Quote:
Originally Posted by Yowserrrs
It seems that mobile home resale and financing offers some pretty sick returns. If you were looking to put less than $500k to work, why would you want to mess around with anything else? ie SFHs
IMO, it'd be hard to keep $500k working in MH notes. The notes just pay off to quickly. Besides that, I don't think that you could realistically keep that many notes in the air at once without giving up a large chuck of your profit - i.e., hiring a lot of staff.
If I wanted to invest $500k into MHs I'd find MHP owners to partner with. The problem in the MH world right now is that there are almost no banks that will finance buyers. This poses a major problem for MHP owners. The useful life-span of a MH is only about 20 years on average. Just about anything over 20 years old will end up abandoned on the lot and the owner will end up with an empty space. Since there are no banks, there are no buyers to bring new homes in. The situation is such that modern MHP owners must take it upon themselves to haul home in a resell them.
If I had $500k that I wanted to make a 30% ROI on, I'd work with MHP owners to fill empty lots. You will find and buy the homes and pay to haul and set them. The park will fix, show, advertise, and run credit checks on buyers. You decide if you want to fund the buyer. If you did it like that, I feel that you could easily be in a home for about $10k that will retail between $15k to $20k, and collect payments of $250-$350/month for several years.
There is a huge demand for this type of chattel financing amond MHP owners. Check out
www.mobilehomeuniversity.com and you'll find plenty to do with your money.