From Bartending to Mobile Home Park Investing

In this episode of the DealQuest Podcast, Kevin Bupp, a highly successful real estate investor and founder of Sunrise Capital Investors, joins me to share his remarkable journey and expertise. With over $500 million in transactions under his belt, Kevin’s journey from bartending to managing his private equity firm, Sunrise Capital Investors, offers valuable insights for anyone looking to build wealth through real estate, especially mobile home parks and parking lots.

With over two decades of experience, Kevin shares his journey through the ups and downs of the real estate market, and the strategies he's used to build long-term wealth. His extensive portfolio includes mobile home parks, apartment complexes, and other commercial real estate investments. Kevin’s passion for creating sustainable growth and his deep knowledge of the market offer valuable insights for anyone looking to scale their business and succeed in real estate.

RECOGNIZE THE NEED FOR STRUCTURAL CHANGE

Sometimes, focusing on handling individual deals one by one can limit your ability to seize larger opportunities and grow your business. For instance, Kevin Bupp faced a similar challenge in his career. Initially, he managed deals individually, which worked well but soon became overwhelming as more opportunities came his way. He realized that this approach was restricting his growth potential.

To overcome this, Kevin made a significant change by shifting from managing deals individually to establishing a structured investment fund. This new structure allowed him to handle multiple deals simultaneously and manage his growing pipeline more effectively. By setting up a fund, Kevin could pool resources and streamline operations, making it easier to take on and oversee more deals without getting bogged down by the logistics of each one. This structural change enabled him to scale his business and capitalize on opportunities that would have been impossible with his previous approach.


EVALUATE THE BENEFITS OF A FUND MODEL

Adopting a fund model can offer several substantial advantages that can make your business operations smoother and more efficient. When Kevin Bupp transitioned to using a fund model, he experienced a range of benefits that significantly improved his ability to manage and grow his business. Here’s how:

- Streamlined Capital Raising: You gather capital from multiple investors and pool it into a single fund. This simplifies the process of raising money because you’re dealing with a larger, consolidated amount of capital rather than seeking funds for each individual deal. For Kevin, this meant he could raise a significant sum at once, which reduced the need to repeatedly pitch and negotiate with investors for every new deal.

- Reduced Logistical Challenges: Managing individual deals often involves a lot of logistical hurdles, such as negotiating financing and coordinating resources for each deal separately. By using a fund model, these logistical challenges are minimized.

- Increased Flexibility: You can act quickly on new opportunities. Kevin’s experience illustrates this perfectly: he could close deals in cash immediately due to the fund’s available resources. This speed and flexibility gave him a competitive edge, as he was able to secure deals without delays and then arrange financing as needed.

SIMPLICITY IN FUND STRUCTURE

Kevin Bupp stresses the importance of keeping fund structures simple for both investors and operators. He found success with a clear 70/30 split—70% of profits go to investors, and 30% to the operators—along with tiered preferred returns based on how much someone invests (8%, 9%, and 10%). This easy-to-understand setup makes it simpler to manage and keeps investors happy, knowing exactly what to expect. By keeping things straightforward, you can avoid confusion and ensure that incentives are clearly aligned, making it easier for everyone involved.

UNDERSTAND INVESTOR PREFERENCES

High-net-worth individuals and business owners often seek passive investment opportunities. They value the potential for passive income and diversification but may not have the time or interest to manage investments actively. Tailoring your approach to meet these needs can attract and retain investors.

For example, Kevin Bupp found that his investors, often busy running their own businesses, sought opportunities that provided passive income and diversification. They didn’t want the hassle of managing day-to-day operations but valued a solid return on their investment. By understanding these preferences and offering hands-off investment options, Kevin was able to attract and retain investors who wanted to grow their wealth without the added effort.

EVALUATING OPPORTUNITIES AMIDST MARKET CHANGES

Even when interest rates rise, it's important to stick to solid deal evaluation practices. Kevin Bupp gives a great example—despite changes in the market, he always focuses on fundamentals like a property's real value and its long-term potential.

For instance, in a higher interest rate environment, instead of chasing risky deals, Kevin continues to assess opportunities with the same standards, ensuring they make sense financially in the long run. This consistency helps protect against bad investments, no matter how the market shifts.


FOCUS ON LONG-TERM VALUE, NOT QUICK WINS

Successful real estate investing is about looking at long-term potential, not just short-term profits. Instead of getting caught up in immediate returns, he emphasizes finding properties that will grow in value and generate steady cash flow over time.

For example, Kevin talks about buying undervalued properties in tough markets and holding onto them until they appreciate. By waiting for the right time to sell or capitalize on increased value, he achieves greater returns, even when the market changes. This patient approach is key to lasting success in real estate investing.

Tune in to hear Kevin Bupp's expert advice on scaling your real estate business, building long-term wealth, and navigating market fluctuations. Kevin shares his experience in structuring funds, adapting to changing market conditions, and focusing on long-term value over short-term gains.

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Listen to the Full DealQuest Podcast Episode Here

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FOR MORE ON KEVIN BUPP:
Kevin Bupp's LinkedIn
Kevin Bupp's Facebook
Kevin Bupp's Instagram
Kevin Bupp's YouTube
Kevin Bupp's Company
The Cash Flow Investor
Real Estate Investing for Cash Flow

FOR MORE ON COREY KUPFER:
Corey Kupfer's LinkedIn
Corey Kupfer's Website
DealDen

Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

Get deal-ready with the DealQuest Podcast with Corey Kupfer, where like-minded entrepreneurs and business leaders converge, share insights and challenges, and success stories. Equip yourself with the tools, resources, and support necessary to navigate the complex yet rewarding world of dealmaking. Dive into the world of deal-driven growth today.