Mobile Home Park Investing: Facts And Myths
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The overheated real estate market has made it challenging to invest in residential properties across the US. To top it off, the pandemic has only complicated the situation. Property prices have increase by 15% and demand continues to rise.
Now, more than any time in history, mobile home parks are even more appealing as a sound, long-term investment. They provide key benefits versus traditional real estate, which make them a relevatively low risk investment with so many benefits. But, you may be skeptical, as many investors, when they first learn about this opportunity.
Busting The Mobile Home Park Investing Myths
There are several myths about mobile home park investment that we will discuss below. It's time to learn the truth.
Unreliable Residents
It is a common belief that mobile home park residents are shiftier than real estate residents. This is a total misconception based on the term 'mobile home' because it certainly doesn't reflect residents' commitment to living a quality life in these unique circumstances. They aren't runaways or degenerates; mobile home residents are as likely to stay in one place as other real estate residents, if not more. The homes are not actual mobile, as the name is a bit of a misnomer.
Underperforming Asset Class
Though it might not be said often, many buyers assume that mobile home parks require loads of work to produce any decent return. In reality, with our system and approach, we are able to quickly and relevately easily take any underperforming park and produce high, long-term profits. Learn more about our investment thesis.
Banks Do Not Approve Finance Assistance
Another myth about mobile home park investment is that banks do not approve financial support for investing in a mobile home. The reality is that many banks give loans to mobile home buyers.
Benefits of Mobile Home Park Investments
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Mobile home park investments have multiple benefits supported by facts. See for yourself:
Increase in Demand
The rise in prices has made it difficult for lower and middle-class people to buy a conventional home. Therefore, the demand for mobile homes is increasing day by day.
Lower Maintenance Costs
Maintenance and repair costs are much lower for mobile homes. For real estate properties, the owner is responsible for paying all repairs. However, in this case, mobile homeowners or tenants pay for home maintenance. Park owners also have a role in keeping the park in good shape and supplying necessities, but home maintenance is not their responsibility.
Less Tenant Turnover
Unlike conventional homes, mobile homes parks have fewer chances of facing tenant throughput.
Traditional property owners often have to find a new tenant and bear the financial loss of empty properties in-between.
However, if a mobile homeowner leaves the park, it would take a massive amount of money to shift their home to another park. That is why 75% of mobile homeowners do not move from one park to another for at least five years.
Buying With Mobile Home Park Investment Fund
It isn't easy to find deals and secure funds for mobile home investing without any help. Therefore, the better option is to approach a mobile home park investment company.
These companies offer mobile home park investment fund that provides capital for finding deals, buying a mobile home park, overseeing management, property improvement, and investment performance. Using a mobile home park investment fund also reduces the risk of funding the wrong property.
Learn More about Mobile Home Park Investment Fund
It is easier to take a mobile home park investment fund from a reputable company. That way you can easily afford to buy the park you want. To learn more about the mobile home park investment fund, check out our free webinar today.
