Why Mobile Homes And Not Houses?
Dear Group,
I usually hang out in one of the other forums, but came here to read some of your posts.
Question: What is the advantage (if any) of investing in mobile homes...instead of investing in the more common single family house or duplex?
Curious,
Bob
Quote:
On 2003-08-25 20:48, BobSmith32 wrote:
Dear Group,
I usually hang out in one of the other forums, but came here to read some of your posts.
Question: What is the advantage (if any) of investing in mobile homes...instead of investing in the more common single family house or duplex?
Curious,
Bob
Simply put, if you know what you're doing, There's more money to be made in MH's than SFR's.
1. They are cheaper to acquire
2. Banks don't like to finance them
3. They are not nearly as mobile as the name implies
4. They are titled instead of deeded so it's an eviction rather than a foreclosure.
5. The buyers are not as sophisticated
6.They are in parks where a park manager who you don't have to pay, watches them
7. You can double or even triple your money in a short time.
8. There aren't tons of investors going after them like foreclosures.
[addsig]
Bob,
There are infinite ways to make money with MH. Every area is different, and therefore has different needs. All I can speak for is the area I am in. (CA Bay Area & North) When looking at a parcel thru the eyes of a developer, in a lower priced area, MH are the way to go.Although they will sell for 20-25% less than stick built, they are affordable enough to make up that difference. Add to that the increased speed of the project being finished, as well as the time saved getting building permits, and you will find your R.O.I. is substantially higher with Manufactured Housing.
I posted a reply a few hours ago, but see it didn't make it to the forum for some reason. So I'll try again:
Shawn wrote:
2. Banks don't like to finance them
Does that mean those who invest in MH's need to have their own supply of cash for the most part?
3. They are not nearly as mobile as the name implies
So they are rarely driven off? <g>
6.They are in parks where a park manager who you don't have to pay, watches them
Does the typical park manager mainly watch to be sure there's no disorderly behavior in the park...or does he really watch our property?
What's the best way for me to learn about MH investing (in addition to hanging out in this forum)?
Thanks.
Bob
Quote:
On 2003-08-26 01:01, BobSmith32 wrote:
I posted a reply a few hours ago, but see it didn't make it to the forum for some reason. So I'll try again:
Shawn wrote:
2. Banks don't like to finance them
Does that mean those who invest in MH's need to have their own supply of cash for the most part?
That or a credit line. I am talking about older MH's that you can buy from $500.00 to $5,000.00
3. They are not nearly as mobile as the name implies
So they are rarely driven off? <g>
6.They are in parks where a park manager who you don't have to pay, watches them
Does the typical park manager mainly watch to be sure there's no disorderly behavior in the park...or does he really watch our property?
They also watch for unsightly things, so you should know if they are caring for the MH.
What's the best way for me to learn about MH investing (in addition to hanging out in this forum)?
Get the book Deals on Wheels by Lonnie Scruggs. (The bible of MH investors) Also consider Tin Can Alley by David Butler which is about dealing in Paper.
Thanks.
Bob
[addsig]
I might add to Shawn's posts (and us ol' used car dealers should know ) that, depending on your state laws and your terms, it may be a simple repossession (not eviction) to get your property back.
Also, since very few lenders will now loan against mobiles, it's created a slew of unwanted properties, both in single and doublewides. As Shawn stated, there is usually limited competition from other investors to buy these properties. I savvy investor has a potential goldmine in mobiles.
Here the foreclosure rate on deeded DW's is very high. Banks have tons of them. I've personally had 2 real estate agents call me to simply make offers on them because they can't get rid of them (because the same banks that now own them won't finance them anymore).
Roger
You all have made good points.
I've got lots of funds -- but little time to find, rehab, and resell MB's.
So...how do I find someone in Memphis, TN or Nashville, TN area to help me get involved in the MB market? <g>
Bob
Place 2 ads in your weekly advertiser, merchandiser, Thrifty Nickel, etc..
1st ad- We buy MH's (xxx) xxx-xxxx
2nd ad- Birddog needed Busy investor has too many leads, will train (xxx) xxx-xxxx
Although I would recommend buying them yourself.
[addsig]
If you have lots of funds...
Become a hard money lender and site back and reap your rewards...