how profits are made
How to Buy a manufactured home communities
This website is for anyone that is interested in Investing in manufactured home communities. We are taking our years of Professional manufactured home communities investment experience in buying, renovating, managing, and selling manufactured home communities and laying it all out there for individual manufactured home communities investors like you,
If you’ve already invested in manufactured home communities in the past, this site will reacquaint you with the most important factors involved in the process, and hopefully serve to remind you of the methods and processes that will maximize your project’s value. If you’ve never invested, and are looking for a complete source of manufactured home communities information, this guide will get you there.
One thing that I need to make clear: this is NOT a Get Rich Quick Scheme! You will NOT instantly Become A Millionaire! I am NOT selling you any System! This site simply contains all the basic (as well as very advanced) concepts needed to invest successfully in apartments.
How Profit is Made
So,you’ve realized that manufactured home communities investing is for you. Now, how do you
make money? There are two primary ways that you make money by investing
in communities: Cash Flow and Appreciation.
You enjoy Cash Flow during the period that you own and operate the
project, and you enjoy Appreciation when you sell or refinance the
project.
cash flow
This is the steady income that you receive from the lot
rents (less expenses and loan payments) from all the units in your
communities. It is what determines your Cash-On-Cash return,
which is the annual return on the money you invested. This return is
useful to compare against other investment vehicles, such as stocks and
bonds. In the Buying Section, I will go into more details about what comprises the Cash Flow, and
how to estimate it for any manufactured home communities project.
appreciation
When you finally sell or refinance your communities
project, and it has risen in value by your increased rents due to the
renovations that you’ve completed, the difference in the Sale Price and
your Original Purchase Price is its Appreciation. This is
where you can potentially obtain a big “pop” in your overall return.
Whereas you probably were only achieving a 5-10% Cash-On-Cash during
the holding period, the additional profit from appreciation may drive
your overall return (aka your IRR) up into the 10-20+% range.