I've got a mobile home under contract and looking to wholesale it. However, management will only allow buyers who are 55+ to purchase.
Is it still possible to wholesale this deal?
Thanks in advance!
LOL yes to 55+ buyers!
You need to read up on buying mobile homes in parks here on BP. Too many potential issues where you'll be forced to walk away from your $$ into this deal. You may luck out as well.
#1 the office has to approve your buyers, have you approached them and they will work with you? BTW lots of offices refuse to allow wholesalers / investors to work their parks.
#2 mobile home buyers are famously cash poor. Financing to buyers brings in Dodd Frank (oh no not another zillion post thread on dreaded DF and mobile homes).
#3 rent to own is same as financing. But to be honest as long as the buyer is happy, you are not likely to run into trouble from the State Banking Division. But its possible depending on your state. OH, OR, WA are very aggresively inforcing cease and desist on seller financing folks. Have not heard re CA. But just one deal, little likelihood they will catch wind.
I only bought mobile homes on their own land, where you control the entire deal. Buying MHs in parks you don't control mush of the deal at all and have lots of risk.
@John Fedro I'm trying to hook in the local MH lease/option BP guy... Who's moved to buying the whole park as a better way to deal with MHs, which I have too, plus buying MHs on their own land. For me, never in parks.
If you want to do low $$ deals, learn creative financing and find subject to on nicer houses. About the same low $$ into the deal, but a much nicer house is easier to find buyers / tenants for. Finding a quality buyer / tenant for your MH is your problem, then will the office approve your prospect in a reasonable amount of time??? You need to look into the office working with you??!!!
Best of luck unloading this deal.
Thanks for the shout out Curt Smith. Happy to help when possible.
Curt’s advice is certainly spot on.
First things first, congratulations for getting this mobile home under contract! I have no doubt that this may have been a bit nerve-racking for you if this is one of the first properties that you’re putting under contract to purchase. With that said now it is time to quickly and potentially get this property sold to an interested buyer for a win-win price.
Keep in mind that the state of California will want you to be a mobile home dealer, retailer, broker, or real estate agent if you plan on making a profit with a mobile home, even in a park. The mobile home park will likely not care however technically state law does ask for this. I mention this because I do not want you to do something unlawful that you do not know about. With that said there are certainly people purchasing and reselling and wholesaling mobile homes across the state with and without the appropriate licenses, ethics, and/or knowledge. I hope that this part makes sense.
You are certainly in a unique area of the country and if the buying demand for seniors in this area is high then by all means you may find a buyer that will quickly want to purchase the home for all-cash or potentially bank financing. Ideally you should already know the demand and price you will sell this property for. Keep in mind that you will have to bridge a limited relationship with the park manager and let them know that you are a family friend helping the seller to sell the property. This is for a handful of reasons, one being because it is good to find out the restrictions and qualifications of the park to help prescreen potential buyers before they go through the home or to the park office.
Typically either the seller or buyer will know how much you will make in many situations with regards to wholesaling the home inside of a pre-existing community. In my experience it is typically the seller that knows the fee or amount you’ll be getting paid. With that said you can keep the amount you make private if the seller pre-signs all of the selling paperwork and hands over the title to you prior to closing. This way you can close with the new buyers and take their money to pay the seller. In your state you may or may not choose to open escrow for this closing.
Keep in mind that it is not a good idea to string along a seller or let them believe that you are buying the home when you are really not purchasing it. Advertise and market this home like crazy and if you cannot find an interested approved buyer in two weeks of time than you may want to back out of the deal.
I hope this all helps and starts to point you in the right direction. Keep up the good work! As always, if you have any follow-up questions or concerns never hesitate to write back and were all here to help you.