Hi All,
I’ve been to the boot camp and my wife and I are considering a combination of house flipping and long term park buying. We own two homes and one apartment but our liquid cash is roughly 100k.
When investors operate strictly in the park biz, how do you get $ for the second and third parks once you blow your nest egg on the first one?
Thank and have a great day!
Cheers.
Very timely post. Our next Lecture Series event is going to be an interview with Gene Trowbridge of Trowbridge & Taylor, one of the top law firms in the U.S. regarding the JOBS Act, which became law in 2012. This is the game changing amendment to the Securities Act of 1933 that ushered in such fundraising strategies as the Reg. D 506, crowdfunding, and the like. Here’s a link to the JOBS Act overview:
Based on your question, I think you may find this Lecture Series event the most interesting one of 2016.
Frank, thanks that is an amazing interview that I am sure to catch.
In answer to @ToddMartin,
Assuming it’s your nest egg and not your primary source of income, you should be able to refinance when your first 5-year (say) note comes due and pull money out. Use that money to buy the next park that you’ve been scouting for those 5 years.
How much money? During those (5) years, you should be able to pay down the mortgage, raise lot rents in pace with inflation, and perhaps fill a lot or two or many. Cap rates will likely be lower, not higher, in the future as I believe much of the spread over comparable real estate is related to stigma and information asymmetry between those who “know” what MHP’s “are” and those who don’t know anything more than what they see portrayed in the media.
If you’re plowing the income back into the property (in the form of more occupied homesites = more homes) you’ll see a return on that income as capital gain as well.
This is the optimistic case. Of course life is never completely sunshine and rainbows.
Brandon@Sandell
Thank you both so much. I’ve always considered a combination of house flipping and long term park investing as house flipping can be a way to generate cash very quickly (or lose it) of you get it systemised. Then you can dump some of the proceeds into the park and do it again.
I believe you can dump business earnings into a self directed 401k as long as you don’t have employees, then move it into long term investments.
My cart may be a little before the horse here but I like to have a long term plan with options.
We crrently own 2 houses and 1 apartment but I’m extremely interested in parks and am actively looking for a starter.
Cheers and thanks again!
This event is being held on March 29th at 7pm Central time. Click Here To Register for this free event.
Thanks,
Brandon Reynolds
President
Mobile Home University
