Analyzing Mobile Home Selling And Buying Demand In Your City
Investing in used mobile homes is a nationwide opportunity that many investors simply pass up or completely underrate. In today’s article we are going to discuss the two typical market-economics you as mobile home investor will experience. Unless you are investing in more than one general area you will experience only one of these two markets.
Let us first make clear a few constants with regards to investing in mobile homes nationwide.
- Cast a wide net of influence. Mobile home investing is partially a numbers game. The more people who know what you do, the more strategically you advertise, the more you are in the field, the more opportunity you will have to help sellers in true need.
- Mobile home investing is a “people business” even more than a real estate business. So love people or stop now. In addition to a numbers game you may wish to go to great lengths to properly follow-up and build additional rapport with almost everyone already related to your local mobile home investing area, sellers obviously included. Positive word-of-mouth advertising can be very helpful to your investing career and long-term success.
- Only invest in mobile homes sold by “Top Priority” sellers. The term “Top Priority” is a specific term I use to describe the sellers most in need of help. These sellers are looking for quick results and help in the shortest time possible. These sellers appear in your market at random times due to external and oftentimes unforeseen forces in their lives. Bad things happen to good sellers so it is important to know how to properly and safely help each seller that you find or that calls you. The more ways you can help the more value you bring to help each seller.
Higher Demand, Limited Supply Markets
In an area with a high buying demand and a finite supply of mobile homes you will discover that you will be putting in more effort to acquire used mobile homes compared to selling these investment mobile homes. In fact selling the mobile home may be quite quick, profitable, and easy in a high demand market.
Ideas to consider: In areas like this the strategy we use is to cast a wide net and become the dominate force in your market place. Do not assume people already know who you are and how you can help them. Over the course of the next 90-120 days you have the opportunity to grow yourself from a virtually unknown investor in the manufactured home world to a dominate force of influence.
When top priority sellers need help and need to sell they should think of you and know how to find you. This is not done overnight, nor does this happen without a specific daily action plan.
Once the sellers find you, or you find the sellers, the normal process of targeting the seller’s needs and making multiple purchase offers to give it to them what they are asking takes place. From here you may choose to close quickly and resell the mobile home for long term cash-flow.
Lower Demand, Heavy Supply Markets
In an area with a lower buying demand and a higher number of available mobile homes for sale you will generally be able to find and acquire mobile homes with relative ease, however selling these investment mobile home may seem more challenging. This is because you are now competing with many other sellers selling comparable mobile homes.
Ideas to consider: In areas of the country like this it is vitally important to truly understand what you can resell every mobile home for – both for all-cash and for cash-flow. Knowing what you can resell a manufactured home for in each area of your market is crucial to knowing what you can safely purchase a used mobile home for no matter the age, size, condition, location, marketing channel, etc.
When you know what buyers will pay and where to find these buyers you can then pass on the saving you create with your sellers to your buyers. Always purchase every investment property with your end buyer or tenant in mind.
In conclusion there is much to understand and know when it comes to investing properly in mobile homes inside parks and attached to real property. This business is possible as there will always be sellers needing assistance in your market. How/If these sellers find you or you find them will determine your ultimate success. Start making a game plan and take action!
In addition to simply finding and attracting the right leads you should also understand:
- your local mobile home market dynamics
- asking the right questions to completely help sellers
- educating and helping sellers
- making multiple and accurate win-win purchase offers to each seller
- presenting said offers clearly to each seller
- negotiations with buyers and sellers
- following up with sellers
- closing procedures
- asking for help
- repairing homes
- resale potential and resale procedures
Do not get bogged down with all the action steps required from start to finish. If you are honest, wanting to help others, are persistent and not afraid to being active daily then you already have many of the core qualities that are required (in my opinion) to be a long-term and successful mobile home investor. Gain clarity and take daily action.
Love what you do daily,