May 24, 2024

Modernizing Manufactured Living: Suncrest Capital’s Long-Term Investment Strategy is Shaping the Future of Affordable Housing

Mobile home park
Rising Costs Increase Demand for Affordable Housing
The American Dream of homeownership seems increasingly out of reach for many. It is no secret that since 2019, we’ve seen prices skyrocket. Inflation has squeezed household budgets with groceries, transportation, recreation, and healthcare costs soaring by up to 25% in some markets.  The pandemic disrupted supply chains and even though much has recovered, prices have not followed suit. And to budgets already choked by monthly bills, there is no reprieve in the current housing market. Rental prices, interest rates, and home prices are also on the rise.

This shrinking pool of affordable housing options is a major concern. Traditional housing models are becoming increasingly unattainable for many hard-working individuals and families. Here at Suncrest Capital, we believe there's a solution, and it lies in a fresh perspective on manufactured homes and mobile home parks.

Long-Term Investments Transform Mobile Home Parks
While some may be discouraged by the current housing market challenges, we’ve chosen a proactive approach. We are digging in and getting to work with a long-term investment strategy as a solution to the affordable housing crisis. Manufactured homes have long been a more affordable housing option. However, they often carry a stigma, being associated with less-than-desirable “trailer parks.” While the perception may not always match the reality, there’s no denying that many mobile home communities could benefit from modernization.

Through long-term investment strategies, we partner with investors to transform these manufactured home parks, making them safer, more desirable, and even more affordable for hardworking individuals and families. Mobile homes can be a cornerstone of a thriving and sustainable affordable housing market.

Why Manufactured Homes?
  • Efficient Construction: Manufactured in factories, these homes are virtually immune to weather, contractor, or material delays. The streamlined processes reduce costs compared to conventionally framed homes.
  • Durability: In 1976, the HUD code went into effect which requires manufactured homes to meet strict building codes established by the Department of Housing and Urban Development (HUD). This means they are built well to endure transportation and on-site installation. 

Modernizing Mobile Home Parks: 
With affordability as a central component, it's not the only factor in creating thriving communities. A long-term investment approach goes beyond simply offering a less expensive housing option. We focus on creating desirable living environments that foster a sense of community and pride.
This means:

Upgrading Infrastructure: We invest in infrastructure improvements like better roads, lighting, plumbing, and curb appeal.

Enhancing Amenities: We create appealing amenities such as pools, playgrounds, community centers, and laundry facilities.

Improving Safety and Security: We prioritize resident safety through mandatory background checks, improved security measures, and lighting.

The School Bus Test: Our Metric for Success
One of the unique ways we measure the success of our mobile home park transformations is through the "School Bus Test." This might sound unconventional, but here's the logic: in the Midwest, where many of our parks are located, people tend to be friendly and may not always offer honest feedback. However, children are often brutally honest!

The School Bus Test involves talking to children and parents at bus stops near our parks. We gauge their sense of pride in their community and overall satisfaction with their living environment. Positive feedback from these young residents tells us we're on the right track in creating vibrant communities.

How Long-Term Investing Helps Mobile Home Parks (and Vice Versa)
Suncrest Capital is interested in two things.
1. Making a Difference: We team with investors to make a difference in affordable housing across the United States.

2. Long-Term Investor Success: We offer a long-term investment strategy designed to deliver consistent returns for our partners.

As a prospective investor, you may wonder “If you’re spending the money to modernize mobile home parks, how are you providing consistent returns without increasing lot prices for park residents?”

We understand your concerns about balancing park improvements with affordability, and we achieve that balance through an approach focused on creating long-term value:


Maximizing ROI Through Increased Occupancy Rates

The biggest equalizer for improvements to affordability is improved occupancy rates.  Imagine we purchase a community with only 35 of 70 lots filled. Only half of the lots currently generate income, but we make an initial investment to upgrade the lots, improve the lighting, and create a safe neighborhood. Well-manicured, safe, pride-in-ownership mobile home parks draw more residents. Over time we reach full capacity and without increasing rent, we have doubled the property’s income.

By focusing on occupancy as a dominant driver of profitability we create a win-win situation for residents, investors, and the communities we serve. By focusing on long-term investments for creating value in mobile home living, we’re building a sustainable future for affordable housing.  


How to Partner With Suncrest Capital as a Long-Term Investor

  • If you are grasping the effect that the rising cost of living has placed on American households… 
  • If you recognize that affordable housing options are scarce, distancing the dream of homeownership for many...
  • If you agree that manufactured homes in revitalized mobile home parks offer a compelling solution… 

…Then today is the day to contact Suncrest Capital. 
visit our investor portal
send an email
Through long-term investment strategies, we can unlock the potential of these communities, creating safe, desirable, and affordable living spaces for hard-working families. By partnering with investors who share our vision, we can shape a brighter future for affordable housing in America.