If there is one thing that really upsets me is people who set the deck when playing their cards about if mobile home investing works or not to show you a loosing hand.
As an example... do a Google search for "Mobile Home Investing" and you are going to find about 20 to 30 articles about how it does not work all by the same guy on article websites. This guy sells a product for Mobile Home Park Investing.And he has a really great point, rent out the dirt and there is almost no way you can get screwed over.
The thing is if you did not know this guys name or his partners you would not realize he is telling the same story over and over again just changing it up a bit.
His story goes (to paraphrase) something like this...
He goes out and tries to do a Lonnie Deal and buys an older mobile home for around $5,000 and then ends up spending $8,000 to fix the mobile home up and can't sell it for the price to recover even that cost, he ends up selling for $5,000 just to get rid of the crumby mobile home and just washes his hands of the whole thing.
Here is my problem with this knuckle head approach.
A Lonnie Deal up front is a pretty straight forward affair, buy low sell high.
But then if you really did read Lonnie's books "Deal On Wheels" or "Make Money from Mobile Homes" to paraphrase he flat out tells you to go out and learn your market, go out and see mobile homes for sale to learn their value and keep doing that until you come across a deal where you just know you can't loose money.
Got that?
You keep going to look at Mobile Homes until you understand the underlining value of the Mobile Home.
And depending on how much you research (I mean seriously folks if your Google research stops at the first 10 pages your really not getting a good idea, Google list the most popular sites first, the best information is not always popular) you will see some Mobile Home Guru's tell you to see 30 Mobile Homes and some tell you to see 100 and then later will admit they have never had a student go the full 100 most stop at around 15 to 25 having found the low hanging fruit that is easy pickings.
And then there is the second thing about Mobile Home Investing that Mr. Knuckle Head pisses me off about, if you have done any research you know that you give the seller a $100 bill and have them sign an offer to buy with the contingency you will have your handy man check out the home and give you a price on the cost to fix anything.
Yeah... some people skip that part, but why would you if you really thought about it? I mean why take the risk? Pay someone $100 to check the Mobile Home out and while they are doing that you check that the tax and license are up to date. If the Mobile Home is a looser your out $200 not $3,000 or more, if it's a keeper you roll that $200 into the cost of the Mobile Home when you sell it. Same thing goes for the Origination fees to be compliant with the SAFE Act. Just roll it into the cost of the Mobile Home when you sell it.
Look at Mobile Homes being sold by other Mobile Home Investors, they stick out like a sore thumb on Craigslist, almost everyone has something in the description saying they offer financing if you need it and they normally have more then one Mobile Home for sale in a thee month span so you will see the same phone number. And here is the proof in the pudding.. if they can do it so can you.
And that is what it's all about... if anyone else can do it where you live, then you can do it to.
Don't let some jack ass with an ulterior motive screw you out of something you want to do. I am one of those people to is specious of naysayers by nature kind of guy. When someone tells me something I always ask myself these three questions... "Why Are They Telling Me This?",. "What Do They Hope I Will Do With This Information?", and "What Do They Hope To Gain From Me Knowing This?" 9 times out of 10 most people shoot their mouth off with out thinking just to hear themselves talk and so you will think they are smarter than they really are.
No problem... ignor what they say.
But there is that 1 out of 10 (as an example did you know that on average 1 out of every 10 people will test positive as a psychopath? See 1 out of 10... it matters in the big picture as well as the small) that when he or she is telling you something, it's either to get in your way, or to put you on a path they want you to walk because they get something out of it.
Now again... the guy talking garbage about how Mobile Home Investing does not work and Mobile Home Park Investing is a gold mine... he is right, they are Gold Mines. But here is where I am coming from, my partner and I are investing in Mobile Homes for the cash flow they give us for such a small investment. Emphasis on the word SMALL.
My Ex Hard Money Lender lived in LA California You couldn't even find a Mobile Home for less than $100,000 in most parks. For where My Business partner and I live those numbers wouldn't work and make sense, depending on the type of Mobile Home we invest in my business partner and I agreed we would never spend more then $25,000 for a Mobile Home on land and never more than $9,000 for a Mobile Home in a park.
So he and I are not going to get the say $7,000 a moth passive income (say a 50 slot Mobile Home Park renting out spaces for $200 a month, a little more than the average for our area.) from a Mobile Home Park, but if we can buy a Mobile Home for between $3,000 and $5,000 each so we can get a passive income of between $250 and $350 a month and that doesn't suck, and the more deals we can do like that the better.
Realistically speaking if he and I only got the low side of payments split between us, I only need 8 of these deals to make my house payment, at 10 I have my house payment and a few utilities, at 14, I can include a car payment.
To Invest in a Mobile Home park around here if we were to use the method used by the guy bad mouthing Mobile Homes and telling us to invest in Mobile Home Parks... we would need $180,000 to buy a Mobile Home... between $3,000 and $5,000.
We are not short sited... we just don't have the $180,000 down payment on an owner financed park.
See what I mean?
Wade
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