Thursday, May 21, 2009

5 Reasons Why I Enjoy Mobile Home Investing

Many people have asked, "Why invest in mobile homes?" So, I've decided to answer the question here with 5 Reasons Why I Enjoy Mobile Home Investing. Here they are:

1. No Late Night Phone Calls

For all the landlords out there, you may be able to relate. As a landlord, you still have to take care of all the repair issues for your tenants since they are renters. Either you can take care of them or you can hire someone to take care of them for you. Either way, it will require time on your part whether or not you are physically doing the work and/or managing someone to do it for you.

With mobile home investing (if you decide to sell on owner financing), then you are dealing with homeowners - not renters. There's a big difference. Homeowners are responsible for taking care of their home since they have an interest. Renters do not. Most times, since renters do not have an interest in the home they will expect certain repairs to be made which is the responsibility of the landlord. More responsibility = more calls.

2. No Repair Issues

Again, if you are a landlord - you will need to take care of all repair issues for your tenants. With mobile home investing (f you decide to sell on owner financing), you deal with homeowners not renters. Homeowners will be responsible to take care of all the repairs on the home which means more money in your pocket and less time involved.

3. No Middlemen

In most cases, there is less people to deal with when investing in mobile homes. When you are buying a mobile home (in most cases as personal property), you will be dealing directly with the seller in most cases. Rarely have I seen a real estate agent involved unless you are buying the mobile home and the land. Usually, it will be too much money to sell using a real estate agent to sell a mobile home. Also, when you are going to close on the home you usually just deal with your local government authority in your area. Some people have asked whether they need a title company. In most cases, "no" but it also does depend on the comfort level of all parties involved. If you and/or the seller feel more comfortable, you can use a title company to close.

Likewise, there will be less people involved in terms of property management since there's nothing to manage if your dealing with homeowners. (Remember, homeowners are responsible for taking care of the home). Probably the only management you will have to deal with is the park management (if you decide to buy in parks) though usually they will only call you if there's a problem. Less people involved=less stress.

4. Lower Costs

Let's face it - it takes less money to buy a mobile home than a single family home (most of the time). What does this mean? It means lower costs in all areas including closing costs, insurance, taxes, etc. Since you have less money into it, it frees up more of your money to go out and do more deals. More money=more deals.

5. Less Time Involved

This is probably my favorite reason to invest in mobile homes. Since you are dealing with homeowners who are responsible for taking care of the home, it frees up your time to do other things. Most of the time, you are just there to collect payments - that's it. Sure, you may have to deal with the park management (if you are buying in parks) but that's only when issues come up. Once you complete a deal, that's it - no more maintenance issues and/or dealing with calls from renters. Think about it. If you are a homeowner, when was the last time you called your bank for a repair issue? Never. That's not your job - it's the homeowner's job.

Less time involved means freeing up time to go out and do other things like looking for other deals. With mobile home investing, once you've established yourself and have a few deals going then you don't have to work as hard scurrying around looking for other deals. Again, it's all about cash flow. Plus, the cash flow coming in from your current deals will help to fund new deals. More time + more money = more deals. And, more deals=more cash flow=more time to enjoy life and do the things you want to do, not the things you have to do.

So, there you have it 5 Reasons Why I Enjoy Mobile Home Investing.

Happy Investing!

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