Manufactured Home Build & Sell

[Kyle Blain]

Investment Info:

Mobile home private money loan investment.

Purchase price: $40,000

Cash invested: $135,000

Long time borrower of ours buys vacant lots and places brand new manufactured homes on them. The borrower pays cash for the land and improvements then I come in with the construction funds to build and place the home. The borrower has a great team and they have a solid profit margin to work with in. These transactions take 5 days to fund and about 2 months to be sold.

What made you interested in investing in this type of deal?

These types of deals are very straight forward. The land cost is low, the build cost is low and the time frame is quick. The ability to buy the lot, build the home and place it then sell it with in a 2 to 3 month window is phenomenal.

How did you find this deal and how did you negotiate it?

I am the private money lender in the transaction.

How did you finance this deal?

I finance the deal through my investor base.

How did you add value to the deal?

I structure the deal, underwrite the deal, inspect the property and issue all the construction draws.

What was the outcome?

The property was sold in 2.5 months from start to finish. The sales price was $235,000.

Lessons learned? Challenges?

Work with a solid manufacturer on the home.