Investment Info:
Mobile home buy & hold investment in Roseburg Or.
Purchase price: $1
Cash invested: $1
Sale price: $68,000
This is a project I'm currently working on I own this home and will relocate it to a private lot. From there I will sell the home on owner finance and lease the lot out to the buyer for the foreseeable future. If and when the buyer is ready to move they can take the home with them ( if paid off) or they could forfeit the home back if they do not want to transport it off of the lot.
I'm currently searching for partners with capitol to invest.
Here's the plan. I currently own multiple mobile homes that can be moved. I'm going to purchase affordable land and improve it with water power and sewer if not already installed , then place a mobile home on it.
However I do not plan to sell the land with the home. I will sell just the home on owner finance and lease the land out monthly. Once the home is sold the land will continue to cash flow for ever.
Breakdown of a typical deal like this.
The numbers vary from deal to deal. My typical lay out of a move like this is.
land acquisition: $15-$25k
Mobile Home for lot: $10k or less- I own several to get us started but typically I stay under 10k for the home purchase and usually get a screaming deal on them as they have to be moved.
Transportation of the home: $5-$15k - this varys widely based on distance traveled and company hired.
Land Improvements: $10-$12k - I try to find land that is cheap and in a good location and this often equals out to there not being utilities on site yet but close by. Septic typically runs $4k . May be on city sewer, Power is around $2500 if its at the road and water is typically city water and runs around $4k to install. If a well is required it could range from $3k -$10k.
If I find land that is available with utilities already on it and it pencils out to be a fare deal without having to put the work into it I will also purchase land like that but it usually a way better deal to get the raw land and improve it.
Renovation (if needed) Running and set up: $5k or less.
Running cost include Gas , Propane, Materials for Reno and any fees that may come up for permitting and taxes on the land.
I May be able to get the land on owner finance and just sandwich the payments. that will help keep costs down. also i already own several very nice mobile homes so we save there as well.
My team and I can handle all of the renovations and set up we have experience in this.
Lets all get wealthy together!
What made you interested in investing in this type of deal?
I have been investing in mobile homes inside of parks with great success. I'm gearing towards this model because I want more control over the deal. Not owning the land that my current homes are on is all fine and dandy but I just got to thinking why don't I just own the land and lease it out to the tenant buyer of the home.
This way the buyer pays for the home and the land. After which the land will continue to cash
flow forever.
Brilliant!
How did you find this deal and how did you negotiate it?
I found this deal from a facebook add that we found in the local page. The old owner was wanting 6k for the home and we transport it. I informed them that I simply couldn't pay for the home if I was footing the bill for moving. After a week of them trying to sell they called me back and sold the house to me for $1.00
Its a beautiful 2 bed 2 bath all redone inside and out! what a deal! Now to get it moved to a private lot and get it sold!
How did you finance this deal?
I got this home for just $1.00 and plan to find a partner with capitol to invest in the land , transportation and set up of the home splitting the down payment 50/50 as well as the monthly payments on the house and land.
this is truly a win win win deal and using creative real estate to the MAX
How did you add value to the deal?
I will add value to this deal by relocating this home to a plot of land that it can be sold and lived in. I also will be buying raw land adding value to it by installing utilities and placing a home on it. The investor that partners on this deal will have a very nice return indeed and monthly cash flow for the rest of time as I don't ever plan to sell the land but if I do half of that profit will go to the partner as well.
What was the outcome?
The deal is still under way but I'm positive it will be very lucrative for all parties involved.
Lessons learned? Challenges?
Lesson learned is to reach out to more people because there are great folks out there looking for opportunities like this that are in a very cash strong position and looking for creative ways to invest it. This is just one of the many I plan to set up.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Not yet but I will soon have a partner that will be investing the capitol for this venture and I will be sure to recommend them in the future.
