What are the top asset classes to invest in , now and for the next few years ?
What properties produce the highest cost seg returns ?
I know this may be a fully loaded question and I apologize . What type of asset classes are lenders ok with lower down payments and higher amortization schedules in this market
We just purchased a 23 unit mobile home park ( all park owned ) for 1.25 and a traditional bank is the only one who would offer a term sheet .
To answer your second question, with the current 100% bonus depreciation rules, the best asset classes that can get the most 1st year bonus depreciation are: RV parks, Golf courses, MHP (with all tenant owned homes). All of these have the common attribute that there is a majority of the purchase price allocated to land improvements, which depreciate on a 15-year schedule, and are eligible for 100% bonus depreciation.
To answer your second question, with the current 100% bonus depreciation rules, the best asset classes that can get the most 1st year bonus depreciation are: RV parks, Golf courses, MHP (with all tenant owned homes). All of these have the common attribute that there is a majority of the purchase price allocated to land improvements, which depreciate on a 15-year schedule, and are eligible for 100% bonus depreciation.
What are the top asset classes to invest in , now and for the next few years ?
What properties produce the highest cost seg returns ?
I know this may be a fully loaded question and I apologize . What type of asset classes are lenders ok with lower down payments and higher amortization schedules in this market
We just purchased a 23 unit mobile home park ( all park owned ) for 1.25 and a traditional bank is the only one who would offer a term sheet .
To be clear there are 4 main Asset Classes - Cash, Equities, Bonds and Real Estate. Some include Commodities as well. Within Real Estate there are types, subtypes and classes of each type and subtype. Many people refer to the Types of property as Class which is not accurate.
All that being said the dollar is the worlds reserve currency and will likely remain so and Real Estate is still the number one safest asset to store wealth. Housing being at the top of the list. At the end of the day in a worst case economic Armageddon scenario all assets can lose all value but with property you still have a tangible asset that is worth something and can produce value in terms of product, income or trade.
Yonah , Thats helpful . Im looking to target certain types of real estate can bonus depreciate at least 50% the first year minus the Land value . I have business income that i am looking to offset if possible . Do you mind if i ask about an apartment complex ? the average Cost seg on a ( 20-50 unit ) complex ? Also , what about self storage ?
Ive been looking for the Rv parks and self storage along with apartment complexes , its fairly tough .
Greg ; I appreciate your input as well . Im just looking for assets or types of real estate that do decent in recessions, which i'm sure everyone is looking for that as well .
Yonah , Thats helpful . Im looking to target certain types of real estate can bonus depreciate at least 50% the first year minus the Land value . I have business income that i am looking to offset if possible . Do you mind if i ask about an apartment complex ? the average Cost seg on a ( 20-50 unit ) complex ? Also , what about self storage ?
Ive been looking for the Rv parks and self storage along with apartment complexes , its fairly tough .
Greg ; I appreciate your input as well . Im just looking for assets or types of real estate that do decent in recessions, which i'm sure everyone is looking for that as well .
Yonah , Thats helpful . Im looking to target certain types of real estate can bonus depreciate at least 50% the first year minus the Land value . I have business income that i am looking to offset if possible . Do you mind if i ask about an apartment complex ? the average Cost seg on a ( 20-50 unit ) complex ? Also , what about self storage ?
Ive been looking for the Rv parks and self storage along with apartment complexes , its fairly tough .
Greg ; I appreciate your input as well . Im just looking for assets or types of real estate that do decent in recessions, which i'm sure everyone is looking for that as well .
So far the winner is multifamily, storage and industrial but like anything else it’s all about moderation i.e. inventory levels and demand.
Makes sense . Any pointers on where to find decent deals for those specific types ? Also , people have told me to try out of state investing , what demographics are ripe for these investments ? Besides the classic ( high growth , good employment , sunny weather environment ) factors everyone says to look for
@Mike B. to answer your question, the three I mentioned above - RV parks, Golf courses, MHP (with all tenant owned homes), all are above 50% re-allocation after land.
Self-storage and Multifamily usually have about 25-30% re-allocation