How To Make The Most Out Of Your Mobile Home
(STL.News) Many investors don’t exactly consider the amount of value and financial opportunities mobile homes residing in existing parks provide. This form of investing is actually pretty lucrative and this article will explore the numerous ways to profit from mobile homes. Here’s where you can know who buys mobile homes near me.
1. Buying & Renting
Quite a few mobile home parks do not allow people to rent, sublease or sublet the mobile home you have in their park. Their objection stems from their avoidance of the transient nature and mentality of those renting them. Hence, many mobile home parks do only allow owners of the home to live in the mobile homes.
If the mobile home park actually does provide you the option of renting off your used mobile home, it will be an ideal decision to rent each room individually as it can be financially more profitable. Some groups you can consider targeting include students, migrants, and oil workers.
Try to check in with the local community park owners to determine which parks allow owners to rent out the mobile homes. Generally, parks that are close to military bases are more likely to allow renting than any other place in the country.
2. Buying & Selling for Money
There’s always a constant flow of trade happening between private buyers and sellers of mobile homes that are having win-win transactions. Quite a few of these buyers do pay cash or arrange with the bank for financing in order to buy these older mobile homes from the private sellers.
Being an active investor of mobile homes, you should pay much lower than the retail cost for any investment home that you buy. In order to achieve this goal, you need to have a detailed understanding of your market and to make several offers to several sellers regularly.
3. Buying & Selling by the Means of Payments
In quite a few mobile home parks, sellers and investors are knowledgeable and will decide to sell off their mobile home through a single down payment together with several monthly installments from tenant-buyers. Buyers must be approved by the park manager directly as well as provide you, the seller, with their background and application process. When you sell via monthly installments, interest rates can also be stacked onto the balance being paid. This gives you a bit more bang for your buck in the long run. For this method, you need to ensure that all the paperwork is done well and your buyer meets the existing national and local seller financing guidelines and regulations.
Just like single-family homes, you can create value between a seller and buyer without physically purchasing the mobile home by wholesaling a mobile home. You will need to get a purchase contract for the mobile home and rapidly focus on selling this purchase contract to someone else for a profit. In the case where a buyer does not provide you money for the home specifically, they will be paying for that contract to buy the mobile home.
However, wholesaling a mobile home in an already existing home park, in reality, will actually not be very lucrative. In many parks, you might only receive about $500 to $2,000 as your assignment fee for the contract. Yet, in few popular areas, it is possible to profit about $30,000 for your assignment fees. These are often higher-end mobile homes and are also dependent on your contract price.
5. Bird Dogging
The process of bird-dogging the mobile homes in mobile home parks refers to the act of searching and reporting the FSBO properties that reside in an investor’s criteria to the active investors that you already are aware of. Active bird dogs help investors find mobile homes that are for sale. If you’re intending to be an active bird dog, you need to know the specific criteria of mobile homes that each individual mobile home investor is looking for.
One good tip you can follow is to ensure that your investors do follow up on these leads that you give them. Most often than not, bird dogs are paid based on the properties that investors close.
6. Including Homes to the Community to Resell
Quite a few of the mobile home parks contain empty lots to contain more mobile homes. Several communities have incentive programs meant for park-approved homeowners, who are willing to move into a mobile home that is park-approved. Some of these programs will actually pay for the entire cost of moving in and the setup of your old mobile home.
Sellers will require their unwanted and old mobile homes shifted off their land for other reasons. When a mobile home is removed from the current location, it is moved by a licensed mobile home shifter. These shifters can work directly with your community managers to install the old mobile homes into the mobile home community. Once everything is set up and permitted, the mobile home can then be rented or even resold for a profit.
When you’re talking to the community manager, try to be aware of all the incentive programs for upcoming mobile homes and the condition of these mobile homes that community managers will allow you to move into the park.
7. Selling Directly to the Park
When you are working with a costly mobile home, it can be attractive to re-sell the mobile home to a park that has vacant space. When you’re doing so, it’s important to note the criteria these parks are looking at and the quantity of money they are willing to offer. It will be a good idea to prepare to show these community managers some visuals of the interior and exterior of the mobile homes for them to approve. Typically, you will be paid before all of the handling, permits, and setups happen.
8. Move Unwanted Mobile Homes to Another Park
If park owners require some help removing mobile homes from their community, you can also gain some profits by chipping in some help. Most of the time, mobile home park owners will want their unwanted mobile homes removed when they are outdated or in need of serious repairs. If there is still value in the mobile homes, you can move them to another place to be sold again or rented off.
To conclude, there are many ways to create value as an active investor of mobile homes. Have fun in your journey in reaching your financial goals, and always keep in mind that commitment is key to earning and there are also many ways you can lose your earnings as well.