Five strategies to add mobile homes to existing mobile home parks by john federal there are not necessarily right or wrong ways to fill up a pre-existing mobile home community however there are some methods that may make more financial sense than others based on your parks conditions and locations as you listen to these ideas please set aside emotions to look objectively and logically at the exact mobile home park you intend to fill therefore before pulling the trigger on.
Adding any mobile homes to a community make sure to understand your starting capital your credit the local demand from buyers and sellers the local population state and local laws concerning age and size requirements of moving mobile homes into the area your desired exit strategy like sell or rent not every method discussed today may be possible or desirable based on the situation of the park and or the owners.
Five ways to add mobile homes to mobile home parks
Buy new cash or financing new three bedroom
Single wide manufactured homes most basic models may be purchased in the low twenty thousands new models can range from the low twenty thousands to over one hundred thousand dollars before delivery ac or setup these new manufactured homes may be purchased via cash private money or bank financing advantages instant access to new and beautiful homes disadvantages heavy cash outlay or financing commitment before you start making any profit
Creative lender programs
As of right now there is a single program intended to help park owners add multiple new manufactured homes to their communities without cash needed up front this creative lender program offered by 21st mortgage corporation gives very competitive bank financing terms for your end buyer once found in short the program stipulates the following process one your park and you become approved with 21st mortgage corporation two you choose which homes you would like placed in your park three homes are moved for zero dollars out of pocket including acquiring moving setting up and adding ac and skirt 4.
12 months are provided before any payments are due aim to sell these homes in the first 12 months to avoid making any payments 5. 21st mortgage corporation creates and services the note for all approved buyers who want a new home in your park pro tip call 21st mortgage corporation to learn more advantages low cash out of pocket access to multiple homes at once work with experienced professionals who also want to make sure your new home sell disadvantages not available in all states park owner must sign personally subject to credit approval park subject to approval based on vacancies population and condition basically 21st mortgage corporation will not underwrite homes or loans if they do not believe your park will be able to resell these homes
For sale by owners
depending on your location you may have access to hundreds of sellers within a three-hour driving distance the three-hour driving radius is an arbitrary distance to begin combing for sellers who are selling mobile homes that must be moved these are the homes you can purchase for under value from sellers needing the homes removed you may then move these homes to your community keep in mind that transporting a mobile home great distances will typically add mileage costs to your moving bill.
Pro tip: find a reputable mobile home transportation company that comes with reference from other park managers or owners in the area also be sure to keep a good reputation by not removing a mobile home from a community without the park manager’s approval advantages purchase homes at below retail prices disadvantages cash investment to purchase and relocate number of homes available dependent on purchasing criteria patience and the territory you’re able to cover repairs to used homes may be needed
Pay to relocate new residents
As you likely already know this is called a move-in incentive if the owner of a community or the park manager does not already have multiple new residents proactively wanting to bring homes into their mobile home park based solely on the park’s reputation location and looks then consider paying 100 of the move and setup costs for new residents to leave their current unhappy location and move their mobile homes free of charge to your community
Pro tip: Based on your area lot dimensions and personal criteria make sure to limit which ages and sizes of homes you allow into your community also make sure to have your new residents sign an agreement to keep their home in your park for x number of years to recoup your initial capital outlay plus a profit make sure to advertise this offer in local online and offline publications to let folks in your area know of your great move-in special advantages new residents are proactively finding your community you may deny any homes that do not meet your criteria home will remain in park for x number of years per your agreement disadvantages initial cash investment of a few thousand dollars to move in homes
Local dealers and repo lots
Local dealers and repossession companies are middlemen these companies deal in new and used homes regularly as mobile home park investors and mobile home buyers we can help these companies in two major ways one occasionally local mobile home dealers will receive trade-ins the company does not want due to age condition size etc
These dealer salesmen and general managers should know who you are and what you’re looking to buy you want to be alerted to any homes that fit your criteria two these dealers also sell used and new mobile homes to people some of these dealers have their own private land and others do not if a mobile home buyer does not know where to place their newly acquired mobile home you could offer to pay for the moving and setup costs to live in your community let these dealers know to solicit your move-in special to any buyers these dealers sell a mobile home to locally advantages have others looking for homes and residents for you on a regular basis
Disadvantages: You may likely have to pay up front for moving and set up expenses for a used home entering into your community repairs to used homes may be needed in conclusion mobile home park investing in mobile home investing may likely be a full-time career always aim to understand your goals timelines and abilities before getting started once a clear and logical plane is created make sure to work daily to achieve your goals and fill your community with long lasting homes and quality residents [Music] alright that’s it for this show but remember we have a whole library of episodes with timeless information about how to grow your real estate portfolio so you can enjoy the life you were meant to live just tap all episodes in your podcast app or scroll back in the feed to check out an older but still evergreen show otherwise dear listener until tomorrow [Music] you