Mobile home investing

5 Replies

I’ve been taking action, I posted Craigslist ads and ghost ads, and put out bandit signs. I have buyers. The only thing that is holding me back is not enough funds, and talking to park managers . I have no clue how to approach park managers or what to say. I don’t want to have a bad first impression. Should I get business cards so I look more professional? In need of help I’m only 18 I don’t want them to take me as a joke.

@Alvonta Flemings

Looks like it's actually two things that are holding you back and not one:

1) funds - think creatively: bringing partners in, get money from HML or private lenders, bringing investors in, borrowing against something you may already own (maybe you own a house and can get a HELOC against it).

2) how to approach park managers - with the resources available on world wide web, sky is the limit. Look through the old posts here on BP or just google your question. 

A simple search on BP gave me this thread as one learning tool for you:

https://www.biggerpockets.com/forums/30/topics/242074-to-mobile-park-owners

Hi Alvonta Flemings,

Glad to have you here. First things first, great job being interested in investing so early in life. You have a long future ahead of you. With that said, don’t feel like you have to rush into anything too soon. Make sure to ask a lot of questions and understand things before moving forward. 

I felt like I was being perceived as too young for the first 10 years investing. What I learned is that it is tough to say the wrong thing to the right seller. Also, once the seller knows how much you care and are willing to help they will certainly listen. Plus as long as you have the money or can get the money than they are likely happy to work with you. But let's remember that some people are just jerks. Push past this fear, it is worth it. It helps when you envision and act that you work with a small size investment company and have some bosses. At any age this business takes a ton of determination and guts. And when you’re 18 it takes extra guts.

If I am understanding you correctly you are looking to introduce yourself and purchase individual homes in the community. If I am correct then there's an older video you can check out here with one strategy to introduce yourself to managers. https://youtu.be/KlFLxljOI60 

When it comes to business cards they're certainly helpful however not needed. Do not let them be a crutch. Make sure to follow up with park managers and do not simply trust that because they have your business card they will remember who you are. I hope this all helps and starts to point you in the right direction. Feel free to keep in touch. There are a lot of knowledgeable folks on the site that are happy to help if you have questions. All the best.

Talk soon,
John

@Alvonta Flemings If you're lacking in some areas, you may want to bring in a partner and/or a private lender to help you with your deals. Check out your local real estate investment club. Talk to others who are interested in the mobile home business. And go from there. Good luck! 

Hi Alvonta,

Good to hear from you. I'm not exactly sure if you are meaning, "why might it better to make payments when you are buying a mobile home as an investor" or "why might it be better to sell to a payment-buyer on monthly payments". Both answers come down to keeping capital in our pockets. For our end-buyers, many folks simply do not have $20,000 or more cash lying around to buy a used mobile home that we may be selling. Selling on payments allows us to help buyers that would not otherwise be able to purchase a home. Additionally, when you're purchasing a used mobile home as an investor we can sometimes negotiate the purchase terms in monthly, quarterly, or annual payments. This allows us to keep more of our cash in our pocket to use on another deal when the seller will not take payments. By making a seller payments we are able to literally have the mobile home pay for itself. This is because we will be filling the home with a payment-buyer that will be paying us money monthly. This money every month we will use to pay the lot rent, the sellers payment we agreed to pay them as the purchase terms, and ideally some profit for us every month. When the seller is paid off our profit will shoot up as your income on that home will keep coming in from the payment-buyer. Keep in mind that when we make payments to a seller we can often times offer them a much higher purchase price than we could by paying them all-cash. Occasionally, we can even pay the seller more than they are asking if we are able to make the monthly payments or some type of other creative offer. There are a few more benefits however I hope this all helps and makes a bit a sense. This answer may bring up more questions however that is a good thing. Feel free to keep in touch and we are all here to help.

Talk soon,
John

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