As investors we not only have to think of our sellers when we are purchasing our mobile homes, however we have to understand the mindset of our buyers and sell with our buyers in mind. Below are 3 mobile home investment selling strategies that are most common for your mobile home buyers.
1. Bank Financing:
Lending is available both from well-established nationwide manufactured home lenders and your hometown banks/credit unions.
When your borrower wishes to be approved at a bank, the buyer, the home, the foundation, and possibly the mobile home park (if applicable) may all be required to pass underwriting guidelines before final approval. This makes some mobile homes unfinanceable.
However some areas of your state or city may be labeled as “massively growing”. In these areas there are drastically more people coming into the city, then leaving. This increased demand typically pushes home prices upward; it can do the same for mobile home prices as well. In areas with very little supply [single-family home buyers] with cash are willing to pay seemingly-large-amounts for used/average/below-average mobile homes due to location. Driving outside of these “massively growing” areas may drastically change the supply and demand of the marketplace. The red areas on the map are a rough outline of some areas around the country experiencing a surge in population growth.
3. Owner Financing:
While the concept is fairly simple, newer laws have limited seller held financing when selling to end-buyers living in the subject property. Make certain to follow all state and federal guidelines when advertising, negotiating, and creating paperwork while selling a mobile home via seller held financing.
Pro Tip: A local mortgage loan originator may be able to help with the process of negotiating and originating your seller financed notes. Ask for references at your local real estate investors association.