Is Owning A Mobile Home Park Wise?
June 12, 2019
Third, you are building equity without doing a thing! Your tenant is essentially paying off your mortgage and every cent he/she puts towards the principle is equity which you can later tap into. Every month, you are building more and more equity so you don’t have to have positive cash flow to benefit from this.
Option 2 – Private Property Sales. As stated above, you’re saving a lot of money and have complete freedom with regarding to marketing, showing the property, picking your offers and closing on your own terms. You’ll put in the hours and effort, but for the right seller it’s the way to go.
Depending on where you look for foreclosures, some homes have sold for 10,000 or more. This is staggering to think the original value of the house was around 90,000 or more. This was a real estate invesment.
For those of you who don’t know how hard money works, repayment is usually a balloon payment with interest. The loan is paid off when you either sell the house in a flip situation, or when you refinance. Well, we have been working on getting the refinance to go through since October 2008. As of the time of this writing, it is mid-May 2009. Our hard money loan comes due in mid-June. Nothing quite like having an executioner standing behind you with a smile on his face. Yes, it is very stressful to say the least.
Learn Your Market – Know the values of homes sold in a distressed situations versus resale homes. Know the repair values of the homes how old are these homes in each subdivision a home built in 1982 may need a complete rehab as compared to a home built in 2003.
Look for an association that meets at least monthly if not more. This gives you a time to attend, meet people, have people meet you, ask questions, learn, network. If you have a choice this is the ideal situation. Now if the group only meets online or virtually, you might try to work with this group and see if you can’t find a way to get the people at the virtual meeting to attend a live networking events in town – be sure to work with the leader of the virtual group.
Well, it’s not that strict. When I say a formula I am more talking about the information that you need to get across to the investor. But i have found this specific template pretty successful in the past.
Prepare to spend. Land does not come cheap. Prime property can run up to hundreds of thousands of dollars, and competition can get very stiff. You need to make your bid competitive, but make sure that you don’t short-sell yourself in the process. Negotiate a very competitive price that you and the seller are happy with.