Welcome back,
As an active mobile home investor you will absolutely find and attract mobile home sellers that have mobile homes that must-be-moved soon after they are purchased. These must-be-moved mobile homes and sellers can be exactly who you’re looking for.
In today’s lesson and video, we are going to talk about the top 3 methods to help these sellers and create value with this type of must-be-moved mobile homes.
The times below are provided to Fast forward if needed.
- ✔️ 0:00 Making money safely with mobile homes.
- ✔️ 2:10 Critical Questions for must-be-moved mobile homes.
- ✔️ 13:45 Move to land, set up, and resell.
- ✔️ 18:10 Buy the mobile home, keep there, and resell.
- ✔️ 28:20 Get under contract, keep there, sell for a fee.
1. Purchase, Move to land, and Resell for cash or payments
Although this is the first strategy we’ll discuss, this is definitely not the most common or most popular strategy we use as mobile home investors for must-be-moved mobile homes. Unless you own mobile home parks and are trying to fill-up your parks on a regular basis.
For most average individual mobile home investors, we aim for “the path of least resistance”. This means that if we can create value and profit without actually moving the mobile home ourselves, this is preferred. See methods 2 and 3 below.
In these type of transactions you will either move your mobile home singlewide or doublewide to land that you own, connect it to utilities, and…
- Rent the home and land for years.
- Sell the home and land together to a buyer that gets a bank loan or pays all-cash.
- Sell the mobile home via monthly payments and then rent out the land monthly forever.
If you do not have land available, fear not. Over your travels you may have found a mobile home park that will accept a mobile home of this age and size. Not to mention ideally, you’ve found a mobile home park that will ideally pay for some of the moving expenses you’ll incur and is hopefully in a very desirable/popular area.
Pro tip: Remember that these homes are mobile. Move the mobile home a little farther to another park if it means a considerably higher resale value in a more luxurious part of town or better school district.
You may also do the “plop and sell”. This is where you find some land to place the home down for a few weeks or a couple months. In this time, you will show the property and resell it from this stage land. We talk about this strategy more in the video above.
Do this: Call around to mobile home parks to find out any open spaces they may have, as well as any age requirements, size requirements, or move-in incentives they currently have if you were to move-in a mobile home into their community?
Related video: Making money with mobile homes that must-be-moved up in Maine.
2. Buy, Hold, then Resell the mobile home.
In this method you are never actually moving the mobile home.
It is super important to purchase this mobile home at a price considerably below 50% of the actual must-be-moved value. Keep in mind that the actual value will vary depending on the home itself, the time of year, location, if there is a title present, and much more.
See the video above for more details and advice buying and reselling a mobile home on the seller’s land.
In case you did not know: There is a large secondary buyers’ market for used mobile homes. People with land, have money. Plus, people with land want to buy mobile homes they can move to that land. They will use this used mobile home to live in themselves, rent it to an employee or family member or something else. There is no question there are buyers that want used mobile homes. The question is do these cash buyers buy directly from the factory at a very high price, or a dealership for a markup, or from you at a very discounted price. We sell these homes quickly for the right price.
3. Contract with the seller, Hold, then Sell for a fair fee.
This technique is very similar to wholesaling. No money will be given to the seller. The seller will only receive their money when a buyer purchases the must-be-moved mobile home.
Let me be clear that in many situations it is best to pay for the home and take possession of the mobile home Title(s). However, there are situations when there is not enough profit to make the opportunity make sense for you to put out our money – In these situations we wholesale or consign.
A few other reasons that we may not want to actually close on the mobile home, but would rather do a wholesale or consignment are:
- ❌ The mobile home must-be-moved in a timeframe faster than you are comfortable with.
- ❌ The mobile home is not very structurally sound.
- ❌ You are not able to negotiate the seller’s asking price down low enough where you feel comfortable.
- ❌ The size of the home or the age of the home makes you uncomfortable with buying it yourself, but you know there is still demand for a home like this.
- ❌ The home is not already listed online.
As a competent and thorough mobile home investor, make sure to go the extra mile…
- ⭐ Make sure that the buyer transfers the Title(s) into his or her name correctly.
- ⭐ Make sure the mover has the proper permits.
- ⭐ Make sure the county that the mobile home is going to is legal to be moved into that county. This would likely be a call to the permit and zoning offices.
- ⭐ Make sure all personal property items that were agreed to be taken, are removed from the property.
- ⭐ Make sure the mobile home is removed by the deadline you agreed to have it removed.
Mobile home investing will not make you a success after one week of trying hard. Building a mobile home investing business absolutely does take hard work and discipline from you. You absolutely will struggle at times. You absolutely will have questions multiple times a day. You absolutely will doubt yourself and question if this is worth it.
Whatever investing you decide to do to increase your wealth and bring your family financial freedom, do not give up. Push through the hard times and keep going. Do not give up when the going gets tough. Continue to fight and build your business for your future self.
Love what you do daily,
John Fedro
support@mobilehomeinvesting.net
