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How to Retire *This Year* Using Real Estate

If you dream of immediate retirement, this is your year. The good life stands ready and waiting for you to claim it. If you’re motivated, there’s no good reason why you can’t self-educate and retire within the next 12 months, no matter how much money you have right now.
couple on the beach
You’re going to use real estate to do it. Why real estate?

Purchasing the right income property will provide more passive income than the total of your personal bills. You can then “retire” from your job or any other activity that requires trading time for money.

With this plan, you don’t have to save and invest for retirement.

You don’t have to worry about stock market crashes, broker theft, or outliving your money. You don’t have to worry about being downsized or fired because you own the asset that pays you.

Your income is replenished every month. If you want more income, you just reduce expenses, raise rents, or buy another property.

Insanity Wears Suits and Travels in Herds

If you follow conventional wisdom, you’ll never be able to retire.

The conventional plan of saving and investing for decades no longer works. Due to low returns, high inflation, and unfair taxes, your savings are melting in purchasing power faster than you can save them.

Most investors don’t even realize this. What good is a 3% gain on your investment if REAL inflation is nearly 10% (ShadowStats.com)?

Even when real inflation wasn’t running so high, saving and investing was the most difficult way possible to achieve retirement because it took your entire life to get there.

Waiting to retire until age 65 leaves very few good years before doctors, hospitals and nursing homes strip-mine your assets during your slide to the grave.

A Better, Simpler Solution

Just buy one large enough residential income property that generates enough income to pay all its expenses, a large mortgage, a manager to run it, and all your personal bills too.

Once you do that, you’re free of a schedule and can 95% retire immediately, just managing your manager. You can certainly do this within the next year.

For me, this formula has worked extremely well using mobile home parks.

Advantages are many. You can buy multiple lots at once. You’re only renting the lots, so there are no dwelling repairs. Cost per rent-stream is far cheaper than homes or apartment buildings.

Mobile Home Park
Tenant turnover is low because trailers are expensive to move. Legal depreciation deductions virtually eliminate taxes. Fixed-rate mortgages combined with annual rent increases, are a great inflation hedge. Park values increase $10 to $14 for every $1 you increase profits.

But I’m not the only one having success. Two people I freely mentored recently bought their own parks this past summer.

Meet the New Leisure Class

Andrew wanted passive income, so he could retire without having to work another 35 years. So he bought a mobile home park in Nebraska that instantly earned him more than his full-time job. Better yet, the park came with good systems and a strong manager.

So Andrew continues to live in Wyoming, visiting his park every other month while keeping his full-time job, which he still enjoys. But now he can retire anytime he wants. Andrew is just 30 years old.

Pat and Steve reached retirement age with a medium-sized nest egg–but not enough to cover the full retirement they dreamed of living. So they used their savings as a down payment to purchase a mobile home park in Arizona that did provide the income level they needed to fund their dreams.

It, too, came with a strong manager, so Pat and Steve immediately retired. Now they enjoy their ranch in Wyoming during the summer and live in their Arizona park in the winter.

This isn’t rocket science. If you already dabble in real estate, it merely requires you to think bigger. If you’re new to real estate it just requires a few months of self-education.

The Steps Are Straight Forward

* Self-educate yourself using the how-to articles and success stories right on this website.

* Read books and materials from people who have already succeeded using this plan.

* Start shopping for properties.

* Pencil out the most compelling deals.

* Visit the best properties, speak to sellers, learn about the property, and discover what they need from the deal.

* Explore financing options. Can the seller finance part or all of the deal?

* Visit local banks. Learn their terms (interest rates, length of loan, percentage of park value they will loan, amortization length). Visit at least three banks, saving the most promising bank for last.

* Make an offer.

* Negotiate as needed.

* Sign a purchase agreement.

* Apply for the loan.

* Perform your due diligence.

* Close the deal and take over the property.

* Establish systems and standards or keep the existing ones.

* Put a manager in place or keep the existing one.

* Manage your manager, make deposits, and pay park bills.

* Retire.

Time Is Far More Valuable Than Money…

Anything you do to gain more time is the best investment you’ll ever make. Self-education and action are a small price to pay to regain freedom for the rest of your life.

Why not make that happen for your family this year?

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About the Author...

Mike Johnson made the journey from working jobs to freelance writer to entrepreneur to passive income and early retirement. He’s owned mobile home parks since 2003 and “retired” at age 52. He teaches others how to do it at PerpetualSaturday.com.

He's the author of “43 Ways to Earn Cash Today” (for tenants) and “101 Ways to Provide Exceptional Customer Service Today” (for landlords and managers). You can also find Mike at MikeLeeJohnson.com

Comments

  1. Kelvin says:

    Great!

  2. I would love to purchase a mobile home park, but have no money or credit. I need a partner.

    • Mike Johnson says:

      Hi Stan,

      About 30% of all parks are owned free and clear. This means you have the chance to convince the seller to give you the mortgage. Most sellers merely want secure, hassle-free passive income. Your monthly payment, backed up by the park the seller knows so well, is a great way to get this passive income. You just have to convince the seller you will make the payments and run his park well so if he ever has to take it back, it’s not a mess.

      You can also convince sellers to lease you the park for x-number of years. You take over the park, collect all rents and pay all bills and pay the seller a monthly rental fee. If you negotiate well, part of that fee can be applied to your down payment to buy the park at a later, fixed date at a fixed price.

      Immersing yourself in self-education, including meeting with sellers when you look for parks, gives you more confidence and knowledge and experience. Partners are going to want to see those traits. When you develop those traits, you’ll likely discover that you really don’t want or need a partner.

      Good luck!
      MJ

  3. Angelo says:

    That’s a pretty simplistic “plan”. If you want to be a multimillionaire just buy the winning lottery ticket! Many of us can’t just buy a large mobile home park. Not helpful, sir.

    • Mike Johnson says:

      Hi Angelo,

      If you argue for your limitations, you get to keep them.

      There was a time when I couldn’t buy a large mobile home park too. I bought my first, 32-space park with just $1,000 down. What I lacked in money, I made up for with determination and self-education. I followed the advice I offer here and took the steps to self-educate myself (learning most of what I needed from the free articles right on this website), met with sellers, toured parks, talked to bankers and took action.

      There is always a gap between where you are and where you want to be when you decide to chase a big dream. What you do to erase that gap determines if you achieve the dream or not. Whining about it isn’t going to get you there. Biting the hand of someone trying to help you get there isn’t going to get you there either.

      • Jeanne Ekhaml says:

        Excellent reply, Mike. I hope one day… you’ll be my MHP mentor.

        • Mike Johnson says:

          Thanks Jeanne. I owe this site so much for my success. It taught me most of what I needed to know. I’m happy to repay the favor anytime!

  4. Great ! Mike do you mentor?

    • Mike Johnson says:

      Thanks Lorna. I do mentor within the constraints of time (just email questions to me). If you want a longer, more involved coaching situation we can determine a fair fee structure. I do enjoy helping people erase the time and money problems from their lives.

  5. Juliet says:

    This is awesome information! Thank you Mike for encouraging us and taking the time to put in writing a clear concise bit of knowledge for us to read. Thank you for your hard work & diligence!

    • Mike Johnson says:

      Thank you Juliet. I appreciate you taking the time to read and comment. This website shares a tremendous amount of information on how to buy the passive income streams that allow fast retirement.

  6. Goldie Mandella says:

    Why wouldn’t a MHP owner with a great manager just keep their amazing, passive-income property? Just curious what kind of motivations you have discovered out there.

  7. Mike Johnson says:

    Hi Goldie,

    Some people want a larger park and think they need to sell one to buy the next. Sometimes people divorce and have to sell the park to split the assets. Sometimes a spouse dies and the other doesn’t know how, or doesn’t want to oversee the manager of the park. Sometimes a park is owned so long it uses up all its depreciation so it’s best to sell and buy a different park to get those tax savings flowing all over again. Some other sellers get progressively less tolerant of dealing with any issues at all and decide to sell a situation that most people would call great. Humans are always out-growing situations and reaching for something they think is better.

    Fortunately, that keeps a stream of parks hitting the listings on a regular basis.

What do you think? We would love to hear your opinion.

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