In today’s Mobile Home Investing Podcast episode #18, we’re talking about brokering and wholesaling mobile homes and how this applies to you and your local business. Each mobile home “purchasing-technique” you possess is a valuable tool that can be used to provide options to help sellers and create value. The more “purchase techniques” you clearly understand with regards to mobile home investing the quicker your business may grow.
I’m very excited to bring Dan to the podcast co-hosting microphone. Dan has been investing in the Colorado mobile home market for the last 2 years and is loving it. He is now a full-time mobile home investor and broker. Dan is not a Harvard graduate, he’s not a genius, he doesn’t have more hours in the day than anyone else. However, Dan consistently closes deals, helps sellers, and dedicates specific daily effort to propel his business further each day. Since meeting Dan, he has been dedicated and self-driven to achieve more and continue to help others nearby. A special thanks to Dan for coming on the microphone and opening up his cash-flow business and strategies on this content packed 46-minute podcast.
Disclaimer: The Colorado real estate market is exploding right now. Dan has found a need/demand and is filling it. Brokering and wholesaling, in addition to investing, works well for Dan due to the hot Colorado market, ample supply of cash-rich buyers, advertising/marketing skills, and Dan’s love for the business and helping others.
Definitions: Brokering homes is the act of being a dealer or broker and helping to facilitate a sale between seller and buyer. In short, you are acting as a “personal property real estate agent”. Wholesaling mobile homes is the legal strategy to make profit from a mobile home Purchase and Sale Contract. Both methods require skill and a thorough knowledge of your paperwork. Brokering mobile homes may require a dealer or broker license in many states. If you have any questions, please comment below.
Wholesaling mobile homes in parks is not something I fully appreciated until years into my career. There is a time and a place for wholesaling and/or brokering deals. A quick test to know if you may be able to wholesale a home quickly within a specific park is to ask the park manager, “How many comparable homes have sold for cash in this same park in the last 6 months?” If the answer is more than 3 then you may have a decent candidate for a quick cash sale, or perhaps bank financed sale if the home is new enough and with a proper foundation.
Have you ever wholesaled a mobile home in a park? Have you ever wholesaled a mobile home on private land? Obvious things to consider prior to signing any Purchase and Sale Agreement are the realistic buyer-demands locally, time of the year, is the home bank financeable, repairs needed, year of home, seller’s motivation, foundation, lot rent, cash buyers in the market, etc. Please don’t hesitate to ask questions or comment below.
Mobile Home Brokering & Wholesaling
PRO: Little to $0 money invested.
PRO: Quick cash profit ($500+)
PRO: Marketing skills required.
PRO: Small time investment.
PRO: Create a value instead of passing on the lead.
PRO: Able to help a local seller.
PRO: Good word-of-mouth advertising and branding.
CON: Difficult in slow markets or non “hot spot” type markets.
CON: Cash buyers are few-and-far-between in many markets.
CON: Don’t keep the home for tax depreciation purposes.
CON: License needed to broker mobile homes in most states.
CON: In some states a “Net” listing is not legal even as a broker or Realtor
In this Mobile Home Formula episode John and Dan cover:
1:10 Please tell us about yourself and about your investing business.
2:20 What does the Colorado marketplace look like? What are mobile homes selling for there?
4:00 What are the prices of some of your listed homes and sold homes?
5:45 How are you attracting leads when investing?
6:05 What are your typical buying prices for mobile homes inside parks?
8:20 When do you know to broker a home VS invest in the home?
10:21 Does one deal lead to another? How has this affected business?
11:44 How do you get paid from each brokering deal? Do you negotiate this?
14:23 Can you describe a deal you are currently working?
17:58 Do sellers ever get mad at the profit you make?
20:30 Getting video testimonials for your business.
21:44 Do you ever make repairs in any of the homes you are brokering?
24:28 How did you find out the brokering requirements in your state?
27:24 Brokering requirements vary from state to state.
30:24 Is brokering realistic in all areas?
32:12 Describe the deal where you only made $500.
35:16 Any time that backfired on you?
