Top Questions to Ask Before Investing Passively in a Mobile Home Park
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Tristan Hunter - Investor Relations

Investing passively in a mobile home park can offer stable income potential and strong long-term appreciation, but like any real estate asset, it’s not without risks. Before committing capital, it’s essential to evaluate not just the property, but also the people and the strategy behind the deal. Asking the right questions can help investors make more informed decisions and better align expectations with reality.
This guide covers the key questions every investor should ask before investing passively in a mobile home park, organized into four categories: general questions, deal-level questions, legal and insurance questions, and questions about the operating team.
Understanding the Importance of Due Diligence
Investing passively means often relying on a general partner (GP) or syndicator to acquire, manage, and eventually sell the mobile home park. That means your outcome is largely tied to their competence, transparency, and ability to execute. Asking thoughtful questions upfront can reveal how a GP handles challenges, communicates with investors, and mitigates risks.
Due diligence isn’t just about numbers—it’s about understanding character, systems, and track record. The more open and detailed a GP’s responses are, the more confidence you can have in their approach.
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General Questions to Ask the Sponsor
These initial questions can help you assess the general partner’s background, philosophy, and credibility.
1. Track Record and Risk Tolerance
- Have you ever lost your own money—or an investor’s money—on a mobile home park deal?
- How do you balance risk mitigation with achieving attractive returns for investors?
- What’s the most difficult challenge you’ve faced in mobile home park investing, and how did you handle it?
These questions uncover how the operator reacts under pressure and whether they’ve learned from past mistakes. The best operators often speak openly about lessons learned during prior deals.
2. Differentiation and Market Experience
- What makes you different from other mobile home park operators or syndicators?
- Have you owned mobile home park investments through different market cycles?
- How many mobile home park deals have you taken full cycle—purchased, operated, and sold?
Experience across market conditions is critical. Operators who have navigated both good and challenging markets may be better equipped to adapt their strategies.
3. Transparency and Communication
- Can I speak with past investors who have reinvested multiple times?
- How often do you provide property and financial updates?
- Can I see an example of how you communicated bad news in the past?
Strong communication is the foundation of trust. Sponsors who proactively share both good and bad updates tend to build lasting relationships with investors.
4. Operational Gaps and Growth Strategy
- What gaps do you have on your team that you currently outsource?
- What is your liquid net worth?
- Have you ever oversubscribed a mobile home park deal?
These help gauge stability and scalability. Outsourcing isn’t a negative sign, but it’s important to understand who handles key operational responsibilities.
Deal-Level Questions to Evaluate the Investment
Once you’re confident in the operator’s credibility, it’s time to dig into the specific mobile home park offering.
1. Underwriting and Assumptions
- Can I review your underwriting for this mobile home park project?
- Have you conducted stress tests on your analysis?
- Is your “skin in the game” coming primarily from your acquisition fee?
Reviewing assumptions about rent growth, occupancy, expense ratios, and exit cap rates can help you judge whether projections seem reasonable. Stress testing and modelling what happens if things go wrong shows how conservative the team truly is.
2. Financing, Reserves, and Market Selection
- What type of financing are you securing for this mobile home park, and why?
- Why did you choose this specific market?
- What is your plan for capital reserves?
Understanding leverage levels, lender terms, and reserve strategies can help investors assess the project’s durability. Markets with job diversity, population growth, and affordable housing shortages often align well with mobile home park investing.
3. Returns, Distributions, and Fees
- How long until I start seeing distributions, and what’s the cadence?
- What’s your promote and fee structure?
- If the property overperforms, do limited partners participate in that upside?
These questions clarify how profits are shared and when investors can expect to see cash flow. Asking about fee transparency—acquisition, asset management, and disposition—helps you understand how incentives align between the GP and LP.
4. Downside Protection and Exit Strategy
- What are your worst-case scenarios in this mobile home park deal?
- What restrictions exist on GP compensation or clawbacks if the project underperforms?
- What happens to my ownership interest during a refinance?
No deal is risk-free. Sponsors who can clearly explain contingency plans—such as holding periods, refinancing timelines, and exit flexibility—are often better prepared for unexpected shifts in the market.
5. Capital Sources and Control Rights
- Are you sourcing capital from retail investors only, or also from institutional equity?
- If institutional partners are involved, what control rights do they hold?
Different equity sources can affect decision-making and reporting requirements. Transparency here helps ensure you understand who has authority over major project milestones.

Legal, Insurance, and Tax Questions
Legal and structural details can have major implications for investors investing passively. These questions aim to clarify compliance, protection, and reporting expectations.
1. Compliance and Regulation
- How do you stay compliant with SEC broker/dealer laws when raising capital?
- Are your offerings structured under Regulation D 506(b) or 506(c)?
Syndications under 506(b) require pre-existing relationships with investors, while 506(c) allows public advertising but restricts participation to accredited investors. Understanding which applies helps you confirm your eligibility and comfort level.
2. Insurance and Risk Coverage
- How do you determine total insurable value—full value or loss limit?
- Do you carry Directors & Officers (D&O) or Errors & Omissions (E&O) insurance?
Comprehensive coverage indicates prudent risk management. Mobile home parks can face unique liabilities—ranging from tenant issues to infrastructure repairs—so verifying insurance types is essential.
3. Tax Reporting and Investor Experience
- What is your track record for delivering K-1s on time each year?
- Do you provide guidance for investors with self-directed IRAs or 1031 exchanges?
Timely reporting builds investor confidence and eases tax season stress. Some syndicators even offer dedicated support for investors with specific structures.
Questions About the Team
Behind every successful mobile home park investment is a coordinated team. These questions explore experience, roles, and succession planning.
1. Team Composition and Roles
- What’s your role on the team, and who are the other general partners?
- Who is the asset manager, and what experience do they bring?
- Who are your most crucial team members?
Asset management is especially vital. A well-qualified asset manager ensures budgets, tenant relationships, and property improvements are handled efficiently.
2. Property Management and Execution
- Is your property management in-house or outsourced?
- If outsourced, how do you hold your property management company accountable?
- Have you worked with this property management group on previous acquisitions?
Management quality often determines the resident experience and operational performance of a mobile home park. Operators who use long-term partners typically maintain more consistent results.
3. Continuity and Contingency
- What is your contingency plan if a general partner falls ill or passes away?
- Who are the active operating partners, and what happens if one exits?
Succession planning is an often-overlooked part of syndications. Confirming continuity plans helps ensure the investment remains stable over the hold period.
What These Questions Can Reveal
These top questions to ask before investing passively are not meant to intimidate your sponsor—they’re designed to spark open, honest dialogue. How a general partner answers them can reveal more than the answers themselves: transparency, humility, and clarity often signal a strong operator.
In mobile home park investing, mistakes are inevitable at some stage. What matters is how an operator identifies, corrects, and learns from them. Sponsors who acknowledge past missteps and show systems built to prevent repeats often demonstrate maturity and reliability.
Final Thoughts
Investing passively in a mobile home park can be a rewarding way to diversify into real estate while benefiting from professional management. However, every investment carries risk, and past performance never guarantees future results.
By asking these questions and genuinely listening to the answers, you’ll gain deeper insight into both the people and the strategy guiding your capital. A strong operator should welcome your curiosity, provide documentation when possible, and maintain transparency throughout the investment lifecycle.
Are you looking for MORE information? Book a 1-on-1 consultation with Andrew Keel to discuss:
- A mobile home park deal review
- Due diligence questions
- How to raise capital from investors
- Mistakes to avoid, and more!
Disclaimer:
The information provided is for informational purposes only and is not investment advice or a guarantee of any kind. We do not guarantee profitability. Make investment decisions based on your research and consult registered financial and legal professionals. We are not registered financial or legal professionals and do not provide personalized investment recommendations.

Tristan Hunter - Investor Relations
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