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.
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. .
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