Re: L/O Mobile Homes - Posted by Karl (Oh)
Posted by Karl (Oh) on July 01, 2001 at 09:38:24:
Yes, good money can be made doing mobile home lease/options. Check out the mobile home discussion group. Ernest Tew explains mobile home lease/options in his course called ?Getting Rich Helping Others?.
I?ve done one mobile home lease/option. I leased a home from the seller and took over his $165/mo payments, then found a buyer with $4k option money, who is leasing from me for $200/mo. Mobile homes depreciate, so you would have to be careful not to put your buyer in a deal where he’d be upside down when its time for him to purchase. The real obstacle is finding a park that will let you do lease/options. As Rob mentioned, most parks want the occupant to be on title. An important part of the business is getting tight with the park manager so these obstacles can be overcome. In my pet park, I?m the only guy who is allowed to do lease/options, because I?ve done many Lonnie Deals there, and they trust me. I’ve also done a number of flips, where I get an option from a seller to buy below retail (usually they just want someone to payoff their loan), then help a buyer get bank financing to purchase the home at full retail, and I collect on the spread. This was also suggested by Rob in his post.
Most of the mobile home investors that I know stick with Lonnie Deals (buy used trailers cheap for cash from motivated sellers, double or triple the price and resale by offering owner financing). They?re very profitable and relatively easy to do. If you?re interested in mobile home deals, I would suggest starting out by reading Deals on Wheels. That?s how most of the MH investors here got started.