Welcome back,

Let’s face it, when it comes to real estate investing having more money is typically better than having less money. If you have more capital set aside for investing purposes you are able to purchase more mobile homes without fear of running out of money, additionally your able to make a few more mistakes as you have a “financial cushion” with regards to your saved capital. With that said aim to make as few mistakes as possible by asking questions and having complete clarity in your market and action-steps moving forward.

Mindset Disclaimer: Whether you have $5,000 set aside for investing purposes or $50,000 set aside, your mindset when going into any mobile home transaction should ideally be as frugal as possible. Brainwash yourself into pretending that you are 18 years old again, with limited credit and very limited capital. Just because you have the money doesn’t mean you should spend it when you don’t have to.

What tier of mobile homes are you after?

Clarity is so important. Before determining how much available cash you ideally want to have set aside before investing, it is critically important to understand which type of mobile home deals you would like to accomplish. With regards to mobile homes inside parks, there are 3 tiers when it comes to different types of mobile home deals you may acquire. After watching the video below you will likely have a much better understanding which type of mobile homes you are after. Once you understand this you can begin to understand the capital, time, location, mindset, and more that is needed to accomplish your goals of building your local mobile home portfolio.

Tier #1:

Mobile homes that you purchase, repair, and are all-in for less than $10,000. These mobile homes are commonly from the 1960s, 1970s, 1980s and 1990s. When you sell tier #1 mobile homes you will aim to recoup all your invested capital within 6-12 months or less, receive $300+ net cash flow per month, and sell the home for a total of 60 months minimum of incoming payments.

Tier #2:

Mobile homes that you purchase, repair, and are all-in for less than $18,000. These mobile homes will typically be larger and a bit newer than tier #1 mobile homes. When you sell tier #2 mobile homes you will aim to recoup all your invested capital within 12-24 months or less, receive $300+ net cash flow per month, and sell the home for a total of 120 months minimum of incoming payments.

Tier #3:

Mobile homes that you purchase, repair, and are all-in for more than $18,000. The goal when selling tier #3 mobile homes is to completely rehab these properties to then sell them to a cash buyer or bank financed buyer. Disclaimer: There must be adequate comparable sales justifying a cash or bank financed demand and price from local buyers. When you sell tier #3 mobile homes you will aim to recoup all your invested capital immediately as you are looking for a cash or bank financed buyer. These tier #3 mobile homes are very similar to a traditional fix and flip.

How much cash do I need to become a mobile home investor?

Did you watch the video above? If you did then you will understand more about the 3 different mobile home tiers listed above. Most folks when getting started investing aim to pursue tier #1 mobile homes to begin with. These mobile homes are available in all 49 states when you have clarity in your territory of what is for sale and really aim to make offers to almost ever seller that fits your criteria. Disclaimer: You are not simply looking for mobile homes FSBO online or by driving around parks, as an active mobile home investor you ideally want to shake the proverbial-tree to find everyone that is out there selling an unwanted mobile home. Once you locate these home owners you may make offers to everyone and move forward accordingly with the path of least resistance.

You rarely want to buy the first mobile home that you come across. It is so important to have clarity within your marketplace and truly know which people are selling which homes, and what their situations are for needing to sell these properties. Once you know what properties are for sale, and why, you can begin to make win-win purchase offers to almost every seller that will listen.

Recommend to start fast (Tier #1 from above):

More than $5000 = Green Light! This amount of money will get you into some/many mobile home opportunities in your local area. With that said, in a few areas around the country you may have to drive 45 minutes or more to get to an area with park lot-rent below approximately $700 per month. Keep all capital over $5,000 safely in the bank. Aim to structure seller held financing with sellers when possible. Aim to reinvest 100% of your mobile home profits back into your mobile home investing business.

Around $500 to $5,000 = Yellow Light. This will give you access to some local mobile home sellers and homes. There will be some mobile homes you may not financially be able to close, however you may be able to wholesale these opportunities to other local buyers. Aim to structure seller held financing with sellers when possible. Aim to reinvest 100% of your mobile home profits back into your mobile home investing business.

Less than $500 = Red Light. Keep saving and learning. If you have enough ambition and determination you may start with little/no saved capital and become a financial success with a large portfolio of local mobile homes. However starting with little money and no education may cause you to struggle for weeks/months before seeing results. Continue saving and asking questions.

In conclusion, this article does not talk too much about education or safety. Whether you have $5000 set aside or $50,000 set aside this money can be spent in less than a few minutes. Every action you take and home you purchase should be done strategically, with an exact purpose and plan moving forward. You should absolutely know your realistic exit strategy before making any purchase offers to any sellers. Aim to have clarity and a full understanding of the process moving forward that you wish to take. It can be wise to have a seasoned real estate investor whom you may ask questions to when questions and unexpected situations ultimately arise. Please feel free to send any specific or general mobile home related questions to the email address below.

Do what you love daily,
John Fedro
support@mobilehomeinvesting.net

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