In today’s Mobile Home Investing Podcast episode #17, I’m very proud to welcome to the co-hosting microphone Mobile Home Formula member Ryan to discuss his 1st mobile home deal. Ryan is a newer mobile home investor that got started investing in mobile homes in 2015. What Ryan lacks in experience, he more than makes up for in ambition, dedication, and hard work.
Before joining the Mobile Home Formula, Ryan pulled the trigger and purchased his first investment mobile home in south Florida. This gorgeous 2/2 is located in a Senior community in a very nice part of town. From the very beginning Ryan is making a few innocent errors…
- Ryan is not a Senior citizen.
- This mobile home is located 2 hours away from Ryan's home.
- Ryan did not to inform the park manager of what he was doing, nor did he get approved at the park.
Although these first few mistakes were made the deal worked out great. Listen to the Podcast episode below to hear the wins and losses of Ryan’s 1st mobile home deal. All parties were happy, and this deal was truly win-win-win-win for the seller, buyer, the park, and the investor. Working only a few hours Ryan made over $6,900 in less than 8 months.
Mobile Home Investing can be Forgiving.
One thing we love about investing in mobile homes for cash-flow is that mobile homes and manufactured housing are fairly forgiving when you purchase these homes correctly. What I mean by, “purchasing these homes correctly” is that as long as you understand…
- The home and/or land you are buying and/or all included liens, debts, encumbrances, repairs, etc. plus.
- The park rules, processes, fees, and protocol or property's flooding, taxes, insurance, safety concerns, etc. plus
- Are aware of all other comparable homes for sale nearby plus.
- Your resale price and current market demand is completely understood and taken into account when making purchase offers plus.
- You are able to resell for payments and recoup all of your invested capital within 10 months or less of reselling or if reselling for all-cash are able 3x your money plus.
- Your ability to profit a minimum $300 per month net cash-flow if renting or reselling via monthly payments...
…And you also do not:
- Overpay for the mobile home.
- Over improve the mobile home.
- Sell to a high-risk tenant-buyer.
- Leave thousands of dollars on the closing table when you resell.
The above bullets are what I partially mean when I say, “Mobile homes can be forgiving when purchased correctly”. When you make sure to understand how to properly screen, negotiate, purchase and resell each manufactured home you are able to make occasional mistakes and still remain very profitable. With that said, each mobile home may only be sold for a finite amount to the correct buyers; so aim to make as few mistakes as possible. If you have any specific questions or concerns with any deals you are working, or questions you have never hesitate to reach out to support@mobilehomeinvesting.net.
Mistakes do NOT equal failure. Giving up equal failure.
In this mobile home investor show John and Ryan cover:
Ryan’s 1st mobile home transaction
Not getting “officially approved” by the park manager before you buy a mobile home in a park.
Working within a “Senior Only” park and dealing with the management when you’re not a Senior (55+)
Breaking-even in less than 3 months
Lessons/Mistakes Ryan learned from his first deal that he will not be making again.
Working with your tenant-buyers to create Win-Win deals.
Working with the right tenant-buyers and how to make these tenant-buyers motivated to pay their homes off early.
When to take action.
Investing close to home or hours away
Purchase Price: $3,000
Having your tenant-buyers move in before getting approved by the park.
Sold Price: $9,900, Payable as $2,000 Down and $350/mo for 22.5 months ($6,900+ Profit in 8 months)
and much more!
