Renter · Matthews, NC · Member since 2011 · 29 posts · 3 votes
I just came back from a mobile home park and the manager said he doesn't allow investors to have homes on his park because "he loses control". I asked him what he meant and he said having investors can cause the park to be in disarray because people renting often leave and trash the place. Lonnie said to find managers that will work with you so I'll keep looking. Has anyone had this experience? Any thoughts on what you would do. Also, he told me the lot rents in this area ranged anywhere from $250-$320 a month depending on the size.
Real Estate Investor · Member since 2009 · 260 posts · 119 votes
15y
Ted, while I was reading Lonnie's and Zalman's books I was also looking at craigslist daily to see what was out there and how much it was selling for. If there were multiple ads for a particular home I would look to see what his original list price/date was, how much he dropped it and how long before the ad disappeared or sold.
This helped me familiarize myself with the market as well as look for the MH that was suitable for my first deal.
I don't know if you've read them or not but I started a couple threads that are like a 'walk through' of my first few deals and have a ton of great input for others here at BP.
Renter · Matthews, NC · Member since 2011 · 29 posts · 3 votes
15y
Hey Tod,
Thank you for the reply. This forum seems to be packed with people that want to help others and that is great. I intend on selling the homes and holding the paper on them.
Renter · Matthews, NC · Member since 2011 · 29 posts · 3 votes
15y
Jeffrey and Steve,
The reason I want to start with mobile homes is because of my startup capital. Okay , I see where I wasnt clear telling the manager that my plan is to sell the home. Thank you for the clarification.
Real Estate Investor · Member since 2009 · 260 posts · 119 votes
15y
Originally posted by Ted Clayton:
Jeffrey and Steve,
The reason I want to start with mobile homes is because of my startup capital. Okay , I see where I wasnt clear telling the manager that my plan is to sell the home. Thank you for the clarification.
Those guys beat me to the punch but what they said is exactly right. You would want to tell him you don't want renters either. You want to sell the homes so they are home owners and will take care of their investment. Good job on taking the first step!
Renter · Matthews, NC · Member since 2011 · 29 posts · 3 votes
15y
Terry,
Thank you for the additional help. If you just got finished reading books on mh investing what would you do? My plan is to drive around different parks looking for mhs.
Real Estate Investor · St. Petersburg, FL · Member since 2010 · 63 posts · 40 votes
15y
Not sure why you would confine yourself to just looking in mobile home parks for mobiles, unless you find it attractive that the home is already "situated" and doesn't have to be moved.
Not many park owners/managers want investors in their park. If an owner occupied mobile is for sale within the park, the owner/manager will surely have an application process which will be the determining factor...either the mobile will be occupied by a new "manager approved" owner/occupant or the mobile will be moved from the park when sold.
The best place to find mobiles for sale are the small once a week papers. You can also place an ad in these type of weekly papers that you buy mobile homes.
Used mobile homes generally require repairs which can become very costly. You will need to know how to quickly estimate repairs along with your offer and still make a profit from the end buyer. You'll also need to know what your market wants.
Educating yourself "first" is key to making profits with mobile homes.
Rental Property Investor · Seattle, WA · Member since 2011 · 23 posts · 3 votes
15y
I had a mentor tell me that mobile homes are 'little metal boxes that print you money' . haha. Especialy if you can get someone in and negotiate a Lease/Buy deal.
Real Estate Investor · Member since 2009 · 260 posts · 119 votes
15y
Ted, while I was reading Lonnie's and Zalman's books I was also looking at craigslist daily to see what was out there and how much it was selling for. If there were multiple ads for a particular home I would look to see what his original list price/date was, how much he dropped it and how long before the ad disappeared or sold.
This helped me familiarize myself with the market as well as look for the MH that was suitable for my first deal.
I don't know if you've read them or not but I started a couple threads that are like a 'walk through' of my first few deals and have a ton of great input for others here at BP.
Renter · Matthews, NC · Member since 2011 · 29 posts · 3 votes
15y
Peter and Terry,
Exactly from what Lonnie demonstrates they are "little boxes" that spit out cash ! Terry I will check out your posts regarding your first Lonnie deals. I've been on Craigslist and saw an add for a 14 x 70 but never heard back from them. Thank you very much for the encouragement and help guys.
Homeowner · Burleson, TX · Member since 2008 · 756 posts · 376 votes
15y
They definitely can be cash cows. The popular mentality is "You'll never get your money out of these things." Let them keep thinking that while I collect the cash each month.
FWIW, I do have other rental properties. The mobiles are cheap, quick and can increase cashflow. Good luck Ted.
Renter · Matthews, NC · Member since 2011 · 29 posts · 3 votes
15y
Say I purchase a mh with a buyer who makes payments for awhile then leaves. Since, im the owner am I responsible for the lot rent until I get a new buyer?
Homeowner · Burleson, TX · Member since 2008 · 756 posts · 376 votes
15y
yes
And you will responsible for maintenance and upkeep of the place. You will also have to spruce it back up to resell it. You may also have to keep the utilities on and functioning.
Flipper · Mission, KS · Member since 2009 · 23 posts · 8 votes
15y
I've seen a lot of folks on these forums mention that park owners don't like having investors in the parks, and I can't figure out why. In the area I live, park owners are anxious to get into business with investors, some of them going as far as to pay ALL of the moving/set up costs to get a home in, and free lot rent on top of it.
You need to explain how beneficial it is for them to get involved with you. If you buy a home in the park, thats an empty home they don't have to deal with, and you're taking the responsibility of putting a paying tenant in it. If you succeed, its very likely that you'll be acquiring homes outside of the park, homes sitting on land or nice homes in run down parks that need to be moved, and if you're in good with them you can fill their empty slots. And be sure to tell them that you aren't renting. Even in mobile homes, pride in ownership goes a long way, and the owner of a home is much less likely to put a fist through the wall than a renter.
Real Estate Investor · Houston, TX · Member since 2010 · 499 posts · 206 votes
15y
Ted,
When I was looking for mobiles to buy, I found that some park owners were negative about investors, and others were very eager to have investors in the park. I even found a couple that were perfectly willing to let me rent homes (though that wasn't my plan).
Like Eric said, I found one who offered to pay $2500 to move a home in. I think a lot depends on how many vacancies the park has.
So, keep talking to managers and you will find cooperative ones.
Renter · Matthews, NC · Member since 2011 · 29 posts · 3 votes
15y
Leslie12,
Thank you for the words of encouragement. I found my first for sale by owner today and called him. However, he won't sell until this summer and I asked him if he knew anyone else who wanted to sell and he said he did in the park. I haven't been out there to check it out but I will.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
15y
Great to hear you spoke to your first mobile home manager, Ted!
Getting to know park managers and owners is really more of an art in the way you approach them. Most investors (in my opinion), go out there and just talk themselves up - it's a really big turn off to folks.
If you go in there and sincerely show an interest in the park and what they do, in many cases - your presence will be received more positively. In the beginning, it's best to visit different parks and meet different park managers to see which ones you like/don't like. Hope that helps!
Renter · Matthews, NC · Member since 2011 · 29 posts · 3 votes
15y
I've read Lonnie's book DOW. I just stumbled across a guy by the name of Doug Ottersburg who has a home study course that appears to be really good. Should I ditch Lonnie's book for this course?
Real Estate Investor · Member since 2009 · 260 posts · 119 votes
15y
Originally posted by Ted Clayton:
I've read Lonnie's book DOW. I just stumbled across a guy by the name of Doug Ottersburg who has a home study course that appears to be really good. Should I ditch Lonnie's book for this course?
Ted, I've spend a few grand on a 3 day MH class and although it was filled with a bunch of really good information, there wasn't a single thing taught there that I hadn't already learned by reading a $19.95 book called "Mobile Home Wealth". If I could do everything all over again, I would have saved my money and stuck to the books. Forget about the courses, you will learn more by buying your first deal and putting your hands on it for yourself.