Most real estate entrepreneurs don’t struggle because of a lack of opportunity. They struggle because they’re trying to scale without the right support, systems, or structure. In this conversation, I sit down with Leo Young to unpack what it really looks like to move from hustle into a business that can actually grow. We talk about leadership, burnout, building teams, and why manufactured housing is one of the most overlooked yet durable asset classes. If you’ve been feeling stretched thin or unsure how to scale beyond yourself, this will give you a clearer path forward.
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I’m Adrienne Green and here we help real estate entrepreneurs escape the grind with private lending and virtual assistance. And today I have with me Leo Young with Cornell Communities. Thanks for joining me, Leo.
Thanks for having me, Adrienne. Very excited to be here.
I know we have so much to talk about that is really going to benefit people. Before the call, we were talking about lessons learned from Tesla, community building, and manufactured housing communities, which is something we haven’t talked about yet, so I’m excited for all of that. As we get started, Leo, for people who don’t know you yet, can you give us a quick snapshot of your real estate business?
Sure, I’m the founder and managing partner of Cornell Communities. We are an owner and operator of manufactured housing communities across the US. We have two goals. One is to improve and offer affordable housing to the community and improve the way that folks live. The second is to give great returns to our investors who make this whole thing possible.
I love that and I love that you come out with what your mission is. We can see that you’re very mission driven and it’s about helping other people. It’s about how can we add value to their lives. And we were talking beforehand about how that relates to the name Cornell Communities itself.
Yeah. The origin of it is twofold. For me, I love meaning and that’s how I structure everything. The name Cornell, my co-founder and I had that in common. He went to undergrad there, I got my commercial real estate certification there, and we thought that was a great connection. Cornell embodies a smart approach. We’re not flashy, we follow a process that works and stick to what we know.
The communities aspect is that yes, our asset class is manufactured housing communities or RV communities, but we want to highlight that we’re really building communities. A lot of people like to make money, that’s the base level. But it’s more important to see the bigger picture. Why are you doing what you do? For us, we’re building communities. We talk to the residents, see what their lives are like, and figure out how to improve it. We budget for improvements to meaningfully change their lives.
I love that and I’ve seen across the board with investors who are succeeding in residential space that when they focus on the residents, that translates to greater returns for the investors as well.
Definitely. It comes down to philosophy. Some people see money as the end goal, but for me it’s a means to an end. It’s a progress marker. Money is a universal store of value. It means I brought enough value to the world. I think that’s something I learned from my time at Tesla. I’m very mission driven. If I’m going to build a team, we better be working on something good.
Right, and we better be helping other people. That’s one of my big things. Whatever we’re doing, we’re doing it to make someone else’s life better.
Exactly.
We often talk about both the mission and the logistics. How do we run a solid real estate business? How do we get from being a solopreneur trading hours for dollars to becoming a business owner? Let’s talk about what you learned from Tesla that you implement within Cornell Communities.
One of my biggest takeaways from Tesla is the role of leadership. As a leader, you embody such an important role to your team. People look to you for guidance. There’s a reason people join your team instead of doing their own thing. As entrepreneurs building organizations, we need to embody that.
Tesla’s mission was to accelerate the world’s transition to sustainable energy. That was ingrained in us. We were all bought in and operating at a high level every day because it felt like what we did mattered. Now the question is how do you create that environment and culture for your people?
That’s something a lot of real estate entrepreneurs need to hear because most haven’t been trained in leadership. They go from being hands-on operators to leading others, and it’s different.
Exactly. Real estate entrepreneurs find a way to make money, but to advance, you have to build a business. That’s a separate skill. You have to put in the right systems, the right people, and measure them the right way.
As you were building Cornell Communities, do you have a story where you learned this the hard way?
One pivotal moment was when my co-founder left. Before that, it was built on hustle. After he left, it was a crash course in building systems and bringing on people. I had to figure out who to hire and what systems to put in place. Putting my ego aside and asking for help was huge. And learning to do things imperfectly. You’re never going to figure out the perfect system. It’s always iteration.
Right, you have to put the ego aside and ask for help. At a certain point, you can’t brute force it. You have to build systems and a team. For me, that happened when I had three kids. There weren’t enough hours in the day, so I had to build systems and bring on support like virtual assistants. Those low points often lead to innovation.
Necessity is the mother of innovation. The reward is the journey, the skills you build, and the team you build. Right now, we’re in a great time to build businesses with virtual assistants and AI. We can offload tasks and build more efficiently.
I love that. Technology allows us to do more with less time. Now let’s shift into manufactured housing. What drew you to this asset class?
It’s not something people grow up wanting to do. I got introduced through my co-founder. The appeal is that demand for affordable housing is always there, especially in volatile economies. Residents stay long-term, often 10 plus years. It’s a durable asset class. And it provides affordable housing without relying on government subsidies, which matters to me.
It sounds like you had some specialized knowledge through your co-founder and that it aligned with your mission and values. For listeners who aren’t familiar, can you give a quick summary of what manufactured housing looks like and what you’re investing in?
Manufactured housing communities are properties zoned specifically for that use. There can be anywhere from 30 to 300 units. Manufactured homes are built in factories and placed on-site. Despite the name “mobile home,” they are not easy to move once installed.
We own the land underneath, provide utilities, maintain common areas, and make improvements like road repairs and utility connections. These communities are often 50 to 70 years old. Because of zoning restrictions and NIMBY attitudes, very few new ones are being approved, so municipalities allow existing ones to continue. Our role is to acquire older communities and revitalize them by improving infrastructure and connecting them to municipal utilities.
So you’re owning the land, and the residents typically own the homes themselves?
Yes, in most cases the residents own their homes. That allows them to build equity, and when they sell, they benefit from that. Our improvements also increase the value of their homes. For us, we’re not responsible for maintaining the homes themselves, which improves profitability. In commercial real estate, value is driven by income, so increasing profit directly increases value.
And they’re paying lot rent to you for the land?
Exactly.
One of the benefits is how long people stay. Since the homes aren’t easy to move, residents tend to stay long-term.
Exactly. From an affordability standpoint, someone might pay $400 in lot rent versus $1,500 for a single-family rental. That cost savings keeps people in place. Some residents eventually rent out their homes, but regardless, we continue collecting lot rent.
Do you focus on certain geographic areas or are you location agnostic?
We focus primarily on the Southeast and Midwest. The Southeast has strong population growth and business-friendly environments. The Midwest offers strong cash flow and stability. We also have some assets in the Northeast, but regulation can be more challenging there. Rent control and other policies can make it harder to justify improvements, which limits investment.
That aligns with what we see across other asset classes as well. It’s still about underlying fundamentals.
Exactly. Commercial real estate value is based on net operating income divided by the cap rate. So increasing income increases value.
You’ve given us a great overview of the asset class. When a new deal comes across your desk, what are you looking for?
The property needs to be large enough to support infrastructure and our team. We typically look at 30 to 200 units. We prefer properties with public utilities because private utilities can require significant capital improvements.
We also look at current financial performance versus potential. Many properties are owned by individuals who haven’t raised rents in years. That creates an opportunity to normalize rents while still remaining affordable.
Another key factor is infill potential. Some municipalities make it difficult to add new units, so understanding those constraints is critical.
And there are also financial pressures from municipalities themselves.
Yes. It can cost a municipality $7,000 to $8,000 per year to service a family in a mobile home community, while they may only collect around $1,000 in tax revenue. That’s part of why they resist expansion.
That’s interesting because many communities still need affordable housing for workers.
Exactly. In some markets, these communities are being redeveloped into higher-value uses like luxury apartments or retail. That displaces residents who then struggle to find affordable alternatives.
That highlights the broader impact of real estate investing. Investors are directly influencing communities and housing availability.
Yes. Many investors care about where their money goes. Investing in housing provides a tangible impact while still generating returns.
Are you syndicating these deals?
Yes. We work with limited partners who invest passively while we handle everything from acquisitions to operations and distributions.
What does the typical investment timeline look like?
We typically hold for five to seven years. Our goal is to double the investment within five years. We often do a cash-out refinance in years two or three, allowing investors to recapture their initial capital tax-free while continuing to receive income.
So investors can continue earning returns even after their original capital is returned.
Exactly. The goal is to create long-term income streams while reducing risk.
That’s incredibly helpful for people exploring passive investing or syndications. Thank you for breaking that down. If someone wants to learn more or connect with you, what’s the best way to reach out?
They can visit cornellcommunities.com to learn more, or reach out on LinkedIn or Instagram. I’m always happy to be a resource.
Thank you for sharing your experience and insights. And thank you for being here.
Thank you, Adrienne. I hope this was helpful for everyone listening.