Let’s imagine that as a successful mobile home investor, you have just successfully purchased another mobile home inside a local mobile home park.
Your newest mobile home investment acquisition is an average 1990’s model that has 3 bedrooms and 1 full bathroom: the type of mobile home you have walked through hundreds of times before. The seller is happy to be free of this home, and both of you walk away from closing with smiles on your faces. The home is located in a family park and is in used condition both inside and out.
You know you’ve made a great deal already.
Your next major goal is to sell, rent or fill this home with a low-risk resident to begin creating cash flow from 1.) monthly payments or 2.) an all-cash profit from a quick all-cash sale.
What else may you want to do after closing?
How to Analyze a Real Estate Deal
Deal analysis is one of the best ways to learn real estate investing and it comes down to fundamental comfort in estimating expenses, rents, and cash flow. This guide will give you the knowledge you need to begin analyzing properties with confidence.
4 Crucial Steps to Take After Closing on Your Mobile Home
1. Transfer the Title
After closing it is now time to transfer ownership from the seller to you, your company, trust, or another legal entity of your choosing.
Related: The Top 6 Reasons Mobile Home Investing Sucks (and How to Get Around Them)
Be aware that in every state, there is a maximum number of days before a penalty is charged if you do not transfer ownership of this home from the seller’s name into your control. In most states this ownership is conveyed through a Manufactured Home Title, and there is a deadline between 7-30 days to transfer ownership.
In reality this should be done during closing while the seller is present or immediately after closing to avoid transfer issues that may come up if you wait.
This gives you at least a week’s time to make a trip to your local DMV, DOT or state MH division to transfer ownership and receive a new Title. Some states require all Title, taxes, state forms and sales documentation mailed in versus you being able to transfer ownership in person. A week is still long enough to mail all forms in as needed. Additionally, some states like Texas and New Hampshire have done away with Titles altogether.
2. Give Thanks
Who helped you directly find this home? Was this a referral from another investor, dealer, Realtor, park manager or acquaintance?
If the source of the lead is anything else besides “only me,” then you owe someone a thank you. This “thank you” can be in the form of sincere words of gratitude, a gift, a gift-card or cash if legal in your area. Most states do have a limit for how much you may pay a non-Realtor for leading you to a deal.
When offering to give a thank you gift for successful leads, aim to ask the person what he or she feels is a fair compensation he/she is happy receiving. Oftentimes the amount suggested is lower than the fee you had been thinking in your mind. Either way, these unofficial bird-dogs are happy, and that’s what counts.
3. Add Curb Appeal
Curb appeal goes a long way towards making your neighbors, park management and park owners pleased with your decision to to invest in mobile homes in their park. In addition to the instant park-image improvement by cleaning up your mobile home, your future tenants or buyers are going to approve of the added club appeal.
If a potential buyer says “Wow!” (in a happy way), then a sale is more likely to happen versus leaving the home in a dirtier condition.
Here are some quick clean ups I make right after purchasing most mobile homes inside parks:
Pressure washing: If you hire this task out, you will likely pay $75-$150 depending on the size of the mobile home — and possibly an extra charge for cleaning the roof. While pressure washing a mobile home will clean deep down algae and dirt, some mobile homes may only need a spot cleaning (or nothing at all). Be aware that pressure washing a mobile home with wood or faux wood siding may easily strip off the paint in places.
Straighten the loose skirting: A quick fix to add curb appeal to a mobile home with messy skirting is to clean and straighten these skirting panels yourself. If panels are damaged or missing from the front, then simply rotate pieces from the back to clean up the front. This will help add to the home’s curb appeal from the road.
Paint the roof: Kool Seal is a brand name of Elastomeric roof coating. This roof coating can be applied with a paint roller within a half day. A nice white coating makes things look new, keeps the home cooler in the summer months and can help plug up any pinhole-sized tears or holes in the roof cause by nature over the years.
4. Market Your Property
Continue marketing and sending potential buyers or prospective tenants to your investment home until you have money in your hand.
A potential applicant who wants the home still needs to become park approved with the front office and yourself. It typically takes 1-3 days for the applicant to be approved or denied. While marketing the home, you will be paying holding costs and miscellaneous expenses. For this reason, make sure to advertise and market the home for sale or rent in as many channels as possible.
You want everyone within a 10 mile radius to know you have a mobile home for sale or rent with an amazing price and terms.
What This Article is Missing
This article only touches on some of the “should dos” and “must dos” after purchasing a mobile home in a park.
Depending on your exit strategy and local market, the above list will likely expand to many more topics. Please review some of my other articles on the BiggerPockets site with regard to mobile home investing education. If you have any questions or comments, please do not hesitate to leave them below for us all to learn.
As always, love what you do daily.
What are the most important steps you take after buying a mobile home? What did I miss?
Leave me a comment!