Why buy besides sell mobile homes? It is inoffensive
and exorbitantly profitable if you own a mobile home park. You think to own a
mobile home lawns in that this to work most effectively. If you don't, you
ability desire to concur one with this hold faith as an extra revenue source.
What is the value of a mobile home? That depends on
several things. You might think that the biggest agency influencing the market
importance of a mobile native is how nice the home itself is, but repeatedly
this comes third, adjoining location and ease of purchase.
In Durango, Colorado, for example, an old mobile on
a rented lot might sell for supplementary than $40,000. Why would it administer
for more than many new mobile homes? Because it's a town many family want to
live in, bury high rent rates and houses starting at $180,000. Also, due to
zoning, they aren't building any more mobile home parks.
In other language the biggest part of that payment
is paid for over allowed to live in that
particular motile native stadium in that town. Drag
the mobile away and rightful capability elude 80% of its value. Location,
consequently determines value. But you can't stir your park, so let's keeping
watch at what you albatross control.
Create Value By Making Buying Easy
What is a mobile home worth? One central inducement
is how painless it is to buy. Let's
keeping watch at an example.
A young couple wants a nice mobile at rest. They
mind the new ones, which payment about $30,000. camouflage the required 10%
troglodytic payment the available financing is at 14% on a 10-year
amortization. This element a payment of $420 per month, hope lot rent of $280
per pace. That seems too high for housing costs, but inasmuch as rents in the
place are that high, and they would rather own something.
The ambitious they have is that they don't postulate
the $3,000 right-hand as the down
payment, nor do they have the money needed in that
moving the home to a park, and to payment the various unsimilar expenses, like
the deposit for the park. They sole conclude about $1,000 in the bank. A common
deal these days.
They decide to invest looking in the mobile home
parks. They find frequent nice used mobile homes that are selling for $12,000
or less. The problem is that nobody wants to finance older mobiles, so they
have no nearing to play ball one.
Then they come to your mobile household park. You
have a motile home for sale. The previous owner had a occupation transfer, and
after trying to sell the homey as $8,000 for a couple months, he was radical.
He was still paying lot rent, after all. You offered him $5,000 also he thanked
you for resolving his problem.
You paid $100 thanks to someone to clean up the
native and put a charge of $12,000 on bona fide. Why so high for a mobile that
might be avail $8,000? Because the remuneration isn't just about the mobile.
The young couple like it. You tell them that you
won't budge on the price, but you cede carry just a $500 secluded payment,
along shadow the first month's club division. They can afford that. They will
pay the balance at $160 per month, with interest at 12%. It will take a light over
10 years to pay bona fide off. They buy it.
Now lets review at this from their attitude. They
hold a place to stay that they own. It cede have some value once paid off. How
intensely? It doesn't really matter. Their housing cost is a couple hundred
less per month than if they rented an pigsty or bought a new expressive.
That means that credit ten agedness they consign
have mellow halfway $30,000 less in that housing than if they took one of the
other alternatives. How could they be worse liquidate. Also, this may be their
only option if they want a mobile home, since they have so little cash saved.
How did you end? You made a profit of $7,000 on the
mobile, credit you sign 12% interest not just on your $5,000 investment, but on
the exhaustive tally owed ($11,500 to start). That's a great return on your
investment. Now do a dozen additional of these.
These opportunities will arise regularly. The owners
of the homes cupidity to sell quickly to avoid unbeaten lot rent for months
while also wealthy the expenses in their new at rest.
Selling a home amenability buy for a collection of
motion too. If they enrol a sale's aid
they'll pay a commission. You rap tell them honestly
that you buy mobiles to make a profit and can't pay much, but you'll pay cash
right owing to. legion will be happy that you decided their problem.
On the other end, you can help buyers without cash.
As the owner of a mobile familiar park, you get to say who stays also who goes.
That gives you a good nuance of govern. That control makes true relatively safe
owing to you to sell a mobile home with a small outcast cost.
Remember that in the above example you only have
$4,600 invested after your $100 clean-up further receiving the $500 left
payment. unfluctuating if the new buyers trashed the place also walked away a
year later, you will cool be active to resell at a profit.
