Creating a diversified portfolio is one of the reasons many investors turn to commercial real estate. Shane Connor took it a step further and built diversified commercial real estate portfolio with holdings in multifamily, mobile home parks, and senior living facilities. The latter is where Shane has the most passion after seeing managing the senior care for a loved one first hand. In addition, Shane shares how he’s helping others to diversify their portfolios and hosting creative networking events to connect with investors,
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Key Market Insights
First deal was as an LP in multifamily
Second was a fund for mobile home parks and manufactured home communities
As a limited partner, owns a small fraction of the deal
Communities provide high cash flow with low overhead
Demand for affordable mobile home parks is strong
Self-storage is less price sensitive
Self-storage tenants included Red Bull, US Navy and art dealers
Business application is huge for self-storage
Spent the last 8 years in senior living care
Scaling up investment opportunities in senior living
Senior living, Independent Living, Assisted Living, Skilled Nursing – licensed clinical outcomes
Investors acquire entity, and triple net lease it to operations
10,000 baby boomers a day turn 65
Father lost his life last year, hired a chef to come into skilled nursing facility
Downstream from the expert in that domain
Partner with leaders in each commercial real estate sector
How do you get into the psyche of a passive investor if you’ve never been a passive investor?
Looking for the comfort of the team, confidence in the business plan and experience of the people
Looks at the debt service coverage ratio, likes to see 1.4, comfort with the market
Transitioned out of corporate America and spends time talking to investors
Hosts private dinners – invite only, private setting, business and community leaders
Partner: Check out the Northstar Real Estate Conference on Sept. 21 and 22
Bull’s Eye Tips:
Winning Your Market: Pair yourself with experts
Tracking Market Changes: Stay involved with the community and read often
Daily Habit: Writing out my day first thing in the morning
Resources:
Best Business Books:
168 Hours by Laura Vanderkam
Digital Resources:
Slack
Tweet This:
“I’m looking for the comfort of the team, confidence in the business plan and experience of the people”
“10,000 baby boomers turn 65 everyday”
Places to Grab a Bite:
Connect with Shane:
RedRockCapitalGroup.com
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