When we were close to crossing 1000 subscribers on our YouTube page we decided to try and do a lie type of Q&A session. Something a little different.
And we just thought we could answer some of the frequently asked questions that we get on Facebook and in the YouTube comments.
So, in this blog you’re going to be able to read some of the most relevant questions we got during that YouTube live session.
- What is a wholesale mobile home deal and why do you stress that option?
- Who are these wholesale buyers? What are their needs? What are they going through?
- I’m not convinced about mobile home investing. What are the benefits?
- Do the strategies you teach in your course also work for mobile homes on land?
- Can you wholesale mobile homes without a license? Do I need a real estate license?
- What made you decide to get into mobile home investing?
- What’s the biggest Con about mobile home investing?
- Finding mobile home investors is tough. How can I network with other investors?
- When driving around parks for the first time what are some red flags?
- When dealing with the mobile home parks as an investor is your credit a factor?
- Can I flip a mobile home if it doesn’t have a title?
- Where do I find a mobile home contract?
- What are the exit strategies when it comes to mobile home investing?
What is a wholesale mobile home deal and why do you stress that option?
A lot of people do not know that you can wholesale mobile homes. And this is something we teach our students how to do.
What we love about it is you don’t have to spend any money. You don’t have to do repairs. You don’t have to sign any agreements to pay Lot Rent. You’re basically just connecting somebody that needs to sell their mobile home with someone that needs to buy a mobile home. And you collect a fee in between.
So it’s super fast. It’s some of our fastest deals.
We love this strategy. It’s a great strategy to have when you’re just starting out if you don’t have a lot of capital. Or you’re just kind of timid when it comes to mobile home investing and you’re not quite convinced just yet, this is the go-to strategy. Because there’s a lot of people that need your help, whether it’s the seller or the buyer.
And like we said, we train our students. Actually a couple of our students are working on their wholesale deals right now. You don’t have to know about construction or repairing homes or any of that. It’s really just learning how to provide value to people when they need you and kind of connecting the deals together.
So check that out, make sure you guys are doing your research on wholesaling mobile homes. It’s a great strategy for you guys. Do not sleep on it.
Who are these wholesale buyers? What are their needs? What are they going through?
Whenever you’re wholesaling mobile homes we typically find 3 different buyers.
Buyer #1 may actually want to live in the home. They actually want the home to stay in place in that situation and they want to live in the mobile home community. So they’re just looking to get a good price because you’re wholesaling it.
You’re going to give them a great price. It may need repairs. So they’re just looking for a great deal on a place to live.
If this mobile home is staying in place, they just care about the major repairs being made. In our market we’ve seen that they don’t mind making any type of minor cosmetic repairs. They’ll do that in a heartbeat, as long as they’re getting the home for a great price.
Buyer #2 is people that actually need a home that can be moved. So these may be people that own land that are looking for a mobile home for their land. Or park owners that need to fill up their vacancies.
So they’re really hungry for mobile homes. They need these homes. And so that’s a huge market of buyers that’s underserved. There’s just not a ton of mobile homes that can be moved on the market, at least in our market, and it’s competitive.
Before you start moving homes, make sure that you understand what the laws and requirements are in your state. Especially if that mobile home is in a park and not on private land.
You just want to make sure that you know what needs to be done after the mobile home has moved. Here in our market there’s a lot of parks that require the buyer or the dealer to make sure that the lot is clean. And sometimes it means even filling in a hole if a mobile home was ground set.
So just make sure before you start moving the home you protect yourself, do your due diligence and understand the laws.
Buyer #3 is other mobile home investors that need properties. They want to fix and flip them. That’s traditionally what most wholesalers do, they look for other investors but in mobile homes we have three different classes of buyers that we wholesale to.
Working with investors is great. You can make some quick cash. We even have done deals where we’ll talk with the investor and partner with them, even on a cash flow deal.
We’ve got a number of homes where we’re $100 a month, $200 a month for 2 or 3 years just because we simply didn’t want to do all the work, and they did. But we’re still making great money.
I’m not convinced about mobile home investing. What are the benefits?
We have a lot of YouTube videos on this already so definitely check out our channel.
What we love about mobile home investing is the speed. We are literally just transferring titles at the MVD. There’s no big escrow companies or title companies, at least in most states. And it’s, it’s really fast.
You know how when you sell a used car it’s literally minutes and the MVD? That’s how we’re selling homes. So the speed of it is absolutely…I don’t know any other form of real estate that’s that fast.
Also with a lot of these deals, you don’t necessarily need any money.A lot of these deals you’re not making any type of repairs. You’re not paying any type of Lot Rent when you’re talking about wholesaling.
There are other strategies where you will need some cash. Like when you’re talking about making rehabs, fixing and flipping or leaving the home in place. But you don’t have to have these things.
And we love it because it’s less risk than typical real estate deals. If you watch our story you know that when we started in real estate, just like a lot of people, we had some bumps and bruises. We’ve lost about close to $90,000 in our first year. So we were really, really cash strapped and mobile homes were here to save the day.
If you don’t have a lot of money, well, that means you have a bunch of time. Take that time to go find more sellers and connect them with more buyers. This is the market that is helpful for you as a newbie investor.
It doesn’t cost a ton of money to buy a first home. Most of the fix and flips we’ve done we spent under $5,000 to purchase the property. With our traditional single family home fix and flips we were out of $40,000 just to purchase the home, not including all the rehab and all of that.
So it’s just a great place to learn and get started and make some great money.
Do the strategies you teach in your course also work for mobile homes on land?
The biggest one we’ve seen that works is definitely the wholesaling strategy. But you can do fix and flips too.
It’s just that once the mobile home is actually fixed to the land now you’re talking about real estate.
Now there’s different requirements. You’re going to have to find different financing companies, qualify the home by having it inspected and appraised. You’re gonna have to do a few different things.
Unless your buyer is coming with all cash, typically it’s going to be treated just like any type of regular single family home deal.
So a lot of the strategies that we teach can be transferred into the real estate side with mobile homes on land. But just know that there’s a lot more red tape you have to go through.
Can you wholesale mobile homes without a license? Do I need a real estate license?
You definitely don’t need one here in Arizona. Within the past year or so realtors have actually been able to flip mobile homes as well.
Up until we made this change in our state, realtors would have to go and get a dealer or broker license.
But you definitely don’t need a realtor’s license whatsoever because we’re dealing with personal property. And usually, the real estate license laws have to do with real estate. Their licenses are hung under a real estate brokerage. With personal property it’s just two completely different things. So a real estate license isn’t necessary when you’re talking about mobile homes in parks.
But what we do recommend that you get is a mobile home dealers license. It’s a heck of a lot easier to get, at least in our state. It takes a couple of weeks. You don’t have to go through all these classes and curriculum. It’s just one open book test. And this will at least keep you safe, you know, and when you’re flipping mobile homes.
There are ways you can do it without putting your name on the title or without going through property trusts and all of that, but we just recommend becoming a dealer. It just gives you a little bit more credibility, let you have more authority within your business, park managers respect you more, and you’ll do a heck of a lot more deals just by simply having that license.
What made you decide to get into mobile home investing?
For us simply, you know, we were cashed strapped. We didn’t have a lot of resources. In our mind at the time, we didn’t think we had what was needed to continue to do real estate deals, until we learned from one of our mentors about mobile home investing.
And we’ve talked about this earlier, you know, it is less risk, less money, less time, less resources needed. We saw it as an option to 1) pay off our debt and 2) be able to create a passive income faster than going to buy a typical traditional single-family home, then taking out a loan on that home, putting a down payment on there and waiting to get our investment back.
It just didn’t make sense for what we needed to free ourselves from our job. And we just saw that this was a secret niche. When you talk about mobile homes, people are going to look at you crazy and you laugh in your face. They might say there’s no value. There’s no money in mobile homes.
So, there was a ton less competition and noise in this industry. So, we were really able to come in, make an impact, and help a lot of people. Just because everybody’s turning away and we ran to it. So, we saw that as a golden opportunity.
Not just us, some of our students are doing the same thing. One of our students, Jasmine and her brother got their first deal done in 30 days.
We got a Rockstar student out and there in So-Cal doing some amazing things. We’re actually going to be heading out there in the next few days to link up with them and try to understand that market. They’ve already done 4 or 5 deals in their first 30 days. I think they made about $41,000, with no experience and didn’t use any of their own money. They’re just literally following everything that we’re talking about
We love seeing that people are open to this opportunity. They’re taking advantage of it, taking action and they’re changing their lives.
What’s the biggest Con about mobile home investing?
If you don’t have tough skin, park managers, I would say, are the biggest con honestly.
Because some of them are just, you know, they just have bad days. They have attitudes and they think they’re not just a park manager sometimes, they feel that they’re the park owner.
So just dealing with them sometimes you’ve got to, you know, kiss ass sometimes, excuse my French. But that’s how it goes. You know it doesn’t come easy for us. So, it’s the park managers, just with their attitudes sometimes, slowing up the process, slowing up on qualifying your buyer and just getting over the obstacle they might present.
Some park managers get it. They know what you’re trying to do. They see the value that you’re bringing to the park. They see that because you’re doing the work, they don’t have to do the work. And so, they help you. They push things along quickly. They’re very open to helping you get this done.
And others, they just don’t get it.
Finding mobile home investors is tough. How can I network with other investors?
Yeah, it is tough just because a lot of people don’t know about this niche. We always recommend first finding any type of local real estate seminars in your area and networking there as much as possible.
Then you also want to network online. There’s a ton of Facebook groups. If you’re looking specifically for mobile home investing, Trailer Cash Academy is where you want to be. You can try Meetup. Biggerpockets has a huge community of other investors that you can start networking and working with. They’ll even shovel you deals.
Again, a lot of these investors, wholesalers and real estate investors don’t want to touch mobile homes. So, if you just explain to them what you’re doing they’ll be willing to give you the leads for very cheap or even splitting profits, you know, give them a little referral bonus. There’s just a ton of value you can bring to them, and they can bring to you.
When driving around parks for the first time what are some red flags?
You want to look at the cleanliness of the park, if those roads are paved, the type of homes that are in the community, compare the ratio of older homes vs newer homes, check if there are a bunch of vacant lots in the community, judge if it’s the type of community that families will want to live in, and also take a look at the mobile home park’s location.
Closer to the mobile home park’s location you want to see that there are grocery stores, schools, gas stations, highways, all of the things that people obviously use in their day-to-day lives. A good location is huge for a lot of people because they have lives to live.
They want the parks to be clean and have a lot of amenities. Amenities are huge. For a lot of the buyers that we work with, whether it’s a family community or even a 55 plus, it’s not just about the home. It’s about ‘What does this park have to offer me? How can I enjoy some of the things that the park has to offer?’
That includes the pool, the playground, spas, some of these parks pool halls, fun houses, a recreation center, all that stuff you want to look at. If it doesn’t have a ton of amenities, that’s another red flag.
When dealing with the mobile home parks as an investor is your credit a factor?
I would say this is one of the most difficult questions because it all depends on the park.
What we like to do is use storage agreements. Storage agreements are not lease agreements. Storage agreements basically state, ‘Hey, me as the investor my credit isn’t a factor, but I am responsible to pay the Lot Rent each and every month, until the home is sold to a buyer that qualifies to stay in the community.’
They’re not necessarily pulling our credit, but I will say this is easier to use when you have your dealers license. Because you’re not operating as an individual. You’re operating as a business
It also really depends on the exit strategy that you use as well.
So, if you’re going to fix and flip a property, you’re going to keep it in place and you’re going to actually own it while you’re fixing it and everything. Then you have to work with the parks to be able to show them that you’re going to pay the Lot Rent. Sometimes it’s really hard to get them to give you a storage agreement and you may have to actually apply to live in the community, even though you don’t live there and you don’t have any intention of living there.
But there’s other strategies such as wholesaling that we’ve talked about where you’re never an owner of the property, you’re not making any repairs and credit doesn’t play a factor.
It all depends on which exit strategy you use. So we teach 5 exit strategies. A couple of them you actually do not need any credit for. You don’t need your license whatsoever. It’s all about helping individuals.
We would always say start off wholesaling if you don’t have any type of license or you’re afraid that credit is a factor. You can always wholesale those homes. Don’t let that hold you up.
Can I flip a mobile home if it doesn’t have a title?
That’s a good one. And the answer to that is we don’t recommend it. But you can still do that. Don’t let that stop you from getting that deal. Because you can still get a duplicate title.
So even if they don’t have a physical title you can work with the state, you can work with the MVD, and they can issue a new one. As long as the person that’s registered on the title is there and available to actually prove what they need to prove.
In our state here in Arizona, we’re an electronic state. So, all our seller has to do is go up to the MVD and present to them their license. As long as there’s no back taxes on the home and they show up with a tax clearance letter, they can print off duplicate copies. So, speak with your MVD.
It’s easier than you think. If you don’t have the physical titles, don’t let that stop you from getting a deal. I would say 2 to 3 deals out of every 10 that we buy the seller doesn’t have the title with them and we still get the deal done.
Where do I find a mobile home contract?
Obviously, an attorney, right? That is the best way to go. But it’s also tough. Finding a mobile home specific attorney is tough to find if you don’t have a lot of connections in the industry.
And not every real estate attorney knows what they’re doing when it comes to mobile home investment. That’s two totally different things.
So, we do provide sample contracts in our course, in our mentorship program, that will help guide you along the way. Of course, these are samples. So, you want to make sure you get them reviewed by an attorney, make sure you’re doing the right thing.
They’ve been written by our attorney. He’s been a mobile home attorney for a number of years, over 10 years here in the state of Arizona. We always say that they’re samples because they’re written in accordance to our state laws and regulations as an investor here in Arizona. But they are good to go. Our students are using them to close deals, so they are good to go.
What are the exit strategies when it comes to mobile home investing?
There are definitely 5 different mobile home investing strategies. There’s brokering, there’s wholesaling, there’s flipping for cash, there’s buying and holding, and then moving the homes.
All 5 of those are what we teach in our course.
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