After renovating and flipping several multi-units, I was wondering what my next step in real estate investing would be. I had never given the mobile home market much thought, even after reading all the >mobile home articles and success stories written here on Creative Real Estate Online.
I wanted to stick with what I know. I had been so successful with it (a year and a half of experience) that a major real estate management company “head-hunted” me and asked me to: “Do to our properties what you have done to yours.”
At first, I declined because what they offered me was far less than I was realizing as an investor. Then they told me about the project. How could I say no. A ninety-nine unit complex for me to totally refurbish! What serious renovator (with dreams of owning one or more of these someday) would not want the chance to work on a project with a $2 million budget for renovations?
I agreed to go to work for them. Real long story (six months) made short here, I had given them more than they hoped. The purchase price for these units was $2,025,000 plus another $2 million for the renovations. The new appraisal is $5.2 million. (I did a great job!)
As the first of the units began to lease, I decided that the fourteen-hour days and sleeping in my office once a week needed to end. I had learned what I needed and proved I was capable. I gave them my resignation with no plan for what I was going to do but with the confidence that I would do something. I don’t recommend this; my wife almost had a nervous break down.
Now what? Something with as few headaches as possible–mobile homes! Create paper and hold financing. Ah ha! No more calls to fix toilets. Yahoo! (I was a landlord while I waited for my rehab properties to sell. Besides I was tired of management–crews of 40 and umpteen different sub-contractors.)
I traveled the mobile home parks looking for “for sale by owner” signs. I made some calls and set an appointment. My first deal went as follows:
$350 for the moving company
$397 water and sewage full year
$75 pay a guy to clean the yard
$420 first months rent
$215 property taxes for the full year
$24 newspaper ad
$300 for a lawyer on my first one to make it airtight
Total: $1,781
Plus, I assumed their energy loan (The company had never allowed that before.) of $2,453.16 @ 7% over remaining 49 months = $59.82 Month
THEN it sold in three days. Selling terms: $1,000 down, $9,948 at 12.75% ($250 month for 52 months) You tell me, how did I do? I helped a person move plus took over an energy improvement loan along with a few bills they could no longer afford as the purchase price. This is what makes it so incredible!
First, the new buyer is taking it “as is,” so no fix up for me. And it needs it! Second, there is a 16’X16′ shed/workshop with a picture window, its own electrical panel and fully insulated! Guess whose yard that is going into next week! I would say the shed alone is worth $2,500 or $3,000! I have made two more deals since then, all within two weeks of quitting my job. My wife is smiling again, and I never stopped. Cheers and happy hunting.