Glory glory I’m feelin 40…happy 4th july to myself
Last night was another crazy one. Lately I’ve been hangin with a cool lad lets call him Eric and we go out to the bars a lot for our social entertainment. I met a woman, a much older older woman I think 8 years older to be exact, and I met her once before at another bar. She seems pretty cool and I’m hoping she’d like to go out to dinner with me this weekend. She’s a bit everything I like in a woman, but she smokes so I don’t think it could work out realistically having so many problems with a previous girlfriend that smoked. I had a good time with her and I know she enjoyed my wacky dancing style that wooed the entire crowd.
Here’s a weird fact about hawaii: They do fireworks on the 3rd of July.
Also I’ve noticed at age 26 that I’m starting to feel like a 40 year old after heavy binge drinking at bars only to have to wake up hours earlier for work. I’d definitely call myself an alcholic at a bar. I drink extremely too fast and I’m out of control probably because its accepted with other people drinking. I become a dancing machine, which most people probably think I’m some type of speed drug, but believe me it is all natural.
My trailor park I bought has been coming a long. I finally got a bank account setup with Suntrust and hope to collect enough to pay my mortgage this month. I need to be creative with this business to make it ultra successful. Since Tennessee is a low rental cashflow type state then I’m thinking I could possibly sell trailors backed by promissary notes to receive a more residual stable income then a higher turnover with weekly rentals. If I could sell “home ownership” to the same tenants that receive low incomes which they pay their own utilties since I have meters ready which would save me more money and only charge them rent for leasing the land that the trailor is on for a very reasonable rate of like $100 – 200 /month.
This way they own something, could use the interest off the loan to get more taxes back, feel like they own it instead of renting, and pay me bi-weekly or monthly instead of choosing to move out. If I could sell each trailor for $10,000 for 15 years at $200/month they would be paying almost $100 less a month then they currently are which would be insentive to buy it. I’d still collect it like rent, but now my mortgage notes are backed by a contract so if they ever forclosed and didn’t pay I’d get the trailor back (since I’m the bank) and I could resell it again.
This property has the potential of a $4000 gross income and possibly $3000 net if I didn’t have to pay utilties. By reducing my cashflow a little I could create longer term tenants and sell the trailors for almost 5-10 times what they are worth creating more value in the property if I resold it a couple years later with a large cashflow back by notes cashflow.
This is all one big idea, but I think it could work if the tenants are interested. I’ve been checking out other properties, but I’m thinking it’s probably just to focus on this one and make it generate cash well now then buy others. My goal is to fill the other 4 units and just rent the land instead of renting trailors. 10 trailors = $100,000 or $2000/month income + 10 unit land leases would be $2000/month ($200 each). If I rent weekly my cashflow is higher, but I have more turnover months and less proof selling the park, but with a stable rent history I could possible sell the land, promissary notes, and business for $300,000. With no money down a buyer would still generate a $1000/month cashflow which is still really awesome or 33% ROI a month.
Do you own a trailor/RV park? What do you do to increase income?
As for the stock market. SWN still shows going down a trendline, AAPL is still on its uptrend, and HOKU is wishy-washy. NTRI still looks like a bargain at $71. It is at its low for price target making big earnings. cha-ching.
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This entry was posted on July 4, 2007 by Paul Awol. It was filed under buying a trailor park, promissary notes, real estate investor blog, rv park landlord, selling a trailor park, trailor park landlord, trailor park real estate, trailor promissary notes .