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Niche Market
Dominion Ventures LLC, Management Series prides itself on purchasing and managing quality, pre-existing commercial properties that cash-flow upon acquisition, are recession resilient and have a strong upside potential. A strong upside potential is often evident in poorly maintained and/or managed properties where, as a result of our efficient and creative management, expenses can be decreased and revenue increased. With these focused goals our niche market is purchasing and managing Manufactured Housing Communities and storage centers.
Our rationale for focusing on Manufactured Housing Communities and Storage centers has 3 reasons: recession resilience, cash flow P.I.G.s, and the tax benefits/phantom income. Both Manufactured housing communities and storage centers are known for being stable commercial investments during uncertain economic times. As an example, when a renter is given a choice between renting in an average conditioned 2 or 3 bedroom apartment complex versus owning their own home in a nice community with their own yard, playground, pool, and pets are allowed, most of the time they will choose the manufactured home. One of the strengths found in storage centers is due to the downsizing of homes for the retiring baby boom generation. The baby boomers typically have many valuables they desire to preserve and often times this can best be accomplished by having a nearby storage center.
Both of these commercial investment vehicles have been coined as P.I.G.s by investors; that is, Passive Income Generators. This is because these classes of property are known for having low overhead costs to manage and operate, thus meaning a low break-even threshold, which lends itself to strong cash flow when good management is in place.
Manufactured Housing communities in particular have a significant tax advantage over most other forms of commercial real estate. Typically, commercial real estate is depreciated over a 39 year schedule; in contrast, Manufactured housing communities are depreciated over a 15 year schedule. This means an investor can realize a significant annual tax write-off against their income. As a result of these tax write-offs, an investor can realize significant additional phantom income due to the IRS depreciation allowances. It is believed that this may have been one of the motivating factors for Warren Buffet to purchase Clayton homes for $1.7 billion in 2003.
Our investors enjoy other benefits from our focused market niche. This is because our goal is to return all or a majority of their investment capital in 5 years while they still retain ownership. The investors typically receive cash distributions within the first year of ownership of the property, unlike development or pre-construction projects which may require several years to begin operations.
Dominion Ventures LLC, Management Series prides itself on purchasing and managing quality, pre-existing commercial properties that cash-flow upon acquisition, are recession resilient and have a strong upside potential. A strong upside potential is often evident in poorly maintained and/or managed properties where, as a result of our efficient and creative management, expenses can be decreased and revenue increased. With these focused goals our niche market is purchasing and managing Manufactured Housing Communities and storage centers.
Our rationale for focusing on Manufactured Housing Communities and Storage centers has 3 reasons: recession resilience, cash flow P.I.G.s, and the tax benefits/phantom income. Both Manufactured housing communities and storage centers are known for being stable commercial investments during uncertain economic times. As an example, when a renter is given a choice between renting in an average conditioned 2 or 3 bedroom apartment complex versus owning their own home in a nice community with their own yard, playground, pool, and pets are allowed, most of the time they will choose the manufactured home. One of the strengths found in storage centers is due to the downsizing of homes for the retiring baby boom generation. The baby boomers typically have many valuables they desire to preserve and often times this can best be accomplished by having a nearby storage center.
Both of these commercial investment vehicles have been coined as P.I.G.s by investors; that is, Passive Income Generators. This is because these classes of property are known for having low overhead costs to manage and operate, thus meaning a low break-even threshold, which lends itself to strong cash flow when good management is in place.
Manufactured Housing communities in particular have a significant tax advantage over most other forms of commercial real estate. Typically, commercial real estate is depreciated over a 39 year schedule; in contrast, Manufactured housing communities are depreciated over a 15 year schedule. This means an investor can realize a significant annual tax write-off against their income. As a result of these tax write-offs, an investor can realize significant additional phantom income due to the IRS depreciation allowances. It is believed that this may have been one of the motivating factors for Warren Buffet to purchase Clayton homes for $1.7 billion in 2003.
Our investors enjoy other benefits from our focused market niche. This is because our goal is to return all or a majority of their investment capital in 5 years while they still retain ownership. The investors typically receive cash distributions within the first year of ownership of the property, unlike development or pre-construction projects which may require several years to begin operations.
