Interested in learning how to invest in RV parks? It’s not as difficult as it might seem. This type of commercial real estate investment isn’t necessarily on the top of most people’s minds, but it offers a lot of advantages.
For instance, RV parks can give you good cash flow opportunities, but without the maintenance headaches of being a landlord in the traditional sense. Here are some basics about investing in RV parks, whether you’re new to commercial real estate, a seasoned investor, a broker, an agent, or any other real estate professional.
In the past few years, the increasing number of snowbirds and baby boomers, as well as an increase in the average consumer’s disposable income have meant that the RV market is getting a lot more active. Over the next few years, you’ll probably see the RV industry become a lot more mainstream, as lending markets for commercial real estate go. That means that people investing in RV parks have some great opportunities coming up.
Benefits of Investing in RV Parks
You don’t have to own the vehicles or housing when you invest in an RV park. That means no repair responsibilities for you. Every tenant in the park is responsible for their own RV. Since ordinary tenant and landlord laws don’t apply, you also get more flexibility. Collect rent in advance for the whole summer if you choose, and easily evict tenants who are causing trouble.
Since tenants in an RV part are often running from the cold or on vacation, they tend to be in a good mood. That’s an advantage over ordinary renting, where you’ll be dealing with people year round, no matter what kind of emotional state they might be in.
Downsides of Investing In RV Parks
Since your customers are visitors, they don’t have a lease. That means that they can leave whenever they choose, making your income much less stable from month to month than a traditional rental situation. Since most RV users are seasonal, your income will be very different in the summer than it is in the winter, making good budgeting an important part of this kind of commercial real estate enterprise. Some
RV parks just close for half the year, but they still have to pay for insurance and taxes.
You’ll also have some responsibilities in the park. Must dos include making sure that all common areas are mowed and kept up, and all curbs and streets are kept clear of vegetation. Have them professionally edged for the best appearance.
If fencing is in bad shape, repair it or replace it, and make sure all dead trees and branches have been removed. Since the state of your asphalt is vital, you’ll have to regularly repair and patch potholes in the roads and in the parking pads. If your park provides electrical or sewage services, these will have
to be maintained as well.
Before Buying RV Parks
Since income can vary so much, and isn’t guaranteed, commercial real estate investors looking into an RV park should take care. Make sure that you get to see records of the actual income earned by the park for several years – not just one. You want to make sure that income from the park is growing, or is at least
steady. Be careful not to buy a business that’s on its way out!
To get the safest and truest record of expenses and income, look at tax returns. You can use them to determine net income before debt service, and decide what kind of return you want, as well as what you can invest. Subtract your profit from the net before debt service, which will tell you how much you can pay on loans needed to buy the park.
How much you can borrow and afford to pay back, plus however much you have for a down payment tells you the most you can pay for your property. Remember to account for costs you might have that the current owners won’t. Higher property taxes or insurance rates might come into effect after you buy. Base all
calculations on the existing income, even if you expect growth. That’s a safer plan.
Not sure how much to pay? Small RV parks might sell for as low as eighty-five thousand dollars. To determine what a given park is worth, check out what the surrounding parks are worth. You’ll probably find that a park costs a certain amount per space. RV parks in Arizona, which has a limited season, might sell for as little as eight thousand dollars per space. In places with a long season, a space might be thirty thousand.
Remember that this kind of pricing works only as a rough guide. If a park is managed well, it’ll be worth more. That’s why you have to check the expenses and income. If you take care, you have a great commercial real estate opportunity in RV parks!
It’s a tough market out there. If you want to have any chance of selling your home, you need your house to look its best. One of the simplest – and most important – ways to boost the appeal of your home is to “de-clutter”. I know it can be a difficult process but going through your entire house and removing all unnecessary items is crucial step.
The blest place to start you Campaign Against Clutter is in the kitchen. Your kitchen should look spotless, open, and inviting. Go over the countertops and remove anything that you don’t use anymore. That means everything – toaster included. Then go through the kitchen cabinets and remove anything you don’t need there. In a perfect world, the buyer would be able to see your cabinets and drawers completely empty to get a feel for how much storage space they would have. Obviously, that won’t always be possible but make sure you keep it down to the bare necessities. And ALWAYS take the trash out of the kitchen before a buyer comes over.
Go through every room of the house this way, starting with the rooms that your buyer will see first. Try to look at every object in each room objectively. If you don’t need it, if you don’t use it every day, pack it up in a box and put it in storage somewhere, or get rid of it completely. Take all of your personal items out of the house – photographs, diplomas, trophies, collectibles – anything that could distract buyers from looking at the house itself. Also, remove any excess furniture that you can. You want all your rooms to look as spacious as possible.
When you think you’ve cleared out as much of your clutter as you possibly can, take a breath and then take a step back. Can you do more? Is anything left? Invite a friend or neighbor over and get their unbiased opinion, or ask your selling agent.
Think of your house as a model home. You want it clean, tidy, depersonalized and clutter-free. When a buyer comes through your door, they should be able to envision themselves living in your house. Whenever possible, try not to hinder that vision by reminding them that you are still living there. Removing the clutter will remove the distractions and will let the buyer focus on the things you really want them to see.
Remember, you don’t want a buyer to be looking at your home, you want them to be looking at THEIR home. Conquer the clutter and you will have made a big step towards that goal.
Lee Cameron is the top Orlando real estate agent in the Central Florida real estate market. Lee has over 13 years of experience in the industry, and can guide you in the process of finding properties in Orlando.
With the declining housing market, many homeowner’s have been faced with a not so easy decision. While most people have decided not to sell their homes until the market comes back, for some owners that have to relocate for work or family reasons, waiting to sell their house is not an option. For homeowners that have to relocate, the decision of whether to sell for below market value or hold onto the property and rent it out, now becomes a decision they have to face.
So how do you decide what is best for you? For most homeowners, carrying two mortgages is not an option. Every homeowner will have to make a decision based on their own situation, but here are some key factors that will help guide you through the decision process.
1. Value of your home- Some parts of the country haven’t been hit as bad as others, so the value of your home will play heavily on your decision. If the market has dropped significantly in your area, than holding on to the property may be the best option. With time, property values will go back up so holding on to it will only increase the chances of getting money back.
2. Monthly mortgage payment- If you decide that renting it out is an option to consider, than you the next step would be based on how much you still owe on your house. By doing a little research or talking to a real estate agent you can figure out what comparable houses are renting for in your area. If you find out that the average rental rate is lower than your currently monthly payment the decision to rental would not have to include how much you could afford to cover each month above the rental income.
3. Location, location- This is a big factor when selling your house and it is also a big factor when trying to rent your house. While a house in the suburbs may be appealing for someone buying the house, someone renting a house will most likely want to be closer to conveniences.
4. Rent or Rent to Own?- with the amount of foreclosures in the past two years, mortgage companies have tightened their requirements for a loan. With that in mind, many potential buyers are looking for some seller financing. Renting to own might be an option for covering the mortgage while the potential buyer builds up enough credit to purchase your home. This is a way to avoid turnover in tenants and get steady income to cover your mortgage.
So if you are faced with the decision of whether to sell your home or start renting it out, take these factors into consideration. Renting out your home may be the ideal solution to your relocating dilemma.
I met a guy yesterday -call him Stan- who told me a sad story. Evidently, Stan applied for a Harley-Davidson loan and was turned down by some scrawny kid in the loan office. This was a frustrating event that could have been averted if only Stan had used private money for real estate investing.
The thing is, Stan is a long-time real estate investor with a very active credit file. Stan buys and sells a lot of houses, mortgages come and go from his credit report, and every new application means an inquiry on his bureau report. Now, just because he wants to spend a little of his money on himself, he is forced to kowtow to some obsequious little snot of a loan officer. Poor Stan.
Stan wouldnt be faced with this problem if he had simply put forth a little effort to set up a network of private lenders. Stans credit would look as pure as the driven snow, because private lenders dont normally run credit reports, and private loans never show up on your credit bureau.
Private money for real estate investing is like having the keys to the kingdom. Private lenders make lending decisions based on the deal, and based on their relationship with you, so they dont need to pull credit.
Now, when you want to get yourself a Harley, or a boat, car, or RV, your credit wont be encumbered by a whole slew of mortgages and inquiries.
Thats why youre involved in real estate in the first place, isnt it? A little extra to afford a few luxuries? Absolutely, and when the time comes to spend some of it, you dont want to hear some pimply-faced kid say, Im sorry, do you?
I think I know the answer to that question already. So does Stan.
So, the fourth reason to use Private money for real estate investing? Keep your valuable credit free for other things.
Would you like more reasons to use private money for real estate investing? Try visiting http://www.private-money-real-estate-investing.com/why-private-money.html and you will find a wealth of information.
Now, go make more offers!
A real estate commercial property can be a huge gamble. It can be an enormous success and generate thousands in revenue or it can be a sink hole that can cost thousands of dollars. Location can make the biggest difference when finding any real estate commercial properties.
San Diego real estate commercial properties have been booming the last ten years as more people move to the milder California climate. With popular attractions such as Sea World, and the ocean, businesses and real estate investors have sought out ways to cash in on the population migration. Investing in real estate commercial buildings or land in this area is a great investment.
Real estate commercial investors in the Nevada real estate market absolutely love Las Vegas. As the old casinos come down, new ones are springing up everywhere. Housing land plots are continuously being developed. New restaurants and attractions designed to bring in millions of tourism dollars are being made by those investors smart enough to grab onto a piece of the pie. The downside to this investment gold mine is that land and property values are very expensive. It takes a lot of capital to get into the Vegas property market. Even time shares have seen a rise in increase as more people escape to the pleasant arid environment that never closes.
Homes for sale in many parts of the country are finding themselves situated in commercial rich areas. This leaves the homeowner with one of two choices. Either they can sell out for premium dollars for face themselves looking down a city council board regarding Imminent Domain. Most home owners choose to sell because the offers can be very, very lucrative and most do not want to live next door to real estate commercial properties.
Real estate commercial properties can also be developed in rural areas. Usually when this occurs it is because a factory or industrial plant has target the area for its base of operations. The reasons could vary from the cost of land to the minimum wage expected in that State and region. Local taxes also play a part in the decision to locate a business.
Deciding to take the plunged into the real estate commercial market is a weighty decision and a calculated risk for those willing to take the time to seek financial advice and do some research. Sometimes it pays off and sometimes it does not.
Debts do seem to be all alike, but it must be known that there are actually many different kinds of debts available. A borrower might ask – what does it matter if there are different kinds of debts, as long as the payments to be made with them remain the same? But the distinction becomes all too obvious if the borrower is unable to make the payments in time and needs to find out ways and means to get rid of the debt. This can be done through consolidation or refinancing. At such times, it is necessary to know the different kinds of debts and what they entail. Here we discuss the two important types of debts – secured and unsecured debts.
A secured debt is one for which the borrower needs to put some collateral. Collateral is a kind of a financial security for the lender. In case the loan is defaulted upon, the lender has the legal right to dispose of the collateral in any which way and recover some of the loaned amount through it. This is known as repossession. But it must be remembered that repossession may not let the borrower go off the hook. If the collateral is not able to compensate for the entire principal amount, then the lender would demand for the remaining amount. Then there would also be several fees to be paid for the foreclosure. Collaterals are usually needed for home and car loans. One further disadvantage with secured loans is that the borrower is not at liberty to negotiate on the interest rates later into the loan. Debt consolidation may also not be possible with such loans, since the lender has their own security. Even filing for bankruptcy may not free the borrower from the loan.
Unsecured debts are those for which collaterals are not needed. People with good credit ratings or those with credit card loans are generally the ones who get unsecured loans. Medical and commercial debts may also fall in this category. With these loans, the lenders do not have any security of the amount they have lent, but they are assured that the borrower will be in a position to pay back the loan. Despite that, if a person defaults on an unsecured loan, then it could go into collections and there could be legal action. However, this happens only as a last resort. Lenders are usually open to negotiations on such loans and borrowers can look at debt consolidation or settlement as a way out of the indebtedness. Credit counseling usually resolves the problems of repaying unsecured loans.
For all the advantages unsecured loans provide, they have higher rates of interest than the secured loans. Most borrowers in the US today have a mélange of secured and unsecured loans. Whatever be the type of the loan, its management is the most important factor. Sometimes people need to begin by borrowing and repaying some secured loans before they can qualify for unsecured loans. This would improve the credit ratings. Anyways, both kinds of loans are potentials for improving credit ratings when paid back in time.
The opportunity to buy real estate is one that beckons to people form all walks of life. Home ownership is one of the dreams which millions, if not billions, of people all over the globe have in common, and those who do decide to buy real estate are, in all probability, making the biggest monetary expenditure of their lives.
People may save for years just to get the down payment to buy real estate, and then will have to be responsible for paying off their mortgages. Deciding to buy real estate requires the confidence to know that the property you are purchasing is likely to increase in value, and that you will be able to maintain it and to stay current on your monthly payments.
In today’s real estate market, most of those choosing to buy real estate for the first time are in their late twenties, an age significantly less than the average of forty just a generation ago. But this difference, when seen in the light of current economic trends, is really not very surprising.
Higher Personal Income
As interest rates have gone down, personal income has risen, so the cost of home ownership as a percentage of a homebuyer’s annual income is now at its lowest point in decades. Currently the full price a home will average about four years of a prospective buyer’s salary, as opposed to the seven to nine years in years past.
Lower Interest Rates
Annual mortgage interest rates, which had been as high as fifteen percent at their peak, average around seven percent today. This means that those with higher incomes than before are also now benefiting from lower monthly installments on their home loans. With lower interest rates, those purchasing homes can now afford to buy real estate far more expensive than they could have purchased in years past.
Easier Loan Procedures
Banks and lending institutions have relaxed some of their loan procedures, and are now issuing home loans with competitive terms ranging from five to twenty years. There are even, for the creditworthy, preapproved loans to buy real estate, but they do require an excellent credit record.
The person wanting to buy real estate can have the loan within a week after the lender’s has analyzed the loan application, and looked at the appraisal of the property being purchased.
In recent years, many of those who had formerly chosen to rent their homes are being confronted with consistently rising monthly rents, as their landlords try to compensate for rising utilities, taxes, and insurance costs. More and more renters are finding that what they pay in rent would entitle them to buy real estate in which they could build up equity, and also have an investment the value of which, as the value of real estate
almost always does, increases through the years.
The Costa del Sol in southern Spain has long been a favourite with British property buyers. The fact that it is so easy to reach by short, low-cost flights, has a gloriously sunny climate and lifestyle, sheltered beaches, top-notch golf courses and marinas, and that its authorities continue to invest in its infrastructure has been reflected in the capital growth and impressive rental yields achieved within its property sector in recent years. It is also a region that is considered politically and economically stable. However, like so many property markets around the world, the UK included, it has seen a turbulent few months with values dropping and property buyers thin on the ground largely because of the credit crunch.
However, like all property markets in unsettled times, there are winners as well as losers: the Costa del Sol is no exception. The big winners at the moment are new property buyers, especially those that might have been forced out of the market previously when property prices were high, and investors looking to the medium to long term.
Property for sale in Costa del Sol region can be found at a bargain. Prices are being discounted by as much as 30 per cent as sellers and developers aim to tempt property buyers with more realistic prices. Although new property buyers and investors may have to wait a while to see significant capital growth on their investment the market is already showing the first signs of stability. According to the Association of International Property Professionals (AIPP) in its newly released annual report on buying trends, Spain remains the number one choice of British property buyers despite the downturn of values.
In the interim, until a full recovery is made, the Costa del Sol still offers rental opportunities. It remains one of the most popular holiday regions of Spain and investors can continue to benefit from the holiday or long-term rentals market. Prime hotspots for property suitable for rentals, include Benalmadena, where a typical two-bedroom apartment near the coast and golf courses would cost around €190,000 (£150,000), and Estepona, where for example a two-bedroom apartment in a complex minutes from the sea would be around €245,000 (£194,000). Torremolinos remains popular, as does Fuengirola and Manilva, along with the two ‘big guns’ Marbella and Malaga.
Alexis Johannessen of Livingstone Estates, which is currently marketing a number of properties (including a new luxury development, Torre Bermeja, comprising two- to four-bedroom apartments from €800,000 (£630,000), in the coastal hotspot of Estepona) is confident that the market is stabilising. “We are seeing a steady number of enquiries and most of these are turning into sales,” explains Alexis. “The key is that property for sale in Spain needs to be realistically priced and it will attract property buyers. There are bargains to be found. Many of these bargains are resales but developers of new-build properties are increasingly adjusting their prices to take into account the market too, which we feel is a good thing and sensible.”
Taylor Woodrow is one of the developers currently building in the Costa del Sol, notably in Marbella and the surrounding towns. Among its new projects is the El Bosque de la Mairena, a collection of 215 new apartments located an hour or so from Malaga airport and close to Marbella. Property prices start from £142,000. It is also developing Los Eucaliptos, which comprises high-specification apartments set around pools and close to a golf course. Prices are from £252,000. Both developments are currently being offered with substantial discounts of as much as 30 per cent on selected plots and being marketed by Chesterton International.
Andrew Hawkins, head of the international department of Chesterton International, says, “We are seeing significant discounts being offered in the market, which means that there are real opportunities for securing a good purchase price. Taylor Woodrow, for instance, is taking the sensible step of pricing new plots at a realistic level. It is offering discounts on selected plots, which is good news for investors but also for new property buyers that were unable to afford to enter the market previously,” he explains.
“The interest in the Costa del Sol is still strong. Although we have noticed a reduction of enquiries, those that call are serious property buyers,” adds Hawkins. “Property buyers are recognising that there are real bargains to be found, and although they may have to wait a while to realise significant capital growth, it will happen as the market improves.”
Along with Marbella, Malaga is a top spot for property buyers. Martin Dell of Kyero, a company specialising in statistics from the Spanish property market, says the Costa del Sol region, and especially Malaga, is still popular with buyers, although values have dropped compared with previous years. “Average prices of property for sale in Malaga rose steadily from the end of 2005 to peak at an average of €314,000 [£248,000] at the end of 2006. Property prices fluctuated somewhat in 2007 and have now dropped to an average of €300,000 [£237,000],” he explains.
“Malaga is still the fourth-most expensive province to buy property in Spain, with average property prices being 125 per cent of the national average,” he adds. The average current price for a one-bedroom property for sale is around €159,000 [£125,000] rising to around €750,000 [£592,000] on average for a five-bedroom property.
Land prices are relatively low in the Costa del Sol region at the current time, especially sizable plots overlooking golf courses or beaches. Many people are looking to buy a plot now and for a future self-build project as an alternative to buying a resale property or new-build. Two such sites, currently on the market with Carrington Estates, are Monte Mayor Golf and Country Club, near Puerto Banus, where a 3,300-square-metre plot overlooking the first and second hole of its golf course is priced at €596,000 (£470,000), and La Zagaleta, where a 6,600-square-metre frontline golf course plot is offered at €2,350,000 (£1.8 million).
While the Costa del Sol offers a great lifestyle and good rental opportunities in the short term, with so many bargains to be found the savvy investor will be sure to make a healthy return in the longer term. Barbara Wood, co-founder of The Property Finders, a company specialising in finding property for sale for clients, says property buyers are in a strong position and can secure a property at a good price but need to look to the longer term for growth. “A client has just purchased at Tarifa and the valuation for mortgage came in at 15 per cent more than we were paying for it, almost unheard of in today’s market but a good sign that my client is buying at a very good price,” she explains.
Barbara feels that discounts of around 30 per cent are achievable if buying off-plan, but the resale markets has the best choice of bargains. “If someone has cash or funds available then they should be looking at the resale market in prime areas, this is where the best deals are to be found.” The time is clearly right to bag a bargain in the Costa del Sol.
As with any type of real estate, waterfront real estate comes with a few special considerations.
If you are purchasing real estate on the water, be it a river, lake or oceanfront, you’ll want to know for certain what your rights and responsibilities are to that water and its shoreline. For example, are you obligated to build a certain type of dock? Many areas have regulations governing what type of dock can be built. Are you even allowed to moor your boat there? Sometimes your rights end at the waterline. Is your beach accessible to the public or can you limit who goes there? Can you build right beside the waterline, or do you have to have any structures a certain distance away? Be sure you investigate the maximum water levels, and research the flooding history of your area. All of this will be important in your future at your waterfront home, so be sure to get the facts before you buy, so you know exactly what you’ll be working with.
Living beside a body of water, realize that it is a delicate ecosystem and be sure to consider the environmental impact of what you do. It might be best to avoid things like weed killers on your lawn if it’s just running down a slope into the water. There may even be laws governing what is safe to use and what is not. For this similar reason, homes with septic systems will have special regulations beside the water. Because the water level is higher underground, follow the rules carefully to avoid sewage leaching either into the lake, into your drinking water or into your basement during especially wet times of year.
You will also definitely want to consider safety when living beside the water. Ask around about any local dangers such as hidden currents or underwater rocks close to the surface. Also rusty old boats or garbage that has sunk that could hurt unaware swimmers.
Once you’ve figured out everything you should know about your own unique piece of waterfront, it’s time to sit back and enjoy some of the benefits. Not only will you enjoy living in such a beautiful area and taking advantage of the local recreation, you’ll have peace of mind knowing you’ve invested in some of the most valuable real estate around.
This article was written on behalf of Kevin Kling and 386 Real Estate, Daytona Beach Florida Real Estate professional. Contact them if you think you’re ready for waterfront, or any real estate in Daytona Florida.
When selling a home there are certain aspects of the sale and preparation that are often overlooked. That is, certain areas of the home that seem to get put to the side when doing the final staging or cleaning before a home is listed. Areas such as garages, sheds, laundry rooms and the like come to mind. These areas are vital parts of the home and while they are not the primary living areas, they can still have a big impact on the overall attractiveness of a home and on how well it shows.
It is amazing that impact that these areas can have on a home. Every room in a house is under scrutiny during the sale process, to the point where an untidy or cluttered room can taint the buyer’s overall view of a home. Garages are a great example. Instead of using a garage as a holding pen for boxes, old furniture, and other extraneous clutter, turn the garage into a room to be proud of. If the garage is as clean as the kitchen, imagine what that will say about the rest of the home! Chances are, if things are merely sitting in a box in the garage then you have no real practical use for them anyway. They might have some sentimental value or significance, but these could just as easily be kept in a storage bay. This will free up lots of room in the garage for something as strange as say; a car!
Take some time to go through the less traveled or utilized room in your home and try to discern any changes that may be necessary or simply would improve the room. Laundry rooms have a tendency to be somewhat cramped and cluttered with detergent bottles, cleaning equipment, dryer lint….Why not turn the laundry area into a more useful storage space. New shelving and extra closet space is always useful, and having a sparkling laundry room with new and updated appliances is always a good selling point.
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