What Say You - Posted by Lonnie
Posted by Lonnie on July 04, 2008 at 12:17:11:
Is This Still A Good Business?
Is used mobile homes and parks still a good business to be in considering todayâ??s market and the present economy? What would you do different if you were starting out today? These are a couple of questions Iâ??ve been asked this week. So let me address them.
The older mobile homes and mobile home parks are still one of the best income producing businesses I know of. And regardless what shape the economy is in, people still need affordable housing. Especially in todayâ??s market with OPEC holding us hostage with $4 + gasâ?¦and rising.
But regardless what the evening news, or the bureaucrats would have us believe about the economy (good or bad), there has always been, and always will be, a huge number of people who will live in a self imposed state of, recession, depression, melt-down, slow-down, or whatever the present buzz word happens to be. But these people still need affordable housing. And whatâ??s more affordable than a used mobile home with affordable lot rent? Affordability is the key.
Iâ??ve said it for years and still doâ?¦mobile home parks are the nearest thing to a gold mine I know of. And even more so today. Especially since the bureaucrats and local governments make it almost impossible for anyone to develop a new park. So that makes the existing parks even more valuable.
Think about it. If you buy an existing park today, your government and your elected officials are preventing any competition by not allowing any new parks to be developed. Isnâ??t that nice of them? So why not benefit from their stupid rules?
I bought my first rental property in 1971. (Wow! If time flies when youâ??re having fun, I must have had one hellva good time in all those years). In hindsight, if I had known then what I know now, I would have bought every park I could. And Iâ??m willing to bet that I would have done much less work, and have a bigger net-worth today. But like many of you, back then I didnâ??t know what I didnâ??t know.
The older mobile homes and mobile home parks have proven to be a business thatâ??s not affected by the stock market, or world events. The people who buy/rent your $5,000-$10,000 mobile homes, and/or pay lot rent, donâ??t invest in the stock market. They wouldnâ??t know the difference between a bull market, and a bear market. (I donâ??t either. And couldnâ??t care less).
The majority of the people who buy or rent your used home earn enough to pay $200-$300 payments. But they will never be able to pay cash, or qualify for a bank loan. These are people who learned how to work for money, but never learned how to make money work for them. Yet, these are the very type people who can make you richâ?¦one little deal at a time.
Some of you know about the little 29 space park my daughter, Janet, bought 15 years ago. (If not, read about it in Deals On Wheels, available on this site). Janet made her final payment on that little gold mine two months ago. Now, do the math and see if you would like to be in her position. (And you can. Just do what she did.)
Gross rents at full occupancy (round numbers) $112,500. Total expenses less than 20%…$22,500. Annual NET income (before taxes) â?¦$90,000.(Vacancies have been less than 2% and wasnâ??t included). Now, show me a better retirement plan than what Janet has. Would you like to learn how to start your retirement plan with a mobile home park?
A 74 old man called me recently asking for advice. Heâ??s living on a social security check, and working a part time job to survive. Heâ??s been a renter for 54 years, doesnâ??t even own his own home. He spent all those years working for a pay-check, and never took time to learn anything about money. Now, at the age of 74, heâ??s asking for financial advice. What would you advise this man to do at this stage of his life? Why didnâ??t he show an interest and ask someone 50 years ago? Folks, look around. Do you know anyone like this man? Is there a possibility that YOU may be walking in this manâ??s footsteps? If so, I hope you will consider this a wake up call.
Now I have a question for you. If your cost of living increased $200 per month, would you have to cut out something in order to live with that $200 monthly cost of living increase? Or would you be able to increase your income $200 monthly? What if you could sell or rent a mobile home with $200 monthly payments. If so, your cost of living increase is solved.
Letâ??s use Janetâ??s park as a good example of how to fight inflation, or cost of living increases. She increases her lot rents at least $10 per month every year. That works out to $290 monthly, or $3,480. Janet has control of her financial future. But what does a person working a JOB do? What control do they have?
Educationâ?¦the right education, is the key to financial security. And itâ??s not an expense, itâ??s an investmentâ?¦an investment in yourself. You can pay for it now, or you can pay for it when you reach 74. Paying now is much better.
Tony and Scott will be teaching you the right education at their Boot Camp in August. If retiring on Social Security (if itâ??s still around) doesnâ??t excite you, then let Tony & Scott show you how to set up your retirement plan with parks & mobile homes. They have both â??been there, done that, still doing thatâ??. They teach from hands on experiencesâ?¦no fluff or BS. They teach what they do.
About 50 people will choose to be at Tony & Scottâ??s Boot Camp & learn how to become financially independent with mobile homes & parks. Will you be one of them? If so, you need to get your seat reserved now while there are still seats available. Joanne & I look forward to seeing you next month.
To your wealth,
How about some feed-back, folks. Tell us how the present economy has affected your lifestyle, or your business? Are you finding more opportunities, or less? Are you making more money, or less money? Any tips, ideas, suggestions, etc? When we all share, we all learn
If you do the same thing this year as you did last year, where will you be next year?