Posted by Sailor on July 21, 2006 at 22:28:17:
How do you plan on profiting?
Tye
Any success purchasing land+adding a new mobile? - Posted by sherry
Posted by sherry on July 21, 2006 at 22:09:30:
I am considering buying lots and putting new mobiles on them. Then flipping.
flipping land/home packages - Posted by Lin (NC)
Posted by Lin (NC) on July 22, 2006 at 09:58:28:
The biggest problem that I’ve seen is the financing for your end-buyer and possibly even you. There are fewer lenders who will finance these homes and their typical buyer than lenders for stick builts. Doublewides are easier to finance than singlewides, but many banks won’t do either. That is why many of us landlord or sell with owner financing as our exit. Buying a new home leaves little profit in the deal for you, unless you can get it and the lot at a wholesale price.
Do some research - what’s the average days on market (DOM)for a nicer, newer mobile, dw and sw in the last 6 months, last 12 mos, last 24 mos? If you’re seeing mobiles sit on the market for over a year (like they sometimes do here) that’s probably a sign that flipping isn’t a great strategy. Even 6 months might be too long considering holding costs. : ) Get a list of lenders who will finance mobiles. Talk to mobile home dealers. Then you may get a sense if your plan is viable. This is not meant to be an exhaustive list.
It might make more sense to flip lots that allow mobiles (using options when you can) than it does to put the whole package together and try to flip it. A good relationship with MH dealers is critical because they’ll find you buyers for your lots. They’ll also know which areas their buyers want to live in.