What’s The Difference Between A Modular Vs Manufactured Home?
Today we are going to be talking about the difference between a modular home versus a manufactured home. There is a difference. Don’t think the same thing. Check this out.
𝐉𝐨𝐢𝐧 𝐎𝐮𝐫 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤 𝐆𝐫𝐨𝐮𝐩
What’s up guys, my name is Justin Colby. And on this channel we talk all things business, real estate, as well as entrepreneurship. And today, we have an interesting subject as I just personally flipped my very first mobile home or otherwise known as a manufactured home. So I have some insight here. But I’ve also received some questions from some my students about what they should do of the lack of inventory in the residential real estate space, should they potentially be buying a mobile home or a modular home? And what are the differences and so I wanted to shoot this video to give you some of my experiences as an investor flipping a mobile home, as well as pointing out some of the differences between the modular home and a mobile home. So I want to make sure you stay tuned. And by the way, if you like these videos, smash the like button for me, and make sure you subscribe to my channel is I dropped three videos a week, which means you should probably turn on that notification bell to make sure you get notified when I drop these videos. So let’s jump into this video. Alright, first, I want to point out just the simple difference between these two types of homes. Now most people would say mobile home but you can also call it a manufactured home. That is one subset the other would be a modular home. And the very biggest difference between these two is one simple fact the modular home is actually set on an actual Foundation, it can’t be moved. Although it is put together very similar to a mobile home or manufactured home. They are actual homes that are affixed to an actual foundation and will not be moved from that point forward. So if you are personally actually considering buying a modular home or a mobile home, understand one thing about the modular home is you are actually quite literally buying a home. And the only reason why it would be considered a modular home is because it’s put together in a factory rather than say stick built by a construction crew. Now mobile homes again, put together in a factory similar to a modular home, they actually come on a chassis, and quite literally can be moved from place to place. Now this gives a lot of people certain freedoms. But there are some hurdles that I want you guys to be very aware of when dealing with a mobile home or manufactured home. Because once you actually move it from one place that has potentially been affixed, meaning it has been given title to the land itself, and you pick it up and move it to another piece of land financing starts to become a major issue. So there are some financing things that I’m going to dive into a little bit here, if you were considering buying yourself also if you’re an investor like myself to figure out how to flip these and what you should be looking for when flipping them. And what your end buyer is going to have is challenges. So I’m going to review all that here for you right now. So first and foremost, I have been an investor for 14 years. And actually just recently, I flipped my very first mobile home for years and years and years, I actually thought I want to stick to single family homes. That’s what everyone wants. But what has happened in recent years is there’s no inventory, there’s no actual home for people to go by. And on top of that demand stays high supply stays low, so prices increase. Now the homes that they can go by are actually unaffordable, more and more people are choosing this as a real option to buying a home. So as someone who fix and flips a lot of homes, I need to also understand what is my end result. I don’t mind buying and rehabbing a mobile home or manufactured home. But then what does my
end buyer have to go through to get that same home and so there’s some guidelines I want to make sure you guys are aware of as investors so you understand what your end buyer is going to actually be up against. So the first rule that I want you guys to understand about mobile homes is if it is a fixed meaning is deeded to the actual land itself and you’re buying true real estate it needs to be newer than 1976. That is the cut off of the financing options for mobile homes or manufactured homes. If it is a 1977 or newer, you are going to be just fine in your end buyer is going to be able to get financing like they would for any other home they tried to buy if it is an older home from 1976 years older than they’re gonna have a lot of trouble finding financing, there is financing out there. However, it tends to be very expensive and it’s just not ideal. So you have to Be aware of that. So if you’re going to be flipping a mobile home, understand the age of the mobile home, understand if it is affixed to the piece of land, and if it isn’t, then you have certain other options that you potentially can use, which you could remodel it and put it up for sale as a remodeled mobile home. By the way, I have friends that do this full time, quite literally, I had a call with a friend yesterday who bought a mobile home for $1,000, put roughly $20,000 into it, and sold it for a $40,000 price point. And that person who bought it for $40,000 is going to move it to their land, and then they are going to attach it to their land. So it is still a very good option for you to buy homes that are older 1976. remodel them. By the way, I’ll get into remodeling mobile homes in a second, it is a lot different than buying, you know, remodeling a stick built single family residence. So that is an actual option for you. But here’s what I would tell you for most people that watch these videos, that takes a certain level of experience, to know what to do and how to do and what to pay for it. Because most likely older mobile homes for that potentially even could be given to you. Like I said, my friend bought it for $1,000. So the value of older mobile homes that are not affixed the land is slim to none mobile homes tend to depreciate the same way a car would. And as a matter of fact, that brings up another point I want to mention, if you’re buying a mobile home that is not affixed to a piece of land, then you’re actually going to actually go through the DMV to transact that, because it’s considered personal property is not actually considered real estate. So now let’s get into remodeling mobile homes. This is the fun learning curve I just went through, which was definitely different. As I’ve mentioned, mobile homes come in pieces. And so this was a double wide. And it actually is affixed to a piece of land. This is actually a mobile home, I flipped in a 55 plus community. And so it was affixed to the piece of land, which means it was a typical real estate transaction for me in that sense. And when I resold it, again, a very typical real estate transaction because the mobile home was a newer than 1976. So my end buyer could get typical financing. And it all worked out. Well. Now I had some learning curves. As I’ve never remodeled the mobile home, what you’ll have to understand about a mobile home is two trailers that they’re putting together on basically a chassis. And so one of the things that happened after I remodeled it, I saw that the roof or the ceiling seemed to be sinking within the kitchen area.
Well, I didn’t understand why. And when we actually took a look and opened it up back up, which means I had more costs, we realized that there was nothing really attaching the roof to anything. Essentially, it was like a floating roof between two beams. And there was nothing to keep the roof from kind of sagging a little bit. So we actually had to go in there and put in beams to attach the roof too. And so you just need to be careful when you’re doing these remodels. Although you can absolutely do the very same thing, you can go get brand new cabinets, new counters, you can do essentially the same thing you would do in a home. Be careful when it comes to actual kind of the foundational parts and make sure you do have the proper beams, make sure the ventilation is correct, make sure that the mobile home is actually attached to the ground for safety reasons. Now let’s get into modular homes. modular homes like mobile homes are actually created in a factory, they tend to be broken up into multiple pieces, though, but again, they’re put together in a factory and not stick built. When I’m talking about a modular home and even a mobile home, I would really advise you if you are going to do this, if you’re going to buy it for yourself especially that you actually have the land that you want to put these homes on. If you’re remodeling a modular home, it’s the same thing as a normal home is a home that’s put together in a factory but you have the same options as you always would. So if you come across maybe an older modular home that maybe needs some updating, that’s really the extent of what you’d be doing you really wouldn’t have to do a whole lot more than just simple updating again modulars are actually a fixed the land they will not be moving mobile homes well in terms of financing for modulars is the same thing that goes so for me flipping a modular home is much easier because there’s really no question of whether it’s going to get financing the end buyer knows what they’re gonna live in. It just doesn’t move. So really between normal single family residence and a modular home there’s really not much difference at all. Hey, I want to stop real quick and I just want to give a quick little plug for myself if you’re interested in in getting started in real estate investing, wholesaling or even scaling your business just go over to my website the science of flipping calm and go fill out a simple form some my success advisors will reach out to you and we can feel out whether I’d be a great coach for you to either get started in wholesaling or if you’re trying to scale your business and really become profitable. If that’s an option, too, I’m happy to talk to you about what that would look like. So again, the science of flipping calm. So again, as an as an investor in actually the state of the economy, what I like about modular homes and mobile homes, and I’m going to continue down this path in my own business is because there’s nothing for sale and people can’t afford what’s out there. So looking into this is now becoming an increasingly large option for people who prior to all of this probably would have not thought that they wanted a modular home or maybe even a mobile home. Now, because the price points and because of the lack of inventory, this is a very real opportunity for a lot of people. So as an investor, I’d really tell you keep your eyes on this sector, the modular homes and the manufactured homes, there’s great opportunity there I myself did very very well flipping the mobile home or the manufactured home. I know you can too. So there are some differences but ultimately, this is a great sector to be in. I hope you guys enjoyed this. If you did enjoy this, make sure you like the video and you’re subscribed to my channel and I look forward to seeing you guys on the very next video. Peace