Mobile Home How-To Course
Flipper/Rehabber · Vancouver, WA · Member since 2013 · 328 posts · 252 votes
Howdy. I've been a real estate investor since 1999 and trainer/mentor/coach since 2004, associated with Russ Whitney (now Robert Kiyosaki Real Estate Education), Keller Williams and others. After 160 stick built investor deals and 30 mobile home deals in several states...
I'm putting the finishing touches on a Mobile Home How-To Training Program. Last 2 mobile home student coaching deals netted $9,500 and $11,500 last week, 5-13-15. I want to include all I can, and it will cover multiple topics.
If this is of interest---
What questions would YOU like answered? What is mystifying, mysterious, questionable, curious, head scratching, etc about mobile homes? And how to make money with them?
Anyone who asks a question will be entered into a drawing for a copy of the complete program.
Enjoy and Have Fun!
I have just finished listening to Bill Neves' introductory videos about the Mobile Home Blueprint course. As a park owner who is friendly to the idea of investors in my park, I found what Bill was offering to be an important source of information to would be or experienced investors whether they be fix or flip or other. I have always found that an informed investor is more apt to make a good deal without drama, remorse or problems. And they tend to return to the table for multiple deals over time.
The course is packed with valuable information.
I owned a mobile home park, 50 units some 20 years ago. Then I purchased used mobile homes for $1,000, rehabbed them in my park and then sold them for $8,000 owner financing with $3,000 down for 5 years. I did 10 of them in 2 years time. The third year I sold the park to a mobile home dealer. Laws here in New York concerning mobile home parks made my old park expensive to keep up with the codes. I was glad to sell it. After that about 3 or so years from then, I tried purchasing old trailers set up in parks and had no luck. The mobile home park owners didn't allow old trailers in thier park anymore. If the trailer was a 12 wide or less and the owner wanted to sell it, they had to remove it from the park. Newer homes, 14 wides where to expensive to buy from the owners to make any money from them at that time. I didn't try the foreclosure route I bet that might have made me some money but then again the park owners would have demanded the home be removed. They just don't like the problems associated with empty trialers and the hassle of auctions crowding the park and then having to qualify the new owner of the home if the park owner wants the home to stay. Most cases they want the home removed from the site and placed in a storage area for the auction in which they charge storage fees.
I since have moved to Virginia Beach and discovered very few mobile home parks. One was sold to a developer and they removed all of the homes and developed the land for residential stick built homes.
The only thing now that makes scenes to me is to find a mobile home on it's own land ready for rehabbing that you can pick up for a bargain. And if the property had enough room for an additional two mobile homes I would definitely install concrete pads and find 2 rehab ready homes to place them there and sell them after the rehab, owner financing plus lot rent.
In today's market what are the new strategies for buying and selling mobile homes? Are they similar to purchasing residential stick built homes?
My question is - how does one come up with the ARV/FMV of a MH? Where I am from most MHs are place on a plot of land, a few are in parks, when they come on the market either by homeowner or foreclosure it presents a challenge due to the rural settings.
I am currently negotiating a deal for my very first mobile home, which will also be my first property purchase. I have a question
Do property management companies typically deal with mobile homes located in a park?
I am currently negotiating a deal for my very first mobile home, which will also be my first property purchase. I have a question
Do property management companies typically deal with mobile homes located in a park?
@Bill Neves
I discovered several years ago that there is a "Blue Book" available for mobile homes like there is for cars. I haven't done any research into this to see if such a thing still exists. I shall give it a try shortly, googling it.
Thank you all for the questions so far. I will compile them into the book/course. And answer the ones I can here.
@Mike Sedlacek
Very similar to stick built homes. On land, or a lot in a city, you can pull higher prices and they cost more to acquire.
Lower entry cost are mobile homes in parks. The park dictates differences in qualifying, costs, etc.
Also - the Kelley blue book for mobiles is called NADA. Google it and you can get info.
I don't use it. Not sure who does. Park, city, land, market all dictate what prices are.
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Of the homes we've sold in the past 3 months, 2 of the units were 1968 vintage. 1 sold for $17k cash and the other for $24,900 cash. More on how we sell for cash later. People told me I'd never get more than $5k for either but they don't know the market.
With employees working less stable jobs and part time, it's difficult to qualify for a home loan. People have to rent.
Supply and demand - Naturally, rental market prices go up. In my area (Portland, OR/Vancouver, WA) currently, a small 1 bedroom goes for $800-900/mo. If you can find one that cheap. 1 person told me they are paying $1300 for a 2 bedroom with a parking lot, no carport, garage, etc.
Landlords raise rent with the scare rental situation.
Unless there is some major market change - Most people today will NEVER buy a house or another house if they lost one in the 2008 crash.The only way these good people can control things is to buy a mobile home in a park. Pay it off and at least they can control half of it.
Approx 10% of homes are mobile homes. Approx 75% of those are on land. 25% in parks.
Increasingly common knowledge that Mobile Home Parks are cash cows once costs are working smoothly. Mobile Home Parks are in high demand and mobile homes in parks are increasingly in high demand.
Most investors steer clear of mobile homes. They go down in value, most of them are run down, blah blah. Well, those of us who have taken off those glasses are doing just fine. And with little to no competition.
Did I mention that I love this business?
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@George Kelley
NADA book can help. Fair market value is determined by area and comps on land and by the park if in a park. Many people have moved them from a lower pride park to a higher priced park and made a good profit due to location.
@Wayne Mack
Property mgmt companies 'can' do mobiles in parks. But I've not seen that. What I have done, on the ones that are financed, is have the park notify me if the rent is not paid by the 5th so I can follow up and see what's up. Easy to supply the paperwork to put that in place.
NOTE: Dodd Frank regulations include some requirements to finance mobile homes as investors.
I owned a mobile home park, 50 units some 20 years ago. Then I purchased used mobile homes for $1,000, rehabbed them in my park and then sold them for $8,000 owner financing with $3,000 down for 5 years. I did 10 of them in 2 years time. The third year I sold the park to a mobile home dealer. Laws here in New York concerning mobile home parks made my old park expensive to keep up with the codes. I was glad to sell it. After that about 3 or so years from then, I tried purchasing old trailers set up in parks and had no luck. The mobile home park owners didn't allow old trailers in thier park anymore. If the trailer was a 12 wide or less and the owner wanted to sell it, they had to remove it from the park. Newer homes, 14 wides where to expensive to buy from the owners to make any money from them at that time. I didn't try the foreclosure route I bet that might have made me some money but then again the park owners would have demanded the home be removed. They just don't like the problems associated with empty trialers and the hassle of auctions crowding the park and then having to qualify the new owner of the home if the park owner wants the home to stay. Most cases they want the home removed from the site and placed in a storage area for the auction in which they charge storage fees.
I since have moved to Virginia Beach and discovered very few mobile home parks. One was sold to a developer and they removed all of the homes and developed the land for residential stick built homes.
The only thing now that makes scenes to me is to find a mobile home on it's own land ready for rehabbing that you can pick up for a bargain. And if the property had enough room for an additional two mobile homes I would definitely install concrete pads and find 2 rehab ready homes to place them there and sell them after the rehab, owner financing plus lot rent.
In today's market what are the new strategies for buying and selling mobile homes? Are they similar to purchasing residential stick built homes?
Mike -
Contact @Curt Smith in GA who does alot of seller financing in this Dodd Frank World of Mobile Homes
He does very well.
Hi Bill, Is your business model related to "Lonnie deals"? Do you feel Dodd Frank has impacted or affects your model? I am interested in your ebook BTW.
Please read the other posts in this forum about buying mobiles in parks!!
@Curt Smith I use Lonnie Deals strategies. I use whatever info I've learned along the path.
Someone posted on here that people don't like to pay for seminars. I have done a ton of workshops, bought tons of training courses, and hired coaches and mentors. Wanted to learn as fast as possible and from those who have don it. Carlton Sheets, Ron LeGrand, Russ Whitney, Dwan and Bill Twyford, Larry Goins, Fortune Builders, John Fedro, Jerry Lucker, et al & Lease Option. Foreclosure, Short Sale, experience with stick built houses to do MH deals.
Yes - Dodd Frank adds a bit of work. We have a MLO to qualify people when financing. BUT lately, we've had so many CASH buyers that it hasn't been an issue. Selling happens as soon as we're done with fix up. Kinda fun!
I'm sure you agree, the market is pushing our business. Never been a better time, as they say.
Hi all,
My questions - In your opinion are the number of potential buyers of used mobile homes growing in number or shrinking? Does the affordable-ness of mobile home living supersede the perceived negative stigma of living in a mobile home? Would you say your buyers are mostly people that have lived in a mobile home in their past, or are virgins to MH living?
Additionally, Bill did not ask me to say the following however I feel it is very worthy of a few lines. I have known Bill for some years now and he is the real deal. Bill has made countless mistakes, just like myself and every other long-term RE investor, and I see him actively aiming to help others from making these same errors too. I am very eager to see what he has put together for this niche. Great work Bill.
Talk soon,
John Fedro
@John Fedro Hi John - great questions.
Everyone,
As John knows I'm in my 60s. Bought my first home at 23 in 1973. Yikes! And have done investing since 1999. I've seen 1982 when interest rates were 18% or 19%, so I've seen lots of market changes.
Current market conditions:
From my perch, I see loans harder to get. Home ownership is at the lowest point since 1970. People have to rent.
So....supply and demand = more people are renting. Less availability pushes rents up. Landlords raise rates with the market.
Either people rent apartments and deal with common wall neighbors, parking, pet and children issues, or rent house where rates are much higher.
They could rent something on land but that usually has higher rent costs.
OR they buy a manufactured home in a park, pay it off and then at least they control half the challenge.
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So, to your questions, John - 1 - yes, I see the number of potential buyers of used mobile homes growing in number NOT shrinking? I am finishing up one right now and have 4 or 5 people with cash that want to know when it's going to be done. Not all deals are like that but some are.
2 - Yes, the affordable-ness of mobile home living supersedes the perceived negative stigma of living in a mobile home? ie - as an investor, I dealt only in stick built and I never messed with mobile homes. Once I decided to look, I was kicking myself that I burned so many potential deals by turning my back on them. The rental market is forcing people to alter their views.
3 - Would you say your buyers are mostly people that have lived in a mobile home in their past, or are virgins to MH living? It's a mix but I have had people tell me they are 'nicer than we thought' and at least they can buy 'something' and not have 100% rent.
The 'Mobile Home Formula' program John has, goes thru this nicely.
@Curt Smith does a good business with mobile homes on lots in a city. I believe he does a lease option for a year to cure the payments and then refis to a traditional loan for the buyers. Great program.
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I have one on a lot but mostly I've done parks.
Most investors find a niche that suits them. I like mobiles for the low cost of entry into that investing market, with very high returns. And since most investors still steer clear, there is very little competition.
Most stick built investors will net $20k-$50k and that's a good deal. But a lot of them are lucky to get $10k and have sunk $100-150k depending on the area. Mobile deals are similar in return but low entry. And a fiend in Seattle just finished a deal in which he moved one from land to a park. Had $100k in it and sold it for $160k. Do those numbers on stick built. Rare.
I recently went the courthouse to do paperwork on one of my deals. I passed the courthouse steps where there was an auction going on. I saw some of the people I use to see at the auction 10+ years ago. I stopped to listen and heard people grousing about rookie investors bidding up the prices trying to get a deal. So I continued on and did the paperwork on my completed deal.
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Lately, I've been focusing on senior parks since I'm of that vintage. Seniors 'tend' to have cash to buy so no need to worry about financing.
And as John mentioned, I've taken my lumps. Any investor who says it's all rosy is not an investor or ?? Park managers and owners can make things interesting. I'll cover this in the program under due diligence.
Thanks for the questions all and...
Have fun!
I'm sure @John Fedro can chime in too.
Q: "Private money or funding for the repairs and buying the mobile homes?"
A: I have, and know many people have, connected with other investors at Real Estate Investing Associations (REIA). There are lots of folks who have the money but not the know how. Or the money but not the time.
Investors who are short on funds or want to do some sweat equity, can have someone else fund the deal. Or have the money but want the deal to support itself, can let someone else fund it so you have no money of your own involved. Kinda fun!
This can go any number of ways. We like to say EVERYTHING is negotiable.
You can do a 50/50 split with the money person. A couple deals and you won't need them any longer.
You can do a hard money high percentage deal. However, most hard money lenders deal with stick built properties. Actual real estate. Mobiles are a different animal. Personal property and all.
OR
You can use a 1/3, 1/3, 1/3 scenario.
1/3 - I find the deal, manage the project (my business card says "Project Manager") and sell it for a share.
1/3 - money or funding person gets this for sitting back and letting their money work for them. A recent deal netted $11,500. The money person got almost $4000 for putting up $13,500 for 28 days. That's over 1000% annual return.
1/3 - repairs. If a contractor wants to be involved, they would repair what is necessary and get a share of the profit.
Caveat: Contractors can be great and not so much. John had a recent post about that.
Now, I usually use one but not both of the splits. This is, I will have a money person OR a contractor involved in the funding. Never wanted to get too many hands involved. ie The money person on the last deal walked thru after the work was done and requested some things changed. I reminded them that they aren't going to live there and no matter what we do the new buyers will change something. He agreed and we kept going.
So.... If I have a money person, I will use that money to pay for the repairs.
OR if I have a contractor, I will let them buy it and do the repairs for a share.
My contractor agreements cover all that.
Just make sure the contractor is giving you a fair shake on repairs. If they charge $5k for a $2k job and then want a split, I would not work with them on another deal. That's fair, right?
Bottom line - there are lots of folks who will fund these deals. Takes a bit of legwork to find them, cultivate them and take care of them.
Have fun!
Addendum: Another avenue for funding is doctors, attorneys, business people outside of real estate, etc.
My chiropractor asked me what I did for work when he adjusted my back as a new patient recently. He has 4 offices and opening 2 more.
He said he's always looking for additional money investing deals. I use a 'take away' instead of chasing people. I told him he's so busy he doesn't want to mess with this business. He said if I can show him a couple case studies, he wants to be involved. Then he told another doctor in the office and he is interested, too.
He now is a potential money partner. We have not done a deal together yet but he's ready to go.
There's a lot to like about your niche, the price points, the returns, the abundance of seller Carry. I'm trying to get a friend interested in mobile homes, what's a good A to Z source of info on the subject? I know you can get Lonnie Scruggs' books along with an additional booklet that addresses the new climate of seller carry, is there anything better than that available?
Howdy all,
It's been several months since I first posted this and the program is FINALLY ready to launch.
It's called "The Mobile Home Blueprint" since it lays out "How To: Find 'Em, Fix 'Em and Flip 'Em in 30 days or Less for Fun and Profit!"
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Are You A Discouraged Real Estate Investor?
Ignored Real Estate Investing Opportunity Consistently Returns Over 200% On Your Cash... Without You Ever Having To Purchase A Single "Real" Property...It's True! Right Now It's Making Brand New Investors $3k-$10k (Or More) On Every Deal... And You Can Start With Less Than $500 Bucks!
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* If you're looking for a different spin on real estate investing...
* If you're looking for an amazing untapped, hidden market that most investors NEVER touch...
* Rarely if ever use title companies and Realtors...
* If you're tired of trying EVERYTHING and nothing seems to work...
* You just want a simple money making endeavor that doesn't take a $ million to start
or 14 licenses to do.
This is it!
The program will launch you on the path to wealth if you so choose.
Here is a link to check it out and see if it is for you!
Rather than give the program to someone who may not use it, please contact me at [email protected] after you've watched the intro videos and let me know if you are still interested. I'll draw 1 name at random for the program.
Drawing will be Jan 29th. If you decide to start now and win, I will refund the entry fee.
You'll never know where the path will lead till you start!
Enjoy!
Have Fun and Merry Christmas!
Bill Neves
208-447-7091
The program I'm launching covers how to do the business.
Watch my videos in the link above and let me know if you have any specific questions.
@John Fedro also has an excellent program. Check him out too at
http://www.MobileHomeInvesting.net
Have fun!
Bill
I have just finished listening to Bill Neves' introductory videos about the Mobile Home Blueprint course. As a park owner who is friendly to the idea of investors in my park, I found what Bill was offering to be an important source of information to would be or experienced investors whether they be fix or flip or other. I have always found that an informed investor is more apt to make a good deal without drama, remorse or problems. And they tend to return to the table for multiple deals over time.
The course is packed with valuable information.
Thank you @Howard Abell for your kind words.
It's been a labor of love and I wanted to put as much meat as I could without bogging down the process.
Again thanks
Bill
I've been adding lots of content to the program for your viewing pleasure.
Even going to include some NLP, Sales training and Negotiation 101.
Thx and Enjoy!
I had a chance to review the 1st Module of Bill's course + it is fantastic! If you are a newbie with MHI like myself, this program is a great place to learn the essentials of Mobile Home Investing (MHI) and get started on the right path!
Best of luck to all + great job Bill!
Warmest regards,
Lisa
Has the course been updated since it's original release or is it still pertinent to today's market conditions
Yessir. Just updated for 2020. www.swift-homes.com
Hi Bill,
Are you still actively purchasing mobile homes? I am currently looking for a mentor. I am an HR professional who has grown very weary of corporate America and have been looking at the real estate world for a long time. I am ready to act and think that mobile homes is a smart move and a great entry point. I am currently looking at working with John Fedro. What are your thoughts about working with him? Do you currently work with anyone at this time? I would really like to have a longer conversation with you regarding this world. However I don't want to be a bother if you are no longer in the game. Please let me know your thoughts on having a phone conversation. I greatly appreciate your time.
Frank