Ep. 114: Creating a Diversified Commercial Portfolio with Shane Connor

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

• The first deal was as an LP in multifamily
• The 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 a 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 a day turn 65”

Places to Grab a Bite:

Atlanta – Ecco

Connect with Shane:

RedRockCapitalGroup.com

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