Investors
Most Investors have no idea that there is a real estate niche market with manufactured homes and mobile home parks. But the fact is that there are roughly 16,000 RV parks spread out across the U.S., which house America’s roughly 9 million RVs when they are on the road. Just as most people don’t know about RV parks, they certainly don’t understand the top three reasons that you would want to buy one. But here they are.
High rates of return- The normal target in investing is a 20% cash-on-cash return. This is extremely high. That’s ten times more than a CD earns, and double that of most every other real estate sector. The key reason for this is that manufactured homes and mobile home parks have the ability to provide a 3-point spread between prevailing interest rates and cap rates. Right now, you can borrow at around 5% at the bank, and buy mobile home parks at around 8%+ cap rates. That’s the magic formula that results in that fabled 20%.
The ability to self-manage in beautiful areas- Mobile home park owners often move closer to their property and even often occupy the original home built by the prior owner. By self-managing, they not only remove the largest cost of ownership, but are able to trade-in their old lifestyle for beautiful scenery, fun, and being their own boss. While many owners do not self-manage, the potential is always there.
Seller financing- This is one of the most interesting facets of mobile home park investing – the frequent existence of seller financing. What creates the demand for sellers to carry the note is the simple fact that CDs and other conservative investments are only paying out around 2% while the first-lien note on their mobile home park pays more than double that. Seller financing means that you get to avoid the stress and effort of obtaining regular bank debt.
Low competition- Not many people know that manufactured homes and mobile home parks exist, or that there is any reason to own one. As a result, the competition in this real estate sector is lower than just about any other. With little competition, you can buy deals at better prices and find more to look at. Unlike flipping single-family homes – which virtually every other American is trying to do.
We professionally manage and administer the entire approval, permitting, purchasing and construction process.
-Step by Step break down and explanation
-We manage the government bureaucracy
-Secure location- Your land or our experienced agents will locate land for you
-Architect- This person will prepare a “concept site plan” designed personally for your home, approved by the local planning department
-Chose the home- Our experienced dealers and sales staff will suggest a range of models, which are popular, HUD-approved floor plans to maximize your investment,
-Financing- if needed, our lending partners will provide you with the best loan both Conventional and Hard Money
-Planning and Development- our experienced team will work with the city and county planning to take the process to final approval
-Factory built, Safe, secure and meets strict quality standards
-Delivery – set up and installation – 3 to 6 months