:43] Speaker B: Do it over three years at 12%.
So that's $3,321 for your monthly payment, Right. You can see, right?
[00:20:52] Speaker A: Yeah.
[00:20:52] Speaker B: So if you got 10 campers at six. At 650 bucks a month, which maybe you have more, maybe you have less, right? You're still cash flowing. Three grand a month at that. At that rate.
[00:21:03] Speaker A: I mean, and plus, you're. That would like, like one park. I just need about 10 or 15 more. And then I would be at a place to refinance that park because the DSCR would be there.
And then I could refinance, have better terms, cash out the hundred grand. Pay that guy, right? Back off.
[00:21:19] Speaker B: Yeah. And so you think about that, right? So let's just say. Let's just say you're. You're renting your lots for 400 bucks a month, right?
So 400 times 10 times 12. So that's $400 per lot rent times your 10 sites times 12 months, right?
So that's $48,000. So multiply that by, let's do 0.65 just because 35% cost, that's pretty standard for just a napkin mat deal, right? So that's a $31,200 net operating income on that on those 10 sites, right? So you take that, you divide it by, by a 10 cap. So divided by 0.1 and now you just tripled the value of the hundred thousand dollars because now that adds $312,000 of value back to your pool.
[00:22:07] Speaker A: Right?
[00:22:08] Speaker B: So tell me, tell me a game that you can play that you can triple your value in one month. There's not many.
[00:22:15] Speaker A: Yeah, the only, when you look at it that way, the only question is do you believe if you had 10 RVs, would you get them rented and.
[00:22:22] Speaker B: Could you keep them? Right.
[00:22:23] Speaker A: And if you, and if I could believe that in my heart and know that I have a plan to do.
[00:22:27] Speaker B: It, then what's your goal? Right?
Your goal is to, you could you can just invent $200,000 at that with that strategy, right? Now that seems ballsy and you're still going to have to pay that back. But that 312,000 or that $200,000 in equity now instead of in a three year payment, it's now on a 20 year payment.
That payment drops down considerably. Right? So even if you're only renting them at 400amonth, you still now have a very big net cash flow advantage than what you've just had right over your, over your hard money. Right. And so yeah, I mean I have no doubt that you can rent a decent RV for 400amonth. Now do you want to deal with the people that are going to rent an RV for 400amonth? That's a question that you have to decide.
[00:23:12] Speaker A: Sure. But yeah, for me I would just have the right on site structure, rules, process for, you know, kicking them out if you need to.
[00:23:22] Speaker B: Oklahoma, it's easy, man. It's, it's. Rent's due on the 1st, it's late on the 4th, they get their notice on the 5th.
If they haven't taken care, if they haven't resolved their notice, whatever their notice is by the 10th, then you can go and file at the court house and then the next, and then the following Thursday for us in the county that I'm in, or the following Wednesday is, is core and you can have them out within 30 days easy. Now that's crazy. When I first bought the park, we were on a, we were on a carousel of that. Right. Because I was just trying to get whoever I Could in. Because I needed the cash flow, because when I bought it, it had $25,000 a month in gross rents. That turned out to be about $8,000 a month in gross rents. And so.
Yeah. Which I was not, not, not prepared for. And so we were having to just basically break all of our own rules that we've established in all of our established parks, so that way I could pay the mortgage. Right.
[00:24:18] Speaker A: Yeah.
[00:24:18] Speaker B: And so when.
[00:24:19] Speaker A: That's the fun stuff that not a lot of people like talking about, that is when, you know, you get kicked in the teeth, you have to make a quick, fastest f. You know, adjustment, and then get. Get your numbers back close, re. Optimize, reconfigure, just, you know, pivot. Pivot to it.
[00:24:33] Speaker B: Yeah. Constant pivot. Right. And so that's. That's something that we had to do. I didn't love it. I didn't love having to do that. But at the same time, dude, I needed. I needed to work. I need the cash coming in. And a lot of times when you're in a tough spot, you have to do stuff you don't want to do. I'm not in a tough spot anymore. We're in a great spot. And so I get to be a little pickier. Right. I don't. I don't just take anyone that's got a handful of cash anymore. I vet them like I've always done in my other parks. I just didn't have the luxury of doing that in the parks last year in Oklahoma, because they were. They. I bought them and was lied to during bankruptcy. During bankruptcy. And I had nowhere. I had no one to go after. You know what I mean?
[00:25:11] Speaker A: Yeah, yeah. No fallback.
[00:25:13] Speaker B: That's. Yep.
[00:25:14] Speaker A: That's tough. I bet you got a good deal on it, but you worked for it.
[00:25:18] Speaker B: So we bought two parks, one of which we just sold for the price of the both parks, if that makes sense.
[00:25:26] Speaker A: Yeah.
[00:25:26] Speaker B: So. And we didn't even touch that park. So the big park that we did, we've completely re. Redone that entire thing. We took it from 28 sites to 38 sites, 90% full.
The other part that we had was 25 sites. All we did was clean it up. And when I say clean it up, I just mean take out about 10. 10 dumpsters full of actual trash and keep it mowed. And then we sold that park for enough to pay for both parks.
[00:25:51] Speaker A: So that's awesome.
[00:25:53] Speaker B: So now we're. Now we're in a great equity position, great cash flow position, and it's Going to be a nice revenue stream for however long we decide to keep it.
[00:26:02] Speaker A: Yeah, you gotta, gotta go through the heartache to find those little nuggets.
[00:26:05] Speaker B: I'm not sure it was worth it. We'll see.
But, but this is not for. Trying to get to be financially free is extremely difficult, especially at my age. And so you're gonna have to put up with some stuff that is.
It's hard, it's challenging.
[00:26:20] Speaker A: Yeah.
Yeah. That's awesome. So I, I like the pain stories. My mom used to always say I was a glutton for punishment.
[00:26:26] Speaker B: I always have to come to Oklahoma. If you come to Oklahoma now. It's. It's nice. We have a real. We have the nicest park in the area now. But when we first bought it, it was terrible. I mean, I would have to go down every weekend.
I had a full time crew, everything, but we just couldn't go fast enough. And so I'm down there every weekend with a hammer in my hand, nail gun in my hand, saws. The worst thing was chiseling 3 inches of dog crap out of someone's kitchen that they were literally just cooking in three days before.
[00:26:56] Speaker A: Yeah.
[00:26:58] Speaker B: It's just wild how people will live if you let them. So.
[00:27:01] Speaker A: Yeah. Yeah, yeah, for sure. I got a little mobile home park in South Texas. We cleaned out a few of them and inside. Holy cow. Yeah.
When we're done with this one.
[00:27:13] Speaker B: Yeah. It's hard to understand how some, some people will live. It's. It's really honestly impossible to understand. And we. I've bought some hoarder houses, flipped them and those weren't nearly as disgusting as some of these homes that we, that we had purchased in the, in the deal.
[00:27:29] Speaker A: Yeah.
[00:27:30] Speaker B: They ended up going in a dumpster because you just can't, I mean, you just can't salvage some of them, right?
[00:27:34] Speaker A: Yes. Just get it as better. Smash that sucker down.
[00:27:39] Speaker B: Yeah. I think those 500 dumpsters add up. I bought 70 of them in one park.
[00:27:45] Speaker A: Yeah.
[00:27:46] Speaker B: Yeah.
[00:27:46] Speaker A: That's crazy.
[00:27:48] Speaker B: Crazy.
[00:27:48] Speaker A: I think the saddest one I did was cleaning out this mobile home. And this lady, she, you know, she passed and we couldn't find any of her family, any, like any lineage, nothing. And we tried really hard and we found like a great nephew or something, random cousin. And he was like, this is a scam. I'm calling the US Marshals on you. And we're like, you know, your grandma's sister stuff. You don't want to come get it. Her late husband's purple heart sitting right Here and all these family pictures. And there was a lot of nice things, like she was a bit of a hoarder, but I mean, it was, there was a lot of nice things that we probably should have donated the books to the local library. Different things I didn't think about, but it was just, it was just sad because we could even have family come pick through some of this stuff was.
[00:28:33] Speaker B: Yeah, it can be tough, man. It's, it's, it's a tough, it's a tough genre to be in. But that's, I mean, it has to be.
That's why it has to cash flow so much. Right. Because the stuff that you deal with is, is different than buying an A class multi family.
[00:28:47] Speaker A: Yeah.
[00:28:47] Speaker B: But the A class multi family, you're gonna make 5, 6% of your money on these. You can, you can make 30, 35 returns. Right. If you, if you do it. What if you're, if you're willing to put up with some of the stuff that I've had to put up with in the mobile home parks, you can make good money. Now, is it worth it?
My wife would say no. Right.
But I mean, it is what it is. We're in it now. Right. But the good thing about the RV park stuff is it's a lot more transient. Right. People are just coming in and staying for a little while and leaving.
And so you have a, you have a completely different business with a, with like a recreational RV park than what I have in my more stationary mobile home slash RV parks. Right. So it's a completely different business model that realistically, I'm not in the, I'm not in the business model of short term guests. That's just not, that's just not the parks that we own and have.
But I know that those can be extremely lucrative as well. You just have to plan on a much lower occupancy rate whenever you're doing your due diligence. Right. I mean.
[00:29:50] Speaker A: Yeah, yeah.
[00:29:51] Speaker B: Because.
[00:29:51] Speaker A: Yeah, that's, that's a whole nother ball game is really seeing things for, you know, if you're buying existing what they are and what you could do to increase it, and then, you know, having a gut judgment that you think you can increase it if you need to, you know.
[00:30:03] Speaker B: Yeah. Because even if you have a great lake spot, right. And it's 100 rented during the summer, well, the summer is only three months, so that equals 25% occupancy.
[00:30:13] Speaker A: Yep.
[00:30:14] Speaker B: Right. And so like, that's where it becomes a bit of a challenge, in my opinion, to Evaluate.
It's very difficult for me. I don't, I don't get it.
I'm not, I'm not the underwriter for the, for the, the traditional RV parks where they're more of a, like a vacationing spot. I do not, that's not my skill set today.
[00:30:37] Speaker A: Yeah.
[00:30:37] Speaker B: But I can tell you in a couple minutes how much a mobile home park is worth when I, when I know that it's going to be stationary and I don't know how many people are transitioning in and out. You know what I mean? Yeah. For sure.
[00:30:48] Speaker A: Yeah. You just have to believe that you, that there's a strong enough demand that you create something that you know, you can have decent to great occupancy rates.
[00:30:56] Speaker B: Right.
[00:30:57] Speaker A: So that's the only variable. You know, there could be a, a big plant in a small town that shuts down that you don't know about is coming up in six to 12 months or something.
[00:31:05] Speaker B: Yeah. You know, or what happened to us Again, another Oklahoma story.
They just developed a, a very large economic or low income apartment complex. Right. I did not see that coming. And the Indian tribe there is a big sponsor of that. And so a lot of our tenants can go live in a two bedroom, brand new apartment for 650amonth, all bills paid for. And they include Internet, electricity, water, sewer, everything. All bills paid for, 650amonth on a two bedroom apartment. I can't compete with that.
So that's, that's taking a big, that's a big demand train. So.
[00:31:46] Speaker A: Yeah. That's crazy. Variables that we get hit with we don't even know about.
[00:31:50] Speaker B: Yeah. Never would have ever known that was coming. Right. I've never predicted that.
[00:31:53] Speaker A: But yeah, that's crazy. That's good stuff. I appreciate the open and honest stories you're sharing because that's how I am. I just lay it all out there.
[00:32:05] Speaker B: Yeah. I mean cashing those rent checks now is pretty nice. Every month. Right. I get to go in and see.
[00:32:09] Speaker A: Yeah, you work for it, but I.
[00:32:11] Speaker B: Worked my butt off for it. Right. And so, yeah, I mean it's nice, it's nice that those are coming in now. I need them to come in forever to make it worth it. So we'll just see how it goes.
[00:32:22] Speaker A: Yeah. Well, I think it's a good stopping point if folks want to reach out to you for a deal or for whatever, whatever reason to connect with you. What's the one way that they can do?
[00:32:29] Speaker B: So, yeah, I mean the, the easiest way. I've deleted all my social media except for LinkedIn. So just go and find me on LinkedIn. So it's just Josh Hasty.
You'll, you'll see where I work, all that stuff. But feel free to go, go find me on LinkedIn and hit me up whatever, however, yeah, awesome.
[00:32:47] Speaker A: Well, cool, man. Well, thanks again for, for your time on this and let's, let's keep talking more in the future on different things you work on if things come up as well.
But yeah, I enjoyed little nuggets that you shared and your stories and everything. So, so yeah, man, well, thanks again.
[00:33:02] Speaker B: No problem, dude. Thanks.
[00:33:03] Speaker A: All right, so folks listening here, if, if you own at least one RV park, you want to be a future episode of RV Park Boss, you can apply directly at RV parkboss. Com. So that will do it for this one. Thanks, y' all.
