Anyone who is considering getting into the mobile home investing business needs to make sure they check a few key factors out first or else you stand to potetniall loss money. If you do not check into these factors, you might have a few hidden expenses that could reduce your profit margin. If you are considering buying a mobile home or manufactured home in a mobile home park, you need to make sure you check into three factors that could impact your investment and cost you more money.
- You need to contact the mobile home park manager or mobile home park owner and make sure that there isn’t lot rent owed that will transfer over to you when you buy the mobile home. In some cases, the mobile home can not be sold or moved until all of the back lot rent is paid in full. Why is this your problem? Well, it might impact the amount of money the seller sells their mobile home for in order to pay off that existing debt. It could take more money out of your pocket in the end. In some cases, the lot rent outstanding will transfer with the mobile home and not the tenant. You could face a large bill when you take over ownership of the mobile home, because of this oustanding lot rent. In many cases, the utilities that are outstanding with the prior tenant will be passed onto the new buyer too. You really need to check with the mobile home park manager to make sure you are not assuming someone elses debt & burden.
- You should check with the tax assessors office to see if the personal property taxes are paid current. Specifically, you will call the county personal property tax assessors office. Also, you should make sure that the tax deed has not been sold recently. If it has been sold recently, the legal & titled owner will be someone other than the current seller…possibly. You want to make sure that the persons name and address listed on the tax record is the same as the person who is selling the mobile home, even if they claim they have title to the mobile home. It might not be a legitimate or current title.
- You will need to confirm that the seller has title in hand and that it is a valid & current title transfer. If they do not have title in hand, they probably have a lien on the mobile home that needs to be paid in full before they transfer it to you. It could add additional time and money to your mobile home acquisition time frame. In many cases, you find that there is a dispute between the borrower and the lien holder that may not be able to be resolved. Often, it is due to a payment dispute which could cause you problems. If they do not have title in hand, you need to walk away and not look back on that deal.
I hope you check these 3 factors before you consider buying a mobile home or manufactured home in a mobile home park. Performing your due diligence will save you a lot of money and headaches in the long run. After all, you could potentially buy a mobile home from someone who does not legally own it, if you do not do your homework.
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While the rest of the investing world jumps on the latest Real Estate investing craze, avoid the competition and market mayhem by investing in Mobile Homes.
Investing expert Dawn Erling will show you how easy it is to make money in this lucrative market. She will give you her inside ideas and tricks that have helped make her the mobile home investing expert she is today. Be-aware that this niche isn’t for everyone… so if you are looking for lower investing price points, faster turn-a-round investments, and how to make quick cash then join our free webinar! WholesaleDealmatcher.com is proud to sponsor of this webinar. After registering, you will receive a confirmation email containing information about joining the webinar.