Looking to put mobile homes on 33 vacant lots. Lonnie deals was suggested as a solution. Has anyone used this method of acquiring mobile homes?
My way isn’t glamorous however it works.
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Get the classified & work them to death.
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Solicit your current residents. You’ll be surprised by the number of folks that will sell there home. The best part is that the home is already in your park. This saves you approx $4000 in setup cost
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Get a list of mobile home owners in surrounding parks. Then offer them small loans using there title as collateral. Keep your rate below 12% & you’ll be ok.
Lonnie dealer sounds to me like the only solution unless you have tons of cash or a willing investor with large pockets. Advertise at real estate investor meetings in your local area for a new investor with little capital interested in getting started in the rental business. Offer them free lot rent until the home is rented just to get the home in there. I would rather have a lot of different Lonnie dealers as opposed to only 1 because that would give the 1 lonnie dealer with a bunch of homes a ton of bargaining power over your park.
As for bringing in homes, 33 homes is a lot of capital exp. I would run the numbers many times and have others run them as well to make sure your ROI is worth it. You’re talking about close to $10,000 per home to buy it cheap, transport, then install.($330,000 minimum in my opinion) You’ll still have to sell it on a CD and wait for a long time to get all the money back. In my opinion, I would just get it to 80% occupancy with a lonnie dealer, refi or sell, then buy another park. Bringing in mobile homes makes me quiver…
Nate,
you bring up some valid points, but that is the way to do it.
Garden Grove - I have many posts on here regarding Financial Friends and Roth IRAs - search that. Hope they help.