We purchased this mobile home for $2,350. And then we turned around and sold it really fast for $13,850. Outside of getting rid of a bunch of junk and trash inside, we didn’t do a whole lot of work. It was a pretty simple and smooth process.
So, in this blog, we want to walk you through the 6 steps we used to turn this home into a $10,000 profit without doing any repairs and without spending more than $3150 on the entire deal.
Step #1: Close with a motivated seller
So in this situation the homeowner, the previous homeowner was her mother who had actually passed away. She was living in the property and passed almost a year ago. And they have just been paying Lot Rent month after month on this vacant home.
So they were sick of it and just wanted out. They literally said we’ll just give it away, we don’t want anything to do with it. Because it was costing them money, and no one was even living here.
Not only did she really want to get rid of the home because she’s paying Lot Rent but it needed a bunch of repairs that she didn’t want to do. She was actually at a point in time where she wanted to free herself from this home and go on a vacation with her family.
So not only were we able to get her out of this Lot Rent situation, we were also able to provide her enough money for her and her family to take that trip. They’d been wanting to go for a while and we could have gotten the home for free but that’s not our goal. We wanted to put some money in her pocket so that she could feel like she won.
You guys, create those winners. When they feel like they won, man, they’re going to go and tell everybody about your services and what you do. And chances are they have friends and family that live in a mobile home park in that same park or parks around there. So make sure your clients are the winner and they’ll take care of you in the future, for sure.
Step #2: Junk removal
With this home, there was a ton of junk in there. The home was vacant for a long time. We had to go in there and clear everything out. What we did was we found a handyman on Facebook and we used our Handyman Finder Pro system to get everything done and get our handyman ready to go in minutes.
This process used to take us a lot longer. We would just post an ad on Craigslist and have so many people calling us and meeting people to bid on the job and all that stuff. It was a big headache.
But our system – and it’s included in our course, if you guys are a part of our course – definitely made it so that we were able to find the right person in minutes, get them qualified, and save some money. Because normally on Google, this would have cost easily $1,500 or close to $2000 for the amount of stuff that was in there.
So we got it all done for $800. They started literally the next day, the next morning, and everything was out in two days. Not too bad. And it was only $800 so half the price of what we would have normally paid.
Step #3 Evaluate the park
You want to know if the home is in a good park or in a bad park. With this particular park, it wasn’t on our good list.
We’ve taken the time to get all of the park info in our area and make a list of good parks and bad parks. This was on our bad park list. We saw a lot of vacancies. A lot of the homes were older in this community. It’s just a park that’s not being taken care of. The roads are in really bad shape.
So we evaluated what type of park this mobile home was in. And we decided it was a two and a half star park. We also took some time to look online and see what other homes are selling for in the same park. And also what our home could be selling for if it had to be moved at this size.
So with all that research we just determined it might be a better decision for us to go ahead and move the home out of the community to a place where it could sell more given the condition it was in.
Step #4 Provide a letter of intent to the park
We provided an LOI to the park. After our analysis, we decided that it’s going to make a lot more sense for us to sell this home to a buyer that wants to move. Because with this park we just didn’t feel safe keeping the home in the community as an investment.
We’d rather sell it to someone that’s going to move it out. We were able to do this in less than 7 days because there’s a lot of people out there that need homes for their land.
So we ended up taking a letter of intent to the park and they let us know they had no intention of purchasing the home. So we could definitely go ahead and sell it and move it if we needed to. That was great news for us because if there’s a buyer that wants to move it then that opens up our pool of buyers by so many people. It’s a lot faster for the transaction to happen because that market is underserved.
Step #5 Market the home
So it took about 3 days for the movers to move all of the junk out of there. When they were done, we walked through the home and we took some pictures and there were still a lot of repairs that needed to be made. There was a horrible smell. The roof and ceiling were shot. And the carpet, even though the subfloor was good the carpet was in horrible shape all around the home. There was some ceiling damage too.
So we had a decision to make. We thought we could either try to fix all those things and sell it in place or we could market it to our ‘Must be Moved’ buyers.
We ended up sending it out the next day to our Buyers List, just as is with no repairs. We were very honest, we showed them all the damages and we just didn’t get much response. That was Friday night so what we did the next day was we post it online and we got quite a few responses.
We ended up finding 3 buyers in about 4 or 5 hours. They were really excited because even though the home needed some work they knew that they were getting a really good deal. We discounted the home heavily just so they have some funds to make sure that those repairs can be fixed.
Everybody won. It was really quick. We didn’t have to do any repairs and we just love those deals.
Step #6 Collect Earnest deposit and close the deal
It was a weekend so the buyer couldn’t get all the funds needed at once. So what we were able to do was take a $1,500 deposit from him. We usually meet at Wells Fargo. We ended up meeting up at the supermarket. Then we just set up our closing for the next business day, which was a Monday, to actually collect the rest of the cash and transfer the title.
Super easy, really simple. The closing is the easiest and best part because that’s when we get paid. The process was all done in under 7 days. We didn’t have to spend a ton of money on repairs. We didn’t have to work in a park that we didn’t really want to. And it was a win-win for everybody.
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