Real estate investing has many facets to it. It offers a multitude of ways to make reasonable profits. Your own creativity can contribute a lot to the profitability of your enterprise. One way to do this is by investing in a mobile home and locating it on the land that you own. Alternately, you may buy land with a mobile home on it. Mobile homes are located in parks and you can make a regular income by selling the mobile home while at the same time renting out the lot on which it is parked.
Advantages of Investing in Mobile Homes with Land; Combining the mobile home and the land into a package deal adds considerable value to the offering. Some other advantages are: This being a comparatively unique type of investing with fewer investors, you face less competition than does a real estate agent. Generally, you will be able to buy both the mobile home and the land for about the same amount as a mobile home on someone else?s land. As mobile home properties are much more affordable, their demand is inelastic and remains high even during bad economic times. This ensures that your returns keep coming in during downturns in the economy. Mobile home properties are less expensive to maintain and you may well be able to handle most routine maintenance jobs on your own, with substantial cost savings. It is also easier to upgrade these properties at a much lower cost than conventional fixed homes. Owning the land where the home is parked gives greater control and you do not have to put up with the whims of the property owner. You can select the tenants you want to sell the home to and how long they stay. This also ensures that the tenant cannot leave the premises until clearing his dues.
Economics of a Mobile Home Park; One unique advantage of investing in mobile homes on land is the option of being able to sell the mobile home and rent the land. It is possible to earn a return of over 25 percent of your investments in this business. Some other financial aspects are: The best option is to buy on cash and sell on terms. It is possible to arrange the finances from lenders, even if it means paying a higher interest rate on the borrowing. Higher earnings will compensate this. A promissory note, secured by a first lien in the home being acquired and guaranteeing payments will convince the lenders to part with their money. Providing seller financing will give greater returns than profit from sale of the property. The returns are increased proportionately if the park has many vacancies that can be rented out. An attractive and well-kept park will allow you to get higher rentals.
Many americans are opting to stay in mobile homes since the costs are lower as compared to fixed properties and the homes are getting improved. At the same time, the higher demand for such properties presents a lucrative business opportunity that you can well cash on.
Alexander Gordon is a writer for www.smallbusinessconsulting.com – The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.
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