Season 1,

62: How to Lose Money by Investing in 122 Single Family Homes with Kevin Bupp

June 23, 2017

Investing in single family homes can be extremely profitable. However, there are many warnings to consider before jumping into this sector. In this episode, Kevin Bupp tells the thrilling story of how he owned 122 single family homes and shares tons of actionable advice for others thinking about this sector.

Kevin Bupp is a Florida-based Real Estate Investor, top iTunes podcast host and serial entrepreneur with over $40 million of real estate transactions. His extensive investment experience spans the gamut of apartment buildings, single-family homes, office buildings, raw land, condos, and his favorite and by far the most profitable, Mobile Home Parks. With over 16 years of experience, Kevin now educates investors to locate, acquire, and create “higher than average” returns from this widely-misunderstood niche of Mobile Home Park Investing. He shares his expertise through the Mobile Home Academy and as the host of The Investing for Cashflow Podcast which has become one of the hottest podcasts on iTunes, often in the top 100!

Time Stamped Show Notes

[6:30] Kevin started fixing and flipping low end single family properties at age 19 in Pennsylvania, with a mentor who taught him to focus on cash flow. And then in 2002, Kevin moved to Florida.

[8:19] By 2006 Kevin had 122 single family homes in his rental portfolio and a few hundred apartment doors.

[9:00] In 2007 things started shifting and acquisitions went down. He thought he had a great protection mechanism regarding acquisitions.

[10:40] From 2006 to 2007, single family home builders saw their business model not working and started to rent the houses.

[13:11] Brand new homes for rent resulted in a decrease in occupancy for Kevin’s properties at the first quarter of 2007.

[14:33]  Within six months,  they had to come up with a strategy to sell most of the houses and cut losses from the lack of cash flow.

[15:55] Paying debt out of his pocket, by 2008 Kevin stopped making mortgage payments to prevent losing all his money.

[18:40] The result of that was that the banks lowered his credit limits or canceled his cards.

[22:16] Though he kept a few properties, Kevin’s loss was $13 million of value in the assets that he owned.

[25:50] Failing Forward Segment

  • What is the bottom line reason of this failure? – “Too  many of my eggs in one basket, that basket was single family homes.”
  • What is the single most important lesson they and you learned from this? – “Not relying on credit. Everything I owned was heavily relying on credit.”
  • What are the major ways you protect yourself from future failures? – “Today we are only focused on cash flow. I really don’t care about the appreciation.”
  • Who do you turn to when you need help? – “I’ve got a few people that are industry specific in the mobile home park space that I’ve in the business for 30+ years, I’ve got a few other associates and contacts that I’ve known for a number of years.”
  • What advice would you give to someone in a similar position? – “Make sure that you don’t think just about today, but think about tomorrow.”

[35:22] Connect with Kevin through his personal website www.kevinbupp.com and his investment company www.sunrisecapitalinvestors.com

[38:56] Kevin’s final thought: “The biggest thing, whether you’re winning or losing, is taking action.”

To hear this episode and many more like it on your mobile device, you can subscribe to How To Lose Money via iTunes or Stitcher.

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