So in the efforts to get out there in the field and starting my first deal I came across an old gentleman who is selling his old trailer home. We've exchanged a few emails and he sounds like a very motivated seller. My only concern was that I'm not very familiar with trailers and I was curious if there was any difference between a SFH for example and a trailer. If we do come to an agreement I will be wholesaling the property, but first wanted to make a thread to ask for advice regarding the topic. Would I have less buyers because it is a trailer? Would the ARV be a lot lower to the point where I won't even get anything out of it? Any advice is greatly appreciated, have a blessed day!
Isaac, You're looking at a very different type of clientelle than normal. I'm working in mobile homes, just started around thanksgiving, and I'm learning a lot about how the mindsets are entirely different. I've picked up three homes in okay condition all for under 3500 so shoot for that range. Even a newer 90s home you should easily be under 10k unless its a private home on land.
Some of the differences with the buyers and sellers:
Sellers generally want cash for their home (as most sellers do) and don't really want to do with C4D or anything. They want out and to be done with the home. Buyers of mobile homes, in the price range discussed above, are more often looking for a payment option. Think about it; if a buyer has 10k to buy a home they are more than likely going to go the FHA route with a SFH. If they don't have the 10k they are unlikely to qualify for financing at a traditional bank. Now they are looking at mobile homes since they are more affordable but banks don't like to lend on those either in most cases unless they are very new and in a certain condition.
Right now, I've got three homes - 2 are marketed and one is getting fixed up. Plan is to sell them on payments over 5 years. If I can make the lot rent and the monthly cost of the home close to what people pay for a similarly sized rental then its an attractive deal for many. The hardest park I've had so far is the park accepting people. Many show interest but the park I have 2 homes in is very strict about who gets in and who doesnt.
Keep in mind, it might be difficult to wholesale a mobile home because not many investors work with them. That being said, I think I know a few in the Ft. Worth area.
That was exactly the information I was looking for! Thank you very much, I just got off the phone with him and he told me that I had to get it out of the land in 1 week, so I think I'm going to go ahead and pass on that offer. He was looking for about 7k for the trailer and from the range you gave me I don't think I'm going to be able to bring him that low.
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