No investment instrument will perform for Individual Investors like
short-term contracts in the secondary housing market. Here's why...
- Short-term Contracts can
return 100% or more in 90 days or less in some cases.
- "Cash-Out" Acquisitions typically return 40%-45% within
a few weeks.
- Returns average between 9%-25% per unit on installment contracts, compared to 6%-7% for traditional real estate
mortgages on single family homes.
- Current cost-to-earnings ratios on 3-7 year installment contracts exceed 70%.
- If a 30 year mortgage is used as a guideline, your money would turn 10 times faster with a 3 year installment
contract, and over 4 times faster on a 7 year contract.
- Units in the secondary housing market cost less to acquire and maintain than traditional site built units.
- In the current market environment, acquisition costs are extremely low. Therefore, interest rates can be
increased without a significant increase in average monthly payments.
- More home buyers are looking for affordable housing.
- In traditional real estate markets, $50,000.00 might buy one single family unit. The same money in secondary
housing would buy and set 3 units with 3 times the income, and at 1/3 the cost per complete unit.
- Home buyers in this market know they have credit problems and are quite willing to pay higher interest rates,
so long as monthly payments remain competitive and affordable.
In addition to all the reasons just mentioned, lender flight from the chattel side of the secondary housing market has
created unprecedented opportunities for Individual Investors. However, this
current market environment will not last long. Therefore, take advantage of these income opportunities now while they
still exist in single section and multi-section secondary housing; as well as land and home mortgages.