Mobile Home Park Investment Money Trees

Mobile home parks are the scapegoats of the commercial real estate investment world. Perhaps one of the reasons why most investors ignore this lucrative asset class, other than for obvious eye sore reasons and the negative connotation associated with mobile home parks, is because they believe it requires too much up front cash and a personal income statement well above their means. This might be true if you were trying to finance your property through a large bank, however many mobile home parks are purchased with much less than 20% down and with little financial reserves in the bank. These parks are purchased through owner carried notes.

Small to medium sized park owners are typically older gentleman that have been running or overseeing the managers of their respective parks for a long time. Many of them are tired of this responsibility and would love to have someone like them come and take the park off their hands. Furthermore, some of these same owners prefer doing business the old fashioned way (without bankers / real estate brokers breathing down their neck, charging large commissions and inundating them with paperwork). In other words, a large percentage of mobile home park owners would rather take some initial financial consideration, make a nice profit each month off the interest on their note and not worry about the day to day issues of running a park. Additionally, many do not want to deal with a several hundred thousand to million dollar tax problem if they sell the park outright. Sure they could 1031 it into something bigger; but then they?re in the same boat as before. Sorry loan officers out there but investors should ALWAYS, ALWAYS shoot for owner financing in your mobile home park purchases.

Investing in mobile home parks is an absolutely beautiful thing. Not only is it a long term land play, but you have NUMEROUS ways to make money through your park. As opposed to investing in single family homes it is actually very difficult to NOT achieve positive cash flow each month. This is due to the following reasons:

1. The parks are usually in a less than favorable part of town. Therefore the land is cheap and you will be spreading that cost over numerous mobile homes.

2. Provided you purchased the right mobile home park, there will be vacancies and their will be a few spaces for you to bring in extra mobile homes. (Yes, that?s right?.you want at least half the park to be vacant when you purchase the property as that fact will kill the sellers price and ensure that you end up buying a screaming deal.) You?re healthy, sharp and full of energy so you?ll improve the quality of the park, raise rents and maximize your rent roll. By the way this will immediately increase the value of your mobile home park through cap rate valuation. Net Operating Income (not including cost of financing) / cap rate.

Example

30 Space Park, $300 a month Rent Roll (50% Vacant) = $54,000 yearly rent

$54,000 ? 16,200 (30% of rent goes towards Operating Expenses) = $38,000

$38,000 (N.O.I.) / 9.0 % (cap rate) = $422,222 (Your Purchase Price)

Your up side:

30 Space Park, 100% Occupancy, $320 a month rent roll = $115,200 yearly rent

$115,200 - $34,560 (30% park operating expenses) = $80,640

$80,640 (N.O.I.) / 9.0% (cap rate) = $896,000 ....I would sell at this point :)

3. If cash flow is low you can add additional revenue by putting in a coin operated laundry mats, adding vending machines, arcade games, day care services, etc.

4. Lastly, you should have purchased a park that came with owner rights on the mobile homes themselves. This will enable you to be extremely creative with how you fill your park with people. Far and away the best tactic is to Lease option your mobile homes instead of renting them. Home ownership is the American dream so when you advertise ?Own your own home, $3000 down, low monthly payments ? Bad credit OK, call Boca Vista Mobile Home Park? Your phone will ring off the hook, trust me. From there you take their down payment and have them sign your lease option paperwork that details the term of their loan with you. So why sell them one of your mobile homes?.isn?t that an asset to the park you ask? Yes, but:

A. Now you have someone in your park that has pride of ownership and will most likely take better care of the mobile home than most people would.

B. Because they technically own the rights to the mobile home, you are not responsible for costly maintenance.

C. Due to the interest on his loan, this person will pay you more each month than anyone renting a mobile home in the area.

D. If he/she gets promoted or saves up enough cash to pay the remaining balance (this almost NEVER happens by the way) then you make a substantial amount of money because due to serious demand issues, you can sell these homes for much more than they are worth.

E. Most of the time, the person will be late on a payment or two and will flee during the middle of the night. In that case, the property is 100% yours again, you?ve pocketed the $2000 option payment and you start the process over again.

Corey Donaldson is a professional mobile home real estate investor, owning numerous multi million dollar parks across the nation. He began investing in mobile home parks after purchasing a mobile home investment guide from Steve Case, who has since gone into business with Corey.

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Atlanta Real Estate Trends

It is believed that the greatest boom in the Atlanta real estate is yet to happen. An increased growth in population and rate of employment in Atlanta has caused the value of the real estate market to escalate continuously. The real estate prices are comparatively reasonable in Atlanta as compared to other large metropolitan areas. For example, a two-bedroom condominium in New York will cost you more than one million dollars, while Atlanta offers the same type of property for $250k to $300k.

The rapid pace of development of Atlanta has made it a center of many industries. This has led to an oversupply of commercial buildings, thereby decreasing the value of commercial properties. Assessment based on the supply and current vacancies has shown that Atlanta markets are more vulnerable to overbuilding. Atlanta has comparatively low mortgage interest rates. Federal environmental regulation or the tax reforms put forward by the state or the nation can also influence the Atlanta real estate trend.

Timely analysis conducted by credible industrial experts on different aspects of Atlanta real estate will help you to foresee changes in the market. Many experienced real estate professionals who know the Atlanta market are there at your service. They can represent your interests with integrity, character, and honesty. It is highly recommended that you get the property inspected before buying. If something turns up during the inspection, you have the right to negotiate a repair or remedy.

Atlanta posted one of Southeast's highest office sale prices recently when an investment management company paid $168 million ($330 per square foot), for an office building. The standing record in Atlanta is $343 a square foot for a building, according to the Atlanta Business Chronicle.

Atlanta Real Estate provides detailed information on Atlanta Real Estate, Atlanta Real Estate Agents, Atlanta Commercial Real Estate, Atlanta Real Estate Listings and more. Atlanta Real Estate is affiliated with Chicago Suburb Real Estate.

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Licensed Real Estate Agents

Better government policies, increased salaries, and easily available mortgages have improved consumer purchase capacities despite inflation. People would rather pay for their own property rather than opt for rental properties. Many people have also been purchasing property as an investment. Such a situation has proved to be good for the real estate business. Clients could avail of services of licensed real estate agents when contemplating acquisition, sale, rentals or lease of property.

Licensed real estate agents are certified professionals who are experienced in real estate trading. Licensed mediators possess comprehensive knowledge about property they deal in and are well versed with the legalities of real estate deals. Licensed agents are qualified to answer queries associated with property overheads, assessments, and intention of trade. They are conversant about property sizes, repair costs, legal restrictions, and reconstruction of property, if any is necessary.

It is advisable to verify credibility, success rate, and charges of an agent when considering a particular licensed real estate agent. Comparisons between listed professionals help locate agents who are affordable and suit individual needs. Licensed real estate agent listings can be found in the yellow pages, at local estate firms, and online. Clients may also choose to hire professionals that have worked with family members, friends, or acquaintances. Licensed agents may work as salaried employees at real estate firms or may be self-employed as private brokers. Agents working within a larger organization may be salaried employees but are liable to receive additional commissions based upon the volume of business they bring in.

Potential clients may choose to communicate with licensed real estate agents prior to hiring them. It is advisable to clarify details regarding service charges, expenses, and time required for a deal in advance. Licensed real estate agents can provide valuable information regarding mortgage types to potential clients who may be in favor of outright purchases. In addition, they may suggest names of banks and financial institutions that could provide funds upon presentation of testimonials. Apart from operating as mediators between clients, they may also be empowered to negotiate on their behalf if one party is not present at the time of closing a deal.

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Home Selling Strategies for a Normalizing Market

After a solid five year run of record home sales, the market is readjusting itself to a more normal level. Most of those who wanted to move have moved. Interest rates are rising again, lowering the upper end ceiling for buyers overall. With buyers qualifying for a lower mortgage today than they might have a year or two ago, the buyer pool for higher priced homes is shrinking. The large inventory of homes currently for sale is resulting in an overall downward trend of housing prices. With increased choices, buyers can be more choosy and take longer to make their decisions. As a result, longer market times may caution a buyer away from a property.

There are three important factors for selling your home in today?s market: condition, price, and time.

Condition reigns supreme over anything else. Buyers have so many choices right now that anything that looks like it needs work can be enough to kill your chances of selling. People prefer move-in condition, so if your property isn?t, you probably need to do what it takes to make it that way. It is worth the money to remove old wallpaper, paint, replace carpet, and replace the roof if it?s almost at the end of its life. Offering an allowance doesn?t work in these market conditions because buyers tend to overinflate the costs of these improvements, anticipating double or triple what it will actually cost you. Plus, with the number of homes for sale, if yours is the one that needs to be painted, chances are it?s also the one that won?t sell. There are exceptions, such as homes that need a complete overhaul, so it?s a good idea to discuss your home and your plans with your listing agent before getting started.

A word about home improvements ? consider improvements as solidifying your home?s value rather than increasing it when deciding on a price range. The kitchen you recently renovated or the room you added may help your home sell more quickly than the one down the street because it?s in better condition, but it won?t necessarily increase your home?s value. If you?re not looking to sell your home right now, spending the money on upkeep and maintenance now can help you avoid needing to spend a lot all at once when it is time to sell.

The second factor is price. You want to have the best price on the market. That doesn?t necessarily mean the lowest price, it means value. It?s a good idea to price your home aggressively because there are so many options available. If there are 40 homes for sale in your price range, you want your home to stand out as the best home for the money.

Misperception or misunderstanding of the current market conditions can lead to improper pricing which in turn can lead to excessive market time or even no sale at all. What you paid for your home or what your neighbors sold their home for last year are irrelevant when deciding on your asking price. Factors you and your Realtor should consider are your home?s current condition, the condition of other homes for sale in your price range, the asking price of homes similar to yours, and which homes are selling and which are not. Accurate pricing from the outset increases the likelihood that your home will find the right buyer quickly. The first three weeks on the market are the most important ? that?s when people are excited to see the new kid on the block. A strategy of starting on the high end and then lowering it over time is rarely successful in a normalizing market. By the time the house is where it should be, interest has peaked and buyers have moved on.

Finally, accept that it still takes time. There are only so many buyers out there and they have a lot of choices. Average market times have been three to four months, so your goal is to reduce the selling time by carefully preparing your home and improving its condition plus adopting an aggressive pricing strategy. Then you just need patience and faith that the right buyer will see your home and decide that?s the home for them.

Everyone?s situation is different, so be sure to discuss your situation with your Realtor and decide on the best strategy for your needs. Today it takes twice as much work to be the best value in your neighborhood. Hard work and diligence can pay off.

Today it takes twice as much work to be the best value in your neighborhood. Hard work and diligence can pay off.

Shawn Buryska is a realtor in Rochester MN, specializing in home real estate, buying a new home, selling your old home, or helping you search Southeastern Minnesota MLS Listings.

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Protect Yourself with a Home Inspection

Home inspection plays a very important role in the real estate process. When you are buying or selling a home, you rely on a home inspector to provide an accurate and reliable inspection of a property. A home inspector will tell you about the condition of the home and help you avoid buying a home that needs major repairs. It is the perfect way to get an in-depth and impartial opinion of your next home before you buy it.

What to Expect

Typically, you will hire a home inspector either immediately before an offer is made on a home or as a contingency to a sale. Additionally, home inspections are ideal if you want to evaluate your home's condition or diagnose potential problems before they become serious issues.

Home inspectors perform the following duties:

-Evaluate the physical condition of a property, including the structure, construction and mechanical systems.

-Identify the items that should be repaired or replaced.

-Estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure, and finishes.

Although inspections are primarily visual, inspectors may use tape measures, survey instruments, metering devices, and other equipment, such as concrete strength measurers, to aid in their inspection. They keep a log of their work, take photographs, and file a formal report.

The inspection usually takes two or three hours (depending on the age and size of the home). You should be present so you can ask questions and learn about areas that need additional work. All of the findings will be presented in a formal report that details the condition of the home.

A Close Look

The main purpose of the home inspector is to provide an objective viewpoint on the condition of a specific home at the time of inspection. The inspector does not evaluate the cost or value of the property, but provides a close examination of the following:

Structural Components: Foundations, floors and walls.

Exterior Components: Siding paint, windows, decks, garage doors, etc.

Roofing: Coverings, flashings, chimneys, etc.

Plumbing: Piping, fixtures, faucets, water heating and fuel storage systems, etc.

Electrical: Wiring, main service panels, conductors, switches, receptacles, etc.

Heating: Equipment, safety controls, distribution systems, chimneys, etc.

Air Conditioning and Heat Pumps: Cooling and air-handling equipment, controls and ducting, etc.

Interior: Partitions, ceilings, floors, railings, doors and windows, etc.

Insulation and Ventilation: Attics, walls, floors, foundations, kitchen and bathrooms, etc.

They will additionally perform the following services (sometimes for an extra fee): mold sampling, radon testing, asbestos evaluation, pests/wood destroying organisms, carbon monoxide testing, lead testing, and more. These services are not always available.

Make sure to protect your investment. Get a home inspection before you buy your next home!

http://www.realestatelicense.com http://www.homeinspectioncourse.com

Heather Brunson is a lead marketing writer for Allied Schools. She has a B.A. in Journalism with an emphasis on public relations. She has additional experience in technical writing.

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Marketing to Realtors: Create a Power Position in Your Marketing Efforts

Every day a real estate agent receives several marketing attempts from loan officers. In fact, this information comes in a steady, unrelenting stream. It is no wonder agents have become adept at tuning out the static of these marketing attempts.

Your challenge is to find a way to differentiate yourself from all the buzz of other loan officers. You do so by establishing your marketing position.

Your marketing position is what defines your business. Take a moment to browse your competition websites. Does their marketing position look identical to yours? If it were not for their logo on the top of the page, could it basically be your website?

If the answer is yes, your marketing position is too close to that of your competition. You are competing with them for a place in your prospects mind, and chances are you are not winning the battle for first place.

Take a look at your business and what can you offer that nobody else is doing? If you feel stymied by how you could possible differentiate yourself from your competition, think about a couple of examples of businesses that have done a remarkable job of creating a marketing position.

Federal Express is a great example. They started a business with a position no other shipper occupied. They advertised was when it absolutely, positively has to be there overnight, they were there to do it.

Dominoes Pizza started their business by emphasizing that they would delivery a pizza within 30 minutes of the order, or the pizza was free.

Southwest Airlines have marketed themselves as the low-fare airline.

What special skill or niche could you develop and use in your marketing materials and what can you use to set yourself apart from your competition? When your services are similar to another loan officer, real estate agents will look for ways to differentiate.

The more your services are scrutinized for differences, the more important it is to give details about how you are different. You need to accentuate those details.

Prices and rates are not necessarily the kind of difference that gets you noticed. In fact, most often it merely gets you into a bidding war. You should instead find an unexplored niche and specialize your services around it.

You can develop a unique niche within a product line like HUD, ARMs or Jumbo Loan expert.

You can develop a niche around details of the process for example, loan approvals within an hour (or less), loans that close 5 days ahead of COE, daily email updates to agents.

You can position yourself around gender, ethnicity, geography or another demographic, specializing in exclusively serving the Hispanic community, single professionals, Town & Country Ranch, etc.

Spend some time thinking about what makes you and your business unique and then market to that position.

Jeff Nelson helps loan officers increase loan originations by attracting quality relationships with real estate agents from the development of customized relationship-building strategies. Click here to get a free copy of the Marketing Planning Guide, a 20-page workbook designed to help you outline a strategy to become an Agent Magnet. Visit us at http://www.loan-officer-marketing.com

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Palm Springs Real Estate

The Palm Springs area, consisting of well-established neighborhoods of desert area cities, is also known as the Coachella Valley in central Riverside County. Palm Springs nearly covers a geographical area of ninety-six square miles and is enriched with culture, history and a beautiful landscape. The shopping, entertainment, dining and recreational facilities provided for residents are world-class. In the past few years, the year round good weather, abundant nature and close proximity to Los Angeles have made it a popular destination for tourists of all ages. More and more people who are tired of the winter season are flocking to Palm Springs to take advantage of some of the pristine real estate still available in this beautiful area.

With a growing population and a growing number of tourists, Palm Springs continues to experience a bright economy. It has also resulted in a boom in real estate. Nearly 60% of Palm Springs area residents have moved into greater Palm Springs metro area in the last decade. Approximately 50 people move to Palm Springs each day, and with the attractive and rising real estate values and great interest in the area housing values are expected to continue to increase. Even with increasing property values, Palm Springs residential real estate continues to be affordable. The average price of a home in Palm Springs is $386,148.

Palm Springs has a population of approximately 50,000, with an average income of $69,000. The average temperature in January is around 58 degrees and 92 in July. The median age in Palms Springs is 45 with an average household size of 2.05.

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