Wholesaling Mobile homes?

Question

Hi guys! I'm a newbie with real estate investing and have been reading up a lot on wholesaling. I would like to know if wholesaling can also be applied to mobile homes. Can I put a mobile home under contract and then sell that contract to another buyer? How is the closing done, etc? Any insight would greatly be appreciated.

John Fedro · Answer

Hi Flaure and the group,

Welcome to BP and for your interest in the exciting world of MH investing. Mark and James give good feedback with regards to wholesaling MHs inside parks, as these homes will not be attached to land and therefore will be more akin to cars and car titles.

The real world application of wholesaling MHs in parks can be tricky as any contract or agreement to purchase would not do anything to prevent that seller from going around you as you send potential buyers through the home. You can hold the title in escrow or make sure the seller is out of the home however these hurdles sometimes prevent problems moving forward as seller(s) may not agree.

In addition to the lack of security you have as wholesaler the only value you bring to the table is to market the home better then these sellers and try to sell to an end user. Perhaps you can wholesale to another local MH investor or another park to move the home there, however this is unlikely in my opinion as experienced MH investors may think they can get the home cheaper than your price and only few MH parks will buy homes.

Now, on the other side of the coin you have more success wholesaling mobile homes on real land. In many areas there are more MHs on real land then inside rented parks. Finding and attracting these motivated sellers can be rewarding, plus more investors and end users will have money or credit to purchase these deals from you. However I would advise you line up buyers and serious/active Mh investors in the area and ask what they are looking to buy. Get a seller's home under contract to purchase at 50% of the After Repaired Value minus repairs and minus your assignment fee. If you are negotiating terms than perhaps you can ignore the 50% price above.

Every deal is different and I am sure if you have any specific deals or leads you can post their pictures and data on this forum and get some great advice from many investors quickly.

Thanks for the shout out Steven.

After reading the above comment you may now have more questions than before. Don't hesitate to reach out if you have any more questions or thoughts.

All the best,John Fedro

Derek Torculas · Answer

Where can i get a mobile home contract for them to sign?

Steven Thompson · Answer

Flaure,

Welcome to Bigger Pockets before you start with Mobile homes I would listen to podcast 75 it talk's about mobile home investing. It gives some very useful information when it comes to mobile homes and there are some very useful blogs on mobile home investing here on Bigger pockets. This link below will send to the blogs.

http://www.biggerpockets.com/renewsblog/?s=mobile+homes

Bigger Pockets is a great resource for new and experienced investors. I am using the information from the mobile home blogs to do my first mobile home wholesale and I found it very useful.  I wish you good luck and let me know how it goes.

Norberto Clemente · Answer

So I'm kinda looking for the same info too. Can a standard purchase contract work?

Brian Hurling · Answer

Mobile Home Question. I have a motivated seller with a Georgia Mobile home sitting on about .054 of an acre. The ARV for the mobile is 134K but she wants 70K. I know that mobiles are like cars but what if they're sitting on land(The seller owns the land). Should I be looking for MH investor or would this be considered more of a land purchase? The property tax accessor has the property tagged as " Real property". The right help would be great, she is elderly and needs to sell but she does not live in the unit, it's vacant. Not sure ifI can calculate this like a Wholesale deal?

Real property is land and any property attached directly to it. It is any subset of land that has been improved through legal human actions.

Daniel Choe · Answer

What's the best way to negotiate a MH which includes a land lease for 15 years? Because the MH itself is fairly cheap in the area I'm looking at.

Mark Gruetzmacher · Answer

Make sure you have a clean title just like a car.  Your area might be different but I wouldn't think so you might get in trouble trying wholesale mobile homes.  The reason being is that there might be some license you have to get or something if you are not putting title in your name.  Like a mobile home broker or sales license.  I know here that you can get in alot of trouble if you are buying the mobile home and then selling to a third party.  The county wants the tax dollars from the sale and if it changes hands to you then to someone else then they want the tax from all 3 parties.  Same with a car title.  I think as a seller they are required to fill in the title with the buyers info and have the buyers sign the title.  Here they also have an attached sheet the seller is required to fill out and turn into the county.  It is a way to verify the buyers name and the selling price.

Now I know there are tons of deals out there that don't go that way and the seller just hands over an empty title with just their signature.  The Buyer could then pass the mobile home on to another buyer and put their info on it and no one is the wiser unless the third party buyer says something when they register it.  Also here you have 30 days to get the title transferred or you pay a small fee.

Just some things to think about.

Mark

James Enright · Answer

Mobile homes are like buying cars and trucks with the title. Just be sure there is title with that mobile home so you can sell it.

Wholesaling Mobile homes?

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