Karen Morison
Fairfax, VA (USA)
Role(s):
Founder/Owner/Principal
Am One Properties, LLC
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Startup
Location:
Fairfax
Industry:
Real Estate
Year Founded:
2007
Number Employees:
1-10 people
Business Stage:
Growth (profitable)
Entity Type:
Limited Liability Company
Description:
Am One Properties LLC is a real estate investing company that aims to be at the forefront of the increasing need for manufactured housing communities primarily in the mid Atlantic, Southeast and Southwest regions of the country.
Aided by the ongoing technical analysis process developed by a Harvard MBA/CPA, plus the cyclical nature of real estate markets, we are able to know which of the hundreds of markets across the US are rising and which are falling. This ability is just one of the several unique, significant assets we bring to potential investors. We then make offers primarily on mobile home parks (and to a lesser degree, a number of single family properties). Using a well-tested due diligence evaluation plan, we purchase those properties where we see the potential to add value of at least 6-figures. Upon purchase, we immediately begin implementing our highly tested management plan, where our team includes consulting with two of the largest and most successful mobile home park owners in the country. We are extremely confident that these purchases will provide significant returns to our investors who will realize their gains within 3-5 years following takeover. The plans feature tested ways to reduce expenses and increase rental income, as we take a park that starts out with us owning lots of mobile homes, and we sell those to park tenants with financing. This method has been tested often and it greatly reduces the repair expenses that eat into the Park Owner's profits. This is one of a number of ways we know how to cut costs and increase the value of each Park we own. With a 10 cap or higher purchase, every $10k we save in annual expenses means the Park's value rises by $100k.
We will also use this market research to allow us to purchase a number of single family properties which we rent out for ongoing income. Then we watch the equity increase, and we sell when the data tells us that the housing market there is starting to lose value. This enables us to provide our investors with the benefits of both Leverage as well as Appreciation. Thanks to the ongoing research tool we have in which we have invested, plus the cyclical nature of real estate, we will be able to invest funds with confidence. Our goal is to raise funds to allow us to act on this knowledge quickly, by buying properties (including SFR), renting them out, and selling them at the right time.
Looking forward, we also plan to purchase a number of mobile home parks in the $500,000-$5M range with the goal to acquire, add considerable value, then refinance or sell the properties and realize the gains within a 3 to 5 year range. Our plans for 2011-12 will see us expand opportunities for those investors eager to make up losses in the financial markets. We have experience working with IRAs, SEP-IRAs, etc., in buying and managing multifamily properties. Finally, we want to assure investors that we value regular, open communication, which we see as a cornerstone to a successful long term relationship.
For those who are unfamiliar with this subcategory of multifamily properties, you should be aware that we only purchase parks where we know we'll be able to keep expenses at about 30%. Compared to apartments where the expense ratio is 50-60% or higher, mobile home parks are an excellent value -- provided you know how to manage them properly. The key is to remove those parts of the property that require frequent maintenance, and to make sure that rents are at the right levels for the market, and that we help Park tenants become owners of their own mobile home. This is a great way to build community pride as well while bringing down Park expenses at the same time.
It is the hallmark of our company's two founders that we seek the expertise and guidance of those who are at the top of their fields, including in selecting markets to invest in at the right time, in managing and adding value to each property, as well as in providing legal advice and insurance coverage to protect all of our assets from risk. Our team will always be of the highest credentials to ensure we are doing the best that can be done for our investors, our company, and the residents of our Parks. Given the increasing need for low income housing, as well as for manufactured housing communities that are attractive even to current and future retirees used to the single family home way of life, we see this strategy as holding significant promise for success in communities all across the country.