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HOW TO INVEST WITH US IN 3 EASY STEPS
WHEN YOU HAVE MADE THE DECISION TO INVEST IN A PASSIVE MOBILE HOME PARK INVESTMENT THERE ARE 3 EASY STEPS TO FOLLOW.
When you see an investment that meets your criteria, make the decision to invest.
wHO wE PARTNER WITH
WHAT IT TAKES TO INVEST
Our Operational Strategies
Acquire
We acquire revenue-generating Mobile Home Parks that can benefit from our strategic improvements.
Add-Value
We target mismanaged parks with inefficiencies and neglect we can capitalize on. Implement our systems to improve the bottom line.
Distribute
After operating expenses, the free cash flow is distributed to Limited Partners each quarter. They continue until sale.
Cashflow
Once stabilized, cash flow becomes consistent, continuing to pay investors for years as we hold the property.
Refinance
After increasing the value, we refinance to return Limited Partners’ initial capital contributions while retaining their equity.
Location
We invest in small to medium markets often overlooked by larger investors, providing much-needed affordable housing in communities that need it most.
Size
We target Mobile Home Parks with a minimum of 30 lots, typically seeking communities with 30-100 lots to achieve economies of scale. While remaining open to larger park size options.
Type
Communities with a mix of Park-Owned and Tenant-Owned homes allow flexibility. We also look for hybrid RV models, which support long-term RV rentals to meet today’s economic demand.
Economics
We invest in markets with Supportive Local Government, stable employment, population growth, housing values above $150,000, and average rents over $1,000.
Value – Add
We buy underperforming parks with inefficiencies, giving us opportunities to implement strategies that increase the property’s value.
Return Profile
Investments must meet a double-digit cash-on-cash return profile and a 2x equity multiple. Through strategic improvements, we achieve these targets
Financing
We prioritize seller financing. If unavailable, we seek favorable terms from local and larger lenders, ensuring a minimum 5-7 year payoff period.
Close
We secure contract terms that allow ample time for due diligence, typically aiming for a 60-day DD period and a 60-day close, giving us 4 months to complete our Closing process.
Streamline
Upon purchase, we implement our Park Operational Plan (P.O.P). Initially, we’re on-site daily for weeks to ensure a smooth transition. We meet with each tenant, set up our systems, and establish professional management.
Turnover
We anticipate turning over a third of residents in some communities. Non-payers and non-compliant residents are asked to leave, while we engage with those wanting to stay, listening to their feedback.
Improve
We build a reliable local team of vendors and service providers to implement our Project Improvement Plan (P.I.P). Starting with grounds and landscaping, we work toward significant improvements within the first year.
Stablize
By year 3, with most of the major projects completed, we aim to stabilize occupancy and rent at market rates. At this point in the business plan we are achieving consistent cash flow distributions.
Operate
With our business plan in place and operations streamlined, we maintain high occupancy with qualified tenants, maximizing operating profits. We manage the park for our partners, allowing them a passive role while collecting distributions.
Are You Ready To Become a Partner?
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.
