Structuring Win-Win Payments With Mobile Home Sellers In Parks (Video)

Welcome back,

Close more deals and keep more cash in your pocket. Structuring win-win purchase offers when buying a seller’s used mobile home can be an ideal scenario for all parties. This article is to serve as an introduction and/or a reminder that structuring payments to mobile home sellers can be both a wonderful and quite realistic part of your mobile home investing business.

1. Purchase used mobile home from your seller with monthly payments.
2. Make needed repairs.
3. Market and advertise for quick resale.
4. Sell for a move-in fee and monthly payments. Allow the mobile home to pay for itself.

Giving sellers monthly payments or yearly payments for the equity in their mobile home is almost always amazing! What a fantastic business to be able to pay sellers close to their asking prices as long as we can make them monthly or yearly payments. As a mobile home seller, there are various reasons why a seller will or will not be able to sell their mobile home via monthly payments.

Reasons why a mobile home seller can or will not sell for payments?

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• The seller is using 100% of the cash you give them to pay for the home they are moving into. (This is rare.)
• There is currently an existing lien on the property that must be paid off prior to sale. (This is possible.)
• The seller does not trust you completely. You have not yet convinced the seller they are protected and will receive 100% of their profit as agreed. (Highly likely. There are ways to logically overcome this.)
• The seller would prefer cash. (Always true.)

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There are many other reasons a seller will not or cannot accept a payment offer. Some of them are “must-haves” and some of them are “wants”. In most cases, there are one or two payment-type purchase offers you can provide to most sellers to solve their problem.

Some Different Terms of the Sale:

There are many ways you can pay a seller in exchange for their unwanted mobile home property. Almost everyone first assumes that cash is the only value given. However, as a mobile home investor we offer a fast sale that is guaranteed to close. We also close quickly and can arrange for the seller to remain in the property a few days or weeks after the sale of the home is complete. As an investor, we will often solve problems, overcome titling challenges, and take the home as-is and where-is.

With that said there are multiple ways we can give the seller the agreed to purchase price. The less cash you pay the seller today the more you will be able to pay them in the future, and visa-versa the more cash the seller wants today the lower the purchase price will be.

1. Cash

When you make a seller an all-cash offer it will logically be the lowest purchase price of all of your purchase offers. This is because the cash you have on hand is finite and there will be more expenses soon to come. For example you will use your cash and/or credit to pay for the mobile home itself, material to make repairs, labor to make repairs, marketing cost, closing cost, holding cost, lot rent, etc. For all these reasons and to allow you to keep capital on hand for other deals your cash offer will be most conservative. Does this make sense?

2. Down Payment & Monthly Payments

Here you are able to listen to your sellers and determine the minimal amount needed for that seller to pack up and move from point A to point B. You will then possibly be able to create a win-win purchase arrangement with monthly payments.

Pro Tip: Make sure to speak with confidence and clarity when presenting your purchase offers. If you are confused about which offers to make don’t hesitate to reach out to us at support@mobilehomeinvesting.net.

Once you close on the property you will then be able to resell for a move-in fee and monthly payments. With the money collected monthly you will pay your seller approximately 50% of the net income until paid in full (each deal varies). In this scenario, the mobile home typically always pays for itself – or else more due diligence was needed prior to buying.

3. Down Payment & Yearly Payments

Similar to monthly payments you are holding off giving the seller monthly payments in lieu of one big payday per year. This may last for multiple years until paid in full. Typically this is $2,000 or less per year and given to the sellers around the winter holidays. Again, in this scenario the mobile home pays for itself. It is for this reason we can offer to pay the seller more money for their mobile home.

4. Down Payment & Balloon

All these payment plan offers will never happen if the sellers do not like you and trust you. You must logically and rationally explain how all parties benefit and are 100% protected moving forward. This offer is used in the video below and may allow you to recoup all of your capital plus a profit before paying the seller the final balloon-payment they are due.

5. Trade/Swap

Occasionally it is possible to trade with a mobile home seller. If you have a vacant property for sale or for rent this may suit the sellers’ needs perfectly. This may turn out to be a perfect swap or you may simply give a discount if a seller wishes to move into one of your vacant properties.

Congratulations to Steven for Creating Win-Win Payment Offers with Sellers.

What you learned from the video:

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• Purchasing mobile homes via payment offers actually works when present correctly.
• All areas of the country are unique. In some areas $1,000 is a good move-in fee to collect from your tenant-buyers, and in other areas $4,000 is a good move-in fee.
• Stay within a 90-mile radius of your home. This is your mobile home investing radius.
• Aim to know your local market and close your first deal with 30 days from actively getting started.
• Aim to invest in mobile home parks with lot rent $650 or less per month.
• When you purchase a mobile home with monthly-payments you will be able to recoup your money within weeks or months. *If you purchase a mobile home all cash aim to recoup your invested monies within 10 months max.
• Steve gives his tip for newer mobile home and real estate investors.
• Giving sellers a balloon payment allows you to keep more money for future deals.

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Circa 2002: When I first got started investing in mobile homes I was living paycheck to paycheck. I structured my first deal with a seller who sold me her home for $300 down in $300 per month for nine months. This one deal opened my eyes to the fact that I could give sellers way more money than I currently had – if they were willing to let me do the work to resell their home before they made all their profit.

Circa 2002 & Now: If you talk to 10 mobile home sellers, less than half would likely consider selling their home to you via payments. Nevertheless purchasing homes via monthly payments is amazing and can totally be Win-Win. I suggest you step outside your comfort zone and make these purchase offers known to all sellers.

In conclusion, I hope this article and video have been helpful to you. Within 5 to 10 miles around you there are currently sellers that are scared and confused on why their mobile home has not sold already. They do not have anybody helping them. These sellers are in need of a mobile home investor who cares, a mobile home investor like you.

Love what you do daily,
John Fedro
support@mobilehomeinvesting.net

P.s. A message for mobile home owners & sellers: (Non-Investors) If you are a mobile home owner that is actively selling your primary residence mobile home, you have the opportunity to sell your property for its current condition’s maximum value to a low-risk tenant-buyer that will pay you a down payment plus a monthly payment for the mobile home. With that said you may also sell your mobile home via monthly payments to a mobile home investor that will make you a win-win purchase offer for your home.

In this article, we will not be going over all the details concerning selling your home via monthly payments and screening all potential tenant-buyers. There are so many very important steps along the way. For more information please contact us at support@mobilehomeinvesting.net.

 

 

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