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4 mins read

4 Reasons Why Mobile Home Parks are Recession-Resistant Investments

mobile home parks

Mobile home parks (MHPs) are frequently associated with a variety of unfavorable perceptions and the idea that they are unattractive places to live.

Many people do not realize that some of the richest people in the world have been investing in MHPs for years. One reason is that this asset class can produce exceptional returns even in the worst economic circumstances.

Here are five reasons why mobile home park investments are recession- and inflation-resistant.

1. Mobile home parks are the most affordable housing.

During a recession, it is natural for individuals to seek out the most affordable ways to live. Mobile home parks experience increased demand during economic downturns because they are the most affordable housing option.

According to the U.S. Department of Housing and Urban Development, manufactured homes can cost half as much per square foot to construct as site-built homes. Census data. A manufactured home costs approximately $70,600 on average, compared to $286,000 for a single-family site-built home, excluding land costs.

In many parts of the country, the monthly rent for a manufactured home with land in a land-lease community averages between $844 and $935.

2. Residents own their homes and rarely move.

Affordability attracts residents, but ownership of a mobile home ensures their long-term presence. This resident ownership is the most distinctive characteristic of MHPs and a little-known reason for their stability throughout all market cycles.

Residents pay monthly rent for the lot on which their home sits, but because they own their homes, they are also responsible for all ongoing repairs and maintenance.

As homeowners, residents have ownership pride and a vested interest in staying at the MHP, resulting in their rare relocation. It is not uncommon for residents to reside in the same park for an average of 15 years, and some residents live their entire lives in the same park.

 3. Multiple Income Streams

In multifamily buildings, rent is the only source of income. When you own a mobile home park, there are multiple ways to generate income. You can generate income by renting out space in your park. You can also purchase multiple mobile home units and rent them out. Additionally, you can rent out additional garage spaces and even issue master leases if you so choose.

4. Supply is Restricted and Declining

It is very difficult to construct new mobile home parks in desirable locations. As the majority of MHPs were built in the 1960s and 1970s, most cities’ zoning regulations prohibit the construction of new parks. Additionally, MHPs are frequently targeted by developers who want to convert them into more expensive housing options, such as multifamily apartments.

Estimates indicate that the national supply of Mobile Home Parks is decreasing annually, which, when combined with rising demand, creates an extremely favorable investment structure for the long term.

Tony O. Lawson

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Published on
4 mins read

Why The Car Wash Industry Is Becoming Increasingly Attractive To Investors

car wash

Up until about three years ago, the car wash industry wasn’t particularly appealing to investors. Private equity firms owned approximately 1% of the nation’s 65,000 total car washes and 2% of the nation’s roughly 17,000 conveyor-style car washes as of June 2019, according to data from one of the industry’s specialized brokerages, New York-based Car Wash Advisory LLC.

In the next five years, some industry advisers expect that to change.

“We’re nearing the basket tipping point, but there is still a ton of runway to go,” BlackArch Partners LP managing director John Conklin said. “If I think about car wash operators with some sort of private equity backing in this space five or so years ago, I’d say there were no more than 10. Now I’d say there’s probably 50.”

Car washes were for a long time primarily a cash-heavy, labor-intensive model. Previously, the focus was on full-service car washes, where a driver would wait 45 minutes to have their car washed and detailed.

Advances in technology have transformed once-old school car washes into scalable businesses. New sales and marketing models like monthly memberships create recurring revenue for car washes and allow them to build a brand.

It is not unheard of for a single location to have 5,000 subscribers, and when you do the math, even at a lower cost package of $20 per month, that is $1.2 million in guaranteed revenue annually.

This new model increases revenue consistency and decreases the need for on-site staff. This is exactly the type of business investors salivate over.

They are interested in car wash businesses that own express washes, also known as tunnel washes and conveyor washes. These locations are nearly fully automated, require minimal labor, and utilize conveyor or belt equipment to transport vehicles through the car-washing process.

According to bankers participating in the acquisitions, investors are now paying high sums for regional chains, as much as 18-to-20 times earnings before interest, taxes, depreciation, and amortization. This is a significant increase from previous years.

According to Grand View Research Inc., the express car wash industry has a current market size of over $11 billion and is anticipated to increase at a CAGR of 4.0 percent to 4.8 percent through 2028.

In the United States, where more than 72% of drivers utilize professional car wash services on average 13 times annually, conveyor car washes routinely generate the highest profits in the industry.

Demand is outpacing the supply. Even in the face of inflation and rising gas prices, its believed that the satisfaction customers feel from keeping their cars clean combined with the relative affordability of the service has created a strong opportunity for growth.

However, as a result of rising prices for labor, chemicals, and equipment, the sustainability of the business model for car washes is being put to the test by high inflation.

Some investors are concerned that customers would stop washing their vehicles if the economy experiences a downturn, despite the fact that the car-washing sector likes to promote the fact that it is resilient to economic downturns.

“Car washes went from not being on the private equity radar to being at the forefront for nearly every firm,” says Geoffrey Jervis, co-founder, and CEO of Mint Eco Car Wash. “They all want to be in the industry in some way, which means there are billions of dollars flowing into this space right now.”

Tony O. Lawson

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Published on
1 min read

She Leads a $20M Investment Fund Focused on Black Tech Founders

In this Black investor spotlight, we’re speaking with Lise Birikundavyi.

Lise is Managing Partner at BKR Capital, a Toronto based, $20 million venture capital fund built to invest in Black founders in the technology space.

When Lise took on this role, she became the first Black woman to lead an institutionally-backed venture capital fund in Canada.

In this interview, Lise shares:

  • What led her to become a venture capitalist.
  • Her view on how capital is dispersed in different regions.
  • An overview of the Canadian VC landscape.
  • Promising markets she’s interested in and why.
  • Advice for those who are interested in starting an investment fund.
  • Whether or not the current economic climate has influenced BKR’s investment strategy.
  • What her game plan would be if she were a startup founder seeking capital.

Tony O. Lawson

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1 min read

Lockstep Ventures, the $50M Fund Investing in Systemic Change

lockstep ventures

In this Black Investor Spotlight, we spoke with Marcus Glover, the Co-Founder, General Partner & Managing Partner at Lockstep Ventures.

Lockstep Ventures is a $50 Million venture capital firm that invests in overlooked visionaries of color and companies impacting racial disparities in the U.S.

In this episode, we discuss:

  • The current state of Black venture capitalism.
  • Black investors coming together to invest as syndicates.
  • The types of startups that are attracting the most investments.
  • Conscious capitalism and Intentional capitalism.
  • Fair chance hiring and how it influences his investment decisions. 
  • Advice for founders currently raising or planning to raise in the near future.

 

-Tony O. Lawson

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Published on
4 mins read

Different Ways to Invest in Black Owned Businesses

invest in black owned businesses

When it comes to supporting Black-owned businesses, some research is needed to discover which businesses are actually Black-owned.

Luckily, most public companies do not hide who is on their executive board, making the process easy with a little research. Once you have done some research on the businesses you wish to support, there are ways you can go about investing in them.

If you have the desire to invest in Black-owned businesses, read on for a few ways to do so:

Take to the Stock Exchange

One of the easiest ways to support any publicly-owned business is to invest in the company on the stock exchange. Here are a few companies that have either a Black president or CEO, or have majority Black ownership that you can invest in:

  • Global Blood Therapeutics, Inc.
  • RLJ Lodging Trust
  • Urban One, Inc.

Invest in Companies That Financially Support Racial Justice

Supporting companies that have donated money to support racial justice can also be an option in the stock market. Several large companies have done so over the past few years, and supporting them can help them continue to do so. Choosing businesses such as these to get behind can help also grow your own money while showing your support for said business.

The Non-Stock Ways to Support Racial Justice

While taking to the stock exchange can be a great way to support Black-owned businesses and businesses that support racial justice, there are other methods available to investors as well, such as investing in startups or real estate crowdfunding.

You can join platforms such as The 10K Project, a community of everyday investors who actively fund Black-owned businesses.

You can invest in Buy the Block, another crowdfunding platform, for a minimum of $100. Many of the projects listed on Buy the Block are in historic Black neighborhoods or benefit a local community.

No matter what way you decide to invest, make certain you do your research. With investing in startups and real estate crowdfunding there is the risk of losing your entire investment, so it’s best to be careful.

Rethink Your Bank

Why not consider a Black-owned bank, especially if your current bank doesn’t meet all of your banking needs? Not only are you supporting a Black-owned company by using such a bank, but you can also ask them about any initiatives they have for the African American community to further your support.

Larger banks that are not Black-owned might also have community-focused initiatives as well, and it never hurts to ask, especially if you want to support such initiatives.

There are so many ways that you can support Black-owned businesses. Research the business you want to support, and think about how best you can support them, be it through purchasing stocks in the company or taking part in the company’s initiatives.

-Tony O. Lawson

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Published on
5 mins read

8 Ways to Intelligently Invest $500

invest

To ensure future financial stability, the best thing for you to do right now is to intelligently invest your money into profitable avenues.

Contrary to popular belief, you do not need to have thousands of dollars at your disposal to begin investing. With just $500, you can start investing and accumulating real, long-term wealth.

Keep reading to know how you can effectively invest your $500.

1.   Purchase a Certificate of Deposit

If you want to save for a short-term goal, certificates of deposit are a great way to invest your money. They’re safe to invest in as you get a guaranteed return on your investment, irrespective of the economy’s status. Interest paid on your certificate of deposit will be based on the initial deposit agreement you made and not market conditions.

2.   Start a Side Business

If your day job isn’t too demanding or you’d like to do something productive on the weekends, you could start a side business. Doing so will not only give you extra income but can also help you hone any other skills you have. You can buy items for cheap and flip them for profit, freelance as a content writer or graphic designer, sell second-hand goods on eBay or Craigslist, or open an e-commerce store.

3.   Pay Down Your Debt

With $500, you can pay down your debt and save thousands of dollars in interest. Getting rid of your debt as quickly as possible means that you won’t have to pay exorbitant interests to your creditors.

4.   Equity Crowdfunding

Crowdfunding refers to raising money from the public to finance a new business venture. In equity crowdfunding, public investors get a proportionate slice of equity in the business in exchange for their investment. Do some research and invest your $500 in a business that you think will provide lucrative returns.

5.   Set Up a Dividend Reinvestment Plan (DRIP)

Purchase dividend-paying stocks and invest them into buying more stocks. Over time, you will begin to accumulate more money through these reinvestments. Your stock can also increase in value over time and boost your overall net worth.

6.   Use Robo-Advisors

Robo-advisors are automated investing platforms that manage your investments. Many financial institutions let you invest through Robo-advisors. When you sign up for one, you will have to answer questions regarding your finances. Based on your answers, the platform creates an investment portfolio tailored to your needs. When you don’t have too much money, Robo-advisors are a great way to get started on investing.

7.   Contribute to a 401(k) or IRA

Contribute your $500 to an employer-sponsored retirement plan, like a 401(k). Make it your goal to maximize your employer’s match to accumulate more money. Talk to the HR personnel in your company to see if you can make a one-time deposit of $500.

You can also invest your money by opening a Roth IRA (Individual Retirement Account), a retirement savings plan that allows you to contribute after-tax money to your investment account.

8.   Buy Savings Bonds

If you’re a prudent investor, purchasing savings bonds is a great way to invest your $500. Bonds are low-risk investments, which means that the return on investment you receive from them will be lesser than your returns on stocks. Usually, you purchase a bond at face value and receive the principal amount plus interest at the time of its redemption.

Investing isn’t as confusing or overwhelming as it seems on the outside. It doesn’t always take too much time, effort, and money. If you still have misgivings about investing your money, talk to a financial expert and ask them for professional guidance.

 

***Important: Please do as much research as you can beforehand before making any investments.***

 

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Published on
2 mins read

Black Owned Healthcare Fund Raises $72M, Becoming One of The Largest Fund Focused on Women’s Health

Black Owned Healthcare Fund

SteelSky Ventures is a Black owned venture capital firm focused on healthcare for women. The Atlanta-based venture capital firm recently announced the final close of its inaugural fund focused on improving access, care, and outcomes in women’s health.

The close of the fund brings SteelSky’s total assets under management to $72 million, making SteelSky one of the largest venture capital fund focused on women’s healthcare.

SteelSky Ventures was founded by Maria Toler Velissaris after she uncovered a gap in funding for women, and more specifically, women’s health.  To date, Maria has invested in over 20 female-led companies.

The League of Extraordinary Funders: Meet Maria Velissaris, SteelSky Ventures | by Grasshopper Bank | Grasshopper Bank | Medium
Maria Toler Velissaris, Founding Partner at SteelSky Ventures

“Women’s health is an area of tremendous growth potential, and SteelSky is building a pipeline of the next billion-dollar healthcare giants. We are proud to invest in entrepreneurs who are significantly progressing healthcare for women around the world,” Maria said.

SteelSky invests across the spectrum of women’s health indications and care modalities, including medical devices, consumer health, digital health, ePharmacy, and retail therapeutics. The fund’s innovative approach to women’s health also allows for investment in technology infrastructure that supports new and innovative care delivery models.

The fund’s limited partners include healthcare strategic investors such as the American Hospital Association (AHA), Eli Lilly, Blue Shield of California, MultiCare Hospital System, Henry Ford Hospital System, and Essential Access Health.

Tony O. Lawson

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Published on
7 mins read

The 10K Project is on a Mission to connect One Million “Every Day” Black Investors with Black Owned Businesses that need Funding

the 10k project

Thanks to the Jumpstart Our Business Startups (JOBS) Act of 2012, entrepreneurs can raise up to $5 million per year from individual investors. These investments can be made via campaigns on SEC-approved equity crowdfunding platforms.

Black entrepreneurs who have historically struggled to raise funding from traditional financial institutions now have another option to raise the capital needed to start and grow their businesses.

For aspiring investors, it no longer takes thousands of dollars to start investing in early-stage companies like wealthy families do.

All you need to do is join platforms such as The 10K Project, a community of everyday investors who actively fund Black-owned businesses.

The 10K Project, founded by Cheree Warrick and Tawana Rivers is building a community of those not only buying Black but also investing Black.

We recently caught up with Tawana to find out more about the platform.

the 10k project
Tawana Rivers, Co-founder and COO, The 10K Project

What inspired you and Cheree to create The 10K Project? 

We were leaders in another group that uplifted the Black community. Each week, we would have conversations regarding how Black people could break into the blockchain industry by building businesses.

One of the primary concerns people had was a lack of capital. Cheree continuously said, “If 10,000 of us came together and invested $100 each into the business, that’s $1 million. We can fund our OWN businesses.”

One day, Cheree said it again for the umpteenth time and I asked her, “When are you going to do something about it?” She said that she couldn’t do it alone so four of us joined her as the founding members of The 10K Project. And here we are!

the 10k project
Cheree Warrick, Co-founder and CEO, The 10K Project

Briefly explain the importance of creating an ecosystem of Black investors.

We oftentimes hear phrases such as “it takes a village,” “each one teach one,” “we’re better together,” and “we must circulate the Black dollar longer;” however, most people aren’t sure how to implement them. We want to help people build generational wealth.

At The 10K Project, we aim to not only let these sentences be catchphrases. Instead, we live them! We bring together 3 groups of people:

  1. Entrepreneurs who have great ideas and want to raise capital for their businesses,
  2. Investors who have as little as $100 to invest in Black founders, and
  3. Experts who can help these entrepreneurs grow their companies (e.g. project managers, sales consultants, construction professionals, etc)

We bring together people from all socioeconomic backgrounds who want to uplift and invest in the Black founder. Within our organization, we say “We buy Black. Now we can invest Black, too.”

If we want to truly OWN and DOMINATE industries such as agriculture, manufacturing, real estate, healthcare, and technology, then we MUST invest in each other. No one is coming to save us, so we must save ourselves.

What are some things a business should have in place in order to have a successful crowdfunding campaign?

To successfully manage a crowdfunding campaign, entrepreneurs must have a winning crowdfunding campaign plan, a knowledgeable team who understands legal compliance, investors, a legally compliant crowdfunding platform, and experts to guide you through your campaign. 

We offer entrepreneurs more information regarding how to successfully launch and complete an equity crowdfunding campaign at www.roadtocrowdfunding.com.

Fill in this blank. “We need to see more Black businesses that ____”

Have equal amounts of resources as our counterparts. Most Black businesses aren’t able to maximize growth due to a lack of resources. And resources are more than cash. It’s team members, mentors, access to credit, access to networks, etc.

The 10K Project is more than just access to capital. We are a community of individuals who work together to help the entrepreneur succeed. If the entrepreneur needs staff, then he or she can access our Expert Directory and find the skilled talent they need.

If the entrepreneur needs access to profit acceleration resources such as marketing, product placement, and business efficiencies, our Knowledge Center has recorded webinars and individuals to help.

As Black businesses receive the resources needed, they hire more people within the community, grow revenues, give back to our nonprofits, mentor more of our children, and uplift our economic standing globally.

the 10k project

Where do you see The 10K Project in 5 years?

We will be an investor network with 1 million members.

Within 5 years, we will be THE place where entrepreneurs raise $5 million (the legal limit for Regulation CF governed by the SEC) within 48 hours…and we will do this over and over again.

We want to expose our investor members to opportunities that can help them build generational wealth. And we want to have a major economic impact globally (including the Caribbean and Africa). 

Sign up here to join The 10K project and start investing Black!

Tony O. Lawson

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Published on
4 mins read

Alitheia Raises $100 Million to Invest In Women Owned Businesses Across Africa

Alitheia

Alitheia IDF (AIF), Africa’s first women-led and women-focused private equity fund announced the final close of a $100 million fund in December of 2021. With this final close, Alitheia IDF becomes the largest woman-focused private equity fund by value in Africa.

Led by principal partners Polo Leteka and Tokunboh Ishmael, Alitheia IDF invests in growth-stage companies across six African countries: Nigeria, South Africa, Ghana, Zimbabwe, Lesotho and Zambia.

Alitheia
Polo Leteka co-Founder and Principal Partner – South Africa(Credit: Bridget Corke Photography)

The fund has a mandate to plug the over $42 billion investment gap between male and female entrepreneurs as a means of catalyzing the economic power of African women as producers, distributors, and consumers.

In 2021, the fund began implementing this mandate by leading investment rounds in five women-led businesses across essential sectors including agribusiness, education, manufacturing, housing, technology, and logistics.

The investee companies are Jetstream Africa (Ghana), ReelFruit Ltd (Nigeria), SKLD (Nigeria), AV Light Steel (South Africa), and Chika’s Food (Nigeria).

“Globally, women have tremendous purchasing power as consumers and controllers of household economics. In the same vein, women entrepreneurs have a significant presence in Africa’s SME sector with African women making up 58% of the continent’s self-employed population.

Alitheia
Tokunboh Ishmael – co-Founder and Principal Partner – Nigeria

However, despite this economic power and presence, African women are underserved as consumers and producers.

This has had a huge impact on economic growth as the potential of more than half of the continent’s population remains untapped due to structural and systemic issues.

We are proactively working towards filling this gap with a clear mandate to support women-led businesses across the continent while raising awareness for gender-smart investment as a path towards inclusive economic growth,” said Principal Partner Tokunboh Ishmael in Nigeria.

African women have remained underserved by the financial sector even as the historical investment gap between men and women continues to widen.

Estimates show that African women receive less than 5% of all investment on the continent even though over 40% of small and medium-sized enterprises (SMEs) in Africa are women-led.

Reports by McKinsey point out that closing the investment gap will lead to 26% gross domestic product (GDP) growth ($28 trillion) by 2025.

By applying a gender-smart lens to investment, Alitheia IDF is setting the pace and providing a framework for gender-inclusive investments with the goal of enabling economic growth for African countries and, critically, African women.

Polo Leteka, Principal Partner in South Africa, explained that it is her hope that Alitheia IDF’s leading example will inspire other investors on the continent to invest in women, noting that women have an important role to play in unlocking the economic potential of Africa.

She further stated that “the historic inability to appropriately capture the economic potential of African women has affected Africa’s development. Alitheia IDF is on a mission to fill this gap by using a gender smart approach and financial capital to empower women as consumers and producers.”

Tony O. Lawson

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1 min read

Meet Sangu Delle, one of Africa’s Most Successful Investors

sangu delle

Sangu Delle is a Ghanaian investor, entrepreneur, activist, and author. He has received several international accolades including being named Africa’s “Young Person of the Year”, a TEDGlobal Fellow, one of Forbes’ top 30 most promising entrepreneurs in Africa.

Sangu serves as CEO of Africa Health Holdings, an innovative company focused on building Africa’s healthcare future.

In November, African Health Holdings raised $18 million to expand its telemedicine service beyond Ghana to Nigeria and Kenya, and scale its network of health facilities.

He is also the Chairman of Golden Palm Investments (“GPI”); an investment holding and advisory company focused on building world class technology companies in Africa.

Via GPI, Sangu has been an early investor in several African tech startups including Andela and Flutterwave, two of only three West African companies valued at one billion U.S. dollars.

In this interview, Sangu and I discuss:

  • His journey from Ghana to the U.S. and back to Ghana.
  • Why he pivoted from investing in agriculture to focus exclusively on technology
  • What inspired his passion for building Africa’s healthcare future.
  • The importance of Africans and the Black diaspora collaborating on economic and social issues.
  • Advice for those interested in investing in startups based on the continent.

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Tony O. Lawson

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