Mobile home investing typically happens one of two ways; you invest in mobile homes attached to your own land OR you invest in mobile homes that are on someone else’s land (typically the land rented in someone else’s mobile home park). Today, let’s talk now about mobile homes located on rented land (in mobile home parks)!
First of all, there are No Closing Costs – In many states owning a mobile home is very similar to owning a car or a truck. For us as investors, that can mean…….No title insurance, no real estate taxes or insurance prorations, no fees, no surveys, no doc stamps or other costs that typically come with home ownership!
Mobile homes that are located on rented land, such as in a mobile home park, do not close at a title company or attorney’s office. You can close “traditionally”, and I even encourage that in some cases, but you can save those dollars once you understand the process for your area. As I mentioned, mobile homes in parks are considered “personal property” and for that reason it may be as simple as buying or selling an automobile, boat or lawnmower.
The second reason to invest in mobile homes is that you have built in Bird Dogs and Lead Generation – At the start of my mobile home investing career I was almost embarrassed to tell people that I was investing in mobile homes for profit. I really thought that my investor friends and colleagues were sure to scoff and think I had lost my mind. What happened? No one scoffed…well maybe a few did at first; but, for the most part, my fellow investors were happy!
They were happy because now they could do something with all the mobile home leads that they had been stacking up over the months; they could bring them to me. I was having new and seasoned investors bringing me finished deals or great new leads on a silver platter every day.
It is still amazing to me that no one seemed to know what to do with “Ready to Go” leads that came in from regular marketing efforts.
The other “built in birddog” resource is the park residents themselves. Once you get out there and start visiting the parks, you will be amazed at the people that will simply strike up a conversation. They will begin telling you not only their business, but everyone else’s as well. If you are willing to take the time to listen and ask good questions, those conversations often lead to additional inventory, information about market needs, and motivated sellers and buyers.
Next reason, Avoid the Crowds – When I started getting leads and looking at ads for homes listed at $1000, $3000 or even FREE…MUST BE MOVED, I really thought that my calls would be answer with… “Well it already sold”. To my delighted surprise 9/10 of the homes hadn’t been sold yet and the desperate sellers were really ready to play “Let’s make a deal”. I remember to this day the voices of desperate mobile home sellers, telling me how other investors wouldn’t even talk to them because they had a mobile home or how interested buyers were asking for owner financing and the seller didn’t understand the concept or didn’t feel equipped to handle that type of situation.
The Next reason is Low Dollar Deals…. REALLY! – It was for this reason that I started buying mobile homes. I didn’t have cash or credit when I started investing. Mobile homes in parks can be VERY inexpensive. I have gotten many complete homes (appliances included) for 100% FREE in terms of purchase price.
With mobile homes, you start with an initial investment capital of hundreds of dollars, NOT thousands. This also helps those of you that are hung up by the “fear of loss” factor. Although none of us like the idea of losing money, making a $1000 uh oh (we call that the cost of real world education) is a lot easier to recover from than that of a $100,000 catastrophe.
The Final reason….Going, Going, Gone! – What’s that you say, “Good luck selling a mobile home and making money in this market!?” Selling a used mobile home in a park for “All Cash” could be difficult in many markets these days. The fact is that not many mobile home end-buyers have $5,000 – $80,000 cash lying around to buy a used mobile home.
But there is a “World Full” of Serious Buyers ready to own their own home. Our target buyers have had some credit challenges in the past and may not be bank approved; but they DO have a clean record, savings account and good job history PLUS they have $2,000-$5,000 CASH for a down payment, and the ability to make monthly payments. In my experience they make the ideal customer and being able to create a home ownership opportunity for someone that thinks they can never own or never own again is AWESOME!
I’ve shown you just a few of the MANY reasons that mobile home investing can be easy and extremely lucrative. I hope to see you all in the 3 day Rich Dad Education Mobile Home Investing course so we can discover more of the profitable approaches for investing in mobile home units and parks and so like I did, you can go from skeptic to motivated!