Gabe Peterson was a Philosophy Major who thought he’d like to be an attorney. Then, post graduation, he followed a few attorneys around for a year or two and realized ‘There is no way I want to be an attorney’’ – he laughs!
Gabe previously “for the man” in his own words. He first started off working for companies like Accenture Consulting, Microsoft, and T-Mobile. Gabe loved the members of his team and being part of one, but hated the 9-5 grind and the long commutes into the city. Before too long, Gabe Peterson knew he would need to start something on his own. Gabe Peterson started trying a few different ecommerce businesses and digital marketing business – and then ended up in real estate – when he completed his “first flip seven years ago.”
James Prendamano asks – So you have so much on your site – correct me if I’m wrong here – You’re not brokering deals?
Gabe Peterson – No, we are not brokers. But we market nationally for mobile homes and RV parks, and so we wholesale deals with signed contracts. But we do not list the properties on MLS.
James Prendamano is fascinated with the possibility of RV Parks and Mobile Home Parks, but here in New York, well that’s another story entirely. We have real issues with tenancy laws and legislatively.
With the legislative changes that have happened for over the last decade here in New York. At Casandra Properties, with our RPO Program, Real Estate Portfolio Optimization – we take a look and analyze – all the traditional metrics of course that go into real estate investing, but we have a very close eye on legislative threats – that has over the years made its way up the chain. And now, any SWOT analysis that we do – that’s up at the top – even ahead of things like interest rates and inventory levels. It has become so challenging with the unrelenting legislative changes that we’ve seen over the last decade.
James Prendamano asserts: “It is all well-intended stuff, but the legislation doesn’t always translate to what’s happening to boots on the ground. And you end up taking the good players, the good actors in the industry – and they start to divest from it because it becomes so difficult to sustain compliance on all these different benchmarks. In the past, it’s just been trading bricks for bricks.”
The Typical Mobile Home/RV Park
Gabe Peterson says it’s actually more of things you want to stay away from in an RV or Mobile Home park investing:
For those of you who don’t understand Cap Rates between 9 to 12% Cap Rates are quite robust, says James Prendamano. Self-financing the original capital for down payment. The seller is holding the note. Let’s talk about Title? What does Title look like for a transaction like that, asks James Prendamano?
Gabe Peterson says, “We go through the same thing as everyone else. We go through a title company. They handle it, and everything looks good. You do not want to own park-owned RVs, asserts Gabe Peterson. “It’s not worth the headaches.”
Gabe Peterson adds some timeless advice: “You don’t learn real estate by reading a book, or watching You Tube videos. You have to be in the field, by making the deal.”
Digital Marketing Talk .. .
Gabe Peterson recommends the following digital marketing tools to leverage your business against the competition.
You can find anything digitally to educate yourself. You can read. You can watch videos. But there is something to be said for having a support system in place -- in anything we do in life. To have someone who is able to come alongside and say you, ‘you got this’ or ‘that was the right decision.’ That is invaluable – and sometimes we take it for granted.