Are You a Mobile Home Owner Interested in Selling? — Mobile Home Investing (2022)

This page concerns mobile homes inside private parks [on rented land]. If you are selling a mobile home attached to private land please click this sentence.

If you in fact are wanting to sell your mobile home inside a park then you have come to the right place. Please read below to gain a better understanding of the steps needed to complete a fast sale on your own and keep all the profits.

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Follow the steps below.

Comment any questions below on this page.

If you would like our team of nationwide mobile home investors to make you a fast and fair purchase offer on your property please click this sentence.

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1. Understand the current used mobile home selling market.

The goal of this page is to give you the real-world tools and info you will need to sell your home fast! With that said I would love to tell you that mobile home buyers will be lining up to pay you all-cash for your used mobile home. In reality this will not likely be the case unless the mobile home you are offering for sale is 1.) more attractive than any other in the park and 2.) less expensive than any other mobile home for sale in the park.

Used mobile home buyers will likely take 2 forms: cash buyers and payment buyers.

A cash buyer that is interested in a used mobile home for sale will be the minority of buyers you speak with. A buyer that has $15,000-$50,000+ for a used mobile home will be downsizing, using tax refund money, cashing out their 401k, or using some other form of savings to purchase a mobile home. Anyone spending all-cash has their pick of any mobile home as buyers with cash are KING.

Cash example: Sale price is $20,000. Buyer pays you $20,000 cash and you give them 100% ownership via transfer of Title(s).

(Video) Mobile Home Investing with NO MONEY

A payment buyer is any buyer that has a “Down Payment” and monthly income to pay you over-time for the sales price of your mobile home. When you sell to a payment buyer you will want to make certain you collect a large enough down payment to help ensure the buyers do not default on you and leave your home. Plus a buyer with cash to put “down” shows much higher quality, interest, and responsibility than a buyer with zero dollars in savings. Buyers that will make you payments are everywhere. Think about this – most people that are renting would love to own a home for market rent – this is essentially what you are offering.

Payment example: Sales price is $20,000. Buyer pays you $5,000 down and makes you 36 monthly payments of $416.67. The day the buyer gives you the $5,000 you will sell the home to the buyer – however you will add yourself as Lien holder to the Title(s). When selling a mobile home for payments you can charge a premium for the home. Consider selling this home for $25,000 in this example.

2. Understand you have options when it comes to how you sell your property.

If you have been trying to sell your mobile home with less than stellar results you may have trouble believing that your mobile home is valuable. In most cases you still have options to sell your home fast and make a substantial profit.

Now that you understand that cash-buyers are few and far between – I have to ask you how fast do you need to sell your mobile home?

I need to sell in less than 90 days! If this is the case then you are most likely being evicted by a mobile home park for non-payment, you will be leaving the state/country very soon, or you have already moved and cannot afford 2 homes. If this fits your description then time-is-of-the-essence and you need to sell fast or you risk losing the home and giving it away to the park for free.

Your options are as follows:

If the property is clean and in fairly good working order you may be able to sell this home for cash to 1.) the current mobile home park the mobile resides in 2.) a different mobile home park that will pay cash for this home 3.) a local mobile home repo dealer or 4.) a buyer that has all cash and is looking for a great deal. You may also be able to sell the home to a payment buyer for cash down and monthly payments for your equity.

If the property is not clean and needs repairs then you are looking for a buyer that is willing to make repairs and spend repair-related-costs after they buy. This buyer will be coming out of pocket for repairs so you had better advertise the home for a low-cash-price or you can offer to accept monthly-payments with minimal cash-down due to the repairs needed. Accepting monthly payments will allow you to resell the home quickly and make a profit over time.

I need to sell between 90 days to 6 months. Consider yourself fortunate that you have the time and resources to market your home for a cash seller and wait. Seeing that you have time to wait to sell you can advertise for sale all-cash and even list your home in the MLS for 60 days with a Realtor. If the home is not sold in 60 days for a fair price then consider the option of lowering the price again or selling the home for payments. If you sell your home for payments you will be able to charge a higher sales price opposed to selling for all-cash.

Additional remarks:

I own my mobile home free and clear: This is preferred. If you own your mobile home free and clear this means there is no Lien or mortgage on the home and you should have in your possession mobile home Title(s) [unless in TX, VT, or NH]. Since you own the home you may sell the Title and add yourself as Lien holder to protect your interests.

(Video) MOBILE HOME Investing VS. Mobile Home PARK investing

I have a mortgage on my home: This will cause a problem. You will have to pay off the Lien before you can sell the home for payments and add yourself as lien holder.

Example 1: Your asking price is $20,000. Seller is interested and has some money. Your lien (loan, mortgage) payoff is $4,000. It is good that your lien is low. It is now possible to close on the home and have your buyer pay-off the lien of $4,000. Once the lien is paid-off you will give them ownership and add yourself as lien holder while collecting the remaining $16,000 (payable monthly as agreed).

Example 2: Your asking price is $60,000. Your lien (loan, mortgage) payoff is $40,000. This is not good. Most buyers will not have $40,000 to pay-off this lien. Most banks will not lend to used mobile homes inside parks. If you cannot find any cash buyers within a few weeks or months – contact your bank to ask for their help providing you with Short Sale information. A Short Sale is when a bank agrees to take less then what it is owed. A short sale will negatively affect your credit, may not always go through to completion, and you will still be required you to find a cash-buyer for the home (who is also approved by the park). During a short sale all payments to the park should be made.

3. Advertise to find buyers.

Now that you understand what types of buyers are in the market, it is time to decide how you would like to sell and start advertising for buyers.

FSBO Sign: Make sure you always have a “For Sale By Owner” sign in your front window. A valid number should be on the sign.

Online: Use sites like Craigslist.com, Backpage.com, Trulia.com, and Kajiji.com to advertise your mobile home for sale. These are free sites that buyers look at. If selling for all-cash then make sure to advertise in the “For Sale” sections of the websites. If you are trying to sell the home for payments then make sure to advertise in the “For Rent” sections of the websites.

Newspapers: Advertise in the local community newspapers. If selling for all-cash then make sure to advertise in the “For Sale” sections of the newspapers. If you are trying to sell the home for payments then make sure to advertise in the “For Rent” sections of the newspapers.

Yard Signs: You can buy these 12″x24″white or yellow plastic (disposable) yard signs at your local home-improvement store. Use a 1 inch, chisel tip, permanent black sharpie.

Sign example 1: Selling for all-cash.

3/2 mobile home

for sale.

(Video) What Price to Sell a Mobile Home for on Payments? | Mobile Home Investing

$10,000 cash.

Must sell.

123-456-7890

Sign example 2: Selling for payments.

Owner Finance

3/2 mobile home.

Low-down.

123-456-7890

4. Do not be Bullied. Know what your home is worth?

It is important to not be bullied when you are trying to sell a mobile home for a fair price. On the other hand it is import to not OVER demand what your home is worth. You are seeking a fair – Win/Win offer that allows both parties to get what they want.

If you are willing to hold payments then understand this is very valuable to a honest, hard-working payment buyer. You are allowing this buyer to own a home without qualifying at a bank – you are the bank.

When you are selling for payments you have most of the control – be fair and make sure to prescreen every buyer that says they want the home. Your mobile home park will also likely prescreen this buyer but it is important for you to verify this seller’s background personally. Use inexpensive tenant-screening online websites to check for criminal history, negative credit history, eviction history, and sexual predator status of each adult applicant. Ideally you will find “0 results” to all the searches above. It is my advice to not sell to anyone that has had an eviction, ever.

(Video) How to Invest in Mobile Homes: part 1

When you are selling for all-cash you are in less control – be sure to know the minimum amount you will accept for a fast cash-sale and what you will not accept. If a buyer really wants your home but only has “X” dollars in their saving, you can offer they pay you monthly for the balance.

When you will only sell for cash and no other way you are not in the driver’s seat and you should take the first “fair” cash offer that comes along.

5. Verify buyer has funds.

If you are selling a mobile home in a park for all cash then you will want to verify the seller has all his/her funds available to close. This also makes certain the buyer is serious and not wasting your time.

6. Follow up with your buyer.

Within 48 hours of you and the buyer(s) verbally-agreeing to a purchase price your buyer(s) should be getting approved at the park. Most likely all non-minors living in the home will need to be approved. If this is not done within 48 hours your buyer may be stalling.

Whether or not the buyer plans to move-in now or in 90 days they will need to be approved at the park before you will stop advertising and showing the home. Again, keep advertising the home and talking to prospective buyers until the day the park manager lets you know your buyer(s) have been approved.

7. Prepare closing documents.

You will need…

Seller’s Information Sheet: Only if accepting monthly payments. This is a general information sheet regarding the seller’s information. You will want to collect everything from names, date of births, social security numbers, job history, current job info, past 2 years W-2’s, bank account info, etc. This form is similar to the information needed to perform your background check. You keep original and your buyer does not receive a copy.

Bill of Sale: A Bill of Sale is the mobile home (in a park) version of a HUD-1 closing statement. A Bill of Sale describes the terms of the sale? How much was paid today? If there will be any liens for the purchaser? If the home is warranted? Which fixtures or appliances are included in purchase of the home? The Bill of Sale also includes the mobile home year, vehicle registration number, serial numbers, address,dimensions, make and model of home. You keep an original and your buyer keeps an original.

Promissory Note: Only if accepting monthly payments. This form is optional and is to specify in detail the payment instructions, seller financed amount, and payback terms. When selling a mobile home with payments it is vitally important to follow SAFE act and other TIL (Truth in Lending) practices or use a licensed Loan Originator in your state. You keep an original and your buyer keeps a copy.

Agreement After Closing: Only use if you will be remaining in the property for a short while after the buyer purchases the home. This is used in rare examples if you need to stay in the home for 30-90 days after the purchaser pays for the home. This “Agreement After Closing” states that 1.) you will be remaining in the home after purchase 2.) that you have “X” number of days to leave 3.) when you leave you will leave the home clean and in broom-swept condition and 4.) that the buyer will pay you the remaining balance when you leave and they take the keys. You keep a copy and your buyer keeps the original.

(Video) 5 Reasons Why: Mobile Home Investing

Example of Agreement After Closing: The buyer does not need to move in for 90 days so you agree to live in the home and pay lot rent for those 90 days [this is a win-win deal]. The agreement states that the buyer will pay you [at the closing] 90% of the money they owe you and you will give them a signed Title(s). In 90 days or less you must be out of the home. At this point you and the buyer will meet again and they will hand you the remaining 10% of the money they owe you and you will hand them all the keys to the property.

8. Appointment to close

This is the time you will be signing all the paperwork and giving the Title(s) to the buyers. If they are making you payments make sure to go with them to the DMV [DOT, HCD, or other mobile home titling authority in your state] to ensure the buyer(s) add your name as “Lien holder” to the new Title. This is done at the time you are talking to the clerk and they are about to Print a new Title with the new Owner’s names… this is when your name and address will be added as “Lien holder” to the new Title(s). In addition to being named as “Lien holder” you will also need to give the DMV [DOT, HCD, or other mobile home titling authority in your state] your address to mail you the original Title(s). You will hold onto the original Title(s) until you are paid every dime in full. Be aware it may be wise to have a Notary available at the closing location or you can drive to a local bank for their free Notary services.

Hazard Insurance: If you will be accepting monthly payments it is important make sure the buyers have insurance on the mobile home in case of fire or other damages. Your new buyers will want to pay for a Homes Owner’s policy and add you as “Additionally Insured” to the policy. A mobile home hazard insurance policy will likely run less than $50 per month. Make sure you are insured for every dime you are owned.

FAQs

Is a mobile home a good investment property? ›

Mobile homes are a terrible investment because they drop in value super fast—the same way your car loses value the second you drive it off the lot. Investing in a mobile home isn't like investing in real estate. Why? Because the land the mobile home sits on is real estate, but the home is considered personal property.

What are the disadvantages of living in a mobile home? ›

Cons:
  • Availability and cost of suitable land.
  • Extra costs imposed by manufactured home community.
  • Fewer choices and higher costs of financing.
  • Fewer personalization options and amenities.
  • Lingering stigma of mobile homes.
  • Questionable long-term value;slower, if any, appreciation.
Nov 16, 2020

Are mobile homes a good investment in 2022? ›

You may not have thought to invest in mobile homes before, but it could be a profitable investment in 2022. While the savviest real estate gurus are jumping on single-family homes, you can get a step ahead with lower-cost, high-demand units. Since the crash a decade ago, the real estate market has become very tough.

Is flipping mobile homes profitable? ›

Flipping mobile homes is a quick way to make money. You can buy a mobile home at a low price and sell it after renovation. It can earn you a good net profit.

Are mobile homes a good investment in 2021? ›

Mobile homes will continue to be the best option for those unable to pay the high costs of conventional homes and ever-increasing apartment rents. Mobile home parks are typically 1/3 the cost of a single-family house or 1/2 that of an equivalent apartment building in the same community.

How long do mobile homes last? ›

While the average life expectancy of a mobile home is 30 to 55 years, you can still outlast that number. This is best done if you ensure the installation is done properly, choose the right location, and generally adhere to maintenance practices.

Do mobile homes hold their value? ›

In general, mobile homes don't appreciate in value.

Unlike traditional homes, which vary in value with the real estate market, mobile homes rarely appreciate.

Are double wides a good investment? ›

Data and history show that manufactured homes are quickly becoming the preferred choice over site-built homes. Rising sales, low costs, and the freedom to have a home with equivalent amenities as a site-built home are selling points for the people that rent them, making this asset an investment winner.

How much do mobile homes depreciate? ›

In general, mobile homes depreciate at about 3-3.5% a year. Working out how much your manufactured house has depreciated can help you to fairly accurately determine the current value of your home. For example, a home that originally cost $50,000 will be worth $ 41,000 after six years.

Is a park model a good investment? ›

As far as holding their value, park model homes are excellent investments. They are built to last 30-50 years or more with minimal maintenance, and their rising popularity means that their rental and resale value is still very high.

How do you flip a mobile home for profit? ›

Flipping Mobile Homes

There are two main ways to flip a mobile home: buy and sell or renovate and resell. The first option is straightforward – purchase an existing mobile home at a discount price, fix it up for resale, then sell the property for profit.

How do you invest in a trailer park? ›

There are two ways to invest in mobile home parks: buy a park yourself, or partner with a mobile home park syndicator. Buying underperforming parks and turning a profit requires a combination of knowledge, time, capital, connections, and access to deals.

How do mobile homes make money? ›

How to Make Money Investing In Mobile Homes - YouTube

Do manufactured homes gain equity? ›

Like stick-built homes, mobile homes can build equity. The equity in your home is the difference between how much the home is worth and how much money you still owe on it.

Why mobile home park investments will thrive in 2021? ›

Demand for mobile home parks which are the only affordable housing and non-subsidized option actually increases as the economy tightens. The unique, favorable economics of mobile home parks produce superior risk-adjusted returns for investors in 2021 and the foreseeable future.

What is the difference between a manufactured home and a mobile home? ›

The Difference Between Mobile and Manufactured Homes

The only difference between the two types of homes is the date they were built. According to HUD, a factory-built home prior to June 15, 1976 is a mobile home and one built after June 15, 1976 is a manufactured home.

What is a 1973 mobile home worth? ›

an older home price: 1973 double wide in a nice family park might fetch $120,000 in Carpinteria, near the beach in California. In the same park a newer home of the same size will go for $250,000 or more.

How much was a mobile home in 1985? ›

So, let's go back to 1985, when they removed route 66 from the federal highway system, the average home price was around $80,000, and the average income was about $23,000. It was a good year for the stock market and the manufactured home industry was moving right along.

Can you replace walls in a mobile home? ›

Single-wide mobile homes are designed to be light, but the walls of most of them still contain wooden studs. Manufacturers often cover the walls with 1/4-inch paneling, but the studs can support drywall, so there's nothing preventing you from removing the paneling and replacing it.

Do mobile homes lose value over time? ›

A disadvantage of buying a mobile home is that its value will depreciate quickly. Like a new car, once a mobile home leaves the factory, it quickly drops in value. Stick-built homes, on the other hand, normally appreciate in value over time because the stick-built home owner almost always owns the underlying land.

Do manufactured homes lose value over time? ›

New data suggest that manufactured homes appreciate in value almost as quickly as traditional homes. Many have long held the assumption that mobile homes don't increase in value — or, at the very least, they rise in value at a much slower rate than traditional homes.

Do manufactured homes appreciate over time? ›

New evidence shows manufactured homes appreciate as well as site-built homes. Manufactured housing is 35 to 47 percent cheaper per square foot than site-built housing, yet the number of manufactured homes shipped each year has decreased from averaging 242,000 a year between 1977 and 1993 to just 92,500 units in 2017.

Do mobile homes hold their value? ›

In general, mobile homes don't appreciate in value.

Unlike traditional homes, which vary in value with the real estate market, mobile homes rarely appreciate.

Do mobile homes lose value? ›

The short but misleading answer is no. A well-made new park home (such as a Willerby!) will have a lifespan of eighty years or longer, but they tend to lose cash value as they get older. Perhaps it's best to think of it as more like buying a car than buying a house.

Are manufactured homes a good investment in 2021? ›

The answer is a resounding yes, and in many ways, a manufactured home is actually a safer investment than a site-built or traditional home.

How long do mobile homes last? ›

While the average life expectancy of a mobile home is 30 to 55 years, you can still outlast that number. This is best done if you ensure the installation is done properly, choose the right location, and generally adhere to maintenance practices.

Is there equity in a mobile home? ›

Like stick-built homes, mobile homes can build equity. The equity in your home is the difference between how much the home is worth and how much money you still owe on it.

How can I increase the value of my mobile home? ›

Upgrades That Can Increase the Value of Your Manufactured Home
  1. Replace Old Skirting and Siding. ...
  2. Add Insulation. ...
  3. Make Energy-Efficient Door and Window Upgrades. ...
  4. Add on to Your Manufactured Home. ...
  5. Consider Less Expensive Upgrades. ...
  6. “Upgrade” Your Manufactured Home's Classification.
May 22, 2020

How much does a mobile home depreciate per year? ›

In general, mobile homes depreciate at about 3-3.5% a year. Working out how much your manufactured house has depreciated can help you to fairly accurately determine the current value of your home. For example, a home that originally cost $50,000 will be worth $ 41,000 after six years.

How much does a mobile home appreciate in value? ›

Although they're worth considerably less, the median value of mobile homes increased by 39% from 2014 to 2019, 6 percentage points more than the 33% increase in the median value of single-family homes in the same period.

Is a trailer park a good investment? ›

Low volatility: Mobile home parks are lower-risk, recession-resistant investments. They have the ability to produce predictable cash flow, even when markets crash, because they are consistently in high demand. And their performance is not correlated with the stock market, the economy, or other real estate classes.

Do double wide mobile homes hold their value? ›

Myth: Manufactured homes do not appreciate in value like other forms of housing. Instead, manufactured homes depreciate in market value, similar to the way automobiles lose value each day.

Are double wides a good investment? ›

Data and history show that manufactured homes are quickly becoming the preferred choice over site-built homes. Rising sales, low costs, and the freedom to have a home with equivalent amenities as a site-built home are selling points for the people that rent them, making this asset an investment winner.

What is the difference between a mobile home and manufactured home? ›

The Difference Between Mobile and Manufactured Homes

The only difference between the two types of homes is the date they were built. According to HUD, a factory-built home prior to June 15, 1976 is a mobile home and one built after June 15, 1976 is a manufactured home.

Why mobile home park investments will thrive in 2021? ›

Demand for mobile home parks which are the only affordable housing and non-subsidized option actually increases as the economy tightens. The unique, favorable economics of mobile home parks produce superior risk-adjusted returns for investors in 2021 and the foreseeable future.

What is a 1973 mobile home worth? ›

an older home price: 1973 double wide in a nice family park might fetch $120,000 in Carpinteria, near the beach in California. In the same park a newer home of the same size will go for $250,000 or more.

How much was a mobile home in 1985? ›

So, let's go back to 1985, when they removed route 66 from the federal highway system, the average home price was around $80,000, and the average income was about $23,000. It was a good year for the stock market and the manufactured home industry was moving right along.

Can you replace walls in a mobile home? ›

Single-wide mobile homes are designed to be light, but the walls of most of them still contain wooden studs. Manufacturers often cover the walls with 1/4-inch paneling, but the studs can support drywall, so there's nothing preventing you from removing the paneling and replacing it.

Videos

1. Mobile Home Investing On Land
(OfficialBBoyd)
2. Why You Should Consider Mobile Home Investing (Mobile Home Investing for Beginners)
(Infinity Investing)
3. Why You Should NOT Invest In Mobile Home Parks
(Mario Dattilo)
4. Mobile Home Investing Accelerator Student | Jasmine Earns $27,000 In 1 Week + $35K Flip Opportunity
(Trailer Cash Academy)
5. How to Structure a Mobile Home Investing Deal using Seller Financing
(Real Estate Investing Tips For Beginners)
6. Mobile Home Investing and Getting Started With John Fedro | BP Podcast 75
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