Let me begin by saying that most of my investments today don’t go into the MH world because I don’t like to compete with my clients. As such, most of my successes haven’t technically come from MH’s. This is due in part to how little I enjoyed my MHP journey as an owner, and thus, operator, landlord, manager, repairman, etc.
But, I do very much enjoy the process of owner financing after I got the park ready for sale. You can read more about that in our previous entry on the matter. In short, my advice is that, if you can buy a park for less than it costs to operate, it’s a good idea. And if you can owner finance it, it’s even better in the long run. One way to generate more income to allow you to owner finance is to diversify your investment into other realms of real estate. Read on to learn more!
The Lucrative Nature Of Office Buildings
From a real estate perspective, I’m a huge fan of cash flowing real estate. Most recently, I bought an office building that was vacant. It had been poorly marketed, and as such was still in good condition. It was a very strong, high traffic volume corner. I was able to negotiate a deal with the owner where I got it for well below the list price and replacement value. I was also able to get a lender to do an 85% LTV with a low interest rate.
This made my out of pocket a bit more manageable, allowing me to get a cost segregation screening done. This led to me more or less recapturing all of my down payment within year one through taxes. This was a substantial offset; in short, it was a win-win for me. All things considered, it was as if I got into the deal at little cost to me in the short term.
Working With The MHP Expert
Last week, we signed an LOI with a national tenant to move in there for 15 years! This increased the value of the building a great deal, allowing me to refinance with access to a substantial amount of cash. Or, I can leave the money there and cash flow it the way it is. Either way, again it’s a win win.
Taking this path will give you the extra capital to invest in MH’s via owner financing. If you’re looking for more support on your MHP journey in the form of a broker, then you’ve come to the right place. Check out our services page to learn more about how we can help!