In 1986, I started buying used mobile homes for $2,000 to $3,000, and selling them for $5,000 to $6,000 with payments of $200 to $300 per month. Over 20 years later, I’m still buying and selling mobile homes at the same prices, same payments.
Yet, I keep hearing people say there is no way they can buy mobile homes for $2,000 to $3,000 in today’s market. Horse feathers! You’re either not trying very hard, not looking in the right places, or you’re talking to the wrong people.
My local paper has a number of used mobile homes priced from $8,000 to over $50,000. Every park I ride through has sale signs posted. Every park manager I talk to knows of a home for sale. Every dealer has used homes for sale. Mobile home lenders have numerous repos for sale.
There is no shortage of used mobile homes. But guess what? You will see very few, if any, priced for $2,000 to $3,000. Guess that means there are no more “Lonnie Deals,” huh? Stop kidding yourself; there are plenty of deals to be had. But it’s up to you to talk with the seller and negotiate the deal. Good deals are negotiated–not found.
Deals are generated with people, not ads or signs
I’ve taken a number of park managers to lunch, but I’ve never had lunch with an ad or a sign. You negotiate with people. Ads and signs only provide a way to contact people who you can communicate with, negotiate with, and generate a deal with.
Last month, I bought a mobile home for two months’ lot rent from someone who was evicted from the park. Another seller in the same park wants $1,500 for his home. Last week, I bought back a home I sold 13 years ago, for $500 (that’s five hundred). I have it priced at $4,900 and expect it to be sold shortly.
My daughter just sold a home for $7,000 that she paid $3,000 for. So have things really changed in this niche market? No, not really.
In 1986 I was buying mobile homes for $2,000 to $3,000 and selling for $5,000 to $6,000. Today I’m still buying homes for $2,000 to $3,000 and selling for $5,000 to $6,000. In 1986, it was, “How much down and how much a month?” Today, it’s still, “How much down and how much a month?”
There have been enormous changes in almost everything over the past 20+ years. Prices, wages, lot rents, etc. have increased considerably. But one thing will never change–the need for affordable housing by financially irresponsible people who can only buy things by making monthly payments.
Financing is the key
This niche market offers the same tremendous money-making opportunities today, as it did 20+ years ago. And I’m willing to bet it will be the same 20 years in the future. Some things change, but people don’t.
Regardless of whether you’re selling a mobile home, car, boat, refrigerator, carpet, or simply making somebody a loan, your goal should be to create a note that obligates somebody to send you a check each month.
Used mobile homes have been, and still are, an excellent vehicle to create notes and cash flow. But it’s only one vehicle. The same concept applies to anything you’re willing to lend money on and accept as collateral. The name of the game is FINANCING! That’s where the money is!
I’d like to take this opportunity to extend a personal invitation to each of you to join the rest of us in the UBA Club (Unemployed Bubbas/Bubberettes of America). Make plans to join us soon. You’ll be glad you did.
About the Author:
Lonnie Scruggs owned, rented, and managed his own rental properties for 24 years. He became a burned-out landlord, sold all his rental properties and started investing in discounted notes. He soon developed his own specialty in used mobile home notes, with little competition and earning high yields. Lonnie tells all and shares his inside secrets in his book: Taking the Mystery out of Money
Lonnie Scruggs owned, rented, and managed his own rental properties for 24 years. He became a burned-out landlord, sold all his rental properties and started investing in discounted notes. He soon developed his own specialty in used mobile home notes, with little competition and earning high yields.
Lonnie tells all and shares his inside secrets in his book: Taking the Mystery out of Money