Flip And Grow Rich

So you want to be the next Donald Trump and take over the Real estate Investment World. You might assume you have to buy million dollar buildings or million dollar homes to make money in Real Estate.

That is a great way to make money, but what if you are a beginner and have limited funds and limited credit? Well today I am going to talk to you about one of the best know little secrets in Real Estate Investing.

We are going to talk about Mobile Homes. That’s right trailers, singlewides, modular’s mobile homes and whatever other names you want to call them.

At a time when most investors are struggling to make it in this down Real Estate market the trailer business is booming. Think about this people who were in houses downsized to apartments, people who were in apartments downsized to trailers. So you got it the demand right now is for mobile homes. There are several reasons for this. I will name a few. For starters customers can buy them cheap. We have all heard the saying Cash Is King. Well in this business and especially in this down market that is definitely true. People can buy a trailer and live cheap. They can buy one and move it to land and live cheap for a few years while they build a new house.

I realize not everyone wants to live in a trailer, but what if whatever you are paying per month for housing all of a sudden was zero dollars a month. How much would that change your life?

These are all the reasons why people want to buy mobile homes during this housing crisis.

So as investors how can we make money from this?

Well I will try to keep this simple, because that is how Irun my business.

One of the most profitable ways to make money with mobile homes is to flip them to retail buyers. You can buy them from the banks as repossessions. Don’t do any work to them and sell them as a handyman special. It is very realistic to buy them for $4-6,000 and flip them as is for $8-10,000. This is a great way to build up some cash reserves. Another way is to buy them fix them up and retail them. Some people choose to buy them and rent them out.

Now let’s get to the reason I am writing this Hub. The best way to build cash flow with mobile homes is to Owner Finance them. That’s right owner finance, tote the note, rent to own, lease option carry the note, carry back paper. However you want to refer to it basically you are financing the trailer for them.

Let’s walk through an example of this. I go out and I buy a trailer for $4000.00. I am going to sell it as is for $$12,9995.00 with $4000.00 down. Here is how you will advertise it.

1997 Model Singlewide 3Br./2Ba.

Owner Financing-No Credit Check

Bad Credit O.K.

O% Interest

Only $300.00 a Month

Now you are probably thinking why would I not do a credit check and why would I do 0% financing at 300.00 a month.

Well here is why. Let me talk about it from the customer’s standpoint first. They are definitely no used to people saying no credit check. So why are we not checking their credit. Because we already know how their credit is. It’s terrible or they would not be calling an ad that says bad credit O.K. Who cares what their credit looks like? If you pay you stay! Now I am over simplifying it a little. Yes you can always have that nightmare gloom and doom where you have every problem under the sun during repossession. But, remember trailers are considered vehicles. You do not foreclose on them you repossess them. So if customer does not pay you keep their down payment and any payments they made and sell it again. As far as 0% interest and $300.00 a month goes, I just like to keep it simple. The little bit of interest you are going to make on $12,995.00 at 12-14 percent interest is not that relevant. For me I like the fact that we know all my customers payments are $300.00 a month and no Interest. People with bad credit never buy with no interest and they jump at this opportunity.

The phone will ring off the hook from this ad. So what I do is I put a lock box on the door and let people go by and see the house by themselves. Saves me the hassle of going to meet people and they do not show up. As far as the trailer it is a repo it’s already tore up what are they going to do to it.

Pretty easy to choose who gets it. The first one to show me the money get’s it. The first person that has the down payment is your buyer. This saves a lot of time trying to qualify people.

Now I realize $300.00 dollars a month is not going to make you the next Donald Trump. But, if you were to put together 20 of these deals I bet $6000.00 a month would change your life. The great thing is all you need is a few thousand dollars to get started in the business. As your cash flow builds you will have even more money to invest it doing a couple of these projects at a time. The best thing about this is you are not a landlord. You won’t get that phone call in the middle of the night with the broken toilet.

Just checks in the mail!!!

I hope this has been helpful to everyone. Feel free to comment or ask me any questions you may have about this subject.

To Our Success!!!

Dennis