Wholesaling Mobile Homes – $34k Fee!
So so many people think that real estate investing really should be single family homes, condos, townhomes duplexes. But don’t forget one thing. This $34,000 check that I just received this morning came from wholesaling a mobile home. So I want to talk all about that deal and to make sure you realize mobile homes are still a very real asset that you can wholesale, buying, hold, flip, do seller carry back, you name it. Don’t forget about mobile homes.
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So most of you know me as a full time real estate investor. And for the most part, I talked about flipping single family homes or condos or townhomes or how I’m virtually buying rentals in Oklahoma City. But one thing I don’t talk enough about is how in the last 30 days, I’ve done two deals, both of them bringing me back north of $30,000. And those two deals, were mobile homes. So let’s talk about mobile homes and why so many real estate investors actually forget about them. Well, I’m not sure why they forget about them. But what I do know is why they focus on single family homes, condos, townhomes, and that’s because there’s more people that would prefer to live in a home or a condo or townhome. Now, don’t get it wrong, I do the vast majority of deals, flipping wholesaling, and buying single family homes, that is the vast majority of my business. But one thing that is true, and I would argue I didn’t realize till the last handful of years, is there is a lot of money to be made with mobile homes. So let’s talk about this deal and how I structured this deal and how I made this $34,000 check without having to put any money into it without having to buy it without having to do anything, except for find a buyer. Now this is said HUD from that mobile home. And if you’re able to read closely enough, there is actually another investor in here that also made 15 $100 flipping or wholesaling that mobile home. So how is that? Well, the way that works is something that I teach a lot of my students which is co wholesaling or what I say in inverse profit method, you see, I’ve spent a lot of money marketing to this person. In fact, this lead came from direct mail. In fact, this lead was in my pipeline for two whole years before that person actually decided to sell. So it has taken us two years of nurturing this homeowner to find a time when she wanted to sell. And that was this month. And actually what happens is I always say is it’s an event based business, you need to be in front of the person going through the right event that you are the person they want to sell to. And that’s exactly what happened. The woman that actually sold the property she had several kids that were now occupying that property they were kind of mooching off of her if you will, and she wanted nothing more to do with it and she wanted to get rid of it and just kind of move on with her life and let her adult children figure out their lives. So she didn’t want to actually be a crutch to them anymore and for that reason when we called the checking on her she actually said I perfect timing I was just considering about selling so I’m glad that you call now what happened in this transaction is we contracted the deal with the seller and we are going to wholesale it well another investors are email and they actually called in to say hey, I think I have a buyer for a property like this which again, is a mobile home on a piece of land roughly an acre or so out in south south south Phoenix right? In fact it was actually in a city called Casa Grande and is really south Phoenix you probably wouldn’t even say it’s Phoenix right that’s the reality it’s actually in a totally different County. So this mobile home is on a property Now one thing I want to side note for you guys here if you don’t know real estate investing or mobile homes, is you need to make sure that the mobile home is affixed to the land that’s what actually makes it a real estate transaction. Some mobile homes are actually just placed on the land and never actually a part of it right in that in that sense that mobile home would be considered a vehicle right mobile home, that transaction to buy that mobile home would not include the land then I’d actually have to do that transaction through the DMV. Just a little sidebar there.
So this mobile home was a fixed the land so I’m buying the land and the mobile home. I contracted with the seller I sent out my email. I had another investor give me a call saying I have the perfect buyer for you. Within minutes. That buyer put their earnest money into escrow, non refundable by the way $5,000 non refundable and the other investor tacked on 15 $100 to our price. So they made 15 $100 and I made $34,000 I find out To be completely fair, and here’s why the buyer actually bought this mobile home. So I contracted his mobile home at $80,000. And put it out on the market for $109,000. The investor who found the one buyer that moved immediately, they are actually paying $109,000 plus the 1500 that that other investor tacked on top, which is all fine. But the reason why this buyer actually wanted this property so bad and move so quickly, is they’re actually buying it. So they can resell it at a higher price using seller financing. Now this is a little bit more advanced for those that maybe are not totally engaged in real estate investing yet. But what he is the end buyer, what they are going to do is they’re going to buy it, and they did already obviously have the check to show that, but then they’re going to resell it at a price above my price, they are not looking to repair it, they’re not looking to rehab it, they are quite literally going to maybe mark it up 10 1520 $30,000, I don’t know the number they’re going to resell is we just closed today. And then they’re going to sell it to someone who cannot go get a loan, whether they can’t go get it because of credit or whatnot, they are going to sell it to that individual, they will likely take anywhere from 10 to 20% down. Now remember, they marked it up, right. So if they take, let’s just say 10% down, when they sell it, then they’re going to take, I don’t know $15,000 down, and that’s gonna go right back into their pocket, then they’re going to create a note and they’re going to become the bank. And they’re going to charge an interest rate just like banks do over an extended period of time quite literally becoming the bank. And they’re going to have cash flow without dealing with the tenant because that buyer is likely going to be the owner of the property and they’re likely going to live in the property at that price point 109,000 they’re likely going to probably try to resell it at 125 or 130, they’re likely going to ask for anywhere from 10 to 20% down so they could essentially make $25,000 down. Again, not certain because they have not resolved it yet but I know that they are and then they have monthly cash flow coming in without having the headaches of homeowners. I mean it’s a beautiful, beautiful model and when you have a price point like this, it really works now the reason why I shot this video is first of all for you investors. If you aren’t paying attention to mobile homes you need to be for this very reason you can wholesale them. As you seen in previous videos, you can remodel them I’ve done several videos on a mobile home I remodeled and flipped, you can also buy them and do seller financing or do anything you want. You can just buying them and keep it as a rental. So with all that said and done. Thank you very much for paying attention this video it’s been my pleasure, make sure you’re subscribing again, like the button and turn on notifications. I’ll see you guys on the next episode. Peace
