Take a look at our newsletter this month.
Apr/May/Jun 2019
INFORMER MySunriseCommunity.com I 727-216-7903
SELLER FINANCING
Part 2: Capital Gains Mitigation Strategies for Park Owners
If you own a mobile home park, chances are capital gains tax weighs heavily on your retirement plans. You aren’t alone — many park owners I’ve spoken with feel trapped by this hefty tax on the only money they have to live on. So, continuing our mission to educate people on solutions to the capital gains tax problem, I wanted to share my expertise in a niche real estate deal that fits park owner’s needs perfectly: owner financing. Sometimes called seller financing, owner financing mitigates capital gains tax while converting
A good analogy would be that you’re leasing your mobile home park. You don’t have to worry about the management and upkeep while receiving “rent” from the buyer until they’ve fully paid off your loan plus interest. At that point the property officially changes hands. But how is this better than a regular real estate sale? Why not let the buyer go to a mortgage lender and receive a lump sum? It all comes back to capital gains. Receiving one lump sum payment can hit you with a hefty tax bill — the sale of a $3 million-dollar property may only net you $1.5 million. Owner financed deals, on the other hand, mitigate this tax rate by spreading out the money you receive over a longer period of time. This strategy also carries with it several perks for those looking to retire.
Beyond the tax savings and steady income stream, many property owners value owner financed real estate deals for their speed. You don’t have to wait for the buyer to go through the lengthy mortgage process. Furthermore, traditional mortgage lenders normally demand extensive repair work be done on a property before they sign off on a deal. By cutting them out of the process, you are more likely to be able to sell “as-is,” saving yourself time and money.
the equity in your property to a passive income stream you can enjoy for the rest of your life. This allows a seller to turn over the duties of managing their property, and simply enjoy retirement while maintaining a sustainable cash flow. How is this possible? It has to do with the structure of this unique real estate agreement.
Of course, no deal is without risks. By extending credit yourself, there is always the chance that a buyer may default. However, if worst comes to worst and the buyer walks, you still keep the money they’ve already paid and the deed to the property. But with proper credit screenings, you can find a reliable buyer you can trust to make timely payments. While owner financing isn’t as common in the wider world of real estate, its unique strengths match the needs of retiring property owners perfectly. You don’t have to feel trapped by your own property. At Sunrise Communities, we’ve made dozens of these deals, helping park owners enjoy the retirement they’ve earned.
As the name suggests, owner financing refers to an agreement where an owner looking to sell an asset finances the buyer. This is done by extending the buyer a line of credit equal to the value of the asset, minus an agreed upon down payment. Essentially the owner cuts out the middleman by playing the part of the buyer’s mortgage lender. The two parties sign a promissory note containing the terms of the credit extension, the down payment the buyer will make, and how much interest will be added to these payments.
Cheers,
–Kevin Bupp
727-216-7903 • 1
Published by The Newsletter Pro • www.TheNewsletterPro.com
Leaving a Legacy of Giving Your estate plan is far more than just a set of documents. It’s a declaration of what you find most important and a road map of the legacy you’d like to leave. Not only does a proper estate plan ensure that your loved ones will be taken care of when you’re gone, but it also allows you to make an impact on the wider world through charitable giving. Many avenues exist for making planned gifts to nonprofits, but here are some of the basics on how to make giving a part of your plan. town, you may want to gift it to a preservation society so that it stays properly maintained. Decide How to Give There are different ways to Making Charity a Part of Your Estate Plan
structure a charitable bequest, giving you the flexibility to make sure your estate planning goals are met. If you have a set sum of money or a particular asset you wish to leave to a charity, you can make a specific bequest in your will. However, if you want to ensure your loved one’s needs are met before giving a portion of your estate to charity, you can make what’s known as a residuary gift. With a residuary gift, once debts have been paid off and your other beneficiaries have received their bequests, a specified percentage of your remaining estate will go to a charity of your choice. Other Avenues Depending on your income level and the kinds of assets in your estate, more complex means of making a planned gift may be available to you. Talk to your estate planner to see if creating a charitable trust or establishing a foundation is the right move for you.
There are many things park owners can do to directly improve the value of their property — simple landscaping and signage can give old communities a much-needed face-lift. But sometimes change needs to go beyond the cosmetic. By playing an active, supportive role in your community, you can improve the overall quality of life for your tenants and attract new renters with ease. Here are just a few ways you can lay a strong communal foundation for your park and beyond. Lines of Communication Letting tenants know their voice will be heard when they have concerns is a real win-win. Whether you make yourself available on-site certain days of the week, or use digital tools, like Facebook, to field questions and concerns, you can help renters feel more connected with you and the place they call home. Not only does this lead to more issues being reported early (before they can become costly problems), but it also makes tenants more conscientious. You aren’t some distant landlord; you’re a part of their community whose rules and regulations should be respected. Events Beyond fostering connections between yourself and your tenants, you should also help them feel more connected to one another. Bi-monthly Name a Charity in Your Will The most basic way to give to a charity is by naming it in your will. Simply name the charitable organization you wish to support among your beneficiaries, and specify the assets you wish to give. If estate or income taxes are a concern, ensure your chosen organization is a 501(c)(3) nonprofit. These are the charities the IRS deems tax-exempt. Match the Assets to the Charity Almost all charities will accept cash bequests, though it is always a good idea to notify an organization about what you are planning to give. Smaller philanthropies may not accept complex assets, such as stocks or real estate. On the other hand, some charities may specialize in specific assets. For example, if your home is considered a historic site within your Building Connections Roads to Great Communities
events like potlucks or community meetings can
take a park from being a disconnected lot full of strangers to a supportive neighborhood. Prospective renters
are sure to appreciate a friendly, welcoming community when considering their options.
Giving Locally Philanthropy is noble in all its forms, but consider donating to causes that can make a difference to your tenants and even the community outside your park. For example, giving resources to the local school district is a great way to directly support families in the area. Live in a region at risk of major weather events like floods or hurricanes? Consider donating canned food, sandbags, and other supplies to renters in need. Building a happy, healthy park can take time. But by working with property managers to set a positive example and showing renters you care, you can expect to be treated in kind. Furthermore, you’ll likely find it easier to attract new tenants who value playing a part in a supportive community.
2 • WWW.MYSUNRISECOMMUNITY.COM
Published by The Newsletter Pro • www.TheNewsletterPro.com
The World’s Best Exercise
Not all exercises are created equal. In fact, there is one form of exercise that is better than many others: walking. Harvard Medical School took a look at various exercises and concluded that walking is up there with swimming and tai chi in terms of health benefits. Regular walking can help maintain good cholesterol and blood pressure levels and keep your bones strong and healthy. One study showed that 40 minutes of walking every day helped people reduce blood pressure from hypertension to prehypertension, and then eventually to normal over several months. Walking can even keep many different kinds of diseases at bay, such as diabetes and heart disease. In addition to these physical benefits, walking daily can improve your mood and overall mental health. As simple and straightforward as walking is, it can be difficult for many people to find the time. Most experts agree that you need 30–60 minutes of physical activity per day, but the good news is that you can split those minutes up throughout your day. For example, you can take a brisk 20-minute walk in the morning before work, followed by another one at lunch and one more after dinner. Those 60 minutes also don’t have to be strenuous; they just need to happen. Hunting for Renters Too many park owners make the mistake of simply relying on word of mouth to fill vacant homes and lots. But if you really want to crank up the interest level, you need to leverage the power of the web. Here are some ideas. Share All the Details How is your community different than the rest? What amenities do you offer? Are pets allowed? By including the perks of your park and the surrounding area, you have a far better chance of winning over renters from the competition. You need to sell the sizzle. If you're looking to lease an empty lot, the same rules apply. Tell mobile home owners about the community they’ll be moving into, not just the patch of land itself. Additionally, be sure to list any restrictions you may have on home models you allow on your property. Offering move-in specials might also create some additional interest for folks who already own their own mobile. Use NewMediums People don’t read the newspaper like they used to. To reach potential renters in today's market, you need to turn to the web rather than rely on classified ads. You can use many popular real estate websites, even those built specifically for MHPs, like MHBay and MHVillage. But, hands down, you will get the most bang for your buck by leveraging the power of Facebook’s Marketplace and Craigslist. We drive a majority of our sales and rental activity with Facebook and Craigslist.
However, the more time you invest in walking, the more you will get out of it. If you slowly increase your distance and speed, you’ll end up burning more calories and strengthening your legs over time. The great thing about walking is that it’s not particularly taxing on the knees, and you can move at your own pace. It doesn’t get any better than that! To get the most out of walking, schedule your walks for after mealtimes, especially the ones that come later in the day, like lunch and dinner. It’s a great way to aid digestion and burn calories — which can’t hurt your waistline!
4 TIPS TO FILL EMPTY HOMES AND LOTS
Offline Solutions Of course, the internet shouldn’t be your only avenue to reach people. Providing an incentivized referral program can get your current tenants involved in reaching out to their friends and family for you. Word-of-mouth advertising is incredibly
powerful — with the right incentives, you can attract tenants your current residents already know and trust. If you’re selling a lot, another great offline tactic is to ask local mobile home dealers to distribute fliers. You’ll be top of mind when new homeowners look for a place to settle down. Market Yourself These days, potential tenants can do a lot of research on landlords, making it important for you to have a stellar resume. Becoming involved in local organizations, like the chamber of commerce, can help boost your reputation as a responsible, involved owner. Including testimonials from current or former tenants can also solidify your positive reputation.
727-216-7903 • 5
Published by The Newsletter Pro • www.TheNewsletterPro.com
Growing Fresh Air
A Look at the Healthiest Building in New Delhi
While it’s great not having your nose to the grindstone nine-to-five, leaving work also means leaving behind a lot of daily activities and social interaction. Eventually, having nothing but free time goes from relaxing to isolating, and that can be dangerous to your physical and mental health. When planning for retirement, it’s important to plan ways to stay active and engaged. Joining a new organization or club can be a huge benefit. Here are a few suggestions to help you stay active in retirement. Enjoy Your Hobbies Did you spend years dreaming about hitting the golf course every day? While it can be nice to spend some time alone on the green, consider joining a golfers club if you want to mix things up. Enjoy scrapbooking? Check for get-togethers at the craft shop. If you’ve always wanted to try pottery, look for a class at the rec center. It’s easy to find groups dedicated to just about any activity. Get Involved Think of the causes you’re passionate about and get involved! Animal shelters and soup kitchens are always looking for volunteer help. Book lovers of all ages can join their local Friends of Libraries chapter. To Imagine you are told you must leave the city you work and live in because it’s killing you. Hard to fathom, isn’t it? But this actually happened to Kamal Meattle, a researcher, activist, and New Delhi native, who was told by doctors that the city’s air quality was a threat to his health. His lung capacity had gone down 70%, and doctors suggested he leave New Delhi. Instead, Meattle chose to stay and find an innovative solution to his health problems and the city’s air quality crisis. New Delhi is no stranger to poor air quality. Sometimes pollution gets so bad it warrants a city-wide warning for kids to stay inside. Meattle, who studied engineering at MIT, turned to research by NASA and other organizations to address the issue. During his research, Meattle found that there are three common house plants that excel at removing dangerous chemical compounds, like formaldehyde and carbon monoxide, from the air: the areca palm, the snake plant (or mother-in-law’s tongue), and the money plant. Using these plants, Meattle created an indoor plant-based air filtering system that allows his building, the Paharpur Business Center (PBC), to cultivate all the fresh air it needs. Air entering the building is cleaned by a scrubber, then is filtered through the building’s extensive greenhouse The Best Way to Stay Active in Retirement Clubs: Not Just for High School
to remove chemicals and bacteria. The greenhouse, and the rest of the building, is filled with areca palms, snake plants, and money plants. Today, the PBC is the healthiest building in New Delhi. Twenty years after Meattle rolled out his plant-based filter system, the results speak for themselves. Employee productivity has gone up 20%. Respiratory problems have gone down by 34%, headaches by 24%, and lung impairment by 12%, among other health benefits. Just stepping into Paharpur boosts your health: Blood oxygen levels go up by 1% after 10 hours in the PBC. Meattle has remained in New Delhi and is set on helping other Indian businesses replicate his plant-based system so they can grow their own fresh air. As he says of his decision to stay, “Either you are overwhelmed by the fact that there are so many problems and so many people, or you find solutions to help in any way you can.”
make a difference through politics, help with fundraisers or join an active campaign. If you want to stay closer to home, check out your local homeowners association. There are plenty of ways to engage with like- minded people while making a difference. Try Something New Don’t know where to start when looking for a group to join? Start online! Try searching “groups for retirees” and see what comes up. You might discover a travel group and start planning your trip to Asia. Or maybe you’ll have more fun mentoring young people in your professional field. Don’t be afraid to spend your retirement doing something new! There’s nothing wrong with enjoying your alone time, but don’t let your alone time turn into a lonely retirement. Joining a group can help you broaden your social circle, stay active, and maybe even learn something new about yourself.
4 • WWW.MYSUNRISECOMMUNITY.COM
Published by The Newsletter Pro • www.TheNewsletterPro.com
We Purchase Mobile Home Communities
Nationwide Quick and Confidential Closing References Available Upon Request
Ask About our Referral Program 727-216-7903 MySunriseCommunity.com
Pitching In
The best mobile home parks are kept tidy and have a great sense of community. They defy the stigma surrounding “trailer parks” with well maintained homes and public spaces, as well as neighbors who are on a first name basis. The key to fostering these clean, friendly parks is to stage community cleanups. The Perks of Cleanliness Setting aside a day to get the community together and improve the park as a whole has many direct and indirect benefits. Beyond sprucing up the property, tenants will enjoy an improved quality of life and take more pride in their surroundings. Furthermore, when residents feel a greater sense of responsibility for the space they share, it encourages them to take care of their own homes. But how do you pull off one of these cleanup days? Have a Goal Chances are, you won’t be able to make your park utterly spotless overnight. But by setting a specific, achievable goal, you can make great headway. Take stock of your property and find a key issue that needs addressing. Maybe dandelions have gotten out of control, and it’s time for a group weeding effort, or the basketball court
is in desperate need of new backboards and a fresh coat of paint. Finding and fixing a shared pain point for your residents is a great way to get volunteers onboard. Plan Ahead The success of this sort of event depends on plenty of preparation. After setting your goal, you should make sure you have ample supplies and equipment to complete the project and a list of roles for volunteers to fill. You should also start promoting the event early, giving residents plenty of reminders and ample opportunity to sign up. Reward Participation Those who do show up to lend a helping hand definitely deserve to celebrate. Planning an after-party is a great way to encourage participation and grow your park’s sense of community. A simple barbecue and refreshments can go a long way in the summertime! By taking this first step to spearhead positive change in your park, you can have happier residents and a great looking property. You’ll be amazed at the difference you can make.
727-216-7903 • 3
Published by The Newsletter Pro • www.TheNewsletterPro.com
200 9th Ave. N., Suite 220 Safety Harbor, FL 34695 727-216-7903 MySunriseCommunity.com
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
INSIDE THIS ISSUE
P1 The Value of Seller Financing
P2 Making Charity a Part of Your Estate Plan
Does Your Park Have a Sense of Community?
P3 How to Make Community Cleanups a Success
P4 The Healthiest Building in New Delhi
Which Club Is Right for You?
P5 What Is the World’s Best Exercise?
4 Tips to Fill Vacant Homes and Lots
P6 How to Travel Sustainably
Vacations can come with great expense, and not just for your bank account. According to a 2018 study published in Nature Climate Change, travel accounts for 8% of global greenhouse gas emissions. Cut through the greenwashing and do your part to lessen these emissions by traveling sustainably. Travel Green When possible, trains, hybrid buses, and carpooling are great alternatives to larger, more environmentally intrusive travel methods. Large cruise liners are detrimental to oceans, and airplanes emit large amounts of toxins into the air. However, you can cruise and fly with the earth in mind. Some cruise lines are working to reduce their impact by installing more eco-friendly lighting and materials, and flight experts recommend using “green” airports, choosing fuel-efficient airlines, staying longer, and traveling less. If anything, it’s an excuse to extend your European vacation! Stay Green Where you stay impacts the environment as much as how you get there. Hotels use copious amounts of water for bathing and laundry, and they struggle to reduce energy because guests leave their lights and televisions on. However, many luxury resorts, woodsy cabins, and Go Green Get Out There With These Eco-Tourism Tips
even entire countries have opted to make eco-tourism easier. If you’re looking for a region of the world committed to preserving nature, look no further than Iceland, Finland, and Sweden, which are ranked the three most environmentally friendly places in the world. Do Green Man-made attractions like the Egyptian pyramids and Machu Picchu are some of the world’s greatest wonders, but Earth itself is pretty breathtaking. Check out natural attractions while hiking or camping in preserved forests, or soak up all the Caribbean has to offer by snorkeling, scuba diving, sailing, kayaking, canoeing, and paddleboarding. When you’re mindful of your surroundings and remain unobtrusive, there are endless outdoor activities you can explore. Some locations even partner with environmentally conscious organizations you can donate to or volunteer with. Opt for a green vacation and know that while you relax, the earth is getting a little relief too.
6 • WWW.MYSUNRISECOMMUNITY.COM
Published by The Newsletter Pro • www.TheNewsletterPro.com
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6Made with FlippingBook flipbook maker