I'm gonna show you exactly how to invest in mobile homes with no money down coming up what's up
guys Steve with Steve Invests helping real estate agents, real estate brokers as well as real estate
investors grow their businesses with a path toward financial freedom today we're going to talk about
basically a no money down, no money out of pocket low risk option for buying mobile homes it's a
very unique strategy I'm gonna bring you through one of these parks right now we're going to cruise
through it alright if you haven't watched my other video on the two different types of parks you
might want to check that out I'm gonna put it at the end of this video you're gonna want to digest
that video just so you have a good understanding as the different types of mobile home parks that
are out there and the differences between what's park owned as well as lot rent just to summarize
real quick what we're looking for in this strategy are investors who own the entire mobile home parks
who do not want to own the structures so they basically just want to collect the rent from the
lot so it's an ample opportunity to basically play a middleman in this scenario so some mobile home
parks are actually owned that individual Lots are owned by the individual owners those are not the
mobile home parks that we want to look for we want to look for mobile home parks that our investors
own the entire park they own all the land in the park we want to search for those if you're having
difficulty trying to find those you can search on your local property appraiser site if they
have a website many of them do and you can search mobile home zoning and then you're going to want
to find the parcels of land that are basically on one-strap 1 PID you could always go down to
your property appraiser office wherever you live and see getting a list you might have to pay 25
bucks to get a list of all all these mobile home parks in your area or surrounding areas and then
what you're going to want to do is you're going to want to go and individually visit every single
Park that's on this list and you're going to go in you're going to talk to either the manager that's
on site or the owner if there's no office on site many of them don't have offices you're gonna call
the phone number many of them are gonna have a rental phone number on a sign of vacancy sign
and you're gonna want to give them a call you're gonna want to meet up with them and you're gonna
ask a series of questions number one being what is the lot rent if if they say that they only
have structures available for rent meaning that's park owned where they actually own the structure
they want to keep the structures the actual park owns the structures and they don't want to sell
the structures and those mobile home parks are not what we're looking for and find out what the
lot rent is and then ask them if they have any structures in their park for sale okay that's
number one if they do have structures for sale explain to them what you're doing if they don't
have structures for sale then go cruise around the neighborhood and see if there's any for sale
signs in the yard or the windows and see if any individual owners of structures are trying to sell
them and call those call those owners as well all right doing a quick search on Craigslist here and
I put the price range from $100 to five thousand reason why I did a hundred is because there's a
lot of them that are priced at zero so this will make your search go a lot easier let me just show
you this one for an example beautiful one one mobile home asking five thousand the Winter Haven
area take a picture look at the pictures real quick and it's not a disaster it looks like it's
currently being lived in as well doesn't look too bad for Sale By Owner 1-bed 1-bath little mobile
home needs nothing for your place furniture and no ECC gotta account for that a lot rent 350 includes
water trash lawn maintenance asking 5,000 we need to sell within 10 days no reasonable offer refused
well many times you can get them really cheap especially if they just want to move move out
and get out of their lease because again a lot of them are locked into a lease for lot rent and in
many cases the the landlord will let them out of there there are lot rent obligations if they find
somebody else to take over the lot rent and take over the structure so it's twofold you want to
seek the individual owners for the structures or you want to see if the owner of the park
actually has structures that they want to sell or even give away for free that's right in some
cases you can actually get these structures for free from the park because at the end of the day
they don't want to mess with it they don't want to mess with getting it into rentable condition
and they just want to collect their lot rent they don't want to mess with leaky toilets they
don't want to mess with you know soft flooring or leaky roofs or anything associated with the
structure they don't want to mess with and again those are the parks that we're looking for and
keep in mind a lot of the owners these parks sir they want somebody like yourself to come
in and kind of bail them out and keep in mind if they have structures that are really in bad
shape and you can utilize this as a negotiation point so for example if the if let's say you got
the structure for a thousand bucks and it's in rough shape and you got to put some money into
it don't worry we're gonna show you exactly how to buy these with no money down but you have to put a
lot of money into it you can negotiate with that owner or that manager of the park for maybe some
free rent depending on the scope of work it could be two months it can be five months it could be
six months you want to present yourself as the professional coming in and saying hey you know
what we're on the same page let's work together I'm gonna help you make your Park look better you
can tell them some of the strategies about what you would do on the outside of that structure for
example new landscaping or fence or skirting around the outside new pain pressure washing
and so forth anything that's gonna help the exterior that property look better that's gonna
work to the favor of the pork owner and as time progresses is you guys build a relationship the
park owners probably just eventually just gonna start giving you more and more mobile homes that
they acquire the owner of the park obviously has a lot of incentive to work with you and then your
incentive is essentially you own the structure you figure out fair market value for the structure
for rent monthly rent - the lot rent that you're obligated for is the spread on it and that's what
you're gonna get so let's jump over the board and dive into the numbers all right guys let's assume
the cost of the structure is $1,000 for the acquisition let's say the renovation is $2,000
total price 3000 and let's say the lot rent is $300 market rent for running
the structure out is 600 that's going to give you a net return $300 so your
initial investment is paid back within 10 months now for no money down strategy let's
say you have a goal of $600 monthly goal coming in not using any of your own money
you find for investors with 3 K each
split profit 50/50 be 150 each per person x for $600 a month the name of the game would
be to reinvest the $600 back into acquiring more mobile homes if you took the $600 per
month within 5 months you could have your own mobile home or go out seek out more investors
to come up with the 3000 or whatever your current market bears in terms of the acquisition as well
as the net income per property now let's talk about some of the pros and cons associated with
this the pros obviously there's a big demand for affordable housing there's a lot of people
that are on fixed income and need property that that's going to be affordable to rent out and in
many cases you're gonna have a waiting list for your inventory the second advantage this is its
very low risk it's not like you're trying to buy an entire mobile home park and take on debt and
big amounts of debt so it's it's very low risk at the end of the day and the third thing as we
mentioned it's cash flow it's good cash flow now some of the cons associated with the strategy is
yes you are dealing with old structures they're gonna have a lot of issues associated with them
and you know you're gonna have to deal with leaky toilets or roofs and soft spots in the flooring
there's gonna be a lot of ongoing maintenance so you need to be prepared for a lot of work and it's
going to be advantageous if you have some sort of construction background and one of the other
cons is anytime you're dealing with affordable housing many many times they're on paycheck to
paycheck and so you you will have some struggles collecting rent you will have a certain amount
of evictions that you're going to go through it's all part of the business all right some pro tips
number one get general liability insurance last thing you want to do is have somebody slip and
fall in your structure and try to see you so you want to have a good amount of general liability
insurance talk to an insurance agent the second pro tip and especially if you're just starting
out once you have identified a unit that you're gonna buy especially if this is your first one
before you lock in the deal tell the owner of that structure whether it's owned by an
individual or the park that you need a night or two nights to think about it and then what you do
is take some pictures of that unit throw some ads on Craigslist and see what kind of action activity
you're getting at your market price that you you've come to come to figure out last thing you
want to do is buy this thing and think that your spread is going to be you know $300 a month when
in actuality the the pricing that you're using isn't going to drum up any phone calls so this
is opportune time to go ahead and place ads and then obviously you can you can get people lined
up to rent the property out even before you're done getting it prepared for rent the third pro
tip be your a maintenance person initially the reason why I say this is yes you're gonna have
to spend the time it's gonna be time taken away from going and finding another another
deal now if you become your own maintenance person initially you're gonna have a really good idea of
the cost of material that costs the laborer or how much time it takes to change a toilet out and so
forth this way when you do hire a maintenance person or even a full-time maintenance person
you know exactly how much time it's gonna take in this way you're not getting overcharged for
anything as well last thing you wanted to do is get overcharged and then you know it's going
to just eat into your profit the fourth pro tip as I mentioned earlier is make sure that you're
trying to negotiate with the owner of the park if you're buying that structure from them even
if you're not buying the structure from them you can say you're interested in possibly buying the
structure from Nancy Sue and you want to see what kind of deal you can work out while you're
renovating the property and remember keep in mind you're gonna talk about everything that
you're gonna do to the exterior of the property to make his Park his or her park look even better
and the fifth pro tip you know a lot of these mobile homes are in really bad shape they're
old there's no point in putting new material in these mobile homes we want them to be nice and
clean and presentable and functioning but you can get so many good deals if you search around unused
stuff even stuff that's coming out of houses that are being renovated or demolished or old buildings
and many times you can get nice carpeting from these used carpeting from houses that
people are putting in tile or whatever the case is so make sure that you're buying used and you
know I highly recommend on all these exterior and interior paint I mean just paint alone just gonna
make it smell fresh and and and just look look a lot better so paint can go a long way but again
material wise make sure that you're buying a lot of used materials and also as time progresses and
you get bigger you build up your inventory you might've actually get a storage unit where you
can just start storing stuff that you do buy hey I get it guys I there's something either gonna be
like how in the heck am I gonna find a mobile home for $1,000 and you might be thinking how
am I gonna renovate mobile home for $2,000 all I can say is if there's a will there's a way and be
sure that you check out the video at the end of this clip we're going to talk about the different
park types between Park owned and a lot rent I'll see you there appreciate the sport thanks