PROPERTY SOLUTIONS Norada
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Turn to Turnkey Real Estate
WHY TURNKEY REAL ESTATE IS A GREAT PASSIVE INCOME INVESTMENT OPTION FOR BEGINNERS.
This content is brought to you by Mobile Home Millions
by Marco Santarelli, CEO of Norada Real Estate Investments
Reliable ROI with Mobile Home Investing HOW THESE SMALL-SIZED HOMES CAN TURN LARGE PROFITS FOR INVESTORS.
urnkey real estate invest- ments are a great passive investment option for real estate investors. Investing in turnkey prop- erties are one of the most profitable investment opportunities today. So, the first question to ask is, what is a turnkey real estate investment? By our company’s definition, it is a passive real estate investment in a good market, good neighborhood, cash-flow positive with no deferred maintenance and under profession- al property management. One of the many benefits of turn- key rental properties is the ability to live where you want and invest in markets where the numbers make the most sense. For example, take over-priced markets like coastal California, New York, Seattle, and Denver. These markets offer little to no prudent investment opportu- nities for its residents. The solution for those living in ex- pensive markets or those with little to no good investment grade inventory is to invest where they get the greatest cash-flow and/or highest returns. PASSIVE INCOME FROM A DISTANCE FULLYMANAGED INVESTMENT PROPERTIES Turnkey rentals, by definition, are a fully managed investment. They are handled by full-service local property management who handle
tenant screening and placement, as well as rent collection and mainte- nance requests. There is very little that an investor would need to do other than approve the occasional approval on larg- er maintenance and repair items, which do not come up very often. PROPERTYVALUES Generally speaking, most turnkey properties will be found in mid-size markets, with some in the smaller ‘tertiary’ markets. The reason for this has to do with the ratio of price to rent, often referred to the Rent-to- Value Ratio, or R/V ratio for short. The target R/V ratio is about 1% but can range from a low of about 0.8% to a high of about 1.2%. Outside of that range often means you’re in a premium neighborhood or a questionable “low-end” neigh- borhood, regardless of whether you’re in a good local market or not. An example of an R/V ratio can be illustrated with a $100,000 property renting for $1,000 per month, giving you a 1.0% R/V ratio. DONE FOR YOU Like the name of my podcast (Passive Real Estate Investing), turnkey investment properties are as close to a “done for you” invest- ment as you can get, short of a Wall Street REIT, making them a passive real estate investment. Most of your work is done on the
front-end identifying markets and properties you want to invest in, along with the financing, inspection, and finally signing of closing documents to complete your purchase. After that things are basically on autopilot. This is not a complicated process and can certainly be done by your- self if you know what you’re doing. However, working with a reputable and knowledgeable nationwide pro- vider of turnkey rental properties will short-cut the process and help ensure your success. GREAT FOR BUSY PEOPLE! One of the greatest benefits of turnkey real estate investing is the time you save not having to search and find the right markets, the right neighborhoods, and the right proper- ties to renovate. Not to mention the time saved trying to assemble and vet the right team to accomplish it all. Turnkey property investing is not a new concept as it’s one that I have personally built a brand around for more than 15 years and has proven itself one investor after another. •
by Chimene Van Gundy
t isn't glamorous, and it's not met with intrigue or fervor at
of apartments continues, mobile home residents aren't likely to jump ship to another park that is newer and shinier. Their home is their home, and time has demonstrated that they tend to prefer to stay put. In comparison to other real estate investments, office, retail, hotel and industrial are not recession-proof. Offices and retail space are so de- pendent upon tenants and are seeing higher turnover based on the bene- fits of doing business online. Hotels come with fixed expenses that can't be diminished when occupancy drops for a season or a night. If you lose one tenant, it could destroy all profitability. In contrast to the alternatives, mobile homes and mobile home parks as an asset class are almost 100 percent recession-proof, with fixed costs kept very low and capital requirements being low. The tenant turnover is low, and the staffing requirements are minimal. This equates to consistency. Consistency is key to keeping yourself solvent in today's econom- ic climate. If you are looking for the right investment, and you are
willing to put in some effort, you can expect consistent returns when you invest in mobile home parks. Mobile homes are one of the most fail-safe methods of investing in the market and has and will contin- ue to have strong positive returns. Are you ready to get started? If so, contact us at https://mobilehome- millions.com for more information on mobile home park investments. The author consulted Forbes. com, “Should You Invest in Mobile Home Parks? Only If You Like Con- sistent Returns” by Brad Johnson, Dec 17, 2018. •
social gatherings. It sounds quite dull. However, if you saw the bank accounts of those involved, or watched them roll away in their luxury vehicles, you might be more compelled to find out just what these guys are doing. There are lots of investments that are risky. I've even heard you don't get rich playing it safe. I'm here to disagree. Mobile home investing is one of the safest gambles you can make and yields some of the most reliable returns in your portfolio. When you own a mobile home park, you own the land and rent the lots. Do you know the percentage of turnover? Compared to apartment owners who lose more than half their tenants, and have to find new ones regularly, only two percent of mobile homes leave the park yearly. Lastly, there is not a significant amount of competition in the market for mobile homes. Rent doesn't have to vary with new builds going in. This is because restrictions prevent mobile home parks from being built almost everywhere now. While construction
Chimene Van Gundy is the mother of five children, and she runs and manages five different companies. She is known as the "The Mobile Home Millionaire" and “Queen of Mobile Homes” because
Marco Santarelli is the founder and president of Norada Real Estate Invest- ments, a national real estate invest- ment firm offering turnkey investment
she has fixed, flipped, and wholesaled more than 400 units to date in four years and in 11 states. She currently owns 20 mobile home parks and has tak- en her business international by rehabbing mobile homes in Ireland, where they are called “Holiday homes.” Chimene is on a mission to preserve the “last frontier of affordable housing for the U.S.” and is currently teaching others how to use these “little boxes that spit out cash” to change their lives and live the life of their dreams through her mobile home millions platform.
property in growth markets nationwide. He is also a published author and host of "The Passive Real Estate Investing Show," a podcast for real estate investors interested in building substantial passive income and creating long-termwealth. Learn more at NoradaRealEstate.com.
40 | think realty magazine :: july / august 2019
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