After hearing the most recent podcast, I am all amped up about starting a wholesale direct mail campaign to specific mobile home parks here in Arizona. I want to introduce some valid questions to those experienced with mobile home or SFH wholesaling.
Points to remember:
- Arizona has a very high absenteeism rate when it comes to snowbirds. They leave in May and return in October.
- Here in the Arizona valley there are many 50+ residential neighborhoods.
- Older folks are more prone to sell their gone the old way...by themselves.
One thing that has worked well for me is to remember that your best (and only real) wholesale buyers are professionals that work with mobile homes all of the time. You will be buying them from folks that need to sell for any reason. This could be a death in the family, divorce, job change, etc... The key is that the sellers you are looking for here: NEED to sell. Just because they want to sell does not make it a deal!
As for the professional buyers and my comment above: You want to sell to cash buyers IF you are looking to sell quickly and easily. Believe me this is the approach you want to take with your sales vs dealing with retail buyers. For the most part a retail buyer is going to be someone that want to reside in the mobile home or use it for personal use. There is a lot more liability, and time involved, dealing with the public vs someone that buys these things all of the time/professionally. Look for the guys that buy them all of the time. Make friends with them and build your buyers list before you start. Good luck out there!
I have dealt with Mobile Homes in my area and since they have a title just like a car, don't you run into issues/problems if you are not actually titling them in your own name first and then selling. I know here that is a big no no and I even think the State can take legal action against you because they are loosing out on the fees and taxes when transferring from one person to another. That would be my concern wholesaling. I think also you are only allowed to buy and sell so many a year before having to have a dealers license. Maybe it is different in other states. Something to consider.
Yes you will need a license to do this in any state I can think of, IF you are going to sell over X (number) of units....... You could also become friends with a retail dealer and offer to become a wholesale partner with them. They could help you get the paperwork done right and you could add some income to what they are already doing!
Before you get started, it's best to get a list of buyers interested. It would be a good idea to get their criteria first (i.e. preferred areas, type of homes, etc.) so you know what to look for. There are folks out there looking for homes to put on their land whether they be individual homeowners and/or investors. The dealerships are also a good source of information for buyers that don't work out for them; they receive calls from these folks all the time.
Hope that helps!
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