Is there an investment that can weather the economic catastrophe created by the CoronaVirus? The answer is a resounding YES. I’m Eloy Retana. I’ll tell you what it is RIGHT NOW in Episode #3 of The Savvy Mobile Home Park Investor Show.
It goes without saying that Covid-19 pandemic has affected our day-to-day lives in ways no one thought possible. People dying, Trillions in net worth lost, Limited movement. Millions losing their jobs and filing for unemployment benefits.
Lets not even get started on the thousands perhaps million of homes that are sure to go into foreclosure. One thing is for sure, the long term ramifications of the pandemic are incalculable. But There is another thing We know for sure… we WILL get through this. We will recover!
But some of us – and I hope I don’t sound arrogant here, as that’s not my intent – but some of us won’t just recover. Some of us are THRIVING.
How could that be?
Well, there certainly isn’t a lot of great news in stocks right now. There’s been some recovery since the initial slaughter in stocks when the Dow plunged over 35% in just a matter of days, but we’re nowhere near seeing our stock market balances reach their former heights… and who knows how much volatility we’ll see before that happens.
And though things have been better for owners of multi-family real estate than for stock market investors, there’s been some scary times there too. With broad-based declines in rent collection and talk of organized boycotts of rent payments and absolutely insane legislative proposals from people like Minnesota Congresswoman Ilhan Omar… well, times have been tough in the multi-family real estate sector, too.
Through all of this, there is a shining bright star. That star is Mobile Home Parks. Specifically Mobile Home Parks with tenant owned Mobile Homes.
Here’s one undeniably positive fact for you to consider: In the parks we operate, we collected 100% of our lot rents in April and May.That’s during the same time when the stock market was crashing, apartment complexes were suffering and the economy was tanking. We, on the other hand, collected 100% of the rents due to us in our Mobile Home Parks.
But how can that be? Seems almost too good to be true. But in reality, it makes perfect sense.
The reason is simple: People who own mobile homes pay, from their own pockets, to move their home into our mobile home parks. This is an expense of literally thousands of dollars… and it’s not an expense they can withstand over and over again. And they know if they don’t pay their lot rent, they’re going to have to immediately take a much, much bigger financial hit because the legal remedy for nonpayment of rent is that they have to move their property from our lot… and that’s just not an option. To them, the choice is: Do I pay $500 for my lot rent this month, or do I pay 10 times that number to move my home? It’s a simple, clear, obvious tradeoff that works to the benefit of the mobile home park owner.
That’s why, even in the middle of the pandemic, we collected 100% of all lot rents due to us.
Also, keep in mind that many tenant owners are already retired. Many are collecting social security checks. So not only is the risk of “unemployment’ not a risk for these people at all, but even better, it’s almost as if our lot rents are being paid directly by the government… and that’s a payment I never worry about receiving.
The Bottom line: from an investment perspective Mobile Home Parks are perfectly positioned to come out on the other side of this pandemic in a way that TOTALLY validates the central reason to invest in Mobile Home Parks to begin with: Cash flow that is both SUBSTANTIAL and HIGHLY RELIABLE.
Folks, that’s all I’ve got for you today, except for this: The most common question I get is this: Eloy, I’d love to get involved… can you connect me with some of these great mobile home park investments that you’re describing? And the answer is: Maybe! Most of our projects fill rather quickly, and all of them require a minimum of $50,000 to participate, so if YOU would like to be notified whenever we have exceptional opportunities just open up that web browser go to www.partnerwithapex.com that’s PARTNERWITHAPEX A-P-E-X.com to get on our to get on our VIP investor list right now and I’ll reach out to you when the next great opportunity comes along.
Until next time, I’m Eloy Retana REMINDING YOU That “The goal isn’t more money. The goal is, life on your terms”
Thank you for listening to The Savvy Mobile Home Park Investor Show. The “The Savvy Mobile Home Park Investor Show,” Is a production of Apex Communities LLC. This content is not intended to be advisory in nature and is not offered with the intention of providing LEGAL, TAX or other licensed professional guidance to any listener. Be sure to visit your own licensed professional advisors. This content is copyrighted by and is used under license from Apex Communities LLC