Are Mobile Homes Really A Good Investment?
Hi,
I was looking through post in the fourms and saw about mobile homes and was wondering is there really any money involved in working with them?
Whats the best way to research this Niche and to see if it is right for me?
What is needed to know to start investing in Mobile homes?
Trying to learn new things everyday! 
________________
Always Expect Success,
Wallace Hobbs,
Real Estate Investor
[ Edited by wallacehobbs on Date 04/12/2005 ]
Are mobile homes a good investment???
NO! SO everyone else staqy out of this business cause you cant make money with mobile homes.
Im not a very good liar as you can see
They are a great investment if you learn some of the basics, no how to determine the value know when to buy or walk away this will determine wether or not you make money or lose it.
Myself I enjoy making it much better than losing it. So, I went out and learned everything I could about Mobile Homes.
Truth is, it is much easier than it sounds, however I have met some people that shouldnt get into this business because they dont do their home work and jump head first into a deal they should have done some more home work on.
Example; I feel sorry for people that often try and get me to buy their MH that they feel is worth 60,000 becuase they paid that 2 years ago for it.
What blows their minds is when I tell them I can buy and or have bought a home just like it and in some cases newer and yet I only paid 15 to 19,000 for the home.
They think Im crazy and lying to them. But I do it all the time.
I had a lady call me today on a home I am selling who asked if my price of $28,500 for this 28x76 was negotiable.
I told Her I was certainly able to negotiate but unwilling because I have the home going at a steal and I am getting an overwhelming response to my ad.
Thus I expect the people I have lined out for tomorrow will buy it.
She said she would like to see the Home... I said, sure be glad to show it to you but the only time I have open would be today or first thing in the morning.
She wanted to see it now, I showed it to her, long story made short... I sold it to Her for $28,500 cash
Great investments I think
I cleared $9500.00 on the deal not bad for a days work what do you think?
MarkB
[quote]
On 2005-04-11 17:30, mezlin wrote:
It costs about $200 a month for the lot rent . I set these up with 1 to 2K down and $500 a month or if you prefer $150 per week. Turning my initial 2K into $300 a month. "
Mezlin,
Wow thanks!
I am wondering : now is this better than investing in pre-construction new build Single Family homes or just another one of the documented 309 ways to invest in property
My question is on the low end homes do you have problems with tennants not paying rent on time, or getting them out if they dont pay?
What about them maybe damaging the place?
The reason I am thinking of this is beacause I have done a few deals and have a decent equity build up and wanted to increase my return to 500% if possilbe?
I have seen large tracks of land in North Carolina around New Bern area, and near the Marine Corps base. Like 20 acres for about $100K or so?
Does anyone know what it would take to use land like this and make a mobile home park out of it?
Should I just lease lots and not worry about having mobile homes on it?
Maybe have 80 spaces and buy maybe 20 homes for L/O or rental?
Is it hard to get Mobile homes financed at a bank?
What about Septic Tanks, if not near a Sewer, which in most cases there is none?
Water? Electric? Phone? Driveways?
I have not done a buiding project yet and was thinkting of trying this as a small start then I want to develop some land on the Big Island of Hawaii, but I need to make at least 2 million fast to make this happen.
Can this be done with a park or is it just good long term money?
The more I learn the more excited I get! I want to find about 3 niches in REI and stick with those. So far I have. . .
1) I have done and liked Out of State, Pre-Construction homes, single Family and condos, using property managers and thinking Buy and Hold long term, since they all cash flow now.
2) Fix and Flip - Only did one to date and made $38K after the dust settled but it was a lot of work and stress and research to make it happen.
3) Fill in the Blank....Maybe Mobile Home parks?
With 309 ways to invest its hard to decide which is best or Is there a best
Thanks for all the wonderfull replies, it has given me food for thought I assure you.
_________________
Always Expect Success,
Wallace Hobbs,
Real Estate Investor
[ Edited by wallacehobbs on Date 04/12/2005 ]
Wallace,
Good to see you are behaving. LOL
I am headed up to North Carolina at the end of the week to do some business, I am thinking NC is a sleeper state currently in certain areas.
Just some thoughts on NC.
John $Cash$ Locke
[addsig]
Mark,
Yes, I was referring to where you got the $$$ to fund your deals.
Of those 9 times, do you get the funds from any of your local banks, or are they usually from private investors?
So you prefer to sell for all cash, rather than owner financing, eh?
Sounds good either way.
Thanks again for the feedback.
Jason
_________________
~In every adversity, there is the seed of an equivalent or greater benefit.~[ Edited by Ichabod on Date 04/17/2005 ]
Sorry to be asking this very fundmental question. But how do you find foreclosed mobile homes ? Approach mobile home dealers finance department ?
Hope I havent taken this thread away from the intent of the one who started it as I have tried to answer everyones questions, however, for the most part I guess each question is somewhat related to the theme.
Ok, where do I buy the repos? ..... I get them from Lenders such as Greentree which is one of the more popular or weel known lenders.
Do you approach the Dealers finance department?..... UH, well, you could approach dealers, and always talk to the manager or owner in fact ask for them do not, I mean never talk to a salesman.
Everything a Salesman tells you is directed at one thing, and thats how He can take your money and put it into his pockets.
When you talk to a dealer dont ask him if He has repos specifically like that instead do it this way.
Mr. Dealer, Hi, Im "Your Name" and I am needing some homes and I was hoping you would be able to wholesale me some. Ofcourse, I know you will need to make a buck but I need to buy these in a way where I have plenty of room to also make a buck.
You could also add, Mainly I am getting my units from Greentree but I have come accross a few dealers that get a deal in they can throw my way.
Now you have His attention, He may follow up with a few questions such as what are you specifically needing.
You say... Well, actually Im interested in looking at anything I could make a buck on, however, as far as what I am getting from the lenders is Doublewides prefferably on the year we want 95 on up though most of our units are 1999 and up.
Will consider older for the right deal.
Also, we are interested in singlewides, however nothing smaller than 16x80 units.
You will find some that will deal with you. Dont be afraid if the deal they offer doesnt sound what your looking for to tell them uh well, thats not exactly what I am looking for, but if you find something we might could do better on please let me know. I am serious about purchasing units, and Im ready to buy right away.
Remember this, cash talks, and trust me, most of these dealers have an overhead of 20 to 30,000 a month, so they need every dollar they can get.
You will get better each time you do this, and also listen real close to what the dealers talk about, the terms or lingo they use this will help you in making the best deals.
Ok, next question was Where do I get my funding to purchase units is it from the bank or hard money lenders.
Truth is neither!!! I use my own money when I need to but for the most part I still get the money right from my buyers.
Q; How do I do this? that is the next question isnt it?
A; Well, there are several ways but let me give you an example of one of my favorites.
One of the best ways to get buyers is by using the Old bait and switch..... Now the classic use of bait and switch which is a sales technique where you advertise one thing with the intent to try and sale them another.
Ok, this technique requires you have a MH for sale. Its worth it though, so buy one a DW, then put in the paper for sale at a great price for cash only....
Trust me when I say you will get a lot of calls, and remember each call is a potential customer. You cant sale the home to everyone of them but you can get a home for everyone of them.
Tell them about the home and add this after the specifics of the home... YOu see Mr. Caller this is a repossesed home , I purchase repo homes all over "Your State goes here" .
Now Mr Caller your welcome to come and see this Home as I am showing it to several today and its first come first serve. However, should it be sold, I want to let you know I am expecting to purchase 3 or more homes in the next week or so.
So even if you miss out on this deal, well, I know I can get you another. Then ask them what sort of homes they would be interested in... more like I advertised or is there something specific you are looking for?
I usually average as many as 8 plus customers some cash some financed either way.... its effective.
Well perhaps my post is getting extremely wordy so I will elaborate on this more and other ways of getting buyers without purchasing a unit first in another post.
MarkB
I noticed John said NC looked like a sleeper state. I have mutiple properties there now.
I have done some research through Rise Media I thought was interesting and wanted to share it with those who have an interest for all the great post.
This is a great Article would welcome Feedback and comments on it from all you guys!
RISMEDIA, April 22 – Three states — Florida, California and Texas — would account for nearly one-half (46 percent) of total U.S. population growth between 2000 and 2030, according to Census Bureau state population projections.
Consequently, Florida, now the fourth most populous state, would edge past New York into third place in total population by 2011; California and Texas would continue to rank first and second, respectively, in 2030.
These three states would each gain more than 12 million people between 2000 and 2030. Arizona, projected to add 5.6 million people, and North Carolina, with 4.2 million, would round out the top five numerical gainers.
As a result, Arizona and North Carolina would move into the top 10 in total population by 2030 — Arizona rising from 20th place in 2000 to 10th place in 2030 and North Carolina from 11th place to seventh place. Michigan and New Jersey are projected to drop out of the top 10.
The projections indicate that the top five fastest-growing states between 2000 and 2030 would be Nevada (114 percent), Arizona (109 percent), Florida (80 percent), Texas (60 percent) and Utah (56 percent).
Most (88 percent) of the nation’s population growth between 2000 and 2030 would occur in the South and West, which would be home to the 10 fastest-growing states over the period.
The share of the population living in the South and West would increase from 58 percent in 2000 to 65 percent in 2030, while the share in the Northeast and Midwest would decline from 42 percent to 35 percent.
In 2000, each of the nation’s 50 states had more people under 18 than 65 and older. In fact, in about half of the states, the ratio was more than two to one.
In 2030, 10 states are projected to have more people 65 and older than under 18: Florida, Delaware, Maine, Montana, New Mexico, North Dakota, Pennsylvania, Vermont, West Virginia and Wyoming.
In six states, more than one in every four residents would be age 65 and older in 2030: Florida, Wyoming, Maine, New Mexico, Montana and North Dakota.
As the oldest baby boomers become senior citizens in 2011, the population 65 and older is projected to grow faster than the total population in every state. In fact, 26 states are projected to double their 65- and-older population between 2000 and 2030.
This is some Great Info I wanted to Share!
[addsig]
"SO breaking it down
1. Find MH inspect it, then
2. Place bids on unit
if you win
3. Purchase/pay for unit....
4. Sale Home to your buyer ....... "
O.K., I have been doing these deals for a while now and have a relationship with a few MH finance companies. My big question is if I am not earning a commision from GT, Assoc. or VG how in the world am I to know what bid they are going to sign off on? When I bid with my cash I either win or lose but it takes a couple of days to know one way or the other. If I have a buyer and they offer X how do I know the repo company is going to except this offer? Thanks for input. JT
[ Edited by JTnOKC on Date 07/02/2005 ]
To make a brief comment on NC. I live here, invest here and am a broker here. We are growing by leaps and bounds. Our appreciation rates have not gotten close to the other states you mentioned, but we should continue to rise consistantly because of the growth.
As far as Mobile Homes here, the even bigger benefit I see is the land some of them are on. There are foreclosures on our MLS all the time and often they sit on land that will be a great investment if held on to for a year or 3. Come on down to Charlotte, we welcome all investors!
Thanks so much for all the great information.
I also invest a lot in NC around the Cystal Coast near the ocean and was thinking the same thing about MH.
I know they go down in value like cars, but the land may go up (if not in a MH park).
I had thought about buying say 10 arces and making a park out of it? Not sure what all that would take?
I currently am into new builds, pre-construction, and buy and hold residential properties with a small cash flow.
This is a great site and I always learn a lot!
Happy 4th to all!
_________________
Wallace Hobbs
Real Estate Investor
NR Student Advisor
[ Edited by RealEstateWins on Date 07/04/2005 ]
Justin
Good question, but I think if you could have placed it in the Mobile Home forum, MarkB or the others that are very knowledgeable on mobile homes could answer it for you.
Good Luck
...Is the LP rural or local ?...
If you pull off 100% financing on a double wide with no seller contribution please post and educate me thanks.[ Edited by johnnyloans on Date 05/26/2005 ]
Lynn,
Well this is some what dificult to advise exactly on because we do not know the variables here.
Such as, how old is the home, its condition, how much land is involved, then also the location of the land.
You see, some lenders look at community Land home deals different than private land and such.
Now lets just assume you have a late model unit, do you owe more than it will apraise for?
Lets say your payoff is below what it apraise for.
If all the variables in favour of lending, then as you say you just need the right buyers. Now I am going to tell yoou right off I do not agree with the assumption there are no buyers with downs.....
Fact is they are out there, all you need to do is flush them out. With a little preparation you can do just that.
What you need is financing for them, do not depend on them getting financing, then you can advertise for buyers with 10% down this is a good amount as it will assist in getting weaker FICO scores financed.
Start shopping mortgage companies, you will find them around that will loan on Land Home packages. I found one for my area completely by accident just 2 days ago while discussing a loan on some Real Property.
I have a deal on the table with them now on one of my land home deals.
PLease understand, if you have a much older home that will not make value, it can in fact devalue your chances.
I sugest doing some looking and seeing what you can do about finding a source in your area.
I hope this will be a help to you
MarkB
Mark B...nice to meet you...i too have a LP...with the same results...can you elaborate on your lender and whether they lend in TN....I have a couple wanting to buy...thank you, regards....CWal
Mark B....P.S.....Sorry i forgot about the advertising rule....pm me instead...thank you again...CWal
Lynn...I asked if it was rural because i too bought a manufactured home on 11 acres...I qualified for & got financing from Farm Credit Services as a second home at 5.95%/20 yrs ...however costs were high & they required 15% down...you may consider directing a qualified buyer in that direction...good luck...CWal
Congrats...can you expand on the FHA program...thanks...CWal