Mobile Home

[Van Flowers]

Has anyone ever wholesale a mobile home? If so, how did you determine if it was a deal or not? I have a seller who has reached out. 

[John Fedro]

Hi Van,

Good question. `Wholesaling a mobile home inside the park may seem like a very natural and easy thing to do. You're likely thinking that "If it's anything like traditional real estate than you simply put the home under contract, and then sell that contract for more money to a buyer that wishes to live there or invest in." It is technically that simple, however the real world typically gets in the way. 

The real problem may begin when a seller or buyer does not truly understand what you are doing. Because in most states mobile homes are bought and sold through the use of Title(s) it may be tricky to keep both the seller and buyer from knowing how much you are making. For this reason all parties should be aware that you plan on making money from this transaction, otherwise it is very easy for the buyer and seller to go-around you and/or cut you out of the deal. Since there is little way to cloud a MH title there is little recourse you have if the buyer and seller did go around you.

Instead of wholesaling I would encourage you to become the owner of this home if possible. If you have limited money there may be a way to make the seller structured payments for the purchase price of the home. When reselling you will have the choice to sell to a buyer of your choosing (who is also park approved) for all cash, rent, or payments.

Lastly, keep in mind that if the seller is already marketing and advertising for an all-cash buyer, then your marketing and advertising will have to be significantly better if you plan on selling the home all-cash for a higher price than the seller is already asking. I hope this makes sense.

Keep in touch and if you have any follow-up questions or concerns never hesitate to reach back out. We're all here to help.

Talk soon,
John Fedro