Archive for the ‘manufactured home communities’ Category

The End of a good thing

January 12, 2010

Today an investment fund that I manage is scheduled to recieve the last payment on an owner financed house that was sold a couple of years ago.    The deal was a good short term deal and it paid for the most part like clockwork!   I hate to see it go, but alas the end is the end or so it seems.

The house was an older manufactured home that was purchased for $7,000 and was sold  for $15,000 with a 9.24% interest rate.   The return on investment is what will be missed the most.   A whopping 43% per year!!   That is 43% with no leverage (debt to make payments on).   If only we could create a hundred of these!   Whoa!   Just imagine the return that can be generated by doing volume  in these types of investments.     Ok now I know you are saying yea yea yea but that does not exist!   Have you ever seen a Manufactured Home community (MHC) with 75 to 200 spaces?   With a MHC you could reasonable do the kind of volume that will allow you to retire very quickly!!!   With just a meager return on the land involved in the MHC you  get an opportunity to earn 40%+ annual returns on the homes that will occupy those lots.   Do you know what the downside is?   If not call me at 512-689-6742 and I will share it with you.

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