There are not necessarily “right or wrong” ways to fill up a pre-existing mobile home community; however, there are some methods that may make more financial sense than others based on your parks’ conditions and locations.
As you read the ideas below, please set aside emotions to look objectively and logically at the exact mobile home park you intend to fill. Therefore, before pulling the trigger on adding any mobile homes to a community, make sure to understand:
Your starting capital
The local demand from buyers and sellers
The local population
State and local laws concerning age/size requirements of moving mobile homes into the area
Your desired exit strategy (i.e. sell or rent)
Not every method discussed below may be possible or desirable based on the situation of the park and/or owners.
5 Ways to Add Mobile Homes To Mobile Home Parks
1. Buy New (Cash or Financing)
New 3-bedroom singlewide manufactured homes (most basic models) may be purchased in the low $20,000s. New models can range from the low $20,000s to over $100,000 before delivery, A/C, or setup. These new manufactured homes may be purchased via cash, private money, or bank financing.
Advantages: Instant access to new and beautiful homes.
Disadvantages: Heavy cash outlay or financing commitment before you start making any profit.
2. Creative Lender Programs
As of right now, there is a single program intended to help park owners add multiple new manufactured homes to their communities without cash needed up front. This creative lender program, offered by 21st Mortgage Corporation, gives very competitive bank financing terms for your end-buyer once found. In short, the program stipulates the following process:
Your park and you become approved with 21st Mortgage Corporation.
You choose which homes you would like placed in your park.
Homes are moved for $0 out-of-pocket, including acquiring, moving, setting up, and adding A/C and skirt.
Twelve months are provided before any payments are due. Aim to sell these homes in the first 12 months to avoid making any payments.
21st Mortgage Corporation creates and services the note for all approved buyers who want a new home in your park.
Pro Tip: Call 21st Mortgage Corporation to learn more.
Keep reading the article “5 Strategies to Add Mobile Homes to Existing Mobile Home Parks” here:
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