I am a beginner in the wholesaling/ rehabbing business. At this time I just want information on making smart decisions. As a beginner and getting my feet wet, would you think purchasing a mobile home and fixing it would flip and make profit. I live in California where it isn't cheap as you may know. I felt, starting with mobile homes are cheaper and would allow me to gain experience and knowledge. Thanks!
Mobile homes can be tougher because most buyers won't pay a premium to live in them because they are "pretty" Also if they are in prime locations IE Huntington Beach, Bay area, LA etc. they can often have land leases that are upwards of $2,000 per month which really raises holding costs
Not really Asia that is what most say in any market, there are no deals, homes cost too much. Majority just dnt know where to look to find deals or where to get leads. I had people tell me that no deals, little inventory, I told them what to do..they sent me a message, that they made over 100k on each deal and thanked me. As far as mobile homes buyers dnt hV to pay a premium, usually so cost effective wnt matter as much. Outside of rental income that is the reason Warren buffet invested in mobile homes . problem with fix n flips, since most dnt know where to get deals, they do all that work to make a 15k take home. If I bought home 15k it better be a two week flip lol. Yeah national take home avg only 15k. Many buy wrong, replace things that they dnt need to, dnt buy from the right places. Alot of reasons people make so little. I will gv two examples.. People buy prefigured vs sheets of granite and getting it cut. As far as Tile I put the 2nd to lowest tile in a very expensive home, I put it diagonal, gv perception of a more expensive look. Buyers were blown away I was laughing inside, I hardly spent any money.
@Aaron K. Thank you for your quick response. That makes a lot of sense. I am in Sacramento and I'm sure it is the same.
@John Webster haha I would have loved to see both yours and the clients facial expressions. But that is very true, you can make the cheapest material look expensive all depends on you. I would love to get more information on how to get started and bring in 100k on my first try.
I think that is great alternative to adorable housing . I have a wonderful connection for you . You are welcome to pm me.
I flipped a mobile home earlier this year. It went quite well because it was a straightforward cosmetic rehab in a good area. Also didn't need any loan since the purchase price was 22k. The process was different than flipping an SFR in certain ways.
1. You'll need permission from the park to flip it. Parks aren't used to having investors flip these homes and some will tell you no. So a good relationship and communication with the park manager is important.
2. These parks will have specific rules on what you can do and what they want you to do.
3. You'll be taking over lot rent and usually can't sublease. So if you can't sell it, you're stuck paying lot rent until you do.
4. You'll need to find an escrow agent that deals with manufactured home and understand what you're doing.
I may do a post Asia. I just responded to a few people . half I gv them leads in their markets. Looks like you are in Sacramento..I love Cali, tons in Sacramento, San Fransisco , San Diego and Oakland. To name a few areas, but especially your market wow!
Dang Asia I could look at your pic all day,not ready to accept yet lol. When fix n flipping you have unknowns, "fudge factor" you have to account for. Many just throw numbers out and end up stuck having to cut costs somewhere to make up for it to make a decent profit. You see it all the time on TV. Some have to borrow money from family etc to finish the job. It is a simple calculation. What helps me is my business degree from Harvard. My mind is always thinking outside the box, coming up with more ways to skin a cat, expanding my mind like I never thought I could.
@John Webster Thank you! Tips on wholesaling pre forclosures?
To honest not really much to preforeclosures. Basically about negotiations . people have mixed thoughts on preforeclosures they will tell you being new to stay away. Banks want to protect their bottom line, won't accept low ball offers. That alone shows people dnt understand what a bank goes through when a house reaches foreclosure. I trained a friend he is racking up now. He recently talked the bank down for the homeowner from 42590 to 11k, wholesaled it for 18 fast. People will tell you what you cnt do with a bank, not that you can't they dnt want to deal with stuff. Many dnt fully grasp things. People say you can't wholesale a bank reo that isn't true either. I do agree with people it is easier to use transactional funding and double close. I had to show lawyers things in law that made things ok for friends and I am not a lawyer. Biggest thing about any aspect of wholesaling is buyer's. Many I see post on here have deals under contract then hustling to find buyer's. Backwards. Between my partnerships and my buyers I have over 50k buyers. You can create your own buyers too. Get paid multiple times on one wholesale deal. I will respond about buyers next. Many dnt do that right either.
Asia I am going to give you a few tips that will help in your wholesaling business. One thing i do and I have others doing it too. First,I have 2 versions of all agreements/contracts. Reason being is some wnt sign them because they look intimidating, all the legal jargon makes people nervous . they would need to consult a lawyer etc. Second version is for people that understand . I had a few friends this past weekend that had no luck on first two deals I sent them a kids version lol, they went back to owner's and they signed it. Secondly, some owner's won't sign a contract cause it doesn't protect the owner only the buyer. I put a clause that if they could find another buyer feel free to sell to them, contract becomes null and void. They are happy, Nobody says no lol. I am able to put earnest money deposits of $1, i have many going at once pushing to buyer's vs like some putting down 500 bucks to show they are serious. Depending on motivation some wholesaler's able to put down $10 earnest money. Two of my friends I shared were able to put 7 deals under contract this past weekend. when before two if lucky.