As we discussed in an earlier article, rising interest rates and housing prices make it difficult not only for the investor to find attractive deals, they also shut many potential home buyers out of the market.
In many areas of the country today, investors are finding greater competition for fewer deals. Rising interest rates and housing prices make it difficult not only for the investor to find attractive deals, but also shut many potential home buyers out of the market. What can you do about this situation?
You’ve no doubt heard the complaint: everything just keeps getting more and more expensive, especially housing! All one need do is review housing costs across the country over the last few years to confirm the validity of that statement. The only thing that most people would complain about not going up as quickly is, of course, their wages! As housing costs continue to rise, will investors still be able to make money investing in the housing market? Of course!
Now that we've found our acquisition candidate and have come to a preliminary meeting of the minds with the seller, we need to spend some time and money to see if we want to take the "relationship" further. Before we get too deep into the process, there are five items we should be aware of and think about as we progress.
Continue reading “Turning Trailer Courts in to Communities Part 4”
In Part 1, we talked about some of the things that make manufactured home communities ideal investments and the different types of communities we're liable to run into. In Part 2, we discussed how community values are determined using the income valuation approach, how the NOI, (Net Operating Income) is arrived at, and the basic premise behind the Cap (capitalization) Rates.
Continue reading “Turning Trailer Courts in to Communities Part 3”
In Part 1, we talked about some if the things that make manufactured home communities ideal investments and the different types of communities we're liable to run into. Now let's look at placing a value on them.
Continue reading “Turning Trailer Courts in to Communities Part 2”
We find out we aren't trees
Early in our investment career, my wife Ana (then girlfriend) and I bought the now infamous book Deals on Wheels by my good friend Lonnie Scruggs. After a frustrating period of time working our local market area (which at the time was Los Angeles), and only putting one deal together, I told Ana it seemed the community owners and mangers treat these properties like their own private playgrounds, and they weren't letting us play!
Continue reading “Turning Trailer Courts In To Communities Part 1”
Mobile Homes on individual lots provide many opportunities for profit. One entrepreneur in Nevada found an entire neighborhood filled with Mobile Homes on their own individually owned lots. Unlike a conventional manufactured housing condominium community, there were neither association fees nor regulations. He set out to make the most of this.
Continue reading “Making Money With Individually Platted Lots”
As hoards of seniors moved out or parks within a very short period of time, this caused considerable financial distress for park managers as they saw some of their oldest residents abandon their home sites. They saw desirable tenants and homes being taken out of the park along with a major portion of their cash flow, only to be replaced with less desirable tenants with troublesome kids and dogs.
Continue reading “Making Money Master Leasing Mobile Home Parks”
