Many Owners Don’t Have the Funds to Move Their Mobile Homes: Here’s What That Means for Investors

by | BiggerPockets.com

As active mobile home investors, we may take for granted the mobility and move-ability of nearby mobile homes. Needing only an internet connection and a cell phone, any mobile home owner with a few thousand disposable dollars can contact a local mobile home transportation company to have their subject mobile home(s) moved. They can then set up in a new location with all utilities connected. With the help of a reputable transportation company, the process is very streamlined, insured, and headache-free.

Perhaps the most valuable five words in the above paragraph are “with a few thousand disposable dollars.” That is because many mobile home owners inside preexisting mobile home parks do not have this type of disposable savings to spend. Additionally, some lien holders may make it difficult to have a home moved before the underlying debt is paid in full. For these mobile home owners, the option to move their mobile home is virtually impossible. At the very least, it is a struggle to track down and borrow the money.

Of course, a number of manufactured home owner-occupants across the country would have no problem moving their mobile homes if needed. These owners should take solace in knowing they are capable and prepared to move their home if needed.

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What Does This Mean for People in the Marketplace?

Benefits for Sellers

In the case of mobile home owners, there may be little benefit. This includes those who absolutely must sell by a closely approaching date or risk losing their homes. In a perfect world, this owner would have money in the bank and/or time to wait to sell their mobile home. He or she would be current on the monthly park lot rent, and the community would not be evicting them. In a perfect world, any mobile home owner would have the funds to move if need be.

Related: The 6 Types of Mobile Home Buyers Investors Compete Against

Why Homeowners/Sellers Typically Need to Move Their Mobile Home

  • The park is evicting the homeowner and the home. Disclaimer: When an eviction takes place in a mobile home park, the park will most likely demand the problem resident leave. It will also require the resident takes along any homes they own.
  • The subject mobile home park is closing.
  • The home has an unstable foundation.
  • Flooding has occurred.
  • Zoning has changed.
  • Due to an upgrade to a newer mobile home, the older home needs to be removed (if attached to land owned by home owner).

Benefits for Buyers

Assuming a buyer can rectify the situation with the subject mobile home park (pay back the amount owed) or simply pay for the home to be moved to a new location, then the benefit is obvious. A motivated seller equals a discounted purchase price.

Benefits for Investors

Same as above.

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Related: 6 Reactions People Have When They Learn I’m a Mobile Home Investor

Benefits to the Mobile Home Park

Same as above. Additionally, all the mobile home park must do is sit and wait. The park either collects its past due monies or takes legal possession of the manufactured home when the homeowners eventually abandon it.

In conclusion, this article does nothing to service a need for helping the exact cash-strapped sellers/homeowners this article discusses. Instead, this article is merely a public service announcement of sorts. It alerts homeowners to start saving in the event something unforeseen arises. Additionally, if you are a purchaser or investor, remember to strive for win-win deals between all parties.

Investors: Have you come across this situation in your mobile home investing? 

Let me know your experiences with a comment!

About Author

John Fedro

Investing since 2002, John started in real estate accidentally with a 4-bedroom mobile home inside of a pre-existing mobile home park. Over the next 11 months, John added 10 more mobile homes to his cash-flowing portfolio. Since these early years, John has gone on to help 150+ sellers and buyers sell their unwanted mobile homes and obtain a safe and affordable manufactured home of their own. Years later, John keeps to what has been successful—buying, fixing, renting, and reselling affordable housing known as mobile homes. John shares his stories, experiences, lessons, and some of the stories of other successful mobile home investors he helps on his blog and YouTube channeland has written over 300 articles concerning mobile homes and mobile home investing for the BiggerPockets Blog. He has also been a featured podcast guest here and on other prominent real estate podcasts, authored a highly-rated book aimed at increasing the happiness/satisfaction of average real estate investors, and spoken to national and international audiences concerning the opportunities and practicality of successfully investing in mobile homes.

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