BiggerPockets

It's buying (generally a mobile) for pennies on the dollar and then selling it on a seller financed deal.

Example, buy a 15 year old trailer for $3K cash, put a couple $K into it for rehab, resell it on a $1500 down, 7 year loan at $15K @9%.

If you're short on cash you can do the same thing with bicycles, TV, cars or anything else.

If you've got enough cash you can do it with SFHs, not as high a multiple for gross profit, but a lot longer payout.

all cash

Basically, it's buying wholesale and selling retail - you are the bank and offer to sell using owner financing. Say you buy a mobile home for 3,000 and sell it for 6,000. Most of these folks don't have the cash to buy these homes outright - it's just like buying a car, most people get financing. The buyers come to you and pay you a down payment (say $500) and you finance the rest ($5500) with interest - they make payments to you.

It's nice because you are the bank - all you do is collect payments. The buyers are homeowners and are responsible for taking care of the mobile home.

I definitely recommend reading Lonnie's book, Deals on Wheels, if you plan on investing in mobile homes.

Hope that helps!

A park manger is 10 times a bigger asset than Any Lonnie, Deals.

I will not touch his deals, I have before I will never again.

"A park manger is 10 times a bigger asset than Any Lonnie, Deals.

I will not touch his deals, I have before I will never again."

Michael, woulld you elaborate on your comments? Would you consider Lonnie deals if you owned the land/park?

Every Lonnie Deal I have bought has been a nightmare.

Most parks in the Houston TX area that allow homes to remain in them that are old and in bad shape are not places that are easy to owner finance in.

They are dumps and attract the lowest form of Trailer Park trash. You will evict them on month 2.

Most of the parks that allow these Handyman Specials have bad reputations and many people simply do not want to live in them

These are however great parks to try and buy..

Also the quality of person that a home that cheap attracts is something else. How many times can I get that wobbley box back? Also there are to many hidden surprises in those homes. You can never get them repaired.

Now Lonnie's main principle of Buy low and owner finance is sound but it is hardly his idea.

I think Lonnie needs to UPDATE his book a little so his prices reflect more of today #'s

I would not buy over 11 years of age, not unless you are buying at 30% max of worth.

And yes Marc you are correct I have never had any issues with Mr Scruggs and I doubt I ever will. :mrgreen:

Hi Mike C,

It all depends on the area and the market. If you're in a "hot" area with a lot of demand for affordable housing, buying older homes can work.

On the other hand, if you're not in a "hot" area you have to be really careful - you need to know the market and know what people are looking for. Most times, you'll encounter 2 types of buyers - those who want everything new and in good condition - these people are more concerned with how the home looks, and those who don't really mind an older home with older carpet, a hole in the wall, etc. The trick is to distinguish between these two buyers and know which homes and which areas they'll be interested in.

All in all, it's the area and the market that will show you the demand and what people are looking for in the area. Hope that helps!

FYI I just bought scruggs book on ebay for $32 including shipping, there are 6 left.

The home buyer (the folks you sell on contract to) are responsible for not only the lot rent but, the insurance and maintainence as well. YOU are the bank in these deals and all banks do is collect payments, they don't pay lot rents or mow lawns!!!!