Mobile Home "Flip" (cleaning only)

[Michael Sanchez]

Investment Info:

Mobile home wholesale investment.

Purchase price: $20,723
Cash invested: $2,351
Sale price: $34,000

Mobile Home with permanent foundation on 1.2 acres of land.

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

Seller was extremely motivated. They wanted it sold "yesterday"

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

My own marketing. My negotiating skills were put to the test on this one. At first the seller was fine with a closing date 45 days from contract, but a week later they had run out of money and wanted a sooner closing date. I also believe he was getting other offers possibly more than we had agreed upon.

I persuaded him to take $15k off the price and we can close in 2 weeks. Purchasing the property was not my original intention but I knew I can sell it for a decent price to another Investor.

How did you finance this deal?

Hard Money

How did you add value to the deal?

Cleaned up the place by removing all the junk ($500) and running an ozone generator in it for a few days to remove smoke smell.

What was the outcome?

Sold for $14,000 more than what I purchased.

Lessons learned? Challenges?

- Some sellers are looking to move quickly and that may require you to buy the property instead of wholesaling. Do your DILIGENCE and use their "urgency" as a negotiating lever

- If the seller requests to move-out after the closing date, be sure to hold half of their profits with the closing attorney to ensure they move out on the agreed upon date

- Visit the home frequently. The water pipe in the yard had busted and was gushing for 2 days.

- Vacancy insurance for homes you are holding

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

n/a