Why Mobile Home Investing Works

what's up it's mike and today i'm going to be talking about why exactly it is that investing in mobile homes makes sense [Music] so why does it actually make sense to invest in mobile homes well there's a very simple answer for that mobile homes quite obviously are not like houses it's really difficult to obtain loans for a used mobile home buyers will usually have to come with cash and not everybody has a large nested egg tucked away and that's where you come into play so let's just say for example we're talking about a mobile home that's a three bedroom two bath single wide two thousand it's got air conditioning a clean title no bank loans no debts no liens no anything like that and the lot rent that it's on is around about three to five hundred dollars depending on where you are now let's talk about the seller for a second there's different types of sellers but today we're going to be talking about what is a motivated seller many times motivated sellers are very fair because they just want to get rid of the place and they're not strapped for time this is going to be somebody who really wants to get rid of their mobile home for a specific reason and they're wanting to get rid of it yesterday now let's talk about your buyer profile for a second these are people who are sick and tired of renting each month and they want to start owning something let's just say these people are low-risk buyers they've had a job for a couple of years they've got anywhere from between three to six thousand dollars in savings and they can't get a loan from a bank maybe they're currently renting or they're a new family just getting a start now this to me sounds like a really good buyer this is somebody that i'd actually want to help out now it's important for you to keep in mind that there are only three people in this entire transaction there's the seller there's you and there's the buyer now how do you go about getting these two together so that you can get paid well i'll tell you a couple of ways that you can do it if you don't have any money so that you can get this mobile home for yourself now bear in mind that the mobile home does cost four thousand dollars from the seller and because they're a motivated seller they just want to get rid of the home for some reason and put some money into their pocket so here's what you do charge that couple or that family four thousand dollars as a move-in fee now what this is going to do is it's going to cover your purchase cost for that mobile home this is one way and especially if the home is in pretty decent condition and you don't have a whole lot of overhead to go in there and actually fix a lot of things up there's gonna be some wear and tear on a mobile home i guarantee you there's gonna be some holes and stuff in the walls you know later on i have some videos to show you how to fix things very nicely and very inexpensively so with that being said you're gonna charge them a four thousand dollar move-in fee you're gonna get that home it'll be in your name and then they will have to make payments to you each month now bear in mind that the mobile home lot rent is probably gonna be 300 so you want maybe 300 or 400 a month this family's only gonna have to be able to come out of their pocket each month 700 bucks now with a dual income family that's not really all that big of a stretch the lot rent does not go to you but the payments do go to you you can stretch it out to 300 a month or 400 a month everybody's area is going to be different the amount of income that people make in your area is going to greatly vary from somebody else's so bear stuff like that in mind figure out what it is that people are normally charging or paying for rent in your area and this is going to greatly influence what it is that you charge people another way would be and this is one of the ways that i had gotten my first mobile home the guy whose land it was sitting on he used to rent it out to people and you know they were doing drugs and stuff like that all the time partying all hours of the night yadda yadda so they finally moved out and he wanted to get rid of the place uh his wife came to me later on and told me that one of the main reasons why they wanted to get rid of it was also because they didn't like the people they didn't want anybody else staying out there with them in their latter years and also they wanted to have some extra spending money for black friday that was coming up so they can buy some things for their grandkids so the guy was only selling the place for about a couple of grand now at the time i did not have a couple of grand back then i barely had two dollars to rub together i had to choose between putting food in my stomach or gas in my tank well this is the way i got my first mobile home now what i did was i offered a deal for a promissory note because this seller was motivated and he believed in me and i'm really good at talking in case you haven't noticed by now upon signing that promissory note and i gave him a small fee this was enough for me to hold the home for 30 days so that i could go in there fix the place on up and get rid of it and it was actually very quick i was able to go into the home i was able to change it around just like a couple of weeks i posted it sold the place got it out of there they got their money the family got their home everybody was happy and i made myself ten thousand dollars off of that deal now these people actually paid in cash i didn't really want that much for the home i'm still friends with these people i actually see them from time to time it's actually really cool when you're able to sell somebody at home and you see that their children and stuff are thriving and they've gotten on their feet and who knows where they came from or what situation they came out of but you know that you've somehow made it better and that's actually pretty cool now there's kind of the nuts and bolts of how this thing works if you're going to finance some people are paying cash but here's the real reason why it makes sense to invest in mobile homes let's take a look according to the us census bureau we have a population of somewhere around about 330 million 600 000 people in this country now also according to the current data you have about 34 of these people that are actually renting their homes right now that comes out to 112 million and 4 000 people now that's a lot of people now let's say we go on ahead and further drill that number down to people who are going to be qualified buyers that's people who are actually able to buy a home and actually going to be qualified to give us payments or something each month or to cut a big check that number is going to be somewhere around about the neighborhood of 11 million people now does it make sense to invest in mobile homes i think so because housing is a necessity you're never going to be able to fill that need which basically means that there's a big enough market for everybody to get into the mix and never have to worry about running out of business so if you enjoyed that and you actually want to look more into investing in mobile homes i've put together some free products that you can check out over on my website it's a couple of free lessons that you can get into that can get you started with investing in mobile homes and there's a couple of free exercises that you can do it's totally worth it but with that being said i'll see you next time with more tips here on flipping mobile homes and i guarantee you i'm as charming there as i am here many times motivated sellers

Channel: Flippin' Mobile Homes

Views: 4,024

Rating: 4.9749999 out of 5

Keywords: mobile home investors, mobile home investor, investing in mobile homes, mobile home park investing, mobile home flipping, mobile home real estate investing, mobile home investing podcast, mobile home boot camp, selling a mobile home for cash, mobile home repair, mobile home cash flow, real estate investing, passive income with mobile homes, how to sell a mobile home, mobile home investing 2020, mobile home investing 2021

Id: G0NbHelEhqo

Length: 6min 20sec (380 seconds)

Published: Tue Jan 19 2021