StarZero All shows Try the podcast clipper →

Jun 2, 2016 · 31m · top-founders

What if You Could Invest $100k Once, Make $20k/Year Forever? EP 251: Jefferson Lilly

Jefferson Lilly · 18m spoken Nathan Latka · 10m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The Top podcast, host Nathan Latka interviews mobile home park investor Jefferson Lilly to explore his transition from Silicon Valley tech sales to managing a multi-million-dollar real estate portfolio. Lilly breaks down the unit economics, valuation formulas, land-leasing strategies, and syndication fund models that generate reliable 20% to 40% cash-on-cash returns.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 36% of the talking time here. How this is scored →

Nathan as informed peer 2.6 Guest teaching 4.5 Guest disagreement 0.4 Nathan pushing back 1.6
05100:0010:0020:0030:000:43–4:46 · Nathan as informed peer 1/10 Community Updates and Contest Winner Announcement Segment 1 starts with host monologue, sponsor reads, and introduction before asking Jefferson about his transition from Silicon Valley to mobile home investing. Jefferson explains how he found mobile homes yielded several hundred basis points higher than apartments.4:46–7:43 · Nathan as informed peer 3/10 Economics and Structure of the First Deal Nathan drills into the exact financial breakdown of Jefferson's first deal in Oklahoma. Jefferson educates Nathan on 10 cap valuation, leverage mechanics, and how cash-on-cash returns reached 25-30%.7:44–10:08 · Nathan as informed peer 3/10 The Infill Strategy and Rent-to-Own Home Model Jefferson explains the infill strategy of buying used mobile homes for under ten dollars per square foot and putting tenants on rent-to-own agreements. Nathan follows along and clarifies the exact payback math and tenant retention dynamics.10:09–14:32 · Nathan as informed peer 4/10 Mobile Home Park Financials and Operating Expenses Nathan asks about P&L modeling and budgeting maintenance percentages. Jefferson walks through the flat 30 percent land expense ratio versus 70 percent on homes, and lays out a hypothetical starting playbook for investing thirty thousand dollars.14:35–17:51 · Nathan as informed peer 3/10 Market Selection, Deal Sourcing, and Valuation Formulas Nathan pushes on how to value parks and spots potential confusion on top-line versus bottom-line numbers. Jefferson corrects Nathan's assumption about multiplying net cash flow, clarifying that the 84x rule of thumb applies directly to top-line lot rent.17:52–22:38 · Nathan as informed peer 3/10 Fund Syndication Model and Investor Alignment Nathan asks hard questions about fund guarantees and management fee structures. Jefferson clarifies regulatory compliance regarding non-guarantees, contrasting their zero-management-fee, skin-in-the-game model against traditional Wall Street firms.22:38–25:12 · Nathan as informed peer 2/10 Business Performance, Cash Flow, and Resources Nathan asks for specific income figures from the fund and Jefferson's personal portfolio. Jefferson candidly discloses his fund deployment timeline, his hundred-thousand-dollar personal annual cash flow, and his online resources.25:12–29:32 · Nathan as informed peer 2/10 FreshBooks Accounting and Invoicing Solutions Nathan conducts sponsor reads for FreshBooks and HostGator before transitioning into the Famous Five rapid fire questions and wrap-up with Jefferson.0:43–4:46 · Guest teaching 3/10 Community Updates and Contest Winner Announcement Segment 1 starts with host monologue, sponsor reads, and introduction before asking Jefferson about his transition from Silicon Valley to mobile home investing. Jefferson explains how he found mobile homes yielded several hundred basis points higher than apartments.4:46–7:43 · Guest teaching 5/10 Economics and Structure of the First Deal Nathan drills into the exact financial breakdown of Jefferson's first deal in Oklahoma. Jefferson educates Nathan on 10 cap valuation, leverage mechanics, and how cash-on-cash returns reached 25-30%.7:44–10:08 · Guest teaching 5/10 The Infill Strategy and Rent-to-Own Home Model Jefferson explains the infill strategy of buying used mobile homes for under ten dollars per square foot and putting tenants on rent-to-own agreements. Nathan follows along and clarifies the exact payback math and tenant retention dynamics.10:09–14:32 · Guest teaching 6/10 Mobile Home Park Financials and Operating Expenses Nathan asks about P&L modeling and budgeting maintenance percentages. Jefferson walks through the flat 30 percent land expense ratio versus 70 percent on homes, and lays out a hypothetical starting playbook for investing thirty thousand dollars.14:35–17:51 · Guest teaching 6/10 Market Selection, Deal Sourcing, and Valuation Formulas Nathan pushes on how to value parks and spots potential confusion on top-line versus bottom-line numbers. Jefferson corrects Nathan's assumption about multiplying net cash flow, clarifying that the 84x rule of thumb applies directly to top-line lot rent.17:52–22:38 · Guest teaching 5/10 Fund Syndication Model and Investor Alignment Nathan asks hard questions about fund guarantees and management fee structures. Jefferson clarifies regulatory compliance regarding non-guarantees, contrasting their zero-management-fee, skin-in-the-game model against traditional Wall Street firms.22:38–25:12 · Guest teaching 4/10 Business Performance, Cash Flow, and Resources Nathan asks for specific income figures from the fund and Jefferson's personal portfolio. Jefferson candidly discloses his fund deployment timeline, his hundred-thousand-dollar personal annual cash flow, and his online resources.25:12–29:32 · Guest teaching 2/10 FreshBooks Accounting and Invoicing Solutions Nathan conducts sponsor reads for FreshBooks and HostGator before transitioning into the Famous Five rapid fire questions and wrap-up with Jefferson.0:43–4:46 · Guest disagreement 0/10 Community Updates and Contest Winner Announcement Segment 1 starts with host monologue, sponsor reads, and introduction before asking Jefferson about his transition from Silicon Valley to mobile home investing. Jefferson explains how he found mobile homes yielded several hundred basis points higher than apartments.4:46–7:43 · Guest disagreement 0/10 Economics and Structure of the First Deal Nathan drills into the exact financial breakdown of Jefferson's first deal in Oklahoma. Jefferson educates Nathan on 10 cap valuation, leverage mechanics, and how cash-on-cash returns reached 25-30%.7:44–10:08 · Guest disagreement 0/10 The Infill Strategy and Rent-to-Own Home Model Jefferson explains the infill strategy of buying used mobile homes for under ten dollars per square foot and putting tenants on rent-to-own agreements. Nathan follows along and clarifies the exact payback math and tenant retention dynamics.10:09–14:32 · Guest disagreement 0/10 Mobile Home Park Financials and Operating Expenses Nathan asks about P&L modeling and budgeting maintenance percentages. Jefferson walks through the flat 30 percent land expense ratio versus 70 percent on homes, and lays out a hypothetical starting playbook for investing thirty thousand dollars.14:35–17:51 · Guest disagreement 2/10 Market Selection, Deal Sourcing, and Valuation Formulas Nathan pushes on how to value parks and spots potential confusion on top-line versus bottom-line numbers. Jefferson corrects Nathan's assumption about multiplying net cash flow, clarifying that the 84x rule of thumb applies directly to top-line lot rent.17:52–22:38 · Guest disagreement 1/10 Fund Syndication Model and Investor Alignment Nathan asks hard questions about fund guarantees and management fee structures. Jefferson clarifies regulatory compliance regarding non-guarantees, contrasting their zero-management-fee, skin-in-the-game model against traditional Wall Street firms.22:38–25:12 · Guest disagreement 0/10 Business Performance, Cash Flow, and Resources Nathan asks for specific income figures from the fund and Jefferson's personal portfolio. Jefferson candidly discloses his fund deployment timeline, his hundred-thousand-dollar personal annual cash flow, and his online resources.25:12–29:32 · Guest disagreement 0/10 FreshBooks Accounting and Invoicing Solutions Nathan conducts sponsor reads for FreshBooks and HostGator before transitioning into the Famous Five rapid fire questions and wrap-up with Jefferson.0:43–4:46 · Nathan pushing back 1/10 Community Updates and Contest Winner Announcement Segment 1 starts with host monologue, sponsor reads, and introduction before asking Jefferson about his transition from Silicon Valley to mobile home investing. Jefferson explains how he found mobile homes yielded several hundred basis points higher than apartments.4:46–7:43 · Nathan pushing back 2/10 Economics and Structure of the First Deal Nathan drills into the exact financial breakdown of Jefferson's first deal in Oklahoma. Jefferson educates Nathan on 10 cap valuation, leverage mechanics, and how cash-on-cash returns reached 25-30%.7:44–10:08 · Nathan pushing back 1/10 The Infill Strategy and Rent-to-Own Home Model Jefferson explains the infill strategy of buying used mobile homes for under ten dollars per square foot and putting tenants on rent-to-own agreements. Nathan follows along and clarifies the exact payback math and tenant retention dynamics.10:09–14:32 · Nathan pushing back 2/10 Mobile Home Park Financials and Operating Expenses Nathan asks about P&L modeling and budgeting maintenance percentages. Jefferson walks through the flat 30 percent land expense ratio versus 70 percent on homes, and lays out a hypothetical starting playbook for investing thirty thousand dollars.14:35–17:51 · Nathan pushing back 3/10 Market Selection, Deal Sourcing, and Valuation Formulas Nathan pushes on how to value parks and spots potential confusion on top-line versus bottom-line numbers. Jefferson corrects Nathan's assumption about multiplying net cash flow, clarifying that the 84x rule of thumb applies directly to top-line lot rent.17:52–22:38 · Nathan pushing back 3/10 Fund Syndication Model and Investor Alignment Nathan asks hard questions about fund guarantees and management fee structures. Jefferson clarifies regulatory compliance regarding non-guarantees, contrasting their zero-management-fee, skin-in-the-game model against traditional Wall Street firms.22:38–25:12 · Nathan pushing back 1/10 Business Performance, Cash Flow, and Resources Nathan asks for specific income figures from the fund and Jefferson's personal portfolio. Jefferson candidly discloses his fund deployment timeline, his hundred-thousand-dollar personal annual cash flow, and his online resources.25:12–29:32 · Nathan pushing back 0/10 FreshBooks Accounting and Invoicing Solutions Nathan conducts sponsor reads for FreshBooks and HostGator before transitioning into the Famous Five rapid fire questions and wrap-up with Jefferson.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 72.4% · guest 27.6%0:00 · Nathan 72.4% · guest 27.6%3:00 · Nathan 32.4% · guest 67.6%3:00 · Nathan 32.4% · guest 67.6%6:00 · Nathan 13.7% · guest 86.3%6:00 · Nathan 13.7% · guest 86.3%9:00 · Nathan 32.5% · guest 67.5%9:00 · Nathan 32.5% · guest 67.5%12:00 · Nathan 18.4% · guest 81.6%12:00 · Nathan 18.4% · guest 81.6%15:00 · Nathan 20.5% · guest 79.5%15:00 · Nathan 20.5% · guest 79.5%18:00 · Nathan 12.1% · guest 87.9%18:00 · Nathan 12.1% · guest 87.9%21:00 · Nathan 30% · guest 70%21:00 · Nathan 30% · guest 70%24:00 · Nathan 62.9% · guest 37.1%24:00 · Nathan 62.9% · guest 37.1%27:00 · Nathan 42.2% · guest 57.8%27:00 · Nathan 42.2% · guest 57.8%30:00 · Nathan 99.4% · guest 0.6%30:00 · Nathan 99.4% · guest 0.6%
Sharpest disagreement ▶ 17:26 Rejecting the cash flow metric for the 84x rule

When Nathan assumes the 84 multiplier applies to bottom-line cash flow, Jefferson immediately cuts in with 'No, no, no' to reframe the valuation formula strictly to top-line lot rents.

 Hardest push from Nathan ▶ 19:45 Pressing on return guarantees

Nathan directly challenges Jefferson's projected returns by asking if they are guaranteed and demanding to know what happens if they miss targets.

 Biggest teaching moment ▶ 10:22 Land business vs house business expense inversion

Jefferson breaks down the core fundamental difference between land ownership (30% expense ratio) and housing maintenance (70% expense ratio), educating Nathan on why pure lot leasing produces superior margins.

 Nathan holds their own ▶ 17:08 Drilling into seller P&L manipulation

Nathan proactively highlights deceptive low expense ratios on commercial listings, prompting Jefferson to validate his suspicion about dishonest sellers doing their own unrecorded labor.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Community Updates and Contest Winner Announcement 1301 Segment 1 starts with host monologue, sponsor reads, and introduction before asking Jefferson about his transition from Silicon Valley to mobile home investing. Jefferson explains how he found mobile homes yielded several hundred basis points higher than apartments.
Economics and Structure of the First Deal 3502 Nathan drills into the exact financial breakdown of Jefferson's first deal in Oklahoma. Jefferson educates Nathan on 10 cap valuation, leverage mechanics, and how cash-on-cash returns reached 25-30%.
The Infill Strategy and Rent-to-Own Home Model 3501 Jefferson explains the infill strategy of buying used mobile homes for under ten dollars per square foot and putting tenants on rent-to-own agreements. Nathan follows along and clarifies the exact payback math and tenant retention dynamics.
Mobile Home Park Financials and Operating Expenses 4602 Nathan asks about P&L modeling and budgeting maintenance percentages. Jefferson walks through the flat 30 percent land expense ratio versus 70 percent on homes, and lays out a hypothetical starting playbook for investing thirty thousand dollars.
Market Selection, Deal Sourcing, and Valuation Formulas 3623 Nathan pushes on how to value parks and spots potential confusion on top-line versus bottom-line numbers. Jefferson corrects Nathan's assumption about multiplying net cash flow, clarifying that the 84x rule of thumb applies directly to top-line lot rent.
Fund Syndication Model and Investor Alignment 3513 Nathan asks hard questions about fund guarantees and management fee structures. Jefferson clarifies regulatory compliance regarding non-guarantees, contrasting their zero-management-fee, skin-in-the-game model against traditional Wall Street firms.
Business Performance, Cash Flow, and Resources 2401 Nathan asks for specific income figures from the fund and Jefferson's personal portfolio. Jefferson candidly discloses his fund deployment timeline, his hundred-thousand-dollar personal annual cash flow, and his online resources.
FreshBooks Accounting and Invoicing Solutions 2200 Nathan conducts sponsor reads for FreshBooks and HostGator before transitioning into the Famous Five rapid fire questions and wrap-up with Jefferson.

Statements from this episode (13)

Assertion Supported
Lilly: Mobile home parks yielded 300-400 bps more than traditional apartments
“I came across mobile home parks that were this quirky little, you know, one out of every hundred multifamily listings that I'd see online would be a mobile home park yielding Like three, 400 basis points more than apartments.”
Jefferson Lilly Jun 2, 2016 ▶ 2:59
Disclosure
Lilly bought his first mobile home park for $450K with 19% down
“Oh, it was about 450,000, and I got a Bank to lend me 81% of that, so I only had to put down 19%.”
Jefferson Lilly Jun 2, 2016 ▶ 4:36
Disclosure
Lilly: First mobile home park yielded 25% to 30% initial cash-on-cash
“So again, I paid four 50, the property was earning 45,000, but I did buy it with debt, so leverage, you know, worked in my favor. So, you know, for putting, I don't recall exactly, for putting the 86 down, I was probably cash flowing at least 20, 20 something …”
Jefferson Lilly Jun 2, 2016 ▶ 6:19
Disclosure
Lilly: Infill mobile homes cost $20K and rent for $550 to $600/month
“Five grand to fix it up roughly, and five grand or so to move it. So, you know, all in, I had something like 20 grand in each house, and was then putting them on rent to own agreements. Folks would be paying. Roughly five 50 a month, maybe 600.”
Jefferson Lilly Jun 2, 2016 ▶ 8:44
Insight
Lilly: Mobile home land has 30% expense ratio versus 70% for homes
“And then in this business, the land business, probably you're going to have, let's just say, 30% in expenses. Being in the house business is the inverse. It's more like 70% expenses.”
Jefferson Lilly Jun 2, 2016 ▶ 10:22
Insight
Lilly: Mobile home park rent is 30% expenses, 35% mortgage, 35% profit
“Yeah, so for every dollar in rent, yeah, that I collect, I Keep 70 cents. Well, to then pay the mortgage, and then once I've paid the mortgage, then, which usually eats up half, then, you know, roughly the remaining half of that goes into my pocket.”
Jefferson Lilly Jun 2, 2016 ▶ 11:28
Insight
Lilly: Mobile home park investors should earn at least 20% cash-on-cash returns
“Basically in this business, if you're not earning 20% on your money, you're doing something radically wrong.”
Jefferson Lilly Jun 2, 2016 ▶ 14:13
Assertion Not checkable as stated
Lilly: Park Street Partners has mobile home deals generating over 40% cash-on-cash
“We've got a couple deals that are doing over 40% cash on cash.”
Jefferson Lilly Jun 2, 2016 ▶ 14:28
Insight
Lilly: Midwest mobile home parks generally trade at roughly a 10 cap
“Well, yeah, I would say for the Midwest, probably a 10 cap, just multiply the NOI by 10.”
Jefferson Lilly Jun 2, 2016 ▶ 17:10
Insight
Lilly: Value mobile home parks by multiplying monthly lot rent by 84
“Another way to look at it, if there's funny business going on with the P&L, just look at what the park earns per month, and multiply by about 84.”
Jefferson Lilly Jun 2, 2016 ▶ 17:16
Insight
Lilly: Leveraged 10-cap mobile home parks yield roughly 16% cash-on-cash initially
“A 10 cap with leverage means you're earning About 16% cash on cash before you do anything. If you don't improve it, you start with 16% cash.”
Jefferson Lilly Jun 2, 2016 ▶ 20:19
Disclosure
Lilly: Park Street Partners GPs personally guarantee 85% of their fund's debt
“Plus we sign personally so far have been signing personally on most of our debt, about 85% of it. So we're putting up personal guarantees backed by our houses, cars, our net worth.”
Jefferson Lilly Jun 2, 2016 ▶ 21:59
Disclosure
Lilly: Two Oklahoma City mobile home parks generate over $100K annual cashflow
“Those two properties I've got entirely on my own in the Oklahoma city area. Those are a little over a 100,000 in cash flow to me every year. That's less than a hundred lots that I've got between those two properties.”
Jefferson Lilly Jun 2, 2016 ▶ 23:59
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 2,600 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.

Try the podcast clipper Learn more