Must Read. How Accredited Investors Can Achieve High Yield Investments with Midwest Park Capital
Midwest Park Capital is a private real estate investment firm providing accredited investors access to high yield investment in the mobile home park vertical. Their fundamental strategy is to assemble a diversified portfolio of low risk, high cash flow mobile home park assets to deliver capital preservation, and significant income paired with equity growth.
What is unique about Midwest Park Capital?
The strategic approach is to raise capital from accredited investors to buy mobile home parks, which
the company identifies, buys, repositions and manages so they can pay back investors quarterly cash flow, tax depreciation, and equity in the most stable and lowest failure rate of all real estate. The demand for affordable homes in well-managed parks is high, according to Andrew Lenoie, of four peak capital. To meet this need, investors are better positioned to take advantage of the demand by identifying investment vehicles that facilitate the achievement of better yield and return on investment. At Midwest Park, is best positioned to provide an enabling investment opportunity while promising realistic but consistent income from this niche real estate portfolio. Below is our take on the potential in this vertical:
Lower cost per Unit
The cost of manufactured units is comparatively low than that of conventional family homes and apartments. Investors, therefore, can take advantage of the low cost to procure more units with their investment capital. The low cost also is attractive to a significant portion of would-be home owners. Investors can be confident on having a return on their investment in the mobile park homes. According to a research in Chicago alone, by Manufactured Homes, modular homes are averagely built at a base price of $50 per square foot, compared to approximately $215 per square foot for conventional site built homes. Midwest Park Capital believes there is immense value in investing in such ventures.
Lower risk investment.
There is misconception in investment circles that high yield investments go hand in hand with greater risks. However, looking at the mobile park home model, Jonathan Tuttle believes that investors are likely to have more stable investment returns and growth of their revenues. In particular, mobile park homes offer limited risks to the investors as home owners bear the cost of purchase and maintenance of their units. In this case, the investor can afford to invest in more units, and thereby affording a higher ROI. Midwest Park Capital ensures that the parks are well managed, and thus minimizing on tenant turnovers. Proper management guarantees returns on investment.
Less Competition
According to Forbes, mobile home park investing is the best kept secret in real estate investment industry. One of the main reasons that mobile home parks are a good option is because they are relatively new real estate vertical. Mainstream and traditional real estate investors and developers still pursue conventional models that are seem be more attractive on the face value. The conventional models are already flooded with new investors, home-owners, and institutional investors. Investors seems not have realized the full potential that this vertical offers. Jonathan has been in the real industry for over 30 years and is convinced that this is the way to go. His investors have seen nothing but positive returns on their investments.
More Stable investment
There are limited risks when it comes to real estate investment, and particularly mobile home park investments. Firstly real estate ventures are less volatile to economic fluctuations compared with other investment vehicles. Secondly, real estate tends to appreciate in value overtime. When it comes to mobile homes, there is lower tenant turnover owing to the high cost of moving their home out of the park. Additionally, in the event of moving, mobile home owners prefers to sell off their homes, and therefore, affording an opportunity for rental income.
Attractive returns
Midwest Capital has over the years had attractive returns for the investors. Annual expected benchmark returns of 12% is almost always guaranteed, while total returns are often larger at 15 – 18 %. Midwest Park also maintains an online portal to keep the investors posted about their investment performance. Jonathan Tuttle also sees an opportunity to enhance the uptake of the mobile home parks as newer technologies to manufacturing modular houses continuous to emerge. Connect with him to learn more.