Archives for April 2016

The mobile home business In Canada is different than in the US for sure due to lower density of parks and the pricing is a bit different but not as much as you would think in context.  These little homes are like ATM’s that you can buy at the right price and get them to spit out money for you every month.

Mobile homes are generally overlooked by many investors because they want the single family homes in good areas or multiple streams of income (which I am all for don’t get me wrong) however these properties are a lore more expensive and your creative finance options are a lot more limited.

This all is aside from the fact that the average price for a single family home in Canada can run from 400k-1 million plus in sectors like Toronto and Vancouver.  Mobile homes in Calgary and other areas in Alberta could be an excellent way to break into the cash flow or flipping strategies without having a large amount of investment capital to start with.

Don’t forget you can always use Joint Venture Partners for your deals on these homes as well which would reduce your money in — possibly down to $0.00 if you are willing to do all the work. Just think what your cash flow would be if you bought a mobile home for 35,000 and fixed it up for 10K and now you have a 35,000 asset that could rent out for 1500-1800/month?

Things to consider here are the following:

1. Mobile homes are depreciating assets (just like cars) so you can’t count on appreciation like single family fixed home

2. They are mobile! So you can find desperate sellers that need to move the home from it’s current location and get great deals then move it to a new park in a good location to rent it or to a property such as an acerage

3. There are many families and single folks that can’t afford the rent in a downtown apartment or a large single family house – you can still charge lower rent and get high cash flows because your purchase price was so low

4. Forced appreciation through renovations is a lot cheaper in this space because the square feet to renovate is much lower

5. You can do seller financing for the mobile home for the new owner and be like the bank and charger interest and collect a down payment

6. Financing is available for these units but the big banks will not fund them ask us if you need a great mortgage broker.

7. Extremely low competition for deals in this space due to the stigma around trailer parks

8. Comparables can be tougher to find if sales have been low in the park

9. Lots are owned by the part sometimes and sometimes you own the land with the unit – owning the land is preferred because you have less restrictions on what you can and can’t do with the sale/financing

10. These units can be a great way to make a lot of money if you are willing to step outside of the box!

To your success

Tim Reid

-Respect the hustle!

I just got this very amazing post in my email from a good friend of mine Marcin at gofund capital –I know I suffer from this from time to time as an entrepreneur for sure!!:

Too Much Starting. Not Enough Finishing.

A new:

• business
• product
• feature
• market
• business partner
• staff member
• marketing plan
• bell
• whistle

At any given moment there are literally 100 different projects or initiatives that you can start working on. The question is… which ones will you actually finish?

If you’re a start-up or a business experiencing exponential growth your answer better be “whatever helps generate revenue today”.

I’ve seen several brilliant “starts” die because the entrepreneurs were constantly focused on implementing “exciting” new ideas or bringing on new team members all while still figuring out the business AND expending lots of time, money, and energy along the way.

The real challenge for most growing companies is executing the “finish”.

Too many businesses recently have forgotten this simple truth. Easy money has allowed many companies to raise capital at higher and higher valuations without much regard for pesky things like profitability.

This has allowed several bad habits to multiply in the business community:

• There are too many managers and not enough people with their sleeves rolled up

• There are too much theory and discussion and not enough testing and application

• There is too much focus on branding and not enough focus on actual sales

• There are too many internal meetings and not enough client-facing interactions

You see…starting something new is sexy. It can be glamorous and exciting and there is almost always a “honeymoon” period where people temporarily cut some slack and suspend judgment.

Eventually, though reality sets in, the music stops, and funds dry up for the businesses that are great at “starting” as everyone involved (employees, investors, etc.) eventually expect a return on their time or money. This is why the only companies that make it over the long term need to constantly create real value and deliver products and services that people actually want.

Whether you’re running a small business of one or are managing a team of 20 and still growing the key to your continued success and growth is being very selective in what new “starts” you embark on within your business. If the new “initiative” or “partnership” doesn’t exponentially increase your existing business; it’s likely not worth doing. No amount of time or capital investment will change this. Investing money and time will only delay the inevitable and suck precious resources from what does work.

Anyone can start something. Few people finish strong.

To Your Success,

Marcin Drozdz is the Managing Director of GoFund Capital Partners. An entrepreneur at heart Marcin began his professional career rising through the ranks in the private capital markets in Canada. Marcin has since helped build out several companies including a limited partnership focused on commercial real estate acquisitions, a financial services firm, and an alternative business funding group. Marcin and his team now primarily work with professionals and business owners that are looking for capital or strategic solutions to fund their growth or exit.

For more content, you can follow Marcin on twitter @mdrozdz or visit www.gofundcapital.com.