The best way to invest in mobiles ?

I had a similar question too. I live in PA but recently my partner suggested that we invest MH's....I don't know if you have to own the park itself to own the trailers or if you can own the trailers and not the park. I need help understanding as I continue to learn about the wonderful world of RE................

Edited: 06/26/2010 at 03:35AM

Frank Adams

· Loveland, CO

1170 posts
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Icon_minipost May 15 '07, 01:10 AM

Learn how to do " Lonnie (Scruggs) Deals" . Google his full name and you'll find references to his book " Deals On Wheels" about $45 new, $5 on ebay!

Basically you buy a MH for about $5K or less, put a little bit into fixing and resell it on " $1000/ down, XX/month payments. Generaly good " Lonnie Dealers" are making 300% GP and about 12%-14% on their money. It's not bad!

all cash

Edited: 06/26/2010 at 03:35AM

Kim Swift

Real Estate Investor · CA

6 posts
40 Influence

Icon_minipost Feb 08 '08, 10:45 AM

I would buy Lonnie Scruggs books and read them... and then reread them! For $30 +/- it will be the best money you can spend! There is also a teleseminar that Lonnie did which was really good.

Edited: 06/26/2010 at 04:40AM

Anton Jiggetts

Real Estate Investor · MD

1 post
10 Influence

Icon_minipost Feb 14 '08, 06:56 AM

Sometimes you have to weigh the pros and cons before buying a " cheap" mobile. I looked at 3 mobiles all under $1500 last weekend. They all needed major repairs and one needed to be moved. I decided on one I looked at today that was $3,999 and I got it for $3,200 after negotiating. It needs minor cosmetic repairs, is a 3/2(desirable), and can stay in the park.

Less headaches and I would have spent that much on any of the others with more headaches.

The key is to line up your buyers so you don't spend time paying lot rent while you wait to sell and to keep some of your capital so you can keep investing instead of buying one, spending all your money and then waiting for the payments to build you up to where you can by the next one.

Edited: 06/26/2010 at 04:42AM

Chris Jacob

· Bowie, Maryland

18 posts
5 Influence

Icon_minipost Mar 04 '08, 08:01 AM

don't know why I waited so long to post but I finally decided to take action (YAY).

Anyways on to my question, I too have been looking into mobile home investing....are the contracts/deals structured the same as if investing into a SFH as a rental property ? If there is a difference, what are they ?

Edited: 06/26/2010 at 04:48AM

Rachel H.

456 posts
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Icon_minipost Feb 24 '09, 09:44 AM

Yes, read Lonnie's book - his stuff works! :)

Edited: 06/26/2010 at 07:23AM

Marc Faulkner

Note Investor · Kalamazoo, Michigan

953 posts
6879 Influence
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Icon_minipost Mar 03 '09, 08:40 AM

By far the best way to invest in mobile homes is to have them sold before you buy them!

Edited: 06/26/2010 at 07:27AM

Marc Faulkner

Note Investor · Kalamazoo, Michigan

953 posts
6879 Influence
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Icon_minipost May 25 '09, 04:19 AM

I should have given you a little more meat with my first post."You make your money when you buy" a mobile home for the right price! Buy cheap, sell at retail and owner finance the sale with a decent down payment and a decent buyer. Typical rate on seller financed mobile home notes are from 10 to 19%. If you buy for $10,000 and sell for $18,000 and get 10% ($1,800) down you will only have $8,200 into a performing note that is paying a way better than average rate of return!!!
In my area we are now buying stick built homes on land for what we were paying for mobiles in parks just 3 years ago..... If you are working with mobile homes that are in parks it is of upmost importance that you keep the combination of the lot rent and home payment competitive with market rents.

Edited: 06/26/2010 at 08:19AM

Ricky Ostrom

Real Estate Investor · Houston, Texas

58 posts
392 Influence
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Icon_minipost May 28 '09, 01:32 AM

The best tip is making sure the mobile home can stay in the park. You don't want the expense of moving it.

If the mobile home is on some land, then you want to purchase the MH with the land. Then sell the MH and rent the land to the buyer.

Edited: 06/26/2010 at 08:22AM

Marc Faulkner

Note Investor · Kalamazoo, Michigan

953 posts
6879 Influence
12 Awards

Icon_minipost May 31 '09, 03:14 PM

We buy and move them all of the time. We also sell them to park owners and other dealers that are our best customers because they pay cash!

Edited: 06/26/2010 at 08:24AM

Dave Reynolds

Real Estate Investor · Cedaredge, Colorado

7 posts
240 Influence
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Icon_minipost Jul 17 '09, 04:17 PM

My initial answer is to buy mobile homes when they are located in or you will move them into a park that you own. If this is not possible, then focus on buying homes in the 5K range in parks that have rents under $250 per month. Most customers can only afford $500 per month on lot and home payment and when you have a lot of room between that $500 and the lot rent you are able to sell and get paid back quicker.

Dave Reynolds

Edited: 06/26/2010 at 09:01AM

Dale Osborn

Mobile Home Investor · Spanaway, Washington

1285 posts
14057 Influence
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Icon_minipost Mar 29 '10, 06:31 AM

My answer would be that there really is no "best" way of investing in mobiles. Different strokes work for different folks! Basically you have to be comfortable and enjoy what you are doing. When you enjoy what you are doing and making money at the same time it is not like work or a JOB - it is fun!

Edited: 06/26/2010 at 12:16PM

Cole Haynes

Real Estate Investor · Tampa, Florida

73 posts
694 Influence
4 Awards

Icon_minipost Mar 30 '10, 02:14 PM

This definitely depends on the investor and their market and experience. For me, it's buying doublewide manufactured homes on land.

I love the options you have when you own the land the home sits on! You can keep the land and sell the home, rent, sell on terms, sell for cash, etc.

Buying and selling mobile homes in parks is a great way to start! The average ROI is very high. But you dont own the land, limited exit strategies, and you are not the gate keeper.

Note deals are very good though! I am really enjoying L/H deals though.

Edited: 06/26/2010 at 12:17PM