Brain storming ideas for Mobil Home Investing partnerships

[Orlando Paz]

I met with a real estate agent today to view a single family handyman special. During our chit chat, he expressed an interest in investing as well. The one topic that caught his attention during our conversation, was mobile home investing. He even suggested partnering up. It's not the first time I hear someone express an interest in "joining forces" to tackle mobile home investing. The idea actually does not sound bad, considering that it may actually open doors to actually taking action. My problem is that I am mostly familiar with the "Lonnie deals" type of investment. Using such a strategy may work well as an individual investor, but I don't see how it could be profitable in a partnership scenario. Maybe there is a way to make such a partnership work. I just don't see it. Perhaps there is a different way to invest, which allows for a profitable partnership to flourish. Any thoughts or suggestions would be greatly appreciated.

[Bill Neves]

Well... @Roy D.

If you think of them as 'junk' you may want to stay with traditional stick built real estate. 

However....   I take mobile homes that people may not want and turn them into good quality housing for people who cannot qualify for a traditional loan and don't want to rent. They love me.

I did 160 stick built real estate deals before my first mobile deal. I specialized in foreclosures and short sales before the market crash in 2008. I would get calls from my advertising and declined many mobile homes. I always heard 'they go down in value', 'stay away from them', 'trailer trash', 'if it came in on wheels it's a trailer', etc, etc.

Once I did my first mobile deal, my wife and I did 17 in 17 weeks and could not believe it. I was kicking myself for being so snobbish about them.

Now.... some of them needed work but have you ever seen a bad foreclosure or a house that has been empty for months or years? Kinda junk? An investor can take it, fix it up and make good money. I've done it and thousands of others have done it.

A mobile home is just inexpensive to obtain and can get better returns than stick built, in many cases. You don't need realtors, title companies, and a lot of the other traditional stick built necessities. In most cases, a mobile home is personal property like a car. Most even have a title, like a car.

Many of the deals sell for cash, just like a car.

I just completed my 30th deal 2 days ago. Have right at $20k in it and it's listed for $29,500. There is only one other mobile in the area under $30k right now. I expect to sell for full price. Financing is available with half down with a Dodd Frank compliant loan.

My 29th deal, just sold a month ago... I got for $10k, put $3500 in it and sold it for $24,900. Full price, cash, no discount. That was a profit of $11,500. And we did it in 28 days.

Do the math. ROI was over 1000% annualized. What stick built deal will do that?

Read some of the other mobile home postings here if you are interested.

So, short answer? Yes.... there REALLY is money to be made in junk mobile homes.

Have fun!