The best way to invest in mobiles ?

Question

What's the best way to invest in mobiles ?

Dave Reynolds · Answer

My initial answer is to buy mobile homes when they are located in or you will move them into a park that you own. If this is not possible, then focus on buying homes in the 5K range in parks that have rents under $250 per month. Most customers can only afford $500 per month on lot and home payment and when you have a lot of room between that $500 and the lot rent you are able to sell and get paid back quicker.

Dave Reynolds

Marc Faulkner · Answer

I should have given you a little more meat with my first post."You make your money when you buy" a mobile home for the right price!  Buy cheap, sell at retail and owner finance the sale with a decent down payment and a decent buyer.  Typical rate on seller financed mobile home notes are from 10 to 19%.  If you buy for $10,000 and sell for $18,000 and get 10% ($1,800) down you will only have $8,200 into a performing note that is paying a way better than average rate of return!!!  
In my area we are now buying stick built homes on land for what we were paying for mobiles in parks just 3 years ago.....  If you are working with mobile homes that are in parks it is of upmost importance that you keep the combination of the lot rent and home payment competitive with market rents.

Frank Adams · Answer

Learn how to do "Lonnie (Scruggs) Deals". Google his full name and you'll find references to his book "Deals On Wheels" about $45 new, $5 on ebay!

Basically you buy a MH for about $5K or less, put a little bit into fixing and resell it on "$1000/ down, XX/month payments. Generaly good "Lonnie Dealers" are making  300% GP and about 12%-14% on their money. It's not bad!

all cash

Cole Haynes · Answer

This definitely depends on the investor and their market and experience. For me, it's buying doublewide manufactured homes on land.

I love the options you have when you own the land the home sits on! You can keep the land and sell the home, rent, sell on terms, sell for cash, etc.

Buying and selling mobile homes in parks is a great way to start! The average ROI is very high. But you dont own the land, limited exit strategies, and you are not the gate keeper.

Note deals are very good though! I am really enjoying L/H deals though.

Marc Faulkner · Answer

We buy and move them all of the time.  We also sell them to park owners and other dealers that are our best customers because they pay cash!

Anton Jiggetts · Answer

Sometimes you have to weigh the pros and cons before buying a "cheap" mobile. I looked at 3 mobiles all under $1500 last weekend. They all needed major repairs and one needed to be moved. I decided on one I looked at today that was $3,999 and I got it for $3,200 after negotiating. It needs minor cosmetic repairs, is a 3/2(desirable), and can stay in the park.

Less headaches and I would have spent that much on any of the others with more headaches.

The key is to line up your buyers so you don't spend time paying lot rent while you wait to sell and to keep some of your capital so you can keep investing instead of buying one, spending all your money and then waiting for the payments to build you up to where you can by the next one.

Stacey Pierce · Answer

I had a similar question too. I live in PA but recently my partner suggested that we invest MH's....I don't know if you have to own the park itself to own the trailers or if you can own the trailers and not the park. I need help understanding as I continue to learn about the wonderful world of RE................

Dale Osborn · Answer

My answer would be that there really is no "best" way of investing in mobiles. Different strokes work for different folks! Basically you have to be comfortable and enjoy what you are doing. When you enjoy what you are doing and making money at the same time it is not like work or a JOB - it is fun!

Ricky Ostrom · Answer

The best tip is making sure the mobile home can stay in the park.  You don't want the expense of moving it.

If the mobile home is on some land, then you want to purchase the MH with the land.   Then sell the MH and rent the land to the buyer.

Marc Faulkner · Answer

By far the best way to invest in mobile homes is to have them sold before you buy them!

The best way to invest in mobiles ?

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