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No-Cash-No-Credit and Mobile Home Park 2015

Archive : No-Cash-No-Credit and Mobile Home Park 2015

How to Make a Massive Fortune in the Most Profitable, Cutting-Edge Real Estate Investing Strategy Ever:

INVESTING IN A MOBILE HOME PARK

How to CASH IN…Making $20,000 OR MORE PER MONTH…With This Little-Known Highly Profitable Mobile Home Park Investing SECRET!

A COMPLETELY NEW COURSE FOR 2015

Investing in mobile home parks is the hottest real estate opportunity right now… yet it’s still a well-kept secret!

However, once other investors discover the secret, you will MISS OUT on this Extraordinary Cash Flow Profit Opportunity. Find out EVERYTHING you need to know about how YOU can start profiting from this incredible investment opportunity!

The Mobile Home Park Cash Flow System That Everyone Has Been Waiting For!

Learn How to:

Over ALL Other Types of Real Estate Investing, you can double or triple your profit potential.

Get average CAP rates of 15% or higher against 8% or less for other commercial properties.

Utilize Creative Financing to obtain financing from special mobile home park lenders.

Begin with NO CASH AND NO CREDIT Using Never-Before-Disclosed Strategies

Every time, you can get partial owner financing ranging from 25% to 90% of the purchase price.

Determine the Best Places to Invest in the United States…and Which Places to Avoid

Invest in California Even If Other Commercial Real Estate Deals Aren’t Working

Conduct Due Diligence to Avoid Expensive Pitfalls and Mistakes

Take Advantage of Endless Possibilities Because There Is No Competition

Because you just rent the lot, you never have to deal with difficult tenants or unit repairs.

And SO MUCH MORE!

From Monica Main’s Desk
Wednesday, 4:47 p.m. Pacific
Dear Real Estate Investor, I’ve been withholding information from you…but not on purpose! Anyone who is familiar with my real estate investment strategies knows that I’ve never been a big supporter of MHP (mobile home park) investing for one simple reason: NO FINANCING AVAILABLE!

But everything changed early last year!

MHP lenders and brokers are now in plentiful supply, while they were scarce only a year ago.

As you are aware, creating large income flows from real estate investments is entirely dependent on you using other people’s money (OPM). When it doesn’t exist, you can’t work a real estate deal unless you have 100% cash on hand. That is never a good way to leverage your money.

MHP finance was difficult to get since a commercial property is valued based on three factors: (1) land value, (2) building value, and (3) cash flow. Because MHPs lack permanent buildings, there is no building value to evaluate, lowering the value of a property despite the cash flow. So, if an MHP owner intended to sell, he or she would sell based on cash flow, but the property would not appraise at the asking price (in many circumstances) since it was considered “raw land,” or virtually worthless.

Lenders have now realized that MHPs are a viable investment with consistent cash flows, not simply a piece of bare ground with a lot of cement slabs (or “pads” as they are known).

The sky is no longer the limit for these sorts of passive income assets!

Much more cash flow potential…up to TRIPLE that of an apartment building!

Depending on where the property is located, the average apartment building will have a CAP rate ranging from 6% to 9%. If you’re trying to pull off a no-cash-no-credit deal, you’ll need to be above 9.5% or 10% to make the deal financially viable; otherwise, you’ll barely break even (if you’re lucky)!

When hunting for discounts and starting with no money, the pickings are slim to none! It entails sifting through listing after listing in search of a transaction that matches the CAP rate criterion or slashing the property asking price by up to 50% (in some situations) in order to observe a cash flow.

And it is simply not practical!

With MHPs, the “usual” is to see an average CAP rate of 12% to 16%, and even that might be deemed low depending on where you live in the country. If you locate an apartment building with a CAP rate of 12% to 16%, chances are the figures are proforma (future estimates) or highly overstated (and cannot be backed up).

MHPs have a LOW CAP RATE of 12% in most regions of the nation and an AVERAGE CAP RATE of around 16%.

In some sections of the nation, I’ve seen CAP rates as high as 25%.

And this is totally UNHEARD OF in commercial real estate transactions!

As you are aware, the more your CAP rate, the greater your cash flow income. And if you can’t even discover commercial property transactions that pay more than 8% (on average), you’ll be spinning your wheels for nothing!

Quick Comparison: Experience the Power of Mobile Home Park Investing for Yourself!

While I was writing this, I went to LoopNet.com and looked at a tiny town in northern Florida to see how effective MHP investing may be.

A MHP was advertised for $99,000. It just has 7 “pads” or lot spaces. The CAP rate is a staggering 21%, and occupancy is 100%. Expenses on gross income are roughly 20%, compared to 40% to 60% in the normal residential complex. This deal’s monthly income flow (after all expenditures are paid) is an incredible $2,000 per month or $24,000 per year!!

Absolutely incredible!!

Meanwhile, an 8-unit apartment complex advertised for $499,000 with a CAP rate of 7%, an occupancy level of just 75%, and even at 100% occupancy, this offer would only pay you around $500 per month after all expenditures and debt service (mortgage). And that is ONLY if you can put down 20% on the deal. If you put no money down, you would LOSE MONEY every month!

And this is just ONE of hundreds of MHP offers I’ve discovered in the last few months!

More cash flow, less expenses, less expensive investments… and no “tenants”!

Wait a second! How is this possible? Aren’t those renters when there are people living in the park?

Both yes and no.

You are just renting them a “space” or “pad,” which is effectively a slab of concrete with utility hookups. Your renter brings his or her own mobile home, anchors it to the slab, and pays you a monthly fee to park there.

This signifies…

They fix their toilets if they break. If their air conditioning fails, they must pay for it. If a neighbor’s child damages a window, they must pay to replace it.

AND YOU DO NOT FIX ANYTHING!

You are only responsible for landscaping, common area utilities (including power), and park operations.

And there you have it!

Your tenants are accountable for their own dwellings on the property.

You’re not!

This is why running a park and earning large monthly profits is so inexpensive…there aren’t many expenditures.

The average apartment building’s running expenses range from 45% to 65% of the GOI (gross operating income). This implies that if you receive $100,000 in annual rental payments from your renters, you are sending back $450,000 to $650,000 in property expenditures.

And it stinks!

Many of my pupils don’t realize that the larger the apartment building (or complex), the HIGHER THE EXPENSES. I’ve seen 500+ unit structures (particularly in the north where it’s frigid) gobble up 85% of the GOI.

And who can afford to run such a structure?

(This is why I advise my students that it’s better to obtain a number of very little apartment buildings to keep the expenditures down to 25% to 35% than it is to get a bunch of enormous structures.)

The typical expenditure with an MHP is 15% to 20% of the GOI. I’ve seen a few offers with expenditures of 25%, but that’s not the “average.” As you know, lower expenses imply more money in your wallet.

PLUS… HIGHER QUALITY TENANTS!

One of the most significant issues with apartment building investment, particularly in lower-middle-class communities, is tenant quality. Many of your renters are unconcerned about your building or the apartment you rent to them.

They don’t mind abusing your property by, for example, grinding up an entire Thanksgiving turkey in the garbage disposal (knowing you’ll fix it) or flushing a cracked pipe down the toilet (knowing your plumber will fish it out). They don’t care whether the screens are broken or the carpet is ruined. It’s not their problem because they don’t own the land. It’s your issue. And they’re well aware of it!

MHP renters rent the slab of cement on which their home is built. But it’s their residence! They not only take care of their house (since they are responsible for their own maintenance), but their tenant quality is different because they are “homeowners” rather than wreckless, irresponsible tenants.

So, even if you go into lower-middle-class neighborhoods, which can be difficult as an apartment building owner, it’s a different story with MHP tenants because there’s that sense of “pride of ownership,” which means you don’t have to worry about graffiti sprayed on the fences outside or someone ripping the landscaping apart with motorcycles. Because the park is made up of “homeowners,” they generally take pleasure in their houses and where their mobile home is “parked,” so you’ll have fewer riff-raff and problems with tenants, which lowers your running expenses and puts more money in your pocket.

There is plenty of financing available!

Furthermore, sellers will automatically finance 25% to 50% of the purchase price!

The majority of MHP owners are retirees who have owned their property for decades. They are also unaware that there is a lot of MHP financing available right now. Every MHP owner is aware that obtaining finance is nearly hard… or so they believe!

Most MHP postings will declare unequivocally that the owner is willing to carry back or finance a portion of the transaction. They frequently carry back 50% of the purchasing price. I’ve witnessed sellers carry back 90% of their money! This is NOT UNUSUAL in MHPs.

Now that financing is available, you may get a seller to assist with financing on a seller carry back (private mortgage contract) while a lender comes in and takes a first-position loan. Because the majority of these MHP sellers have owned their houses for a long time, they have enough of equity to provide a private mortgage contract.

Most MHP vendors ALWAYS give seller carry-back because they believe they must! AND they have enough of equity to back up holding paper on your transaction!

The property does not have to be owned outright.

These parks are frequently held outright, although they do not have to be for a seller to offer a seller carry on the deal.

And some of my lenders allow for partial seller carry-back…which is RARE and not available with other commercial property loans!

The Secret Hasn’t Been Revealed…Yet! This means that there is almost no competition for the new investor!

For a long time, many real estate investors were playing it safe, not investing in anything and simply “watching and waiting.” They were curious to see the route the economy would go.

But…

They’ve stopped waiting and begun buying houses by the thousands… because almost every investor I know believes the real estate market has already reached rock bottom.

This makes it extremely difficult for a new investor to get a foot in the door at a time when huge investment groups are swooping down on all available offers.

The good news is…

They aren’t interested in MHP transactions… at least not yet.

They haven’t realized the potential in the massive cash flows because they have been too preoccupied on acquiring bank-owned foreclosures from financially distressed banks.

But they will “crack” on this fantastic MHP potential very soon…eventually. I believe they will be on board with acquiring MHP transactions before the end of this year, just like they are with other commercial properties.

You’re out of luck if this happens!

If you believe you may have missed out on apartment complexes or foreclosures, or if you dislike dealing with renters, mobile home parks are your finest real estate investing chance!

And you can’t afford to miss out, or you’ll be left out in the cold!

With MHPs and other asset classes, a lot has already altered and evolved.

In reality, there is only ONE WAY to receive MHP offers these days…and it’s ALL REVEALED in the 2015 edition of the MHP Cash Flow System!

Fantastic Monthly Cash Flow Opportunity!

My biggest pet hate is when students call and inquire how many “units” they need to generate a $10,000 monthly cash flow.

My response: I HAVE NO IDEA!

Why?

Because financial flows DIFFER DRASTICALLY by area, state, county, and even city (in the same county). After all, don’t you suppose a 10-unit in Malibu, California will have a different cash flow than a 10-unit in Compton, California?

But I’ll tell you something…

The cost of a “pad” or space rental ranges from $350 on the “low” end to $750 on the “high” end.

Yes, pad rentals may and typically do rise!

If you charge $350 per pad each month and have 50 pads in a park, you will make $17,500 per month or $210,000 per year. Even if your costs are at a high 20% (they are normally around 12% to 15%), you will still have $168,000. If you finance your park and each lot/space costs $15,000 (on average), your total purchase price would be $750,000. The debt service (mortgage) would be $52,522 per year, for a total yearly cash flow of $115,478 or $9,623 each month.

And you’d pay close to nothing in taxes since a county assessor considers a building’s location as well as its value…and because there are no buildings, you’d pay less in taxes!!

The offer I described above would be sufficient for many individuals to quit their jobs and live off the money WITHOUT WORKING!

Remember that your salary will generally DOUBLE EVERY 15 YEARS. So in 15 years, you’ll be earning $19,246 every month. Add extra $4,377 per month if you were wise and paid off your debt early, increasing your monthly income to $23,623!!

My 2015 Complete Mobile Home Park Cash Flow System…

It’s finally here, guys! My 2015 Mobile Home Park Cash Flow System has been RELEASED TO THE PUBLIC! This is a whole system.

RARE MONEY SOURCES FOR MHP DEALS IN OUR SPECIAL MHP RESOURCE DIRECTORY!

Gain immediate access to unique funding sources, including those ready to deal with partial owner financing (unlike conventional commercial brokers and lenders). This is contained in your private resource directory that comes with this course and is NOT included in any other direct resource that I have ever shared!