All Forum Posts by: Bill Neves

Get the permit. They will tell you and it will save running around to everyone else. If the city/county says no, you've saved time. If yes, they'll tell you next steps.

Lenders if you live in them in parks:

Triad, CU Factory Built and 21st Mortgage. Google and ask for broker in your area.

On land or city lots, see regular lenders.

@Corey Woodruff

It's not the best answer for buy and hold. Not actual real estate. Personal property.

However, appreciation isn't always a factor. That's what I USED to think too.

We sold a 1968 2/1 a few months ago for $25k. Great shape and great park.

With the market and economy, we're seeing much higher prices than I thought possible. 

It is area affected too. In the south with seasonal resident areas, it's not the same as year round residents.

Cars are bought and sold similar to mobile homes and look how many people make great money in that business. Just a different biz model.

BiggerPockets is for real estate but there are a hundred ways to do that.

Both. Mostly we are dealing with mobile homes in communities. Less dollars due to no land included. Personal property so easy to buy and sell. Much like a car. No title company usually.

With land, they're treated as regular real estate. Title company, etc.

Lots of investors say avoid mobile homes AT ALL COST. We disagree.

Hi @Paul Falardeau

I know how you feel about ROI numbers. I felt the same way for 10 years when I did regular stick builts only and was a mobile (manufactured) home snob.

What I found was the ROI is actually MUCH higher. We can buy fix and sell 10 deals with $100k instead of 1 stick built. And the cash flow and returns are a much higher percentage.

Example - we bought one for $10k, put $3500 into it for fix up. Sold it for $25k cash 28 days later and netted $11,500. 

So $13.5k in, $11.5k out in 1 month is 85% ROI and over 1000% annual. How's that?

NEVER saw that in stick built flips.

@Jen Boyd

Not sure if you were asking me or someone else. 

Modular homes are put on a foundation but are NOT manufactured homes. No metal frame. Built to local building codes NOT HUD building codes. Built in sections in a factory, delivered by truck and put together on site.

Manufactured homes have a metal frame and are built to HUD building codes.

MOST Manufactured homes never move once placed on site. Cost is prohibitive in most cases.

BOTH can stay where they are placed, can be as large as and 'can' look like traditional houses.

Modulars can look exactly like Manufactured homes and may not.

BOTH are "made of better/more durable construction than homes built on site".

Some areas will allow modular homes but may not allow manufactured homes.

Manufactured homes used to be called mobile homes and are still called that in many cases.

I buy, fix and sell manufactured and modular homes and I sometimes call them mobile homes.

There are some differences with manufactured homes.

Some of the materials are different. For the most part they're pretty straight forward.

Newer ones have sheet rock walls, standard plumbing, etc.

Good idea to walk through a few and talk differences with a handyman or contractor who knows manufactured homes.

Lower cost of entry is the attraction for those of us who work with them.

You can get financing if you live in it. If it's an investment, can't get a standard loan.

If on land or a city lot, you can rent, no problem. BUT if in a park, make sure the park management will allow rentals BEFORE you buy. Some parks do and some don't.

Have fun!

Hi @Taylor Mitcham

Welcome aboard.

"Mobile homes that need a lot of rehab are around $15,000 and used nice 2 bed 1 bath is between $40,000-$70,000" are NOT good deals. In our area a nice 3 bed/ 2 ba goes for close to $100k and more in good shape but if it need work it goes for $5-15k TOPS. 2 bedrooms less. And I'm in a good employment and income area. 

Based on your scenario, we'd be talking to people about the ones you describe in the $2-5k range ONLY IF we had good prospects of getting rid of it quickly.

Hope that helps.

Yell if you any other questions.

Have fun!

@Eric Armstrong

If you're talking about Manufactured Homes on land or city lots, you handle those like regular houses. Manufactured Homes in parks are personal property and therefore different. 

There are local lenders, credit unions, etc. To the best of my knowledge, there are just 3 nationwide lenders left - CU Factory Built, Triad and 21st Mortgage. There are others, if you buy new - from Clayton, for instance.

If you finance buyers yourself, you must comply with Dodd-Frank regulations, so know those.

Good luck and have fun!

@Yuki Conlon

Hi.

We do both depending on the deal. We just fix and flipped one for $89,900 cash. We were going to have the buyer get a loan but they sold a house and had cash.

Yup, we're just across the river and state line.