Newsletter: February 2025
In This Issue:
- MoneyShow Las Vegas Recap
- Investing Through Self-Directed IRAs & 401(k)s
- Latest Cash Flow Quest Podcast Episode
MoneyShow Recap: MHCs Are on Everyone’s Radar
Last week, Morgan West and Ben Schuster attended the MoneyShow in Las Vegas, a three-day conference that’s been bringing together investors, traders, and financial professionals for over 40 years. They had a booth, met a ton of investors, and Ben had the opportunity to speak on stage—both in a real estate panel discussion and in a solo session on why Manufactured Housing Communities (MHCs) are one of the most resilient real estate investments today.
One moment stood out to Ben: During the opening remarks, Mitch Roschelle, a frequent guest on Fox Business, was asked what he believed to be the best real estate investment right now. His answer? Mobile Home Parks.
Key Points from the MoneyShow Presentation:
1. What Do Warren Buffett & Sam Zell Know That Most Investors Don’t?
- Warren Buffett is the biggest investor in MHCs:
- Owns Clayton Homes, the largest mobile home manufacturer
- Owns 21st Mortgage, the largest mobile home lender
- Owns Berkadia, the second-largest lender for mobile home parks
- Sam Zell, legendary real estate investor:
- “Trailer parks are the best real estate investment that has ever existed”
- “This business was ignored for a long time because it wasn’t sexy. But sexy is overrated—cash flow and predictability matter more”
2. MHCs Shine in Recessions
- Over the past 20+ years, MHCs have generated the highest and most stable cash flows across all major real estate sectors
- During recessions, MHCs increase in both occupancy and NOI, proving their resilience when the economy slows
3. The Supply & Demand Imbalance
- MHCs are one of the only real estate asset classes with shrinking supply and rising demand
- New mobile home parks are nearly impossible to build due to strict zoning laws, NIMBY opposition, and unfavorable economics for developers—making existing communities even more valuable
Investing Through A Self-Directed IRA / 401(k)
Many investors ask me, “Can I use my retirement funds to invest in real estate?” The answer is YES.
What shocks me is how many people don’t realize this is possible—or even worse, they have no idea what their retirement money is invested in or if it’s just sitting in cash.
What You Need to Know:
- A Self-Directed IRA (SDIRA) or Solo 401(k) allows you to invest in alternative assets like manufactured housing communities while keeping tax advantages
- Unlike traditional IRAs, which limit you to stocks and bonds, SDIRAs allow you to invest in stable, cash-flowing real estate
- This strategy helps you grow wealth through passive income and appreciation—within a tax-deferred or tax-free account
To learn how SDIRAs work and how you can move money into a Self-Directed IRA, watch my discussion with Carl Fischer, founder of CamaPlan.
We have some exciting things happening at Comfort Capital, and I appreciate you being part of the journey. If you have any questions about Self-Directed IRAs or anything else—reach out!
Ben Schuster
Head of Capital Formation
https://calendly.com/ben-schuster/30min?month=2025-03
