BiggerPockets

I had an exciting discussion with a very knowledgeable mobile home investor that has been investing in manufactured housing for the past 30 years. That is more time than I have been alive so I have a great amount of respect for him and his business. 

We had a long talk about how and why the mobile home business has changed over the past 60 plus years: The Savings and Loan Crisis of the 1970’s, The RTC days of the 1980’s, New innovations to safety standards in the 1960’s and 1990’s, and more recently the new “Safe Act” and how it may affect all of us as investor.

As we talked, we realized that although things have changed due to natural changes in the economy, real estate price values, and inflation, we realized that the mobile home investment business is more the same now than it has been in the last 40 years.

People need affordable housing: In almost every town across America the main percentage of the population are "blue collar families”. This is called the “bread and butter” of the housing market. Manufactured housing and mobile homes offer a great opportunity for the average employee to own a home of their own. Why don’t you be the investor to sell it to them?

 

Home ownership is ironed into the “American dream.” What about the families that cannot qualify for a bank loan to purchase a property of their own OR what about a mobile home attached to land that does not qualify for conventional financing due to past title or zoning issues. It is for these reasons that buying, holding and selling “Low Income Housing, aka. Manufactured housing, can make you a fortune in passive cash.

Buying: Purchase mobile homes in parks for under $10,000 (cash not needed) and sell the same mobile home for between $20,000 to $30,000.

You can purchase mobile homes attached to land (real property) for pennies on the dollars compared to traditional real estate. Turn right around and sell the same property for 360 months of guaranteed on-time payments. Cash-flow is Awesome!

Don’t let other investors tell you differently because of something they have heard or because of a purchasing method they once tried and failed. Listen to people in the know.

Reselling: My average newly acquired mobile home investment sits for 2 to 3 weeks before I resell it for a move-in payment and scheduled payment plan.

Investors: If the masses of investors only had an idea of the money to be made in our niche, this market would be flooded. What do I say when people turn their noses up to mobile home investing, “My money spends just as well as yours and my cash get renewed at the 1st and 15th of every month WITHOUT ME WORKING. That’s the power of residual income, cash continues to come in whether you work for it or not!!

The Market: The market is the same. Bottom line = we buy mobile homes at a fair price from our sellers and then sell the mobiles for a premium because we are holding the finances for our buyers. 

The money we make every month is called “Cash-Flow”. Cash-flow has been the same in Lonnie’s day and it is the same today; except now there is more profit to be made because of the high demand for affordable housing and inflation. 

Many of you have heard the term “Lonnie Deal.” Click this link to order his best-selling book Deals on wheels  I have heard a lot of people recently talking negatively about his deals saying, “Those deal don’t exist anymore. No one can find mobile homes for under $1000 anymore.” 

 

These deals are everywhere (but you do have to know where to look). I am doing these types of transactions monthly. If you haven’t been taught how to find them then that may be your problem, but it is not because the deals (and motivated sellers) are not out there. The problem is not the market or the World, it may be your prior education.

I want you to do yourself a favor and be leery of anyone preaching that the times are changing and you must buy their course to be able to buy and sell property. I won’t mention any names here. 

“But John, what if I don’t have any money or credit to start investing? The less credit and money you have to start the smarter (and more creative) you have to work. The single most valuable tool you have is the six inches between your ears. 

QUIT LOOKING FOR THE EASY ROAD AND START RUNNING TOWARD FINACIAL FREEDOM! 

- John Fedro

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