Wholesaling Mobile Homes For Beginning Investors
Mobile homes around the country began to see an increase in demand and selling price, higher in some areas than others.
This has been caused by prices on single-family homes and apartments increasing and leaving many out of the market.
The outcome is that for some investors wholesaling mobile homes is now even more popular.
Wholesaling mobile homes are when you assign your purchase contract to an investor at a higher price, and you never own the home.
This works best when you have a motivated seller
Investing & Wholesaling in Mobile Homes
When you are selling or wholesaling mobile home, it is always best to get the cash.
Wholesaling mobile homes don’t require a license,
All you are doing is merely assigning your interest in the property.
This is a great investment strategy, and in today’s market, you will be able to make money, just by assigning deals.
If you are going to pursue this area of investing you will need to understand the steps involved in the area of real estate wholesaling.
Wholesaling mobile homes becoming are rising topic on google means that it’s have a good future.
What Constitutes a Mobile Home
A mobile home is a small square home built in a factory usually attached to a chassis structure.
It has historic origins going back to when people traveled the country searching for work.
In 2021 with the price of real estate rising quickly, many people look at mobile homes as a first home option.
This makes wholesaling mobile homes a good income stream for real estate investors.
The early mobile homes turned into what many of us now know as a caravan, but the old style of a mobile home can still be found in trailer parks around the country.
Since 1976 mobile homes built in the USA are required to meet FHA standards and come with a tag certifying this.
Allowing people who can’t afford a home to see the mobile home as a viable alternative for their housing needs.
Where to Find a Mobile Home
Mobile homes are often found in trailer parks, where the communities allow the homeowner to rent a space to place their home.
The site also provides basic amenities such as water, power, and garbage removal.
There are more than 30,000 of these parks across the USA.
Some specialize in retirement communities, while others attract people wanting Summer homes.
They are usually built of lightweight materials to make transporting easier, and may not be suitable for cyclone-prone areas.
In the UK the majority of residential parks have a minimum age limit and are generally marketed as semi-retirement parks.
Advantages of Wholesaling Mobile Homes
- The potential for quick cash when the home is reassigned.
- Wholesaling mobile homes is a good bussiness.
- Minimal risk, except for advertising you have no out-of-pocket expenses.
- No loan approvals.
Negative Consequences When Wholesaling Mobile Homes
One negative consequence could be when a new owner removes the home from the park.
Park managers prefer the mobile home to remain in place otherwise the Park Manager has to work to replace it.
Don’t over-promise when you are attempting to get a sale.
Your intention is to wholesale mobile homes, and there is a limit on how much you can do to achieve this.
Don’t wait around just do your best to sell the property.
Don’t Get Cut Out of The Deal
It is always possible that the seller may go around you and cut you out of the deal.
Understand that you must have the property under contract. Many sellers just want to sell and get rid of the problem.
If an unscrupulous person does cut you out, make a point of never working with them again, it is their loss.
Free Wholesale Mobile Homes
A seller giving away a free mobile home is likely to hand the title over to you and sign their bill of sale without you paying anything.
The reason behind this is so that owners of these mobile homes can get out from under the expenses of paying taxes, rent, etc…..
You may need to seek approval from the Park Management, and pay a state tax on the title to do this.
Many Investors do not understand this strategy but it is powerful when used correctly.
Wholesaling a Mobile Home on Vacant Land
This works the same way, the goal is to find a buyer quickly.
Also, make sure you understand the value of the land that a mobile home is sitting on. Many Investors who you wholesale to will see the land as having more value than the mobile home itself.
Investment Strategy Ideas
Once you get the hang of this type of investing the possibilities are endless.
One of the things you can do is to approach it strategically making lists of potential buyers and categorizing them into subsections like:
- Holiday Home purchasers
- Farmers or Country Buyers
- Permanent dwellers
- First Home Buyers
The opportunities are endless, and depending on your latest proposition, you will be able to open your database and start phoning potential buyers
Often in mainstream real estate, the agent will call a client saying ‘ I have a property that meets your requirements.
It is the same with wholesaling mobile homes as an investment strategy, and you will spend a few hours on the phone finding the right fit for your latest deal.
Loving Your Work
The good thing about wholesaling mobile homes is that it doesn’t feel like work because you are helping people.
For a couple just starting, what could be better than doing something your love by helping people get rid of their problem and putting deals together.
Extending Your Reach
It takes some time to build your reputation.
If you have a mobile home park in your area, take the time to visit the parks to familiarize yourself with the residents and the park manager.
Let them know how you can help them.
Have some merchandise printed either pens or caps that have your phone number on them, so they can reach you when they need help to sell their mobile home? Keep in touch with the Park Manager, he is your new best friend and he will learn to trust you.
Wholesaling mobile homes can be extremely profitable, but you must continue to be consistent in your actions. If you can do this, you will win.