Investor education
Plain-language guides and a practical glossary for private real estate and manufactured housing investing.
Program map
The program covers investment foundations, acquisition due diligence, community operations, and public talks.
Tell us what you want to learnFor participants building a practical MHP vocabulary and decision framework.
For participants learning how an opportunity moves from sourcing to closing.
For operators and partners focused on the work after a property closes.
Open educational sessions on markets, technology, tax, and practical questions.
Course dates and registration details are listed on the events page. View events →
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Reference library
Use this glossary when a metric appears in a project memo, portal report, or distribution update.
How your gain is measured. Read a time-based metric (IRR) together with a total-return metric (equity multiple) — one alone can mislead.
The annualized rate of return on your money that accounts for the timing of every cash flow — when money went in and when it came back.
IRR is one way to compare investments with different cash-flow timing. It should be read alongside equity multiple, cash-on-cash return, assumptions, and risk; IRR alone can mislead.
It is the discount rate at which the value of all the cash you put in equals the value of all the cash you get back. Earlier distributions and a faster sale push IRR up.
NPV = sum(CF_i / (1 + IRR)^(days_i / 365)) = 0
The same idea as IRR, but for a deal that has not sold yet — so it also counts today’s estimated value of your stake as if it were cash paid out.
It lets you see a projected annualized return mid-deal. But part of it rests on an estimate, not realized cash, so it can move up or down as the estimate changes.
Same math as IRR, using your real contributions and distributions plus the current estimated value (NAV) as a final, as-if cash-out.
Estimated IRR solves NPV(real cash flows + current NAV) = 0
The cash you actually receive in a year, as a percentage of the cash you put in.
It measures the current income your investment throws off right now — how hard your money is working today — ignoring any future gain at sale.
Annual cash distributions ÷ your invested capital. An $8,000 yearly distribution on $100,000 invested is an 8% cash-on-cash return.
Cash-on-Cash = annual cash distributions / cash invested
The total value you receive for every dollar invested, over the entire life of the deal.
It answers “how many times did I get my money back?” — 2.0x means you doubled your money. Unlike IRR it ignores timing, so read it alongside IRR.
(Total distributions + any remaining value) ÷ total invested. A long hold can produce a strong multiple even with a modest IRR.
Equity Multiple = (total distributions + remaining value) / total invested
The cash actually returned to you so far, per dollar invested.
It shows cumulative cash distributions actually received, not estimated value. A 1.0x DPI means cumulative distributions equal contributed capital; it does not show whether those payments were income, sale proceeds, or return of capital.
Total cash distributions ÷ total invested. As a deal matures and sells, DPI climbs toward the final equity multiple.
DPI = cumulative cash distributions / total invested
Cash you have received plus today’s estimated value of your remaining stake, per dollar invested.
It shows your total return so far, including value not yet realized. TVPI = DPI (cash) + estimated value still in the deal; the gap between TVPI and DPI is the part that is still an estimate.
(Distributions + current estimated value) ÷ total invested.
TVPI = DPI + (current NAV / total invested) = (cash distributions + current NAV) / total invested
How we assess the asset itself and its price. Net operating income (NOI) is one important measure; market conditions, capital needs, and risk also affect value.
The property’s rental income after operating expenses, but before mortgage payments and income tax.
NOI is a core measure of property operations. All else equal, durable NOI growth can support a higher valuation, but cap rates, market conditions, capital needs, and risk also affect value.
Effective rental income − operating costs (property taxes, insurance, utilities, repairs, management). Loan payments are NOT subtracted.
NOI = effective gross income - operating expenses
A property’s annual net operating income as a percentage of its price.
It is the quickest way to compare what you pay for income across deals, independent of loans. A higher cap rate means you pay less for each dollar of income — often more risk or more work.
NOI ÷ price. A $200,000 NOI on a $2,600,000 price is a 7.7% cap rate.
Cap rate = annual NOI / property value or purchase price
The cap rate based on the property’s as-is income at the moment you buy it.
It is the immediate yield before you improve anything — the starting point of the deal. The plan is usually to raise income so the price you paid looks cheaper over time.
In-place (trailing-12-month) NOI ÷ purchase price.
Going-in cap = in-place NOI / purchase price
The share of lots (or homes) that are filled and paying rent.
It is the clearest signal of income stability and demand. Steady high occupancy means dependable cash flow; low occupancy is both a risk and an opportunity to add value by filling lots.
Occupied paying lots ÷ total lots. 62 of 72 lots is 86% occupancy.
Occupancy = occupied paying lots / total rentable lots
In-place rent is what current residents actually pay; market rent is what comparable communities charge today.
The gap between them (“loss-to-lease”) is built-in upside — how far rent could rise toward market without being above market. It is a key driver of the business plan.
Monthly upside per lot = market rent − in-place rent. Multiply by lots × 12 for the annual income opportunity.
Annual rent upside = (market rent - in-place rent) x lots x 12
The share of income eaten up by operating costs.
It shows how efficiently the community runs and where NOI can be improved (for example by billing utilities back to residents). Lower is better, all else equal.
Operating expenses ÷ gross income. Mobile home parks often run lower than apartments because residents usually own and maintain their own homes.
Expense ratio = operating expenses / effective gross income
The purchase price divided by the number of lots.
It is a fast sanity check on what you are paying, comparable across parks of different sizes, and easy to benchmark against replacement cost and recent sales.
Purchase price ÷ lots. $2,600,000 for 72 lots is about $36,000 per lot.
Price per lot = purchase price / number of rentable lots
Who does what, and how money moves between the deal and you.
The sponsor who finds, buys, finances, and runs the deal and the property.
The GP makes the decisions and does the work, so their skill and alignment are a big part of your risk. GPs usually invest their own money too and earn a share of profits (a “promote”) for hitting targets.
The GP signs on the loan, executes the business plan, and reports to investors.
An investor — you — who contributes capital but does not run day-to-day operations.
LPs get the benefits of ownership (income, appreciation, tax treatment) with limited liability and no operating workload. In exchange, you rely on the GP to execute.
Your economics are set by your ownership share and the deal’s profit-sharing terms.
Your share of the project’s equity.
It determines your slice of every distribution and of the final profit. During a raise, ownership stakes may not add up to 100% yet — the rest is still being allocated to incoming investors.
Roughly your invested capital ÷ total equity raised, subject to the deal’s terms and any GP promote.
Money you pay into the project when capital is called.
Contributed capital is used in several return calculations. It is not necessarily the same as tax basis or a partner’s capital-account balance, which can change with allocations, distributions, debt, and other items.
Usually called at closing, sometimes in stages as the plan needs cash.
An accounting record of a partner’s economic capital in the partnership; it is not simply remaining principal.
It generally changes with contributions, allocations of income or loss, and distributions under the governing documents and applicable tax rules. It is different from outside tax basis.
Review the partnership statements and Schedule K-1, and consult a tax adviser for the treatment that applies to you.
Cash the project pays out to you — usually from operating profit during the hold and a larger payout at sale.
It is your actual return in hand. Both the size and the timing of distributions drive your IRR and cash-on-cash.
Often paid quarterly during the hold, with a final distribution when the property is sold or refinanced.
A payment that gives back part of your original investment (not profit) — for example after a refinance.
Returning capital reduces the amount still invested and can affect IRR; any effect on ownership or future participation depends on the governing documents.
Generally reduces the relevant capital or basis balance. Tax treatment depends on basis and the investor’s circumstances; consult a tax adviser.
A partnership generally issues Schedule K-1 each year to report a partner’s allocated income, deductions, credits, and other tax items.
Schedule K-1 is used to prepare a tax return. Cash distributions and taxable income can differ, and results vary by investor.
Generally issued annually by the partnership; provide it to your tax adviser for advice based on your circumstances.
The financial analysis used to decide whether a deal is worth doing, and at what price.
Good underwriting is conservative and stress-tested — it is where the return projections and the business plan come from. Always ask what assumptions drive the numbers.
Builds a model from the seller’s data (T12, rent roll), market comparables, and a business plan to project NOI, cash flow, and returns.
This page is educational only and does not provide legal, tax, or investment advice. Offering documents control the actual terms of any investment.
