The Best Kept Secret in Real Estate
Glenn Stromberg and the team at Stromberg Investment Group operate a deceptively simple business model: Find an investment property, negotiate & buy it below market value, repair & rehab to rent-ready condition, then rent or sell it. Using this classic model of investing in a competitive housing market dominated by hedge funds, how is that SIG generates such excellent results for itself and its investors?
The key to his success is simple.
The Stromberg Investment Group operates using an "open secret" that gives them an unfair advantage over other real estate investors, and that secret is simply that the most overlooked and undervalued (and therefore best performing from an investment standpoint) class of real estate in Texas, North Carolina, and South Carolina is that of manufactured homes on acreage.
Why Manufactured Homes on Land?
After decades working in the real estate market, Glenn Stromberg realized that the misconceptions surrounding "mobile" homes kept most investors and hedge funds out of that niche market. What Stromberg understands is that, today, many of these properties have concrete foundations and are financed by FHA with a deed of trust - and valued and sold just like conventional housing. In fact, a modern manufactured home with a concrete foundation on land is often more desirable to a middle-class homeowner than a tract home on a tiny lot in a subdivision.
To learn more about Stromberg Investment Group's unique approach to creating wealth and cash flow for private investors, contact us.
Overview of Stromberg Investment Group's Simple, Scalable 4-Step Business Model
Locate high-quality manufactured homes on acreage in areas of high growth. Typically, these properties are in semi-rural or suburban areas in close proximity to booming cities, precisely the areas that hard-working middle-class families prefer. These properties have concrete foundations are eligible for FHA financing.
2. Negotiate and Buy
Using proprietary systems and relying on up-to-the-minute knowledge of local real estate values, negotiate and buy these properties well below market value, often at 70% or less of Fair Market Value (FMV).
Using their experienced, in-house team of contractors, rehab these properties up to rent- or sale-ready condition. (See the pictures on this page for examples of finished properties.)
4. Rent or Sell
Rent or sell the property. If the property is rented in order to generate cash flow, the tenants are carefully screened. When sold, Stromberg partners with the best Realtors in the area and usually close on the properties within 60-90 days, thus enabling Stromberg and their private investor partners to cash out of the deal quickly.
Benefits of the Stromberg Model
The model has been tested, improved, and perfected over many dozens of transactions. Put plainly, it just works, and this provides peace of mind to investors.
Superb cash flow.
When these properties are bought "right," they typically provide excellent cash flow to Stromberg and any other investors involved in the deal. The yield provided by this type of investment is the foundation of wealth for most investors.
These properties are desirable and affordable and are not likely to suffer in a recessionary environment. That translates to low risk.