Ways to Make Money From Mobile Homes in Mobile Parks
It is a shame that many investors tend to ignore the potential of mobile homes in pre-existing mobile parks, because there are indeed ways to make money from mobile homes, particularly those in pre-existing mobile parks.
That is not entirely a bad thing for you, because it means that competition is low and the niche can be lucrative if you get there first. If you are salivating at this kind of opportunity, read on for some actionable tips. But bear in mind that the tips only cover the purchase of the mobile homes. The land it sits upon is excluded.
Make Money From Mobile Homes Through Buying and Renting
Try to check different local park managers and verify if they allow renting, since most mobile home parks require the person living inside a mobile home to be its owner. The reasoning for this is that park managers and owners consider renters to be more likely to be troublesome due to their transient nature.
One good way to make money from mobile homes through buying and renting is to scout parks that that allow renters. These can be any of the following:
- Mobile parks near an army base
- Mobile parks with lax requirements
- Mobile parks that are near areas where people need temporary living arrangements, such as schools or factories
Using Cash for Buying and Selling
Many private buyers and sellers of mobile homes make a lot of bank from private sellers if they are willing to pay in cash. To stay on top of these things, you might want to keep yourself abreast of the market prices, so that you can scope out deals that are lower than the retail price. An easy way to do this is to make multiple offers to different sellers on a regular basis.
Payments When Buying and Selling
In any given transaction, a seller or investor may choose to sell their property through a down payment from a tenant-buyer, but the buyer still needs to pass through the screening and application process of the park directly. So make sure the applicants meet all the requirements and regulations on a local and national level, and keep all the paperwork in order when you sell via payments.
Wholesaling Mobile Homes
This works similarly to single-family homes, where wholesaling mobile homes within a park lets you control the value between a buyer and a seller sans actually purchasing the mobile home. Basically, if you manage to obtain a purchase contract on a mobile home, you can turn around and sell said contract to another investor for a profit.
But keep in mind that this is not really very lucrative. At most, you can expect to earn five hundred to two thousand dollars as an assignment fee on average. The only way you can really earn a respectable amount worth the effort is if you can find a high demand area. While it is rare, some high demand areas can allow you to earn as much as $30,000 on just the assignment fee.
Make Money from Mobile Homes by Bird Dogging
If you are bird dogging, which is when you hunt down and report FSBO properties that fit an investor client’s requirements you need to be proactive. Make sure your investors are following up on the leads that you are providing, as bird dogs only earn if the investor closes a deal.
Try to Sell Directly to the Park
If you are dealing with a mobile home that is on the really expensive and risky side, it is better to re-sell the mobile to a mobile home park owner who is looking to expand. There is less risk as you know where the mobile home is going, as well as the resources of the buyer. All you need to know is the specific park’s requirements, so that you can ensure that the mobile home you are selling will be compliant.
Buying Unwanted Mobile Homes
There are times when mobile home parks need to add newer homes but cannot do so because of existing older units. This is an opportunity for you, as you can offer to buy (or even take) the mobile homes out of their hands.
Technically, there is very little room for profit here because the unwanted mobile homes usually require expensive repairs, and you might have trouble even breaking even. But there are fancy communities that do want old mobile homes removed not because they are too broken down, but simply because they are too old and no longer fit their requirements. These mobile homes still have value and you can make money from mobile homes that are resold or turned into a rental.
Basically, the examples above all show that there is very real potential to make money from mobile homes, but you need to work hard and work smart to weed out the deals that are not worth your time. Always stay on top of your toes and don’t underestimate the value of having a mentor.