The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  • Sell-Me Saturday is Now Live!

    Have something to sell? Like to post a video from your YouTube channel? Want to promote your design service? Recommend a company? SELL-ME SATURDAY is your opportunity to self-promote whatever you'd like within the realm of entrepreneurship on one central thread... and at no cost. Go There
    Note: Indiscriminate SEO backlinking to questionable material is not allowed.
  • Join 50,000+ entrepreneurs who are earning their freedom and living their dream.

    "Fastlane" is an entrepreneur discussion forum based on The C.E.N.T.S Framework outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED®). From multimillionaires to digital nomads to side hustlers who are grinding a job, the Fastlane Forum features real entrepreneurs creating real businesses with one goal in mind: Freedom— both financial and temporal.

    Download (Unscripted) Download (Millionaire Fastlane) Register
    Registering for the forum removes this block.

HOT TOPIC Where are all the Mobile Home Park Investors?

fastbo

Bronze Contributor
I've Read UNSCRIPTED
Speedway Pass
May 26, 2017
54
174
142
39
Orlando, FL
Funny you asked... I've got one I'd like to sell... same state as you... PM sent!

Hey guys, been a little while since I have been active on this forum. This a great site. Have learned alot from many members on this forum.

Just finished closing on my third mobile home park purchase and am loving it. Have 6 more in the pipeline coming up.

Hope to hear from you guys and share advice/stories of this great industry. P.S. I just purchased a camera to take video and pics of what I do and think it could be a great value to provide up and coming investors an inside look. Let me know what you think. Thanks
 

Don't like ads? Remove them while supporting the forum. Subscribe.

fastbo

Bronze Contributor
I've Read UNSCRIPTED
Speedway Pass
May 26, 2017
54
174
142
39
Orlando, FL
It was at this exact time I came across a book called, " Deals on Wheels" by the late Lonnie Scruggs. This book ironically was among a large stack of books on my fathers bookshelf. Originally printed in, I believe 1992, it was small, large print, and had pictures.
Lonnie was a regular at the TRIG (Tidewater Real Estate Investment Group)... I met him at one meeting in 2014 shortly before he passed. He was a down to earth guy... pioneered the mobile home flipping / paper industry.
 

ironman150

Bronze Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jun 22, 2017
82
150
142
49
GREEN BAY WI
'

Okay - Saw your post above - that was a fail. Hahaha So I am on these sites, typically on a residential I look for ROI, GRE, etc. What calculations do you make to determine a good property? How do you do this? Would you be willing to have a DM with me to somewhat train me on this matter.
Also look at ROI and DRC
@ironman150 thanks for the response. Unless I'm mistaken wasn't the safe act passed to specifically prevent rent to own deals on mobile homes. Also I've spent a good amount of time on mobilehomeparks.com but the op mentioned he avoided buying from realators, I was curious as to where those deals came from.
@ironman150 thanks for the response. Unless I'm mistaken wasn't the safe act passed to specifically prevent rent to own deals on mobile homes. Also I've spent a good amount of time on mobilehomeparks.com but the op mentioned he avoided buying from realators, I was curious as to where those deals came from.
The only way to avoid the realtors is to make offers to the park owners directly. Direct mail, craigslist and sometimes they list their properties on the sites i mentioned. Also, I don't think SAFE was for MH's directly but land contract on properties. The MH is not real estate but the tin can sitting on it (like a camper or car sale). I could be wrong and if/when i cross that bridge an attorney will be involved.
 

SteveO

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
Summit Attendee
Speedway Pass
Jul 24, 2007
3,606
14,554
2,804
I had a friend from the golf course that started as a backhoe operator. He installed the underground plumbing and electrical on a number of mobile home park developments. They gave him part ownership instead of cash. He retired at 38 and never worked again.
I say "had" because he just passed away from lung cancer. He trapped gophers on the golf course for fun and caught somewhere around 2000 of them over the past few years. Last year, him and I trapped them as a team. We marked our locations with blue flags and coordinated our plans daily. We displayed a memorial for him in the clubhouse thanking him for his help and dedication to the course.
 

Runum

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Aug 8, 2007
5,985
4,360
1,788
DFW
I say "had" because he just passed away from lung cancer. He trapped gophers on the golf course for fun and caught somewhere around 2000 of them over the past few years. Last year, him and I trapped them as a team. We marked our locations with blue flags and coordinated our plans daily. We displayed a memorial for him in the clubhouse thanking him for his help and dedication to the course.
Shades of Caddyshack. :)
 

AlphaWulf

Contributor
Read Millionaire Fastlane
Speedway Pass
Aug 8, 2016
64
96
129
So after buying the mobile home, would it be smarter to rent it out for longer cashflow or sell it since people will still be making monthly payments for a couple years?

I'm currently working on a "sexy" business idea and would love to have something like this on the backend creating some cashflow.
Followup question, do you have any experience with finding a buyer before purchasing the MH if the owner doesn't agree to give you 1-3 months of free lot rent?

For example, you find a MH listed for sale privately with not much exposure and so you talk to the seller to make sure everything is legit and then advertise the sale to secure a buyer BEFORE you even buy. Seems like a few things would have to align perfectly for this to happen but if it works then there's 0 risk on your end. Thoughts?
 

Runum

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Aug 8, 2007
5,985
4,360
1,788
DFW
Buying mobile homes to RENT in a mobile home park you don't own is a tough strategy. This is a triangle and you have the most to lose. The renter has two landlords to keep happy, you and the park manager. The park manager can be a nice guy or a jerk. You become the middle man between them when the renter and the park manager don't get along. You get to hear the he said, she said crap. I did it many times, and some times the renter was the one that was right.

Buying mobile homes in MHP to sell is much better because you are not the landlord but the seller. Good luck.
 

CareCPA

Gold Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
May 2, 2017
694
2,324
550
30
Pennsylvania
....

For example, you find a MH listed for sale privately with not much exposure and so you talk to the seller to make sure everything is legit and then advertise the sale to secure a buyer BEFORE you even buy. Seems like a few things would have to align perfectly for this to happen but if it works then there's 0 risk on your end. Thoughts?
Be careful that you don't need a real estate license for this in your state.
 
OP
OP
Major

Major

Luck is Man-Made
FASTLANE INSIDER
I've Read UNSCRIPTED
Oct 26, 2016
48
217
153
South Carolina
Good post and good work @Major !

I lived in a park for several years. It was a middle of the road type....not trashy, not great. I thought and still think, it's a good market to get into. I watched the management work and man, I wouldn't want their jobs.

Do you manage the parks or do hire management ?
It really depends on how many lots there are to manage and my tenant turnover. For my smaller parks I manage them by mail and larger parks (40 occupied lots or more) I hire a manager to do the daily duties of upkeep and hounding tenants for rule violations/late payments.
 
OP
OP
Major

Major

Luck is Man-Made
FASTLANE INSIDER
I've Read UNSCRIPTED
Oct 26, 2016
48
217
153
South Carolina
Thanks again for the comment. I will be continuing the article and give out as much info I can for fellow investors. Want to pay it forward for all the help I had along the way from other investors.
Major, i am about to give my first LOI on a park. I can assume current debt and the owner has offered additional funds. I also have a private lender who verbally gave an OK to fund the rest (subject to verification of the books). This would be "zero down" deal.

Seeing as i'm new (read that as scared). Can I ask you some questions as i slosh through this? I could use some guidance as to "what comes next" instead of learning it as it smacks me in the face.

thank you[/QUOTE]
Send me a message with your contact info. Will be glad to help you out.
 
OP
OP
Major

Major

Luck is Man-Made
FASTLANE INSIDER
I've Read UNSCRIPTED
Oct 26, 2016
48
217
153
South Carolina
This is one of the only things I've talked about and never done. Not sure why I haven't done it but just never have. I used to talk about it so much that some of my friends still bring it up sometimes and ask if I'm ever going to buy a trailer park.
Come to the dark side. It is really a rewarding industry...
 

Don't like ads? Remove them while supporting the forum. Subscribe.

OP
OP
Major

Major

Luck is Man-Made
FASTLANE INSIDER
I've Read UNSCRIPTED
Oct 26, 2016
48
217
153
South Carolina
Great post. My only question is what about the POA dues or lot lease payments?

From what I understand, when you purchase a mobile home in a mobile home park, you're only purchasing the building and not the land that it sits on, which you have to lease. So I take it the key to this strategy is being able to flip the homes quickly in order to minimize your holding period correct?
That is a great point. Yes in the beginning I flipped my mobile homes within mobile home park communities. This was due to two reasons. Management and low cost to entry. You are correct. When purchasing a mobile home within a park, you are effectively purchasing a the improvement (via the mobile home) of which is placed upon the land. You will have to lease the lot from which the mobile home sits on from the mobile home park. The key is to flip these homes as fast as possible. The fastest way to achieve this is to offer a rent to own or some type of installment sale in which the monthly installment payment from the tenant covers both the monthly lot lease payment from the park, and the amount you feel is necessary to obtain each month to go through with the sale.

The trade off with purchasing the mobile home within a park vs. purchasing a home on its own lot is.....wait for it........ your upfront investment!..yay. I do not want my money to held hostage by father time on an installment sale, no longer then I have to. Due to the low cost of only purchasing a mobile home and renting the lot vs purchasing a home and locating it to or purchasing the lot in which it stands, I was able to flip multiple units on a tight budget producing multiple sources of monthly income there for lessoning my amount of risk to break even each month. This is due to having multiple units of production and spreading my breakeven over all units allowing for a productive unit to pick up the slack if I had a non-productive unit. This is impossible to due if I were to put all my eggs in one basket with just one unit with one lot. Also, with the lower costs on just purchasing the mobile home, recouping your upfront investment is much faster allowing you to re-invest in other units with not additional cash out of pocket.

Thanks for the posts! I do appreciate it.
 
OP
OP
Major

Major

Luck is Man-Made
FASTLANE INSIDER
I've Read UNSCRIPTED
Oct 26, 2016
48
217
153
South Carolina
Great thread about something I've been interested in for a long time. I looked into Lonnie scruggs' method quite a bit but from what I understand it's now pretty much impossible to do because of the SAFE act. I'm curious how you dealt with that potential issue. Also if you don't mind me asking, if you didn't go through commercial brokers to find your deals on the parks, how did you find them?
I use a rent credit program. Essentially the same thing as a rent to own however there is no interest therefore by passing the act. Also, any individual or company is legally able to conduct up to ten installment sales a year without having to be Dodd Frank compliant. Ask your attorney if you are still concerned about it.

I have used brokers both commercial and residential, cold calls, mailings, dropby's, and any other thing you can imagine to get infront of any mobile home park owner I find.
 
OP
OP
Major

Major

Luck is Man-Made
FASTLANE INSIDER
I've Read UNSCRIPTED
Oct 26, 2016
48
217
153
South Carolina
Lonnie was a regular at the TRIG (Tidewater Real Estate Investment Group)... I met him at one meeting in 2014 shortly before he passed. He was a down to earth guy... pioneered the mobile home flipping / paper industry.
Wish I could have met him. So you must be located in tidewater area....I sent you a direct message.
 
OP
OP
Major

Major

Luck is Man-Made
FASTLANE INSIDER
I've Read UNSCRIPTED
Oct 26, 2016
48
217
153
South Carolina
So after buying the mobile home, would it be smarter to rent it out for longer cashflow or sell it since people will still be making monthly payments for a couple years?

I'm currently working on a "sexy" business idea and would love to have something like this on the backend creating some cashflow.
Followup question, do you have any experience with finding a buyer before purchasing the MH if the owner doesn't agree to give you 1-3 months of free lot rent?

For example, you find a MH listed for sale privately with not much exposure and so you talk to the seller to make sure everything is legit and then advertise the sale to secure a buyer BEFORE you even buy. Seems like a few things would have to align perfectly for this to happen but if it works then there's 0 risk on your end. Thoughts?
I live by one rule moving forward in my real estate carrier.........I DO NOT RENT ANYTHING....(unless it is strategic). Renting puts your pocket to the exposure of retinue maintenance and higher tenant turnover. The best way to display the difference between a renting tenant vs a purchasing tenant is as follows:
"Mobile homes and cars have a lot in common. Both have titles, both are made of metal, and both have owners making payments on them. Now think back to the last time you rented a car or barrowed one from a friend. Now think of the car you own or are making payments on in your driveway. Did you treat both cars the same?" This should answer your questions.

Believe me, you will have more money and time if you do not rent the mobile homes.
 
OP
OP
Major

Major

Luck is Man-Made
FASTLANE INSIDER
I've Read UNSCRIPTED
Oct 26, 2016
48
217
153
South Carolina
Hey everyone!

Wow I am really excited to see so many people interested in this thread and having an interest. I just got back to civilization with wifi from being at the lake house this past week (reason for delay). We are fixing that issue this week.

The first post I typed out like a madman. Because that day, after what seemed like an eternity, I finally felt freedom. The kind of freedom explained in MJ's two outstanding books. I was so happy in the hotel room I could not sit still and wanted to pass along this feeling to others. Others whom are the ledge and wondering if they will hit the bottom or make it to the other side. My path, though different from others, was created and started through the use of mobile homes.

I wanted to follow up my original post with some explanation between the two business models involved with mobile home parks as well as some additional sources of information. Keep in mind I live in Virginia and my landlord tenant laws are different than other states.

The way in which you invest in mobile homes and mobile home parks is much different. In-fact, investing in mobile homes or mobile home parks is very different than all the other fields of real estate. I will point out, each investor has his or her own strategy when it come to investing in real estate. As an investor over the course of multiple deals, court hearings, tenant turnover, renovations, property closings, other experiences, mortgages, management and ext.. your strategy will evolve to what best suits you.

My strategy for mobile home investing was simple: "What is the fastest way I can get back my initial cash investment while not giving up possession of the home in a short term". You see, in a perfect world people buy things they can pay for. They make their payments each month on time. They keep their homes clean to the point where a cockroach is mythical creature only told in old wives tails about the old hard times. In a perfect world you would just sit back and collect checks. Well, I can tell you that sounds great, but there is lost opportunity in the perfect world. In the real world people will just randomly stop making payments. In the real world, people are not the cleanest species on the planet. However, in the real world comes real opportunity if you know where to look.

After I purchased my first apartment complex, I learned one very important rule which governs all my real estate strategies. I DO NOT RENT..Unless I have a park manager living within the home (more on this next post). After two long miserable years (this past Feb), I finally wised up and hire a manager to oversee this apartment complex (with mostly sec. 8 tenants at the time), and it has made a night and day difference on my business. I noticed something very important during this time. My time is more valuable than unclogging a sink to save $125 from a plumber or replacing a leaky $29 faucet from Home Depot. The worst expense came in the amount of my time of having to do inspecitons, applications, walk through s, and of course all the repairs/finding a contractor worth anything to get the job done right without getting cleaned out on the way to the bank. And you can bet Malinda will be calling with clogged sink drain on every Thanksgiving, Christmas, and Mothers Day while her whole family is at the house when the grease wizard pays a visit (because Malinda would never pour grease down a kitchen sink).

I also noticed something else during this time. The mobile homes I had purchased were still paying each month and never called me. In-fact, I remember more than a few times that the tenants in these homes became very nervous each time I called. The conversation would go like this, " Hey Brian how is everything going?" "Ummm great why Major.....we mailed you the payment on the 2nd, I have my money order receipt, we used the envelope you provided us, and .....and...." Me, "Wooh Brian, I was just calling around to check on things and remind you this weekend it is going to get really cold so keep a small drip in your faucets to prevent pipe freezing." Brian, " Oh ok, you know we pay ontime, we dont want any trouble, we really like the house...and...and..." Me, "Thats great Brian! Hey, while I have you on the phone, I have another mobile home coming up for sale a few streets over. Do you know anyone who may be interested? If you do and that person moves in, I will give you a $250 gift card to X.." Brian, " Oh yeah, I know about 6 people you can call, infact my cousin, mother in law, and brother are looking for home like this one....."

Yes, other than the pipes freezing, that was a normal conversation. It very common to multiple people from one family reside next to each other within a park.

Back to the point. The tenants who purchasing the home did not bother me with fixing nonsense because they knew that they themselves were responsible for fixing it. They took pride in owning their home. This mindset lead to fewer evictions, leading to fewer turnovers, leading to little to no renovations.Unlike rentals, where it is the everyday god given right of that tenant to have the Opra, Dr. Phill, or Family Fued blasting from the TV 24/7 while finding things to complain about or break in order to complain about it. Each call ending with a threat to call the health department over a loose toilet paper holder.....(don't worry they never call)

Yes you will still have turnover when selling the mobile home with financing. But here lies the opportunity in the real world as mentioned earlier. YOU CAN SELL THIS UNIT AGAIN, AND AGAIN, AND AGAIN. As stated above, the tenant purchasing the home, will have taken much better care of the home. Which leads to less repair when tenant is evicted or moved out. Which leads to less money out of pocket. Which leads to faster time to market and little to no down time. Which leads to yet another sale within days if your system and buyer waiting list is setup. This is the magic. This is the secret sauce.. You can sell a mobile home many times within its lifetime. For example, I sold one home (the third one I purchased originally) three times in one year. First time sold it for $16,000 with $4,000 down and payments of $450. They left in the middle of night, randomly, three months later before court with only one paid month. A little paint and clean the carpet (I eventually learned you are throwing money away if you buy carpet) and it sold within two weeks, prior to the end of the third month. This time sold it for $16,000 with $3,250 down with $450 month payment. After down payment they moved in and did not pay rent again. Found out they brought bed bugs into the home. They were evicted within 90 days of moving in. So, after eviction threw out the carpet, go the home fumigated ($400) and replaced the flooring with the thick stick on vinyl flooring (life saver in mobile homes), paint, and new stove. Around $2,200 total renovation. Sold it within three weeks later to a couple, who actually lived there when they first met years ago and wanted to move back in. They purchased it for $14,000 with a $6,000 down payment and monthly payments of $350.

So if we do the numbers this trailer generated a total of $13,250 down payment and a total of $3,250 in monthly payments (8 months total at $350 and one month at $450). For a gross of $16,500. Take away insurance and turnover expenses ($4,200). This trailer net $12,300 for the year. Had it been a perfect world the first purchaser would have stayed and paid for a total year earnings of $8,950. So you see, turnover can be quite profitable in mobile homes.

As far as possession goes (you as owner of the mobile home), even with installment sale, do not give nor forfeit any percentage of ownership or beneficial interest of the property until the note (installment sale) is paid for in full by note maker (tenant) to note holder (you). This statement is true as well for residential property, however with residential property you must foreclose on the home and go through a very lengthy and expensive court process. Thus leaving you (the property owner and note holder) to eat the insurance, utility, and mortgage costs each month until foreclosure is finalized and you have possession. With mobile homes, there is only a title and nothing is recorded with the local courthouse or through the use of an attorney allowing you to retain and have full ownership until that title has changed owner and new one is printed by DMV. DMV is the supreme court when it comes to mobile homes. He who holds title, holds the power. So when it comes to selling and retaining control of the mobile, time and interest are your best friend. Your goal is to get as much money for a down payment as possible while making the monthly income you want over the longest period of time possible. Everything a bank does except we want a much money as possible upfront.

I appreciate your interest in this forum and will continue onto mobile home parks later this week. I look forward to your comments and messages.
 

Bigguns50

Platinum Contributor
FASTLANE INSIDER
Summit Attendee
Speedway Pass
Feb 12, 2013
1,495
2,769
680
Detroit suburbs, MI
with residential property you must foreclose on the home and go through a very lengthy and expensive court process.
Would this be for a Land Contract ?

DMV is the supreme court when it comes to mobile homes.
The DMV...is this because the homes have wheels on them ?

Great thread ! Really enjoying it. Keep going !
 

MidwestLandlord

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Dec 6, 2016
1,482
10,660
2,416
Be careful that you don't need a real estate license for this in your state.
Or an automotive dealers license.

In my state it must be on a lot or it's a "vehicle"...if it's not on a lot, you can sell 5 a year without an auto dealer license. If it's on property being sold with it, it's real estate.

There's restrictions on what kind of footings qualify as "on a lot" and it must be skirted and hooked to utilities as well...or it's a car lol.
 

fastbo

Bronze Contributor
I've Read UNSCRIPTED
Speedway Pass
May 26, 2017
54
174
142
39
Orlando, FL
Wish I could have met him. So you must be located in tidewater area....I sent you a direct message.
Yes tidewater.



with residential property you must foreclose on the home and go through a very lengthy and expensive court process.
Would this be for a Land Contract ?


If you're selling them a home and not dirt (i.e. they are paying lot rent to a park), it's personal property. You don't foreclose, you repossess. Same as taking back a car. Fairly simple.

If you're selling property with the dirt, you can use Land Contracts or lease options. In Virginia, it's very favorable to the seller and you can evict on default.
 

fastbo

Bronze Contributor
I've Read UNSCRIPTED
Speedway Pass
May 26, 2017
54
174
142
39
Orlando, FL
Hey everyone!

I DO NOT RENT..Unless I have a park manager living within the home (more on this next post). After two long miserable years (this past Feb), I finally wised up and hire a manager to oversee this apartment complex (with mostly sec. 8 tenants at the time), and it has made a night and day difference on my business.

Back to the point. The tenants who purchasing the home did not bother me with fixing nonsense because they knew that they themselves were responsible for fixing it. They took pride in owning their home.
+1. You stumbled onto an important concept in real estate. Renting sucks. You need to have an organization/people system beneath you to manage any scale of rentals. That's an achievement in itself. Otherwise you won't scale past 20 doors and you'll be working 80 hours a week fixing other people's problems.
If you want true passive income, you need to be on the financial side of real estate. Seller finance, lending money to rehabbers, buying existing mortgages, etc. You want to be the guy selling shovels to the gold miners. Built up your active wealth and put it into passive income.
 

Don't like ads? Remove them while supporting the forum. Subscribe.

OP
OP
Major

Major

Luck is Man-Made
FASTLANE INSIDER
I've Read UNSCRIPTED
Oct 26, 2016
48
217
153
South Carolina
Would this be for a Land Contract ?



The DMV...is this because the homes have wheels on them ?

Great thread ! Really enjoying it. Keep going !
Great question! The residential property is recorded with the local municipality with a deed of the real property (land and improvements). Due to this you have to go through civil court in order to repo not only the improvement but also the land itself. Mobile homes are considered personal property, hence there is no deed and is not recorded. The only record of title is with DMV. In which case you will place a lien on the title for the home with DMV. Another option is to hold the title in trust with your attorney. Either way, once home is paid off in full, the you clear title of your lien and give it to the borrower. In order to repo a mobile home you need proof of possession, which is obtained through hearing at the civil general district court. You then pay a small fee at DMV and obtain a newly printed title with your company as only title holder and beneficiary.
 

BRichard

Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Jul 31, 2017
20
30
27
North Carolina
@Major Fellow MHP investor here! Just closed on my first park this month, and targeting a few more within driving distance, hope to have 3 parks under ownership by mid 2018.
I've been thinking if MHP ownership fits within the C.E.N.T.S. framework? So far it seems to obey the commandments, and can be tailored to a passive ownership model (with quality property management in place).
 
OP
OP
Major

Major

Luck is Man-Made
FASTLANE INSIDER
I've Read UNSCRIPTED
Oct 26, 2016
48
217
153
South Carolina
@Major Fellow MHP investor here! Just closed on my first park this month, and targeting a few more within driving distance, hope to have 3 parks under ownership by mid 2018.
I've been thinking if MHP ownership fits within the C.E.N.T.S. framework? So far it seems to obey the commandments, and can be tailored to a passive ownership model (with quality property management in place).
@BRichard, Great Job! Yes mobile home parks follow the framework if you set it up correctly in the beginning. Depending on the size of your park, you may not even need a manager onsite and can use my envelope manager method. Allowing you to manage the park with your mailings and tow/three nosy tenants/neighbors for your eyes on the ground.

I wish you the best on your journey and keep me up todate!
 

BRichard

Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Jul 31, 2017
20
30
27
North Carolina
@BRichard, Great Job! Yes mobile home parks follow the framework if you set it up correctly in the beginning. Depending on the size of your park, you may not even need a manager onsite and can use my envelope manager method. Allowing you to manage the park with your mailings and tow/three nosy tenants/neighbors for your eyes on the ground.

I wish you the best on your journey and keep me up todate!
@Major Would love to chat about your envelope manager method sometime, I think I might be able to implement it with my current park as it is small enough to not warrant a paid manager, and I have a handful of reliable long-term tenants.
 

KLaw

Gold Contributor
Speedway Pass
Aug 4, 2012
918
1,033
391
ohio
Would it possible to have one LLC and have 3 "doing business as" companies from your one LLC? For example, you've got Major's mobile home repair, Major's mobile home mover, and Major's mobile home financing each a "dba" under Major's LLC. This way you your (dba companies) pay yourself (your LLC). Not looking for legal advice. Just thoughts about the above. Thanks for sharing.
 

BRichard

Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Jul 31, 2017
20
30
27
North Carolina
Would it possible to have one LLC and have 3 "doing business as" companies from your one LLC? For example, you've got Major's mobile home repair, Major's mobile home mover, and Major's mobile home financing each a "dba" under Major's LLC. This way you your (dba companies) pay yourself (your LLC). Not looking for legal advice. Just thoughts about the above. Thanks for sharing.
@KLaw - Have you completed the Frank/Dave MHU Boot Camp? I highly recommend it, and they do cover things such as this (legal entity structuring). Frank recommends each MHP in it's own LLC, an LLC for any property management company you might use, then have a personal LLC to which you distribute net profits. Sounds similar to what you are referencing above, although I'm not too familiar with DBA use and how it would affect the legality of a multiple LLC setup.
 

Patrickg

Bronze Contributor
I've Read UNSCRIPTED
Nov 20, 2016
96
108
130
Great stuff Major. Just ordered lonnies book. I'd like to learn more and get my feet wet asap!
 

BrandonS85

Bronze Contributor
Speedway Pass
Sep 8, 2015
140
490
228
33
Ohio USA
+1. You stumbled onto an important concept in real estate. Renting sucks. You need to have an organization/people system beneath you to manage any scale of rentals. That's an achievement in itself. Otherwise you won't scale past 20 doors and you'll be working 80 hours a week fixing other people's problems.
If you want true passive income, you need to be on the financial side of real estate. Seller finance, lending money to rehabbers, buying existing mortgages, etc. You want to be the guy selling shovels to the gold miners. Built up your active wealth and put it into passive income.

I'm at 71 rentals, spend about 20hrs a week directly managing.

Shouldn't 100 before I look at hiring anyone to help manage. I outsource all my labor. My hourly income isn't bad at all. Can step away whenever I need to and the company doesn't fall apart (I can remote about 80% of what I do to run the company).
 

Patrickg

Bronze Contributor
I've Read UNSCRIPTED
Nov 20, 2016
96
108
130
Major , where did you find your mobile home deals. I got lonnies book and have been reading he doesn't touch on craigslist. But I've been looking for deals on cg and very small amount.

Maybe just time of the year, either way thanks for the help.
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.




Don't like ads? Remove them while supporting the forum. Subscribe to become an INSIDER.

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom