I don't understand, investing in mhp


#1

I was looking at the mobile home parks for sale on

loopnet. Many of the parks had 6 and 7% cap rate. I

just saw an ad in the newspaper where you can get

5.25% on a cd thru a credit union. Maybe I do not

understand this business, but why risk your time and

money to invest in a mobile home park when you can

get about the same return doing nothing with a bank

cd? If you put down say 20% on a mhp and finance

the balance at 6%, I can’t see where the profit is?

(I know I should purchase some of the books offered

at this site which will probably explain all this,

that’s my next step)

Sly


#2

Hi Sly,

You have a great question. Just like an investment type property, education and hard work will go a long way. There are 6 and 7cap rates out there for almost any asset class.

Steve and I buy mobile home parks on 10-12+ cap rates ON ACTUALS! There are additional profits realized on reducing expenses and raising income (increasing rents and filling empty lots). There is also a huge profit center by buying mobile homes as wholesale prices and selling them at retail (whether for cash or owner financing).

I would stongly suggest getting Huge Profits in Mobile Homes and Mobile Home Parks as a great intro course.

Corey