How Mobile Homes Are Making Me Rich
"Ghetto" "Trailer Trash" all sorts of common stereotypes come to mind for some people when they think of mobile homes. But in reality, if done right, these can be little boxes of cash just waiting to be opened.
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Here is the link to the first video where I explain more: https://www.youtube.com/watch?v=pdD0tPhif9o
*Why wouldn’t the park just do what you did?* Some do! But most just want to own the land and collect the lot rent. They aren’t in the business of remodeling and selling. They’re land owners that want passive income.
*Why wouldn’t the buyers just go get a mortgage?* Since mobile homes are considered personal property rather than real estate, they don’t qualify for a traditional mortgage. In short, banks don’t lend on them. The value is in the land (real estate) underneath of the mobile home, which is owned by the park.
*Why doesn’t the buyer just pay cash?* They are certainly welcome to, and some do that. But most people that are looking to live in mobile/manufactured housing don’t have $15,000+ to do that with.
*Do you only buy directly from parks?* No, but these are usually the best deals. Most individual owners of mobile homes have a sense of pride about their home (which is good), and they also have sentimental value in their home (again..understandable) but these things create logical pricing challenges when it comes time to purchase their homes. They usually resist the fact that mobile homes actually depreciate rather than appreciate like traditional site-built real estate.
*If you do buy from a private individual homeowner, how do you buy them cheap?* I’ve only seen homes for 20K+ You have to find a motivated seller, and by that I mean, either they have to leave the state for a job, they inherited the home, they don’t have enough money to keep the home, whatever it may be. Also, you may live in a price inflated area (coastal cities) so it makes sense to drive an hour or so inland to find reasonable priced deals.
*Aren’t these homes in ghetto or bad areas?* How do you find good buyers? Among investors, parks are rated on a “star system”. 1 star is the bad parks that people usually imagine, (broken windows, graffiti, clear signs of gang activity)… I don’t buy homes in 1 star parks. On the other end of the spectrum, the 5 star parks are the ones you see on a beautiful California coast that is full of retirees and well maintained yards. These mobile homes are outrageously priced because of the location, not the home itself..I don’t buy in those parks either. I buy in 2-4 star parks.
Disclaimer: I'm not your financial advisor, attorney, or tax professional, and nothing I say is meant to be a recommendation to buy or sell any financial instrument. This video is intended for entertainment purposes only. Do your own due diligence, and take 100% responsibility for your financial decisions. Seek professional advice and guidance to aid your financial decisions.