FAQ
Common Questions about Investing
It all starts with knowledge. Hopefully these quick responses to some of our most common questions will help you get ready to Join our Capital Partner Network and invest with us.
We started RealOvative to create financial freedom for our family, and we’re proud to extend this opportunity to help other families do the same. We prioritize responsible capital stewardship and conservative assumptions. While it’s hard to fully answer “Why RealOvative?” in just one section, we invite you to explore our site. Join our Capital Partner Network, sign up for our newsletters, or schedule a call to learn more.
Yes, we work with both accredited and non-accredited (or sophisticated) investors in our mobile home park opportunities.
The minimum investment for our syndications is typically $50,000.
Fill out the contact form and schedule a meeting with one of our partners to discuss whether it’s a good fit for you.
Distributions occur after the first full operational quarter following purchase. Free cash flow is distributed to investors by the 15th of the close of that quarter, typically via wire transfer or by check if preferred.
Every investment is unique. As a syndication company, we raise capital from outside investors who come in as Limited Partners. They receive an equity share and a preferred rate of return. Typically, we offer equity splits of 70/30 or 60/40 and preferred returns that are cumulative, ranging from 7% to 9%.
Yes, you can, as long as it’s a self-directed IRA. Simply contact your custodian and let them know you’d like to self-direct into a Regulation D real estate investment. They’ll provide you with the necessary steps. Be sure to consult your financial advisors before using a self-directed IRA.
Yes, as long as your SDIRA/SD401K provider allows it and regulations are followed. We recommend working with your custodian to ensure proper management of your SDIRA/SD401K investment.
We prioritize clear communication. Our Limited Partners can call or schedule meetings anytime directly with our founders. Additionally, we send quarterly investor packages by the 15th of each quarter close to keep Limited Partners informed of financial and operational performance. Our weekly newsletters also keep Limited Partners updated on community and industry developments. Follow us on social media, where we actively share day-to-day updates.
Yes, in fact, remote investing can sometimes yield the best opportunities. Our business model enables us and our partners to invest in markets that are most lucrative for our strategy.
As a partner in the LLC that owns the properties, you’ll receive a K-1, a tax form that reports your share of a partnership’s taxable income. Partnerships don’t pay federal or state income taxes directly; instead, each investor includes K-1 amounts on their tax return. K-1s are provided annually.
We aim to finalize all K-1s by March 31st, but as we rely on external accounting services, additional time may be needed to ensure accuracy. You may need one or more tax extensions. We’ll keep you updated as deadlines approach, so you aren’t caught off guard.
Our Capital Partner Network is a group of individuals who have expressed interest or are actively investing with us. There’s no commitment to join; simply fill out the form to be added. By joining, you’ll receive first notification on available opportunities, case studies, and invitations to educational and deal webinars.
Common Questions About Mobile Home Parks
Every investment carries risk. While Mobile Home Parks have a history of resilience, factors like government regulation, geopolitical nuances, and economic cycles contribute to investment risk. We aim to minimize operational risk through sound management and conservative investment projections. Always only invest what you’re comfortable with in any individual opportunity.
Mobile Home Park Syndication is a partnership where investors pool their money to acquire, profit from, and manage larger properties—often beyond what an individual investor can afford alone. This setup allows investors to passively own a portion of a property and earn returns based on its performance.
Regulation D, Rule 506(b) Syndication: Allows up to 35 non-accredited investors along with accredited investors, but it cannot be publicly advertised. All investors must have a pre-existing relationship with the sponsor.
Regulation D, Rule 506(c) Syndication: Restricted to accredited investors only, but can be publicly advertised. Investors must verify their accredited status, typically through a third party.
In simple terms, Mobile Home Parks generate income from rent paid by residents. We cover expenses like utilities, maintenance, roads, landscaping, staff, taxes, and insurance, with some costs partially offset through resident bill-back initiatives. We keep a strong focus on operating profit margins to ensure the investment performs as expected.
Yes, mobile homes have historically depreciated. However, home quality and market perception are improving, and in many areas, homes are holding their value longer. Additionally, we often sell homes to residents, which reduces our depreciation risk while allowing us to collect lot rent.
Our experienced team self-manages all of our communities. Working closely with local vendors, we ensure that residents and properties are well cared for. With 15 years of experience operating rentals virtually, we know how to build and manage an out-of-state team.
Our partners are typically on-site each month. Once a community is stabilized, we visit quarterly. During transitions, our partners may be on-site daily for several weeks to align the community with our processes and systems.
Over the past 15 years, we’ve honed our skills in hiring and managing remote teams for our investments. After a purchase, we interview, hire, and work with various vendors to find the right fit for our community team. We often have an on-site community manager to assist with daily project needs.
A Park-Owned Home (POH) is owned by us and rented to a tenant, providing rent for both the land and the home itself. A Tenant-Owned Home (TOH) is owned by the resident, and we collect rent only on the land, also known as “lot rent.”
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Invest Now and be Free.
RealOvative Asset Management provides its Limited Partners Opportunities in the Mobile Park Industry. Gain Equity, Income, and Freedom by investing with us as a Passive Limited Partner.
