Asset Classes That Reveal The Most Stability

Have you already succeeded in single-family home investing? Would you like to improve and progress with more property? Here are a few ideas to delve into bulk investing and succeed:

  • Mobile Home Parks
  • Apartment Buildings
  • Self Storage

But just how does a novice investors jump into the bigger bowl of fish? Here are some more ideas:

Partnering with like-minded investors
Saving current cash flow, and securing a down payment
Qualifying with a lender through exceptional credit
Using the equity on already owned single-family homes

In order to get approved for a loan, investors need to get all financial affairs in order, both on the personal and business side. Personal income is much less of a requirement on multi-family homes than other properties like gas stations, retail spaces, churches and other forms of commercial property.

Also, commercial properties that involve residencies are usually more marketable to investors for many reasons. These include:

  1. Properties that are grouped in the same place are easier to manage, because it’d be on the same insurance, the same group of tenants, and the same management system. Having all the units or homes in the same place reduces the need for multiple mortgages and multiple headaches.
  2. Residential properties are less institutionalized, with fewer zoning restrictions to get the property rented.
  3. The pricing strategy for office spaces for example, are prepared per square foot, with complex formulas. A home just needs a set monthly rental.

Jason Hartman’s Tips for Wealthy Investing

  • Be proactive about maintenance, instead of deferring this expense
  • It’s better to fix bad properties in a good location than the opposite way around
  • Add value to the property with simple amenities that will increase rent, and/or decrease expenses. Value added amenities include showerheads, reducing water waste, etc.
  • Other ideas include arranging with utility companies to score better deals, and then reselling to tenants at a minimum or lower than average rate.
  • Get a mentor or commercial investor who has operated and profited from commercial investing before and for a long period of time.

Commercial properties such as retail spaces are suffering from low vacancies for several reasons. The internet for instance, has made it easier to conduct business without a storefront. This in turn saves business owners the expense of rent.

On the other hand everyone needs a place to live – and will always do. As such, commercial properties or asset classes that involve housing individuals and their families are usually the most profitable.

The Commercial Investing Center Team


Opportunities to Exploit Within Commercial Investing

Do you think that an office space will rake in the same amount of revenue as a residential property? Think again. The bulk of real estate profits are stored inside housing.

Given the keys to this investment, homeowners, whether it’s for mobile parks or plexes, are building a wealthy future on solid grounds.

Over the course of the last couple years, the dynamics of real estate have been shifting fast. The rental rates for office leases have dropped to an all time low, while housing rentals have hit a high note for all investors out there to hear.

Due to the soaring demand for affordable housing, there’s an even bigger order for mobile homes – since these provide some of the lowest places to live.

Several factors have affected this interest in affordable housing. Regardless of what’s cycling in the economy, mobile homes and mobile home parks are:

  • Safe
  • Affordable
  • Convenient

The Good News for Investors:

· Mobile homes have endured commendably over the housing boom and bust.

· It’s still feasible to get a loan from a bank, if you can assemble all the required paperwork required by lenders.

· Over the course of the last few years, renovations have made mobile homes more desirable for millions of Americans.

· Due to zoning restrictions within many cities, mobile parks are far and few between. As a result, mobile home parks usually run at full occupancy.

More Lucrative Commercial Properties:

Other properties that investors can find opportunities for income include self-storage facilities.

These offer:

  1. Very low maintenance
  2. High yields
  3. High demand
  4. A one-man show to operate

Challenges and Suggestions:

As time whiles away, there are certainly expenses to be anticipated of properties. Mainly speaking – maintenance.

For instance, over a 10-15 time-frame, there will likely be some expensive renovations to execute. By this time, investors should have enough profits to counter the expense. Investors can also anticipate tax write offs for these expenses during the tax season.

Prices for rent can be periodically incremented to get the maximum return on investment.

These income properties won’t need mortgage payments perpetually either. Jason Hartman knows this firsthand. After the 15-30 year term has lapsed, all rental payments are yours to keep. This isn’t a bad retirement plan at all. Warren Buffet also knows this firsthand.

Check out other mobile home park investment advice from the experts here. (Top image: Flickr |La Citta Vita)

The Commercial Investing Center Team


Residential – the Best Kind of Commercial Real Estate

Commercial real estate is a giant umbrella of sorts. What usually comes to mind when speaking about this subject are offices, retail spaces, airports or church buildings. Along the lines of commercial investments though, are homes that carry multiple units, whether this consists of two, three, four or 100 homes – within the home.

In fact, these types of investments are the best kinds for today’s real estate climate. Here’s why:

· The population is ever increasing, with no signs of slowing down.

· The cycles of rent will continue at an unstoppable pace, as older generations buy new homes, and younger generations start out with rent.

· Multiple generation homes are increasing too, and these multiplexes offer a comfortable solution for living within the same place.

· Fortune 1000 companies are recommending employees to work out of their homes. As a result, many office spaces have closed up shop and are manning operations virtually.

· Technology also eliminates the costly overheads of running a brick and mortar store.

Based on these reasons, there’s been a decline in commercial property leases. There are no statistics needed to disclose this. Just drive or walk along any city in America, and the situation is evident with commercial lease signs plastered across windows. Meanwhile, the same cannot be said about residential properties.

Property owners for housing still have a clear advantage with excess demand. Renters are required to undergo rigorous screening, prove their income, background, and the likes.

Investors should therefore look closely at commercial properties such as mobile home parks, single family homes or multi-family homes versus retail and office.

Warren Buffet has done this successfully for years. He saw opportunities in mobile home parks, where others saw cynicism.

Bottom line: Everyone needs a place to stay.

In addition, Jason Hartman advises readers about the profitability of self storage units. With the unstable levels of unemployment seen across the nation, people are moving freely to where the jobs are, or where there’s support from family and friends.

Again, measure the scale by the amount of U-haul trucks you see lining the streets on busy days. No statistics are needed.

Bottom line: Everyone needs a place to store possessions, while transitioning from place to place.

Instead of delving into the uncertainty of office spaces, Jason Hartman recommends residential units in plexes or mobile parks, as well as storage. (Top image: Flickr |Omaha Homes for Sale)

The Commercial Investing Center Team


3 Reasons to Invest in Mobile Home Parks

Mobile home parks are a hidden investment opportunity compared to other commercial real estate. This is because it isn’t as widely advertised.

Let’s examine three reasons to invest in mobile home parks from the long-term cash flow angle:

1.Low Rent – Americans have downgraded their homes and lifestyles due to the recession and other factors. The low rents in mobile home parks make it appealing to renters. How does low rent boost profit margins? By calculating the total revenue of all the homes within the park, as well as the land space, the figures add up to a significant amount. Experts agree that pricing rent low contributes to sustained high-demand.

2.Low Supply and High Demand – There are over 50,000 mobile home parks within the United States. In addition, construction of new mobile homes are somewhat at a standstill. This means that old and available supplies are met with high demand.

3.Success Rates – One of the best ways to become financially successful is to gain the wisdom of those who have already accomplished the feat. Warren Buffet, unlike Donald Trump, is reportedly the biggest investor in mobile home parks, whereas Donald Trump invests in luxury real estate. Which market do you think is easier to tap into? Another Fortune 500 maven, Sam Zell, made his riches through mobile home park investments. Average men and women also have the opportunity to succeed in this market through due diligence research.

Despite these appealing factors, investors will need to exercise business savvy to get a good return on investment.

Jason Hartman advises:

  • Buying in a Central Location – This key tip is the difference between having a large vacancy or full occupancy.
  • Keeping Prices Reasonable – A low-price strategy contributes to long-term clients. Consider this: What would make a consumer remain in a mobile home park if they were able to relocate to a bigger home for the same price? The key to keeping mobile home park renters is low rates.
  • Cutting Expenses – Despite keeping rental prices low to secure a low-income target market of renters, mobile home park owners should additionally seek ways to reduce expenses on their end. A good example is researching the most affordable utility companies in the area, verses sticking with the most popular service provider.
  • Securing Insurance – In the event of a natural disaster, make sure you’re covered. In the same breath, ensure that the location is one that isn’t prone to hurricanes or a popular route for natural disasters.
  • Cooking Up An Exit Strategy – For mobile park owners who are not satisfied with the investment, the alternative would be to sell for a tasty profit.

Ultimately, lucrative mobile home park investing boils down to accessibility for the target market in terms of low price and convenience to the metropolis. (Top image: Flickr | KOMUnews)

The Commercial Investing Center Team


CI 33 – Getting Rid Of A Bad Property and Lawyers Are Liars

Jason explores some ways to get out of a bad property then he interviews author/attorney Mark Kohler about his book “Lawyers Are Liars: The Truth About Protecting Our Assets.” Mark is an attorney, CPA and entrepreneur who has owned numerous businesses since high school, through college and even as a professional. Mark’s principal career has been as a partner in the law firm Kyler, Kohler, Ostermiller, & Sorensen, LLP. He specializes in the areas of business, estate and tax planning. Mark owns several commercial real estate projects and loves the people, transactions, and everything to do with real estate. You will be pleasantly surprised at how exciting and interesting a discussion regarding tax and legal planning can be. Jason and Mark will distill complex legal and tax strategies to common layperson terms, adding interesting stories and anecdotes.

Some lawyers, and others who are not lawyers, use fear tactics to sell the unsuspecting public various asset protection structures or strategies that are outright lies. Until now, no other professional has been willing to call out the frauds and cheats in this powerful industry where self-professed experts and do-it-yourself hacks wreak havoc on the innocent just wanting to protect their assets. This episode we will expose the liars. Undoubtedly, this book will become a desktop resource for not only the average middle income American wanting to protect his or her assets, but attorneys, estate planners and financial professionals guiding their clients through this complex area of the law. Learn the best kept secrets in asset protection planning, learn the truth about Nevada corporations, off-shore planning, land trusts and all of the so called silver bullet strategies! Mark and many other great speakers will be presenting at “The Masters Weekend: A Gathering of Experts”.

CIS 31 – An Action Plan for Mobile Home Wealth

Join Jason Hartman as he interviews Stu Silver, The Mobile Home Man, regarding his mobile home and mobile home park investing strategies.  Learn the do’s and don’ts about investing, how to protect yourself from being taken advantage of, to know when you’re getting a good deal, and even how to inspect your mobile home to make sure you don’t find any unwanted surprises.  Stu says there are over eight million mobile home parks in the United States and you can get a good deal on a mobile home, or even possibly get one for free.  Stu’s first rule of investing is, “Protect yourself at all times!”  For more details, listen at www.commercialinvestingcenter.com.

Stu Silver has been investing in real estate for 30 years and has specialized in mobile homes for the last 18 years.  He is known as The Mobile Home Man or Uncle Zally, and has authored three books (under the penname Zalman Velvel), Mobile Home Wealth, Mobile Home Wealth Part 2, and How to Get a Good Deal on a Mobile Home or Even Get One For Free!. He also features his Mobile Home Wealth Systems on CD’s and does live Mobile Home and Real Estate Training.  Additionally, Stu writes a mobile home blog called “Kangaroo Kronicles.”  He holds the CCIM designation and is a licensed real estate broker, mortgage broker, auctioneer, mobile home dealer, and former real estate appraiser.  He has trained more than 5,000 people in real estate investing in his 3-day bootcamps and live on the internet.

CI 30 – “The Longevity Project” with Howard S Friedman

Do you want to know the secrets of living longer?  Join Jason Hartman on this episode of Holistic Survival as he interviews Leslie Martin, Ph.D. and Howard Friedman, Ph.D., authors of “The Longevity Project.”  Find out who lives longest and why.  The answers may surprise you! Visit: http://CommercialInvestingCenter.com.

HOWARD S. FRIEDMAN is Distinguished Professor at the University of California in Riverside. LESLIE R. MARTIN is Professor of Psychology at La Sierra University, and Research Psychologist at UC Riverside. They met when Leslie began graduate study in 1991 at UC Riverside, where she became a key and continuing associate in Howard’s then-launching lifespan longevity studies. Here are some facts about their work, their interests, and their qualifications.

Their scientific research on health and longevity has been published in over 150 influential and often-cited scientific articles and chapters in leading books and scientific journals. In addition, Professor Friedman has authored or edited ten academic books about health and one prior trade book, The Self-Healing Personality. His textbook on Personality is now in its 5th edition. He served as Editor-in-chief of the Encyclopedia of Mental Health, which received recognition as a “Best Reference Source of 1998” from Library Journal. His edited book, Foundations of Health Psychology was named a CHOICE Magazine Outstanding Academic Title. Professor Martin’s books include Health Behavior Change And Treatment Adherence, and a textbook in health psychology.  Leslie and Howard have spent 20 years collaborating on the research described in The Longevity Project.  The study tracks the loves and lives of 1,500 Americans from childhood to death.

Putting the research findings into practice, Leslie is passionate about adventure travel that stretches her past achievements. She climbed Kilimanjaro (to the summit), and she recently completed the Marathon des Sables. This ultra-marathon is a 151-mile self-sustaining endurance race across the Moroccan Sahara, in which runners must carry all food and clothing for the entire marathon (in their backpacks). (See picture.) Always interested in a challenge, in her early 30’s Leslie became a champion for her age group in high-jumping. When she is not in the lab or writing about health, she is planning which mountains she will next climb.
Less extreme in his physical adventures, Howard prefers swimming, hiking, and cultural travel. In addition to his research and teaching, he writes every day, including a “My Turn” column published in Newsweek, and a new blog.

Dr. Friedman is the recipient of two major career awards for his health psychology research. In 1999, he received the Outstanding Contributions to Health Psychology Award from the American Psychological Association; and in 2008, he was honored with the James McKeen Cattell Fellow Award from the Association for Psychological Science (APS), an international award and the most prestigious in his field of applied research. See: http://www.psychologicalscience.org/awards/cattell/citations/friedman.cfm

A graduate of Yale University (magna cum laude with Honors in psychology), Dr. Friedman was awarded a National Science Foundation graduate fellowship for his doctoral study at Harvard University. He is a thrice-elected Fellow of the American Psychological Association (in Personality and Social Psychology, Health Psychology, and in Media Psychology) and an elected Fellow of the American Association for the Advancement of Science (AAAS) and the Society of Behavioral Medicine.

Dr. Martin graduated summa cum laude from the California State University and received her Ph.D. from the University of California in Riverside. She has received the Distinguished Researcher Award, and the Anderson Award for Excellence in Teaching, both at La Sierra University. Former department chair, Dr. Martin has also received awards for outstanding advising and for service learning. In addition to her research on pathways to health and longevity, she studies physician-patient communication and its relationship to medical outcomes and has lectured widely on these topics.

CI 29 – Mobile Home Millions

Jason welcomes his friend and mobile home investing guru, Corey, to this episode of The Commercial Investing Show. Visit: http://CommercialInvestingCenter.com. Adding another entry to our favorite success stories, Corey started his real estate investing career in 1993 by selling his jet ski to raise enough money for a down payment on his first deal. Since then, he went on to build a sizable portfolio of real estate, including apartments, single family homes, self-storage facilities and mobile home parks. Over the past several years he has focused primarily on mobile home parks and self-storage facilities. Corey regularly shares his expert knowledge and enthusiasm for the industry at real estate clubs, national seminars and universities about investing in his favorite avenues of real estate investing: mobile homes, mobile home parks and self-storage units.