All Forum Posts by: Dan Dwyer

Investment Info:

Mobile home fix & flip investment.

Purchase price: $85,000
Cash invested: $195,000
Sale price: $285,000

Replaced old Mobile Home and Installed a new one and sold it.

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

We have done this for years

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

My partner finds them via mailing

How did you finance this deal?

Cash/Private money

What was the outcome?

Good

Lessons learned? Challenges?

Get the right contractors

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

Although I'm a RE Broker, I have found that by using a great agent I obtain a better outcome.

Hi Ryan

I live in Southern California so I may be way off, but if you told me you were going to buy a mobile to rent out to others in a mobile home park any where in so cal I would tell you to RUN from that idea, it is horrible. Everyone who has ever gone against that advice (my relatives on 2 separate occasions) have lost their money and spent a fortune on aspirin. Here are a couple of reasons why. The tenant must be park approved. The lot rent never stops and lot rents can increase. If the park gets nasty with you because they get mad at you or your tenant they can tell you to moved the coach out of the park. When you go to sell park must approve new buyer. What if you find the ideal park that everyone, owner manager are so nice and they aren't mad your making money in their park great right, NOPE because they sold it the next month to some people who want you gone.

I own 2 manufactured homes on private land that both stay rented to good families and I am doing very well with them, they are cash cows. I also own 2 stik built homes and they do not return near the cash as I have paid a lot more for them and have loans on them. BUT in this area stick built will outperform when I go to sell by a very large margin.

I would recommend private land. Find a partner. I don't think any bank are doing non owner occupied on manufactured homes.

Remember Mobile Home Park RUN

Good Luck! Step One Find the Deal

Hi Jeremy

Congrats on the acquisition. I would fix the drains asap. Look for the simple and obvious first like easy entry through the foundation (a crack) during excessive rain, pooling ect. If you haven't already done so enter the crawl space and have all of the sinks toilets laundry ect. turned on and see if you have  drain pipe leaks. Be sure that you turn on the shower side of tub combo as sometimes the pipe going up to the showerhead will leak once it is activated. I would go look at the drainage when you are having a lot of rain. Hope that is helpful.

Dan

So is Dad putting in any money or just a contractor bidding a job, is he looking at property and telling you to buy or not,(keeping you from disaster) repair/rehab estimates ect are you using his subs that he has built a working relationship and trust over the years with

will you make him wait to get paid when the deal closes

could he be working else where getting paid like normal

first try to put yourself in his shoes, last thing you want to do is have a family mess over business

With any partner I always have multiple discussions,  a meeting of the minds, then a waiting period (gut check) then PUT IT IN WRITING and the way I explain it to folks is that it makes it easier for everyone to remember

family dynamic can kill a deal or make a fantastic fun enterprise

Hard to say! your skill sets, what you like to do, and what you will commit to are very important. Can you do the fix flip work yourself or at least some of it, are you a realtor and handle the transaction and save on commissions and on and on

so maybe get a partner with a different skill set or a lender. Look for deals, if your going to fix and flip you always need contingency money and don't forget about carrying costs 

Hi Josh a couple of things  you said yourself your gut is saying pass and since it is your first deal your not sure if it is just butterflies or not, always listen to your gut and as you do more transactions you will learn if it's just the excitement of the deal or a true warning.

Then you said you didn't want to stress others involved in the potential deal. Really?  You aren't responsible for their feelings. Set your parameters of what will work for you and your plan if the deal doesn't work then it's Next!

If you are working with a real estate agent or writing your own offers they should be structured  to give you a due diligence period with no risk to the earnest money deposit, in our area the standard is 17 days.

Don't talk yourself into a deal because you feel the need to do something

Good luck and trust your gut

Thank You Very helpful.

I was wondering what is B2R