How / Where can I purchase mobile home notes?

8 Replies

I am looking at various ways to invest in mobile homes. I also happen to be very interested in note investing. Unfortunately, notes on single family homes are more than I can afford to invest in right now. Obviously mobile homes are usually less expensive than stick built. If they are newer homes, they are probably being financed. To me, this seems like a good way to get started with both mobile homes, and notes.

Can anyone advise me on this idea? also... how and where, can I purchase mobile home notes?

Originally posted by @Orlando Paz :

I am looking at various ways to invest in mobile homes. I also happen to be very interested in note investing. Unfortunately, notes on single family homes are more than I can afford to invest in right now. Obviously mobile homes are usually less expensive than stick built. If they are newer homes, they are probably being financed. To me, this seems like a good way to get started with both mobile homes, and notes.

Can anyone advise me on this idea? also... how and where, can I purchase mobile home notes?

Lot of land mines to avoid.  You might find homes with notes values much higher than what the actual home might be worth.  There is a lot of Dodd Frank Regulation that pertains to this.  You have to be sure the notes are compliant as I believe that is what real note investors would want to see and give you the possibility of some liquidity. 

Though it sounds like a good spot to start (due to the "low" entry cost) , in theory, unless you had a lot of resources at your disposal to ensure compliance , servicing etc. I would not start here.  The fixed costs that are needed to do this the "right" way , I think are going to need a large volume of homes to spread the cost over. 

Just some thoughts you might consider . While I think there may be opportunity , you would have to go about it the right way. 

Good luck 

Mobile home park/community owners, mobile home dealers and most of all mobile home lenders will have notes for sale.  If you have money to spend that's where to go, since they are in the business of creating them......  

Networking with other mobile home investors and mobile home park owners is a good place to begin. When I first started out, I met a few owners who wanted to sell me their notes for cash. Hope that helps! 

I should have a few for sale in January or February.  

I have two contracts right now, but I don't think they are compliant - I am in the process of upgrading our contracts to fix that problem - Anyone have a good template I can use?