With only 11 years of experience under my belt I am certainly not the most experienced person to ever make a living buying and reselling mobile homes for cash-flow. Still, I would like to provide you with a set of all important business-building rules to abide by with regards to your manufactured home investing business.
This list is how I run my business and what I teach to my clients. I believe in these statements so strongly they are called our Business Commandments.
Investing is about helping others and creating value. If you are familiar with this site and my philosophy you know that the mobile home business is a people business. Your buyers and sellers are only willing to pay you a profit because you have provided a “useful service”. Talk to sellers as you would a good friend and try to genuinely help everyone you can, even if no profit is the result.
“Money follows value.”
This statement can have a broad interpretation and that is the intention.
- Know where all the mobile home parks are located in your counties.
- Know the lot rents
- Know the park managers
- Know what is for sale
- Know what is about to be for sale
- Know you have advertising targeted to each park
Sellers are unique people that have unique desires, goals, motivations, wants, moods, skills, assets, education levels, pet peeves, questions, doubts, and fears when it comes to selling their unwanted homes. It is for this reason that it is important to be flexible, creative, and educated about structuring and presenting your purchasing methods for each specific mobile home.
Know what makes each mobile home seller happy and fearful with regards to;
Help the sellers move-on with their lives by purchasing their property one of these few ways;
- Seller financing
- Take over the deed
- Partnership Agreement
- Other creative strategies
“A good investor can find a deal, a great investor can create one.”
Prudent is defined as, “Acting with or showing care and thought for the future.”
Mobile homes will only allow you to charge so much for them. Make sure to ONLY agree to Purchase-Terms and Purchase-Prices that allow for substantial profit and business sustainability.
Mobile Home Formula Guideline for Investors:
- If paying your seller “All Cash” aim to recoup your initial investment back in less than 12 months once occupied by your future tenant-buyer.
- If paying the seller in monthly, annual, or semi-annual Payments make sure to receive a minimum profit of $100 every month while paying your debt service to the seller.
If there is one activity that should be thought about daily it is Advertising for sellers. If there is one skill that most investors need more attention with it is Advertising for sellers.
Your business grows as a result of advertising your message “You Buy Mobile Homes” for everyone to hear and see. At the start and middle parts of your investing business (prior to your 20th buy and hold) aim to use inexpensive and free methods to find leads. Once you have sufficient automated income every month you may want to test other lead sources to find motivated sellers. Always have multiple sources of lead generation running at one time.
“Appointments, Offers, Soft Negotiations, and Closings all come as a RESULT of 1st attracting a seller to help.”
Aim to resell every manufactured home with a great and attractive Repayment Plan for your buyer. Selling with an attractive Move-In Fee, Down Payment, and monthly payment will allow for a wide number of potential buyers to be interested. More buyers = Faster sale
Tip: Price your monthly payments at “comparable local apartment rent” prices. If a nice 3/2 apartment nearby rents for $1,000 per month, then you will be able to charge between $900-$1,100 (including lot rent) depending on the condition of the mobile home. When you can sell for market rent many buyers will be eager to work with you.
If you are anything like me then you respond well to rewards. Who is going to reward you in YOUR business, you are! Be tough and don’t let yourself down.
Do this: The next time you really want to purchase a new shiny toy, vacation, fancy dinner, outing, or other non-essential item make sure to close 1 MH deal first. One deal = One reward.
*I would love to hear an Investor Commandment that you think is equally important for a mobile home investor to live by.
If any of these commandments sound weird or unusual to you than I agree. You must think and act differently than other “normal” investors to produce results different from average investors. Average investors do NOT do deals, they are confused and struggle.
“Treat your business like a business, and run your business to achieve results.”
I feel so strongly about my methods of purchasing and reselling mobile homes that I want to provide you with a printable list of our Business Commandments like the one you see below. To receive this PDF please simple comment below with a Commandment of your own.
Love what you do daily,