Wholesaling Mobile Homes

1 Reply

Hi I got really inspired by John Fedro's Videos and wanted to get into Mobile Home Investing. So Recently i started posting ads and searching for sellers and buyers and i found multiple buyers and finally found a good deal on a home.

The Problem is i realized i don't have the money to afford the amount the seller wants and can't get approved for a loan for the price.

So My Question is Can you Wholesale a mobile home with purchase agreement and assignment like general homes?

And also if i am selling to a Buyer that would need a loan how would the process be for that?

and If So how would i go about getting or creating the contracts?

The seller wanted all cash because he needs the money to move and he owns the home free and clear.

I live in Southern California.

Hi Cristian,

Thanks for posting. Please see my thoughts below in bold. Your original comments are in non-bold. 

Hi I got really inspired by John Fedro's Videos and wanted to get into Mobile Home Investing. So Recently i started posting ads and searching for sellers and buyers and i found multiple buyers and finally found a good deal on a home. Congratulations for having the ambition to take immediate action aiming to help local buyers and sellers. This takes guts in and of itself. 

The Problem is i realized i don't have the money to afford the amount the seller wants and can't get approved for a loan for the price. This hopefully was relaized before you ever got started advertising.  

So My Question is Can you Wholesale a mobile home with purchase agreement and assignment like general homes? Similiar to SFRs, but not the same. Mhs in parks are tough to wholesale for a variety of reasons. When mobile homes are in parks there is little way to cloud a mobile home title until the sale. This means that when you sign a purchase and sale agreement with a seller, they can go around you the same day (or any day until sold) to sell to another buyer with more money than you. There is no loyalty to you if the buyer wishes to cut you out of the deal. 

This brings us to the next point. Will the seller know you are assigning to another person and making a profit? If they do then you can keep everything open and honest and you let all parties know your profit. Plus, you'll be able to show the home without worry and with the help of the seller. You'll likely have the buyer sign your assingment of contract and pay you your assignment fee at closing. In my opinion it is best to close at an attorney's office to help fasilitate the transaction. 

A closing attorney will also help incase the sellers and buyers do not know of each other, or don't know you're assigning the contract. In these cases you can perform a sort of double closing; your buyer will pay you for the home, you'll then use your buyer's money to pay off the seller. The title/ownership is then passed to your buyer. In either case you are not on the chain of title in these cases.    

And also if i am selling to a Buyer that would need a loan how would the process be for that? You will be putting the deal together and closing at your attorney's office. Purchase contract signed with seller, Assignment agreement signed with buyer, buyer applies for loan, close at attorney's office. You will be listed on the HUD-1 clsing document and all parties know your profit.  

and If So how would i go about getting or creating the contracts? For what you are looking to do a Mobile Home purchase contract and traditional Assignment contract should be enough to put this deal together. Again, while wholesaling MHs in parks I suggest you use a closing attorney or escrow office, they are a 3rd party agency that people trust. 

You also have the option of taking an Option on this home, then transferring the option for a fee. This is a similiar method and the buyer will know your Option assignment fee. 

One thing not mentioned is that Ca asks that you have your Dealer's license if you plan to buy/sell a Mh in your state for a profit. While you are not owning the home, I still wanted to bring it up as it may have been a concern of yours.  

The seller wanted all cash because he needs the money to move and he owns the home free and clear. All sellers say they want and need all-cash. Some really do, but most do not.

I live in Southern California. Hopefully your assignment fees will be $3,000+ to make all this effort worth while.

There are multiple ways wholesaling a Mh in a park can look depending on your relationship with the seller, the seller's motivation, and if the seller is even still locally in town. Not to mention the demenior of the park manager and if they are goign throuhg a bank for financing.  I am very curious to hear what other Mh investors have to say on the topic.

Hope this helps some and makes sense,
John

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