I am fascinated with this niche. I am diving in 100%, but just like with a stick built investment home, I am finding it hard to make the jump to get started.
So, I was hoping to hear some stories on how others found their way into this niche?
I am looking into this investment too.
One good source of info is to listen to the Mobile Home Park Investing by Kevin Bupp. Very solid MHP investors discussions.
Hi @Charles H. . I have been listening to that podcast and a few others as well. I'm anxious to see the book they (Kevin, I believe?) release shortly.
@Kenneth Cowan Start by reading all you can about it here and in books. The key is being persistent and building a good network. At first, you may want to start with a small deal to see if you like it. If you do, then you can pursue bigger deals and work from there. Good luck!
@Rachel H. I am definitely in info absorption mode. Trying to read/listen to everything I can. Going to target parks of <50 lots of first attempt, looking at secondary and tertiary markets initially.
I'm not exactly sure what you're asking. Do you mean financially? Getting the nerve up? Finding deals?
You're looking to do MH parks. I am very small time. I rent RVs.
As far as starting the principles are probably similar, though. Just mine was on a smaller scale.
Financially, I started with $10,000. We had gotten $4,000 back on our income tax and my husband had gotten a $250 a week raise. I saved that for 6 months.
Then I purchased the 1st RV for $4,000 including repairs. From then on I used the remainder of the $10K and rent money that accumulated.
As far as getting the nerve up to take action, that was tough. I read and did financial projections for months (correction--i'd been reading about investing for years.) I began scouring Craigslist for deals. One day I found one and I bought it. Yes, I was so scared. I was very scared until the day I rented it out. After that, it was much easier.
I started by ready Deals on Wheels by Lonnie Scruggs. I didn't have a dime, so I got a bank loan for 3k and bought a MH for 3k. The buyer put $500 down and made monthly payments to me. $200/month for 36 months. I probably could have gone 48 months, but it was my first deal and I didn't know any better!
I only have 6 now, but I've had as many as 14 or so.
@Josh McCullough I️ hadn’t looked at doing MHs one-by-one, but that sounds like a great way to create some cash flow streams coming in. Great way to get started via hustle. Not going to strike it rich that way over night, but building a foundation and learning should lead to success.
@Kenneth Cowan Always scary to go into a new venture. I got started (in parks ) by direct mail . I studied parks for about a year before getting comfortable with them. I couldn't grasp my head about paying 20 or 30k for a lot. Didn't make sense but then i found a project so terribly scary that the numbers looked good id make it work even if I goofed so never turned back.
@Leslie A. Actually had a chance to check out the park mentioned above ( if you can believe that home you checked out - there is a brand new home in its space , park is all full and we get calls for lots with nothing to offer! (side note moved back down to Houston Metro and looking to buy parks if you know any ( have one in contract currently but would like to buy more) .
Read all the forums here on BP for parks ( mobilehomeuniversity.com has great forums) . Listen to anything Frank and Dave , get out start checking out parks in your area , see what different ones look like , if you are serious go to a Frank and Dave Bootcamp. I would guess a lot of the guys that are doing parks now were probably at some point a boot camper of Frank and Dave ( that should tell you something about the quality of their content).
My personal opinion is to never buy the home without the underlying land. The home depreciates , the land ( income value) can appreciate over time. I understand the whole cash flow thing and there is a lot of legalities with owner finance etc but if you are going to do MH just go straight for the MHP.
One of the best ways to get started in this niche is to connect with people that are buying and selling mobile homes in your area.
Updated about 1 year ago
You could work with investors that buy mobile homes and help them find good deals. This can be done with little or none of your own money!
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