Featured Investment # 1 - Mobile Home Park Acquisition
Introduction: We've all heard the stereotypes and jokes surrounding Mobile Home Parks. And these stereotypes are continually used in stand up comedy routines like the TV show Trailer Park Boys and more recently, Mryrtle Manor and the B-movie Pink Flamingos - just an endless bombardment of misinformation.
But here's a little Secret: Savvy real estate investors who invest in Mobile Home Parks are all to glad to keep this long-running joke going. Why? because it keeps competing investors at bay and gives them the opportunity to swoop in and acquire run down or under performing parks at bargain prices and fix them up and re-brand them as "Affordable Housing Communities"
But why are seasoned real estate investors doing this? One of the main attractions is the "LOW COST PER DOOR". This simply doesn't get any lower when you're buying mobile home lots in bulk. and because of high demand , attractive cap rates and high yield annual returns, mobile home parks are attracting shrewd investors from all demographics.
As an investment, Mobile Home Parks are highly sought-after commodity. The reasons are numerous, but the 3 biggest are steadycash flow, minimal management, and appreciation. Mobile Home Parks are not only huge cash cows , but developers rarely build new ones which means less competition and higher returns for those who invest in this affordable and recession resistant housing sector.
Current Market Conditions: Since the financial meltdown in 2008, US home ownership levels have fallen to a 50 year low. This in turn has dramatically increased the demand for affordable housing, people who have lost their homes and first time buyers are turning to the mobile home sector. Right now 20 million Americans live in a mobile park and with 10,000 Baby Boomers retiring every day for next 10-15 years, the demand for affordable housing has never been higher.
The bottom line is that 60 million people in the U.S. need "AFFORDABLE HOUSING", and what could be more affordable than a mobile home? The real issue here isn't the economy... It's affordability. And that's true in any market and even truer today!
Mobile Home Park investments have been largely ignored and undervalued and that is one of their big advantages in today's market. But more than that, these investments can offer Seller Financing, and great opportunities for making value added improvements and boosting cash flow, all of which can catapult returns. Perhaps that's why "Shrewd Investors", like the Koch Brothers, Warren Buffet, Sam Zell and Private Equity Groups have been actively investing Billions of Dollars into the manufactured housing sector.
Revenue Streams: Mobile Home Parks can produce income in a variety of ways, including lot rentals, park owned home rentals, sales, leases and rent to own, laundry facilities, vending machines and water/sewer services. Some parks have other structures onsite that can be rented out, such as storage facilities, small apartments and single family homes. In addition, parks on the outskirts of cities can experience significant capital appreciation as the city grows and the land becomes more desirable for other purposes.
Tax Benefits: Unlike apartments and other commercial real estate structures that depreciate during a period of 27.5 years, mobile home parks depreciate during a 15 year period. The depreciation costs are in the roads, water lines and upgrades. These are considered land improvements for income tax purposes and can be a major tax benefit for investors.
The Opportunity: Our mission is to acquire a diversified portfolio of older mobile home parks that are currently generating income yet are under-valued, under-managed, under-preforming, and or improperly capitalized, make value added improvements and re-brand them as "Affordable Housing Communities". Participating Investors will receive "High Yield Monthly Income and a "Majority Share of the Profits When the Properties Are Sold". With our mixed strategy of "Buy and Hold" - "Buy, Fix and Sell" and "Rent to Own" the company is poised to reap the long term financial rewards.
Conclusion: Mobile Home parks provide secure and stable long term cash flows, high occupancies, steady increases in average monthly rents, and significantly lower capital and maintenance costs when compared to other forms of commercial real estate. If you've ever thought about being a "Passive Investor in Mobile Home Parks", now is the time before the "Multi-Billion Dollar Institutional Investment Groups" control this asset sector.
Featured Investment # 2 - Flipping Manufactured Homes
Introduction: With the residential housing market back to recession levels, the number of single family homes coming on the market each month is low. Bidding wars are beginning the day a property is listed, driving home sales above asking prices. Buyers willing to pay more for the home they wish to purchase are having a tough time finding affordable real estate, which means it's even tougher for investors looking for houses at rock-bottom prices.
Flipping single family homes has become a mainstream endeavor, as more companies such as Opendoor, Offerpad and even Zilliow are offering quick, all-cash purchases for homes with the intent to "Flip" and sell them for a profit, but their presence creates a very
competitive atmosphere for other investors.
The Opportunity: While bigger investors must compete with companies of all sizes to stay afloat, Crown Point Financial has identified a niche in the "Residential Flipping Arena" that has been over looked by many private and institutional investors, but it also address's the tremendous demand for affordable senior housing.... Manufactured Housing!
Our mission is to "Buy, Renovate and Resell" older manufactured homes in 55+ communities where you "Own the Land and the Home". A manufactured home and land property (also known as Land-Home Property) is NOT a mobile home in a mobile home park, the owner owns both the home and the land, identical to a site-built house.
Quick Cash Profits: Once we have acquired, renovated and sold a land-home property, participating investors will receive their original principal and a "Large Share of the Profits". Our estimated time line for acquisition and renovation is 30-45 days and 90-120 days to resell. If you prefer to invest for "Quick Cash Profits" versus long term appreciation, then investing in the "flipping" of land-home properties may just be a better vehicle for you.
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