mobile home parks are a great investment 7 secrets to investing in

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SECRETS TO INVESTING IN MOBILE HOME PARKS
We believe in taking a be-er approach to create wealth for genera5ons While fast approaching the 100 largest Mobile Home Park owner in the US, we know a thing or two about a be-er way to invest for cash ﬂow and design a business around your lifestyle. MOBILE HOME PARKS ARE A G.R.E.A.T INVESTMENT
What makes them a G.R.E.A.T investment. Simply put, they Generate more cash ﬂow at a lower cost per door than other asset classes. They are Recession Resistant and Easier to ﬁnance. With MHP’s, you have the ability to force the AppreciaFon from day one. Best of all, the Tenants typically own their own homes not you. • 
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MHP’S are not ﬂashy and tend get overlooked even by many of the most savvy investors. The idea of owning a MHP, doesn’t cross many peoples minds. Mobile homes are anything but mobile. A typical cost to move a house is over $3,000 and staFsFcs have shown that the majority of mobile homes are sFll in the same locaFon as they were iniFally delivered to. 1. REACH YOUR PASSIVE INCOME GOALS SOONER
If your goal in real estate to create long term wealth and passive income, MHP’s help you get there sooner. Say your goal is to create $20,000 residual income for the rest of your life. Next, you will have to devise a plan to get you there. As an investor, it's imperaFve to ﬁnd the best way to get the most passive income in the shortest amount of Fme for the least amount invested. • 
Remember that (Time) = (Freedom). COST PER DOOR COMPARISON
Many real estate investors have a goal to make a million dollars. If so, I ask you why? At the core, it's not millions that we want but the freedom and lifestyle that it provides. In real estate, there are many vehicles you can choose to design your reFrement. Keep in mind, which ever asset you chose comes at a both a 'speciﬁc cost' and 'amount of Fme’ to reach ﬁnancial freedom. Take single family rentals, the cost may be $50,000-‐$150,000 with an average monthly cash ﬂow of $250-‐$300. If your lifestyle design is $20,000 per month, you will need eighty houses. Remember, 'cost' and 'Fme'. How long will it take? How much will it cost? MHP’S cost less and allow you to reach your lifestyle goal in a shorter amount of Fme. They oﬀer the highest cash ﬂow for the least amount invested per door. The cash ﬂow is similar to it's counterparts, but at a fracFon of the cost. Most deals can be purchased for an investment of $7,000 -‐ $10,000 per door. Now it's up to you to do the numbers and let the numbers tell you what to do as my mentors Robert and Russ would say. 2. YOUR INVESTMENT DOLLARS GO FURTHER
Today most of our deals have been purchased from $7,000 to $10,000 per space. With 90% of our deals being thru ‘Mom and Pop owners’, allows the ability to structure deals in a way to truly create a ‘win win’. If you were to invest $50,000 you would be able to control a twenty ﬁve to thirty space MHP. Now, lets take a 30 space MHP with 25% down payment of ($50,000) for example. Take an average lot rent of $250 dollars per space and mulFply it by thirty spaces. This would give you a gross space rent collected of $7,500 per month. By passing thru the uFliFes to the tenants, allows you to keep your expenses low resulFng in more cash ﬂow. With MHP’s your dollars go further. LOWEST EXPENSE RATIO TO OWN AND OPERATE
The reason why MHP’s oﬀer be`er returns than mulF-‐family investments is that they lead the ﬁeld in the lowest operaFng costs. With tenants owning their own homes, there are very few operaFng expenses. With MHP’s, It is not uncommon to achieve cap rates in excess of 15%+ and cash on cash returns over 20% in most cases. With lower expenses, your returns are higher. Less Maintenance than other asset classes Source: Sun CommuniFes 3. THE MOST RECESSION RESISTANT SECTOR
Mobile home parks take the lead as the most recession resistant investment sectors out there today. As seen in this chart, MHP’s have consistently outperformed the compeFFon over the last decade. With it’s lower aﬀordability cost, it’s diﬃcult to beat MHP’S. Unlike other commercial sectors in the downturn people cut back on spending, thus creaFng a direct correlaFon on oﬃce space and other sectors. With MHP’s this is not the case. 4. THEY ARE EASIER TO GET FINANCED
MHP’s are in a league of their own when it comes to ﬁnancing. We have found that MHP’s are easier to get ﬁnanced. Fully, 90% of our deals have been done so thru ‘owner ﬁnancing’. There is a huge window of opportunity right now in that most ‘mom and pop owners’, own their parks outright. Many of the owners that I talk to on a daily basis are in their eighFes. They are gegng up there in age and don’t have the energy or systems in place to manage the parks. 5. THERE IS A HUGE DEMAND FOR MOBILE HOMES
Most of todays major ciFes will no longer allow permigng, proper zoning and legal restricFons for parks to be built. There were less then ten new MHP’S built this year. It has been this way for decades, and this intern creates a limited supply giving you less compeFFon than other asset classes. In the rare instances you are able to build a park, the cost of such installaFons could be over $500,000 once it's said and done. You would be responsible to install all of the electrical, water and sewer. The cost of this may be well over $5,000 per space. Lastly, you have an empty park and would need to ﬁll it up with homes. Home prices can range from $2,500 all the way up to North of $20,000. The numbers of building a new park simply don’t pencil out. ECONOMY CONCERNS HELPS TODAYS MHP’S
With Health Care Insurance on the rise, and taxes spiraling out of control creates a squeeze on Americans like never before. • 
There are more than sixty million American's living on $10.00 per hour • 
Increasing number of reFrees that live on an average ﬁxed income of less than $1,000 per month • 
Twenty percent of todays US households earn less than $20,000 a year •  EsFmated over 20 million Americans (8% of all households) live in mobile homes NOT TIED TO JOBS LEAVING THE COUNTRY
As an investor, it’s crucial to watch the path travel for jobs and growth. With many of todays companies moving overseas to reduce taxes and labor costs proposes a huge concern for investors. With MHP’s, the majority of our tenants work at Wal-‐Mart, McDonalds, Burger King, Gas StaFons and Kroger grocery stores to name a few. Every one of those jobs serve a basic human need. No ma`er the economy, every American needs to eat and have the standard conveniences in life. 6. ABILITY TO FORCE THE APPRETIATION
A unique component to mobile home parks is that you have the ability to force the appreciaFon (or add massive value). While many sectors in real estate are Fed to market condiFons, this is not the case with MHP’s. ‘Purchase price’ is not the same as ‘current value’. When making oﬀers on MHP’s, they are typically done so on a capitalizaFon rate basis. HOW TO TURN A PARK INTO A 20% CAP RATE
1. Purchase park at a 10% -‐ 12% cap rate 2. Begin to groom it to a 20% cap rate Implement a revenue increase and expense reducFon plan over the course of 2-‐4 years. Items included would be: •  Installing individual water meters on trailers to pass thru the uFliFes to the tenants •  Raise rents to current market •  Eliminate large trash containers and install smaller individual cans •  Increase occupancy by ﬁlling vacant lots and sell oﬀ homes on an owner carry contract With many parks being mismanaged by elderly ‘Mom and Pop owners’, it is not diﬃcult to lower the expense and create systems to double the net operaFng income over the course of a few years. Once you have eﬀecFvely doubled the net operaFng income, you have in turn, doubled the value of the park or turned a 10% cap rate into a 20% cap rate. It really is that easy. 7. TENANTS OWN THEIR OWN HOMES
If you’re a real estate investor, this is hands down the best reason to own a MHP. Tenants are responsible for incurred expenses such as painFng, new carpets, leaky faucets, new appliances and holes in the wall to name a few. The investors are in the land lease space rent business. This in turn, oﬀers you a reduced risk and a be`er approach to invesFng. Being a mulFple community owner, I can tell you there is very li`le acFvity that happens on a daily or monthly basis when the tenants own their own homes. GREATER PRIDE OF OWNERSHIP
When the tenants own their own homes, it creates a be`er community feel and greater pride of ownership. Being a home owner also gives them more of incenFve to pay on Fmly and consistent basis. There is no*ng be-er than stable cash ﬂow with li-le to no turnover. HEPLING FAMILIES ACHIEVE THE AMERICAN DREAM
MHP’S keep the American Dream alive. With parks being the least expensive form of detached housing, they are the last stop for hard working Americans to have something to call home. I can personally tell you, it’s very rewarding creaFng value for others. There is a great sense of pride in helping families reach their dreams of home ownership. We believe in serving, teaching and helping investors learn how to purchase their own community.
Join us in 2015 on one of our ﬁeld trips. By visi5ng our communi5es you will see ﬁrst hand how to purchase, set up, automate and operate your own Mobile Home Park. For more informa5on please contact Tony Ferris (951)536-‐3891 info@AﬀordableParkCommuni5es.com

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