Secret Reasons Selling Mobile Lots Is Better Than Renting

Commercial Investing CenterIn the interest of receiving the maximum profit available while expending as little effort as possible, consider that selling mobile home lots might be preferable to renting them out. The trick to this is to figure out how to “sell” all your lots while still retaining the power to continue earning money on your investment. Sound contradictory? Not really.

The secret to a successful mobile home park lot selling program is to make sure your “sale” is actually a long term lease contract. By long term, we mean 50 or more years, which is normally a long enough period of time to satisfy potential buyers as well as banks from which they will seek financing. A good selling point, especially in states like Florida, is to remind the buyer of the Homestead Exemption. This excellent tax break allows a land owner to not pay taxes on the first $25,000 in assessed value.

But what’s the benefit of selling mobile home lots for you, the investor? In the first place, your expenses will drop sharply. Lots owned by someone else are no longer in need of maintenance services because they’ll be taking care of it themselves. Once most of the lots are sold, there’s little reason to have an on-site manager. And don’t forget that expenses for advertising will also eventually go by the wayside.

Even with every single lot sold, your park will still appreciate in value as the years go by, meaning it will always be an attractive investment commodity, maybe even more so, once all the lots are bought. And there is always money to be made in amenities. Developing common areas by adding a landromat, vending machines and video rentals (maybe even a local convenience store) could add considerably to the bottom line. Get creative here and work on building a community where universal demand items can be bought without ever leaving the premises. If we’ve observed one thing about human nature, it’s that we don’t like to drive far for stuff like soft drinks and laundry detergent.

Make it easy for residents to buy these things without having to get in the car and your bank deposits will reap the benefit. See, selling mobile home lots can be better than renting them out?

The Commercial Investing Center Team

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