Mobile Homes - How to Cash Flow

Do you have to be concerned with park restrictions, sale approval, etc?

Do you see that interest rates you are able to charge and selling price vary depending on the area of the country you are in?

Mikessler,
How do you go about finding these deals?
I'm assuming because it is all cash when you buy, there is no need for realtor?
When you sell are you having them sign a regular SFH purchase agreement? Please give a little more detail, as this appears to have the same, if not better, cash flow and ROI benefits without as much capital at risk.
It sounds like it would be a great place for a new investor to get their feet wet.
Thanks.
Brian

Mike,

thank you for starting this thread; I think many of us underestimate the wealth that can be made in mobile homes... definitely something I want to try...

What are the concerns regarding park approval of the sale, restrictions, etc.?

Mike,
HOW in the heck do you get them so darn CHEAP? I was looking at mobiles/modulars/manufactured/ and there's not ONE around here that goes for less than 5 digits, (and we have quite a few of them...) So I am DYING to know how you find them like that!

craigslist for starters

I figure I will just answer questions so everyone can see them.

TRSD - Yes there are community restrictions. The prospective buyer must get approved with the community first in order to enter a contract with me to purchase the home. I do this so I can continue to market the property.

saroberts69 - No the reason I charge 12-13% interest, most mobile home lenders can charge up to 15% interest. They are riskier loans.

wwillc - I have found half of my deals just online free classifieds, people that are selling mobile homes and are motivated generally sell on free sites, and it is also a demographic thing as well. My big secret is, I work with community owners as well. They take properties from people when they don't pay their lot rents. I can then purchase the homes from them.

Ladyfox7oaks - it is all the same. I'm finding the motivated seller. The last home I just bought was from an older lady that went into an assisted living home. The family took over the property and couldnt' do anything with it. The property was very distressed, I picked it up for $1,500. I put about 3,000-3,500 in rehab. I ended up doing some of the work on this home to keep it in my costs. I sold the property for $26K, on an 8 year contract which i will make an additional 10-12K in interest.

They are out there, and these deals are real.

Hopefully that answers your questions, I would start looking, you'll be surprised what you will find when you have a motivated seller

Thanks
Mikessler
Advisor

wanna buy these !!! coach Mike has it nailed ,,,he is basically the BANK for these LESS THOUGHT OF money printers !!! THEY R EVERYWHERE you just have to FIND the motivated sellers. I love this post mike as i KNOW you are making $$$$$$$$$$ on these.they are dismissed as a great niche because people do not realize that they r EASILY moved,seller financed,rent to owned,low down accessed,cheap to remodel,less money to aquire or sometimes FREE !! can sometimes be doubled or shared water or septic which means ONE EXPENSE and multiple incomes !! and i could go on and on !! LISTEN to the coach and research or study HOW TO INVEST IN MOBILE HOMES !!!! ,,,,,I DID :!!!!
jay

not bragging either but i just bought one for $1000 and sold FAST for a $7000 profit !!!! its done every day !!! ...............JUST DO IT !!!!
jay

Hey Mike. Sounds like a great low investment high return opportunity. I am curious to know exactly how it works in situations when or if the buyer defaults on there payments with you but continues to pay the lot rent or vice versa. What action is taken? Is there a different kind of contract used for this type of purchase since your acting as the bank and owner in this situation? If so, is there a generic one out there on google?

Thanks

I just got a lead from one of my other investors i have worked with. He gives me leads on all of his MH leads he generates. If I purchase the property I give him a finders fee for bringing the deal to me.

I just contacted the seller, she just purchased a home and is closing at the end of July. She is really motivated, because she can't handle the lot rent if she doesn't sell her home before the end of the month.

I made an appointment to see the home tomorrow and will work out a situation to buy her house.

Since I always work on my buyers list, I have buyers lined up to buy homes like these. I can usually work with the management of the community to have them give me a discount on the lot rents for a month or 2 to sell the home. But usually I can sell them very quickly since i already have buyers.

I also just finished another rehab on another MH in a different community. I have a number of people that want to buy it already, I am meeting with them this weekend to get them qualified into the community.

I'm telling you, they are out there. Look, Look, and connect with investors and Owners of communities, they will just start coming to you.

Keep moving Forward!!

JOgden great question.

Out of all the deals I have put together, i have only had 2 of my buyers walk away from the property. They basically gave me the property back. The motivation is they don't want to keep the responsibility to pay the Lot rents. So they give that responsibility. In both cases I re-sold the properties before they were vacant at the end of the month. The new buyer put a new deposit down and I re-sold the property making a new loan with them. They now pay me on the new purchase.

The success of those is a buyers list. I have a list I keep all the time for my properties. If I need to sell one I go to my list and start calling. I can usually sell or rent a property way before it comes available. Why lose money if you don't have to.

Great question, it is a fear of taking the responsibility of the lot rent from the community. But if your set up to fill the home before you have to pay it, then there is no risk at all.

Mikessler
Keep Moving Forward

I have been calling on classified ads and found another motivated seller. This is in a community I have worked with before and they wouldn't deal with me. I ended selling that other deal, but this time I plan on having them work with me so I can open myself up to a lot more future deals.

I have the seller that is motivated, but I also make sure the park works with me as well. I always ask for at least 2 months of free lot rent while I fix the home and make their community look better. They appreciate that and want to be involved generally. I'm working to get on their preferred list so they will give the 2 months free every time I buy a home in their community.

Just another tip for MH investing

Mikessler