Second Home Investment Market in Real Estate Opens a New Niche For the Accountant

Second home investment market in real estate opens a new niche for the accountant.

The growing market for second home investment niche in the real estate market has opened a new niche for many industry related professionals. Among them are the CPAs or accountants who can now tap this growing market. Many investors in the second home market need the services of qualified accountants to help them in this very important investing process.

Sometimes professionals get caught in the same routine year after year. It is important to keep doing the things that make a business succeed without ignoring new trends that could affect one’s business. Thus the growing trend in the second home investment market in real estate is an area where industry professionals like accountants, real estate agents, mortgage professionals, home inspectors, intermediaries, attorneys, interior designers, moving companies, escrow officers, home cleaning businesses, landscapers, licensed contractors, interior designers, and other related businesses could start looking for more business.

This second home investment niche is a highly targeted market and tapping this market also means that you need to tap the publications or media that focus on this niche.

If you are an accountant or a professional who offers services in the second home investment market, be among the first ones to take the lead in getting ahead in the second home investment market niche. Just think about it, you could establish yourself early in this market before your competitor takes his or her share in the second home investment market niche.

Are Bank Owned Home Investments a Wise Investment Choice?

You’ve decided to make a bank owned home investment. Do you know where to look for listings? Getting a bank owned property can be a very good move, but you want to make sure you have done your research on the property and are comfortable, especially if you’re going to be living in it yourself.

A bank owned home is also called an REO property. This is a property that’s been foreclosed on and could not sell through an auction. So now the bank who had the original mortgage owns the property and they are trying to get rid of it. Keep in mind that banks do not want to be in the real estate business. Many banks have websites listing all their bank owned home investments. To come up with a selling price, the bank that holds the note will add up the expenses that it incurred in getting the property, the remaining primary mortgage amount and any secondary liens. Depending on the circumstances, it could be well under market value.

Before you plunk down your hard earned cash, get some information about the home. Why didn’t it sell at auction? It is easier to do an in depth inspection once a property becomes a bank owned home investment. Make sure you do this with someone who knows about home repair. You want to have a good idea of what it will cost you to get the property to the point where you can resell, rent or live in it. Add up your potential expenses and come up with your price for the property. Many banks now use outside real estate agents to close the deals so you wont have to deal with a banker who has limited knowledge about the home and surrounding market.

Homeownership Via Home Investment Clubs

A Home Investment Club is the alternative capital development system and income producing resource that brings a halt to home foreclosures, and a restoration to home prices. To make it plainer than that is to understand the expression, your home is your bank! The club is a capital development co-op banking facility that incorporates its members. The members sell their stock among the membership to raise capital to acquire their homes.

The home investment club facilitates the homeownership dream to become a reality and then some…Club members become referral marketers at various levels of operation, and earn referral marketing fee income to pay their home mortgage obligations. Consequently, every individual member can acquire a home, regardless of income, credit, or employment. The clubs earn referral fees that sellers pay enthusiastically, for qualified buyers, with the required down payment and proof of income.

The objectives of the club are: to be a small business incorporation incubator and capitalization resource. Homeowners are indeed small businesses, that are locked down and subjugated by social economic shackles, the biggest being mortgage lenders. Buyers are forced to make a capital investment with wages, which means that they compromise their needs to save money for a down payment, only to lose it all through foreclosure.

There are no home buyers that can guarantee proof of income to qualify for a thirty-year mortgage loan. Quite frankly, the reason why banks aren’t making mortgage loans today is simply because applicants cannot satisfy the proof of income requirements. Could you guarantee payments to any lender for more than a few months? If a home is collateral for the note, how could a lender reclaim property, which is valued more than the amount due, and also keep the buyer’s cash down payment investment?

The only logical solution to this problem is home investment club capital (capitalization) leveraging that legitimizes the homebuyer as a business and develops capital to fund that capital investment. The club facilitates the membership home buying by coordinating the appropriation of leveraged dollars, to pay down the home principal, and any member can literally buy any home of his/her desire. This means that you are wealthy, once you are a member, but membership can be gained only by referral. Having access to this information does not guarantee membership to anyone until you have a sponsor who will incorporate with you.

Annual individual club membership cost one hundred dollars and club Charter ownership costs a total of sixteen thousand dollars, and this can be financed with a down payment of two thousand dollars cash outlay. Club ownership offers the owner our minimum and basic income package of one hundred twenty thousand dollars a year, and there is really no upward limit.
In addition, the benefits package includes a comprehensive family health care plan with dental care, life and disability income protection insurance, a basic family legal protection plan, and home mortgage payments. Club Chapter/Owner Presidents are required to complete a referral marketing business practicum, as part of the sponsorship process.

All Clubs are sponsored by FRIENDSFORLIFE INTERNATIONAL, and are permitted to adopt their individual Trade name, but they can do business as Elegant Living Home Investment club for an extra licensing, and fee. The clubs also provide a continuous community development service, free of charge for a selected number of participants annually. The program is in the club’s Visual Manuel under the headings PDP Oratory Forum.

Mobile Home Investing – Why It Works

I’ve witnessed many real estate cycles over the 21 years I’ve been in real estate. The current real estate market is completely different from three years ago. As you may be experiencing, you have to work harder to find single family residences at wholesale prices. Your profit margins might be a bit tighter than they were too.

I travel throughout the United States and Canada, seeing many markets and trends. The current trend I am seeing is that major markets are experiencing price appreciation, low inventory levels, increased holding costs (taxes, insurance), and increasing rents for most site built homes. A trend that has occurred before, I believe is on its way again, is detached single family residences are becoming less affordable. When this happens, consumers look for alternative affordable housing options. These consumers will look to town homes, condos and even manufactured houses for more affordable housing options. So, if you are willing to make adjustments in your investment criteria to match this trend, you will be doing more deals and making more profit this year than last.

You might be saying, “I get the whole condo and townhome thing, but mobile homes… REALLY?” Well, let me help you see why. There are many markets where I have found that rents have jumped up so high that many people can’t afford to rent let alone buy. For instance, I’m in Houston, TX this week, where the rents range from $1,000 to $2,000 a month. I have seen this same trend in the markets where I have mobile homes in parks for sale. The people paying this kind of rent have started calling on our homes for sale. Why are they calling? We have manufactured homes in communities where the lot rent is $500 a month. If we rent the mobile home or manufactured home to them for $300 to $600 a month, they are paying less than the rents on an apartment in the same area with fewer square feet, bedrooms, and amenities. We have seen a growing trend in this direction. We get phone calls on a regular basis with people stating, “I would have never considered moving into a manufactured home before, but it is going to cost me less than my current apartment and I get more for my money”. We have become “THE” affordable housing option for these people.

But, there are not that many mobile homes out there… right? Wrong. Most people don’t realize that 10% of the housing units throughout the United States are manufactured homes. Do you see how many opportunities you’ve missed by not considering manufactured homes? Obviously, a place like Manhattan, NY is not going to have many opportunities, but you will find them in the outlying areas. In fact, I was just up in the Boston area. About 15 minutes out in Malden, MA, there were five mobile home parks in about a 10 mile radius of my hotel. The reality is that you will be surprised by how many mobile home parks are out there and the opportunities to profit from doing deals within them.

One way that I survived the frenzy during 2002 to 2006 was by focusing on the property types that other investors would not… a niche if you will. I would focus my attention on mobile homes on land, where the mobile home was noted on the tax records as an improvement, however the way the mobile home was set up on the land was not financeable via FHA. Therefore, the typical FHA buyer would not be able to get a loan on that property, so we would make the necessary repairs and put it on the market for sale. You will find that there are a lot of mobile homes on land that are considered real estate, but they are not FHA or VA financeable. It is another great way to locate property leads that most of your local competition will ignore. Less competition equals better and more deals for you this year. Ironically, they will be receiving the same calls as you for these leads, but they will not do anything with them or they will pass these onto you for free or a small fee.

If you are looking for an alternative investment strategy, consider mobile home investing. It’s a great way to have your dollars working for you with minimal risk. You can have more deals going at one time, due to the minimal cost associated with acquiring and repairing mobile homes. The small investment amount makes your cash on cash returns pretty amazing too. One huge bonus of mobile home investing, I was well prepared to run my first mobile home park when I finally took that leap in my real estate investing career.