Buying a Mobile Home for an Investment? Check this out first!!!
I have been buying and selling mobile homes for over5 years now. I have found a few tricks that I wanted to share with my fellow mobile home fans out there.
You must check that the personal property taxes have been paid and are current. Now granite these are not very much money, but the tax lien could have been created and placed against the property and even sold. Yes, counties will sell these just like other tax liens. If you are going to hold onto this property for a period of time as a rental or for seller financing, it is in your best interest to make sure there is not a tax lien against it or else you could possibly have your investment take away from you. (If you can not repay the outstanding amount plus penalty fees, plus interest) It is just best to pay it up current and keep paying it.
I have a clause in my installment contracts that states that if the seller financing borrower does not pay the taxes that I will pay them, but I will take it onto the back of the loan and continue to charge interest as usual on that amount.
Also, I recommend making sure you check that the lot rent is current or that the bad debt will stay with the delinquent party and not the property. Now, I have had different parks as well as park managers require different things. I am not sure why there is such a big difference, but it is in your best interest to make sure it is current or else you will be hit with a big fee, which has broken a deal for me in the past.
I have used this information to my advanatage to negotiate the purchase price down with the seller.
Your relationship with the park manager or owner will help you in these areas. I have a park manager who has removed the back lot rent from the property and pursued the past resident and allowed me to control the property without bringing it current or paying that amount of money off. Additionally, this same park manager has kept me up to date on taxes too. Park managers will receive a list on a regular basis from the local tax assessors office notifying them of all of the properties with delinquent taxes.
If you are skeptical about investing in "trailers", you really should reconsider. I have my initial investment paid back right away, or within a maximum of 10 months. Therefore, the rest of the buyers payments are cashflow.....200-350 cashflow....a month. I have a few trailers that peoplke did not want, I cleaned them up, and sold them with seller financing....now I have a great monthly cashflow.
They are little metal cash cows!!!
Open mind....limitless possibilities!!!
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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I have been buying and selling mobile homes for over5 years now. I have found a few tricks that I wanted to share with my fellow mobile home fans out there.
You must check that the personal property taxes have been paid and are current. Now granite these are not very much money, but the tax lien could have been created and placed against the property and even sold. Yes, counties will sell these just like other tax liens. If you are going to hold onto this property for a period of time as a rental or for seller financing, it is in your best interest to make sure there is not a tax lien against it or else you could possibly have your investment take away from you. (If you can not repay the outstanding amount plus penalty fees, plus interest) It is just best to pay it up current and keep paying it.
I have a clause in my installment contracts that states that if the seller financing borrower does not pay the taxes that I will pay them, but I will take it onto the back of the loan and continue to charge interest as usual on that amount.
Also, I recommend making sure you check that the lot rent is current or that the bad debt will stay with the delinquent party and not the property. Now, I have had different parks as well as park managers require different things. I am not sure why there is such a big difference, but it is in your best interest to make sure it is current or else you will be hit with a big fee, which has broken a deal for me in the past.
I have used this information to my advanatage to negotiate the purchase price down with the seller.
Your relationship with the park manager or owner will help you in these areas. I have a park manager who has removed the back lot rent from the property and pursued the past resident and allowed me to control the property without bringing it current or paying that amount of money off. Additionally, this same park manager has kept me up to date on taxes too. Park managers will receive a list on a regular basis from the local tax assessors office notifying them of all of the properties with delinquent taxes.
If you are skeptical about investing in "trailers", you really should reconsider. I have my initial investment paid back right away, or within a maximum of 10 months. Therefore, the rest of the buyers payments are cashflow.....200-350 cashflow....a month. I have a few trailers that peoplke did not want, I cleaned them up, and sold them with seller financing....now I have a great monthly cashflow.
They are little metal cash cows!!!
Open mind....limitless possibilities!!!
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125