of the current median sales price is where we see the most activity and is where to buy single-family houses for the shortest hold times and maximum profits. • > Continued from :: PG 38 The Wholesaling Story though, don't despair. Keep wholesaling for extra money part time and develop your business, and you may find yourself able to work around whatever obstacles stand between you and your goal of full-time wholesaling. Also, never forget that there is an en- tire world of real estate investing beyond wholesaling, and that real money lies in becoming an investor in your own right. • RCA CPPI—suggest that some investors and lenders are pursu- ing higher-risk strategies in the high-end market. Higher asset prices and associated lower re- turns are leading some to hope that more economic growth will prop up values. Large-cap prices seem to have increased, too, in secondary and tertiary markets, even though property fundamentals in those non-ma- jor markets have not recovered nearly as much, relative to major markets. Small-cap CRE investors face similar opportunities and risks in local markets, but the lower prices at which many of these assets still trade may offset the risk of any overly ambitious cap- ital growth expectations. • > Continued from :: PG 46 Where the Action Is
> Continued from :: PG 24 Playing toWin withMobile Homes that meant creating a busi- ness out of investing in mo- bile homes on leased land. So how do you get started in a mobile home investing business? First, ask yourself some core questions. It is important to know whether you are able to make hard decisions, take chances, stretch yourself and what you already know, and get dirty by doing some work yourself. If you believe you have this entrepreneurial spirit but not a millionaire budget, you may want to consider a mobile home investing business, too. Let me give you a head start on NO. 1 Is there a future investment opportunity in your area? Identify where the mobile homes are located in your area of interest, whether you’re investing locally or in another region or state. Once you find these gems in disguise, are you willing to invest in that community? Do you feel comfortable in that area? Does the community seem well-maintained? Can you look past the stigmas and stereotypes of mobile homes and mobile home parks? NO. 2 NO. 3 some other things you also need to consider. See how you measure up to the follow- ing questions:
> Continued from :: PG 30 The Customer is Always Right There
Can you invest in that
NO. 4
community? Are there obstacles to buying mobile homes there (such as cost of entry, desirability of communi- ty, DOM of mobile homes and willingness of the landowner to let you invest there)? How much money do you have with which to invest in mobile homes? Does the local market offer opportunities at that level? Can you afford to risk that amount in an investment? If not, do you have other sources you can tap into for investment funds? Did you feel comfort- able after that barrage of questions? Don’t be over- whelmed. Just realize that once you do the appro- priate amount of due diligence, you will be on your way to making your first deal. Then, you will be on your way to understanding how to make a nice profit and income from mobile home investing. It is a safe playground if you don’t have ample dispos- able money but are seeking a nice return and limited competition. If you don’t have the time or energy to invest in starting a business in mobile home investing, you might be better suited to finding some- one who is already investing in mobile homes and with whom you can form a joint venture. Instead of giving up on the opportunity, consider being an investor in mobile home investment properties. There are many ways to play the mobile home investing game. Play to win. • NO. 5
al, at a minimum • Include a financial penalty for missing the project deadline When two parties engage in a formal business rela- tionship, the potential for risk is significant. Real estate investors can avoid such misfortune by defining the terms of the transaction and the relationship, in advance, to ensure mutual success. • write down that price range. Next, determine the median sales price for the market you are researching. Let’s say the median sales price in the market you are researching is $175,000. Write that down. (The website www.zillow.com/home-values is a good source for finding median sales prices.) Take the average sales price of the group where the most units sold. For example, if the group where the most units sold is $125,000 to $150,000, then the average would be $137,500. Now, divide the average by the median sales price. In the example we are using, $137,500 divided by $175,000 equals 78 percent. So the bull’s-eye is 78 percent of the median sales price. In almost every stable market across the country, you will find that between 70 percent and 90 percent > Continued from :: PG 35 Finding the Bull's-Eye
136 | think realty magazine | may :: june 2016
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