Just Purchase a Mobile Home Inside a Park? Here Are Your Next Steps!
Scene: Let’s imagine that as a successful mobile home investor, you have just purchased another mobile home inside a local mobile home park. Your newest mobile home acquisition is a 1992 model with 3 large bedrooms and 2 full bathrooms. This is the same type of mobile home you have walked through 100 times before. The seller is happy to be free of this home, and you too walked away from closing with a smile on your face. The home is in used condition both inside and out. Based on your due diligence, you know you have purchased a good home you will be able to rent or resell for a substantial profit
Your next major goal is to rent or resell this property to a low-risk resident and begin generating a monthly passive income or a one-time cash payday from a serious cash buyer. However, what else may you want to do immediately after closing?
Below is a short list of after-closing steps to consider after every mobile home you purchase inside a park for investment.
After closing, it is now time to transfer ownership from the mobile home seller to you, your company, personal property trust, or another legal entity. Be aware that in every state, there is a maximum number of days before a penalty is charged if you do not transfer ownership of this home from your buyer to you.
In most states, this ownership is conveyed through a manufactured home title, and there is a deadline between 7 to 30 days to transfer ownership. This gives you at least a week’s time to make a trip to your local DMV, DOT, or state MH division to transfer ownership and receive a new title. Some states require all titles, taxes, state forms, and sales documentation mailed in as opposed to you being able to transfer ownership in person.
Pro Tip: Transfer ownership via a mobile home title (or SOL or deed, depending on your state) the same day or on the next day after closing.
Who helped you directly find this home? Was this a referral from another investor, dealer, real estate agent, park manager, or acquaintance? If the source of the lead is anyone besides “only me,” then you owe someone a sincere thank you. This thank you can be in the form of a gift, gift card, or cash (if legal in your area). Most states do have a limit for how much a non-real estate agent may be compensated for leading you to a deal.
Pro Tip: When offering a “thank you” gift for successful leads, aim to ask the person what he or she feels is a fair compensation that he or she is happy with. Oftentimes the amount suggested is lower than the fee you had been thinking in your mind.
3. Curb Appeal
Curl appeal goes a long way at making your neighbors, park management, and park owners pleased with the decision to allow you to invest in mobile homes in their park. In addition to the instant park image improvement, by cleaning up your mobile home others tenants nearby may do likewise.
Quick clean ups to make after purchasing most mobile homes inside parks:
- Pressure washing: If you hire this task out, you will likely pay $75 to $150 depending on the size of the mobile home, with a possible extra charge for cleaning the roof. While pressure washing a mobile home will clean deep down algae and dirt, some mobile homes may only need a spot cleaning or nothing at all. Be aware that pressure washing a mobile home with wood, faux wood, or painted aluminum siding may easily strip off loose paint in places.
- Straighten skirting: A quick fix to add curb appeal to a mobile home with messy skirting is to clean and straighten these skirting panels yourself. If panels are damaged or missing from the front, then simply replace pieces from the back to clean up the front. This will help add to the home’s curb appeal from the road.
- Metal roof? Paint it: Kool Seal brand roof sealant can be applied with a simple paint roller within a half a day. A nice white coating makes old roofs look newer, keeps the home cooler in the summer months, and can help plug up any pinhole sized tears/holes in the roof.
4. Advertising ASAP
Continue marketing and sending potential buyers/tenants to your investment home until you have money in your hand. A potential applicant who wants the home still needs to become park approved with the front office. This can typically take 1-3 days for the applicant to be approved or denied.
Remember that while advertising the mobile home, you will be paying holding costs and miscellaneous expenses. For this reason, make sure to advertise and market the home for sale or rent in as many channels as possible (e.g. newspaper, online, signs, flyers). You want everyone within a 10-mile radius to know of your attractive mobile home for sale/rent.
Disclaimer: What is this article missing? This article only touches on some of the “should dos” or “must dos” after purchasing a mobile home in a park. Depending on your exit strategy and local market, the above list will likely expand to cover many more topics. If you have any specific questions or comments, please do not hesitate to comment them below for us all to learn.
What would you add to this list? Any questions about the above steps?
Let me know with a comment!