All Forum Posts by: Jerry Lucker

@Daniel Paul. I’ve flipped mobile homes, own several as rentals, and found them easier with bigger profit margins than regular real estate.

They are housing but far different than real estate so you have to know what you’re doing.

Jerry Lucker

@Karla Simmons

I’ve done just that for 20 years. Mobiles on private property cost 1/2 what the same square footage stick built homes would sell for. They rent for about 85% - 90% of what the stick built homes would rent for.

The result is an exceptional ROI.

Most mobile homes in parks must be owner occupied and not rented.

Flipping mobile homes has also been easier and far more profitable than doing the same with stick built.

Jerry Lucker

@Anita Anand. I agree, experienced the same thing. That’s when I discovered flipping mobile homes was far easier with far less money and far less risk and worry. The exceptional profit margins gave me enough money to buy income producing real estate with cash.

Jerry Lucker

@Anthony Aulds

You have cash to flip a mobile home in a park to start. Buy a repo or distressed house, fix it up, and resell. You won’t have to borrow money or partner with anyone and probably make more profit/% in 90 days than you would with any other investment. I’ll be happy to share more details.

Offer and highlight 'Owner Financing Available' - even if you wouldn't finance it!?!? But hold on - here's how you do it. Find out exactly what their financial situation is. You might find someone who could actually get financing through normal channels. Inform them that the bank will give them a better deal than you could and try to get them qualified. This strategy has worked well for me many times.

Offer 'Owner Financing 

through traditional means

It's all in the numbers as always.

1) What is an accurate estimate of what the property would sell for after a new home is placed on the lot?

2)What can you buy the lot for? plus - What is the cost of improvements needed (well, septic, power, etc.)? plus - What is the cost of a new house installed?

3) #1 minus #2 = Enough profit to make it worthwhile?

I've done several land/home packages. Some as flips, some kept as rentals. Always works great for me!

Hi Tammy,

I've specialized in flipping mobile homes in parks for well over a decade. I've learned a few things.  I flip the homes for cash. There are several reasons for this. The profit margins compared to real estate are way higher. I can make a lot more money using the cash to immediately do more flips than I ever could by carrying the contracts.

Selling for cash I don't have to worry about getting paid every month. I never have to worry about evicting someone. I don't risk the home getting trashed so I have to put time and money into it again.

Mobile homes have titles just like a car. The buyer is on the title as the registered owner. The lien holder is on the title as the legal owner. If the buyer/registered owner doesn't pay the park rent the legal owner has to. As the lien holder you also have to pay the insurance, maintenance fees, utilities, etc. until the home is rehabbed and resold.

Mobile homes are good bang for the buck but, except for the newer ones, they are not built strong. They deteriorate faster than stick built homes. Mobile homes in parks are considered personal property so like a car they depreciate. This has no effect on a 90 day turn around flip but over time it will show. 

If you know where to look you can get just about any mobile home in a park financed for a buyer so there is no great reason to carry paper. That works great with real estate - I have a nice portfolio myself - but not with mobile homes. 

I've done a lot of deals, a Lot. Hope this insight is helpful!

I agree - MHU is the authority for parks. Their underlying philosophy is to just rent the dirt. They would rather not have anything to do with the houses. They like to farm that out to people like me - a specialist that buys, fixes, sells, moves - - handles everything to do with the mobile homes. There's a good deal of money to be made in the specialty by the way. It's quick and simple profit. Low risk and high margins. 

Visit some mobile home parks. You will find handymen cards and flyers on their bulletin boards. Some will have worked in the park so you have references right there. Many are even licensed but are small businesses so their prices reflect not having offices, a fleet of vehicles, employees, etc. 

Get references and firm estimates for the job - time and money. Just repair and pretty up. Do not over improve!

You need to respond and answer the questions others have posted.

You also need to figure the value based on comps. Mobile homes are park specific. An identical house can sell for $25,000 in one park but $75,000 in another park 30 miles up the road. No exaggeration.