All Forum Posts by: Jerry Lucker

I like to use escrow/title companies. They deal with the banks, DMVs, etc.

Mobile/Manufactured Homes – good investments?

You’ll find many opposing opinions of course. Mine comes from actual experience.

Here’s what I’ve documented from more than two decades in the business:

MOBILE HOME FLIPS

Mobile homes in parks are most often occupied by the owner. The homeowner rents the lot from the park. Most parks do not allow the homes to be occupied by renters.

Mobile homes in parks are considered personal property, not real estate. They are bought and sold like cars or boats, etc.. The paperwork needs to be no more than a title and a bill of sale.

Mobile homes are depreciating assets. Hang on! This is one of the main reasons they are so profitable for those that understand how to benefit from this housing type.

Many mobile home loans go into default when the homeowner stops paying. The homeowner is the registered owner on the title, the bank is the legal owner on the title.

Upon default by the homeowner, the bank repossesses the home and becomes the sole owner. The bank then becomes responsible for the park rent, the utilities, the maintenance, the insurance, etc.

With no money coming in from the loan and being responsible for hundreds of dollars in expenses every month the bank is in a real bind. The home has depreciated and is most often in need of TLC, repairs, or rehab to bring it back to saleable condition.

The bank may have hundreds or thousands of loans on mobile homes spread over a huge geographical area. There is no way they can reasonably afford to keep enough crews or hire unknown entities in all the areas to try and fix up the homes to sell and try to make any profit on homes that are worth less than when the loan was initiated. The banks are in the lending business, not the rehab business. Besides, the actuaries have figured in these defaults as part of their normal business process.

The banks are highly motivated to remove these negative cash flow homes from their inventory. Most of the time the homes are sold to investors for quick cash. The banks know they must leave a lot of room for the investor to make a decent profit. Ater all, the investor puts out the cash and time to buy, fix, and resell the home. Buying the homes at steep discounts and adding a little TLC accounts for very healthy profit margins for flippers. The homes are rarely sold to people that will occupy them. They normally don’t have the cash, time, or expertise to buy and fix up the mobile.

Besides banks I've purchased many homes from FSBOs, some I even found on the MLS. There's a lot of reasons people will sell mobile homes for a lot less than they could have. Once again, they're not real estate. A whole different, rarely understood mentality.

I always flip mobile homes in parks for cash; I don’t carry contracts. I can make a lot more money quickly reinvesting cash than trying to make interest over an extended period. And, I don’t have to worry about getting payments, dealing with defaults or evictions, or having to repossess and rehab trashed units. Profit margins on mobile home flips have consistently ranged from 40% to 200% over the last two decades.

Mobile homes require a lot less cash than real estate to buy and fix.

Mobile homes are bought and sold easier and quicker than real estate.

Mobile homes offer higher profit margins than real estate.

Mobile homes have far less competition than real estate.

MOBILE HOME RENTALS – and , YES! I also own real estate!

Most of my rentals are SFR mobile homes on private property. These can be considered real estate (just eliminate the title). I purchase them for around half of what a similar size stick-built house would cost but can rent them for practically the same amount of money. Many renters don't care, they're only interested in the number of bedrooms or the square footage. I rent them for 10 or 15 years then sell them on a 20 year contract and let someone else take care of the maintenance and upkeep. I don't have to be concerned about either appreciation or depreciation. Flipping units allowed me to make enough cash to buy the rentals outright. I don't have to worry about banks or other lenders.

I’ve moved many mobile homes, developed property with mobile homes, done just about everything possible with mobile homes :)

BOTTOM LINE

Sure, there’s a fair amount to know about this unique housing niche. It’s not complicated or difficult to learn. Worthwhile? I’m not the best person to ask – too darned prejudiced.

Mobile/Manufactured Homes – good investments?

You’ll find many opposing opinions of course. Mine comes from actual experience.

Here’s what I’ve documented from more than two decades in the business:

MOBILE HOME FLIPS

Mobile homes in parks are most often occupied by the owner. The homeowner rents the lot from the park. Most parks do not allow the homes to be occupied by renters.

Mobile homes in parks are considered personal property, not real estate. They are bought and sold like cars or boats, etc.. The paperwork needs to be no more than a title and a bill of sale.

Mobile homes are depreciating assets. Hang on! This is one of the main reasons they are so profitable for those that understand how to benefit from this housing type.

Many mobile home loans go into default when the homeowner stops paying. The homeowner is the registered owner on the title, the bank is the legal owner on the title.

Upon default by the homeowner, the bank repossesses the home and becomes the sole owner. The bank then becomes responsible for the park rent, the utilities, the maintenance, the insurance, etc.

With no money coming in from the loan and being responsible for hundreds of dollars in expenses every month the bank is in a real bind. The home has depreciated and is most often in need of TLC, repairs, or rehab to bring it back to saleable condition.

The bank may have hundreds or thousands of loans on mobile homes spread over a huge geographical area. There is no way they can reasonably afford to keep enough crews or hire unknown entities in all the areas to try and fix up the homes to sell and try to make any profit on homes that are worth less than when the loan was initiated. The banks are in the lending business, not the rehab business. Besides, the actuaries have figured in these defaults as part of their normal business process.

The banks are highly motivated to remove these negative cash flow homes from their inventory. Most of the time the homes are sold to investors for quick cash. The banks know they must leave a lot of room for the investor to make a decent profit. Ater all, the investor puts out the cash and time to buy, fix, and resell the home. Buying the homes at steep discounts and adding a little TLC accounts for very healthy profit margins for flippers. The homes are rarely sold to people that will occupy them. They normally don’t have the cash, time, or expertise to buy and fix up the mobile.

Besides banks I've purchased many homes from FSBOs, some I even found on the MLS. There's a lot of reasons people will sell mobile homes for a lot less than they could have. Once again, they're not real estate. A whole different, rarely understood mentality.

I always flip mobile homes in parks for cash; I don’t carry contracts. I can make a lot more money quickly reinvesting cash than trying to make interest over an extended period. And, I don’t have to worry about getting payments, dealing with defaults or evictions, or having to repossess and rehab trashed units. Profit margins on mobile home flips have consistently ranged from 40% to 200% over the last two decades.

Mobile homes require a lot less cash than real estate to buy and fix.

Mobile homes are bought and sold easier and quicker than real estate.

Mobile homes offer higher profit margins than real estate.

Mobile homes have far less competition than real estate.

MOBILE HOME RENTALS – and , YES! I also own real estate!

Most of my rentals are SFR mobile homes on private property. These can be considered real estate (just eliminate the title). I purchase them for around half of what a similar size stick-built house would cost but can rent them for practically the same amount of money. Many renters don't care, they're only interested in the number of bedrooms or the square footage. I rent them for 10 or 15 years then sell them on a 20 year contract and let someone else take care of the maintenance and upkeep. I don't have to be concerned about either appreciation or depreciation. Flipping units allowed me to make enough cash to buy the rentals outright. I don't have to worry about banks or other lenders.

I’ve moved many mobile homes, developed property with mobile homes, done just about everything possible with mobile homes :)

BOTTOM LINE

Sure, there’s a fair amount to know about this unique housing niche. It’s not complicated or difficult to learn. Worthwhile? I’m not the best person to ask – too darned prejudiced.

Mobile/Manufactured Homes – good investments?

You’ll find many opposing opinions of course. Mine comes from actual experience.

Here’s what I’ve documented from more than two decades in the business:

MOBILE HOME FLIPS

Mobile homes in parks are most often occupied by the owner. The homeowner rents the lot from the park. Most parks do not allow the homes to be occupied by renters.

Mobile homes in parks are considered personal property, not real estate. They are bought and sold like cars or boats, etc.. The paperwork needs to be no more than a title and a bill of sale.

Mobile homes are depreciating assets. Hang on! This is one of the main reasons they are so profitable for those that understand how to benefit from this housing type.

Many mobile home loans go into default when the homeowner stops paying. The homeowner is the registered owner on the title, the bank is the legal owner on the title.

Upon default by the homeowner, the bank repossesses the home and becomes the sole owner. The bank then becomes responsible for the park rent, the utilities, the maintenance, the insurance, etc.

With no money coming in from the loan and being responsible for hundreds of dollars in expenses every month the bank is in a real bind. The home has depreciated and is most often in need of TLC, repairs, or rehab to bring it back to saleable condition.

The bank may have hundreds or thousands of loans on mobile homes spread over a huge geographical area. There is no way they can reasonably afford to keep enough crews or hire unknown entities in all the areas to try and fix up the homes to sell and try to make any profit on homes that are worth less than when the loan was initiated. The banks are in the lending business, not the rehab business. Besides, the actuaries have figured in these defaults as part of their normal business process.

The banks are highly motivated to remove these negative cash flow homes from their inventory. Most of the time the homes are sold to investors for quick cash. The banks know they must leave a lot of room for the investor to make a decent profit. Ater all, the investor puts out the cash and time to buy, fix, and resell the home. Buying the homes at steep discounts and adding a little TLC accounts for very healthy profit margins for flippers. The homes are rarely sold to people that will occupy them. They normally don’t have the cash, time, or expertise to buy and fix up the mobile.

Besides banks I've purchased many homes from FSBOs, some I even found on the MLS. There's a lot of reasons people will sell mobile homes for a lot less than they could have. Once again, they're not real estate. A whole different, rarely understood mentality.

I always flip mobile homes in parks for cash; I don’t carry contracts. I can make a lot more money quickly reinvesting cash than trying to make interest over an extended period. And, I don’t have to worry about getting payments, dealing with defaults or evictions, or having to repossess and rehab trashed units. Profit margins on mobile home flips have consistently ranged from 40% to 200% over the last two decades.

Mobile homes require a lot less cash than real estate to buy and fix.

Mobile homes are bought and sold easier and quicker than real estate.

Mobile homes offer higher profit margins than real estate.

Mobile homes have far less competition than real estate.

MOBILE HOME RENTALS – and , YES! I also own real estate!

Most of my rentals are SFR mobile homes on private property. These can be considered real estate (just eliminate the title). I purchase them for around half of what a similar size stick-built house would cost but can rent them for practically the same amount of money. Many renters don't care, they're only interested in the number of bedrooms or the square footage. I rent them for 10 or 15 years then sell them on a 20 year contract and let someone else take care of the maintenance and upkeep. I don't have to be concerned about either appreciation or depreciation. Flipping units allowed me to make enough cash to buy the rentals outright. I don't have to worry about banks or other lenders.

I’ve moved many mobile homes, developed property with mobile homes, done just about everything possible with mobile homes :)

BOTTOM LINE

Sure, there’s a fair amount to know about this unique housing niche. It’s not complicated or difficult to learn. Worthwhile? I’m not the best person to ask – too darned prejudiced.

Mobile/Manufactured Homes – good investments?

You’ll find many opposing opinions of course. Mine comes from actual experience.

Here’s what I’ve documented from more than two decades in the business:

MOBILE HOME FLIPS

Mobile homes in parks are most often occupied by the owner. The homeowner rents the lot from the park. Most parks do not allow the homes to be occupied by renters.

Mobile homes in parks are considered personal property, not real estate. They are bought and sold like cars or boats, etc.. The paperwork needs to be no more than a title and a bill of sale.

Mobile homes are depreciating assets. Hang on! This is one of the main reasons they are so profitable for those that understand how to benefit from this housing type.

Many mobile home loans go into default when the homeowner stops paying. The homeowner is the registered owner on the title, the bank is the legal owner on the title.

Upon default by the homeowner, the bank repossesses the home and becomes the sole owner. The bank then becomes responsible for the park rent, the utilities, the maintenance, the insurance, etc.

With no money coming in from the loan and being responsible for hundreds of dollars in expenses every month the bank is in a real bind. The home has depreciated and is most often in need of TLC, repairs, or rehab to bring it back to saleable condition.

The bank may have hundreds or thousands of loans on mobile homes spread over a huge geographical area. There is no way they can reasonably afford to keep enough crews or hire unknown entities in all the areas to try and fix up the homes to sell and try to make any profit on homes that are worth less than when the loan was initiated. The banks are in the lending business, not the rehab business. Besides, the actuaries have figured in these defaults as part of their normal business process.

The banks are highly motivated to remove these negative cash flow homes from their inventory. Most of the time the homes are sold to investors for quick cash. The banks know they must leave a lot of room for the investor to make a decent profit. Ater all, the investor puts out the cash and time to buy, fix, and resell the home. Buying the homes at steep discounts and adding a little TLC accounts for very healthy profit margins for flippers. The homes are rarely sold to people that will occupy them. They normally don’t have the cash, time, or expertise to buy and fix up the mobile.

Besides banks I've purchased many homes from FSBOs, some I even found on the MLS. There's a lot of reasons people will sell mobile homes for a lot less than they could have. Once again, they're not real estate. A whole different, rarely understood mentality.

I always flip mobile homes in parks for cash; I don’t carry contracts. I can make a lot more money quickly reinvesting cash than trying to make interest over an extended period. And, I don’t have to worry about getting payments, dealing with defaults or evictions, or having to repossess and rehab trashed units. Profit margins on mobile home flips have consistently ranged from 40% to 200% over the last two decades.

Mobile homes require a lot less cash than real estate to buy and fix.

Mobile homes are bought and sold easier and quicker than real estate.

Mobile homes offer higher profit margins than real estate.

Mobile homes have far less competition than real estate.

MOBILE HOME RENTALS – and , YES! I also own real estate!

Most of my rentals are SFR mobile homes on private property. These can be considered real estate (just eliminate the title). I purchase them for around half of what a similar size stick-built house would cost but can rent them for practically the same amount of money. Many renters don't care, they're only interested in the number of bedrooms or the square footage. I rent them for 10 or 15 years then sell them on a 20 year contract and let someone else take care of the maintenance and upkeep. I don't have to be concerned about either appreciation or depreciation. Flipping units allowed me to make enough cash to buy the rentals outright. I don't have to worry about banks or other lenders.

I’ve moved many mobile homes, developed property with mobile homes, done just about everything possible with mobile homes :)

BOTTOM LINE

Sure, there’s a fair amount to know about this unique housing niche. It’s not complicated or difficult to learn. Worthwhile? I’m not the best person to ask – too darned prejudiced.

 I recommend flipping mobile homes in parks for cash. I wouldn't rent (most parks don't allow rentals), or sell on contract. If and when the renter/buyer disappears you not only have no money coming in but you'll be responsible for the park rent, the utilities, the maintenance, the personal property taxes, the insurance, etc.  You'll probably have to rehab the house on top of all that.

I have several mobile homes on lots - private property. I rent them for several years then sell them on a 20 year contract. I have investments that will pay me for 30 to 40 years. What makes it sweeter is that I purchased the units for 1/3 to 1/2 of what I would have paid for stick built houses of the same square footage. I get virtually the same amount of rent that a similar size stick built house would generate. I've always been able to find renters that are basically concerned with the size/bedrooms, baths.etc. - not if its a mobile or not :)

 Hi,

I've dealt with mobile homes for over 20 years. I flip mobile homes in parks for cash. They take a lot less money to buy than real estate. They're faster and easier to buy, sell, and fix up.  The profit margins are way greater. The competition is a lot less.

I have several mobile homes on individual lots. The investment is often 1/3 to 1/2 of what the same square footage stick built house would cost, And - the rent I get is virtually the same. Renters aren't buying the house; they are only concerned with the size, bedrooms & bathrooms.

I'll rent them for 15 to 20 years then sell them on a 20 year contract. I now own a nice portfolio of real estate also, mostly paid with cash from my mobile home investments. My CPA said he rarely sees a better business model :) 

 A lot easier! Simpler and faster to buy and sell. Less expensive and easier to fix up.  Profit margins way above real estate flips. A lot less competition.

 Here's an idea. I've been flipping mobile homes in mobile home parks for over 20 years. The first one I did I was all in for purchase and repairs at $17K and sold for $37K. I did 8 flips the first year and netted $170K. The numbers have changed but the business hasn't. My most recent flip was all in at $100K and sold for $160K. It's hard to match those profit percentages with real estate. You'll find very few investors that understand this niche well enough to get involved in it. There's never been serious competition :) 

Over 20 years in the business  - I say go for it. It can't help add value to your property. I've purchased, sold, held, rented, and developed mobile homes on property. They're the best bang for the buck out there.