Ep #60: The Risks Associated with Using an Owners Understated Expenses When Running Your Proforma

The Mobile Home Park Investing Podcast - Real Estate Investing Niche

Kevin Bupp

Passiveincome, Business, Mobilehomepark, Cashflow, Syndication, Investing, Realestate, Mobilehomeparkinvesting, Kevinbupp, Realestateinvesting

5 • 1.1K Ratings

🗓️ 6 April 2017

⏱️ 13 minutes

🔗️ Recording | iTunes | RSS

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Summary

Welcome to the Mobile Home Park Academy podcast. In this episode, Charles and I will discuss mistake number 15 from our popular eBook, “The 21 Biggest Mistakes Investors Make When purchasing their First Mobile Home Park…and how to avoid them.”

There are times when using the owner’s expenses can work in your favor and there are times where it can work against you. As with any business venture, there are certain expenses you have to take into account. Virtually every property we have pursued has had some of their expenses under reported or completely left off of the profit and loss statements. So how do you determine what you are buying and what the appropriate operating expenses should be?

Typically, we will start out assuming that any park the pays for water/sewer or has private utilities will have an expense load close to 45-55%. If the park is on city water/sewer and the residents are billed for the usage, we typically assume an expense load closer to 30-35%. This is usually a good rule of thumb on the “eye ball” test but each deal will require you to put a microscope on each expense in order to get a truly realistic budget.

Click Here to Grab a free copy of our latest book “The 21 Biggest Mistakes Investors Make When Purchasing their First Mobile Home Park…and how to avoid them

Want to Learn How to Invest in The Lucrative Niche of Mobile Home Parks? Check out our Free Training that Will Teach You The Systems and Processes We Use To Find The Most Profitable Deals. Click Here to Learn More
Have An Interest In Partnering with a Team with a Proven Track Record in the Mobile Home Park Space? Click HERE to Learn More About Our Partnership Opportunities.

Transcript

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0:00.0	Welcome to the podcast that will teach you how to successfully invest in and build steady
0:09.8	streams of passive income from the highly lucrative niche of mobile home park investing.
0:15.0	Veteran real estate investors Kevin Bupp and Charles D. Hart from Mobile Home Park Academy
0:20.0	will personally share with you the valuable lessons they've learned along their journey as mobile home park investors
0:25.8	so that you too can learn how to build massive cash flow and huge profits from this extremely lucrative niche.
0:33.6	So without further ado, let's welcome your hosts for today's show,
0:37.8	Kevin Bupp and Charles D. Hart.
0:39.7	Welcome guys and gals to the Mobile Home Park Academy's weekly podcast. I'm your host Kevin Bob
0:44.4	and just in case you're tuning in for the very first time I want to let you know
0:47.9	that today's episode is a little different from our normal weekly show but
0:51.9	don't you worry I'm still 100% positive that you'll
0:55.0	find a ton of value if mobile home park investing is what you came here to learn about.
1:00.2	You see many, many, many, many, many, many, many months ago, actually a little bit more than a year and a half ago, to be exact,
1:06.5	Charles and I, we created 21 special release episodes showcasing the 21 biggest mistakes that we see new investors make when entering
1:15.0	into the mobile home park business and our original intent was to release one
1:18.8	episode per week in addition to our normal weekly segment but But sadly, we got sidetracked and we only ever released the first seven shows.
1:27.0	In fact, you can actually go back and listen to these first seven mistakes by going and listening to episodes number two four six eight
1:34.4	ten twelve and fourteen on our podcast and I would actually suggest that you do
1:38.9	that if you haven't done so already and so as a special treat we're actually going to be posting two to three episodes each and every week until we get all 21 of them out.
1:47.0	And then after that, we'll resume our usual weekly schedule of Mobile Home Park Investing Awomeness.
1:52.0	If you haven't done so already, go down. of Mobile Home Park Investing Awomeness.
1:52.6	If you haven't done so already, go download a copy of our free ebook
	...

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