These days, there are more ways to invest and diversify your portfolio than ever before. From stocks and bonds to cryptocurrency and gold, there are so many options. However, while many know about traditional real estate investing, they do not know about the benefits of investing in mobile home parks. Never heard of it? Read on to discover one of the best ways to invest your money…
The Benefits of Mobile Home Investing
Real estate investing tends to have a large cost. Meanwhile, owning a unit in a mobile home is much cheaper! Plus, they are far cheaper to pick up and easier to maintain than a traditional.
So, what’s the catch? Well, owners who sell the units usually own the land but not the homes themselves. So, you might have to do a little extra paperwork. However, while others will invest $150,000, one can usually pick up a mobile home for under $15,000!
Believe it or not, the popularity of mobile homes has actually gone up in recent years, not down! Why? Baby Boomers are retiring, which means shrinking incomes and, with that, moving to smaller homes.
“10,000 Baby Boomers retire each day with an average social security benefit of just $1,294 per month. 75% of retirees have less than $30,000 in their retirement accounts, and the bottom 50% have zero measurable savings,” said Andrew Lanoie, CEO of Four Peaks Capital Partners. As a result, many of them are moving to mobile homes!
Finally, mobile homes are far less risky than traditional real estate investments. First, there’s actually less tenant turnover. “It can cost a tenant $5,000-$7,000 to move their home out of a park, and thus 98% of mobile homes will remain in the same location after the second year. 75% of owners expect to stay in their Mobile Homes for five years or longer, and a large percentage expect to never sell,” stated Lanoie.
So, if this kind of investment sounds great to you, read on to understand how you start investing in mobile park real estate today…
How Can I Start?
If investing in mobile park real estate sounds good to you, it’s actually quite easy to begin. Just like other forms of real estate investing, there are now more online platforms than ever to find mobile park investing opportunities. Of course, you can also simply hire a local realtor, preferably one who specializes in mobile homes. This can not only give a newbie an inside look at the local mobile home economy, as well as create a potential contact for future deals.
Searching online? There are plenty of websites like Loopnet, CREXI, and MobileHomeParkStore.com, that are well-reviewed by their users, though you should always do your own research on the sites first. Meanwhile, before making a large investment, always talk with a financial advisor in order to ensure that you are making the best decision for you and your family. Happy investing!