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Why Invest in Mobile Homes?

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Presented by Desert Harbor Financial Services

spaceThe Need For Affordable Housing

  • A product of a housing market that ignores the affordable housing niche.
  • There are relatively few companies that broker the $2,000 to $25,000 mobile homes. As a result, the opportunity is there, in abundance, to step in and satisfy this void.

The Need For Financing

  • For most mobile home buyers, there are no established channels of credit available. This segment of the housing market is reliant on cash or seller carry.
  • Traditional models of consumer credit ranking fail in affordable housing, as most everyone has damaged credit due to health issues, other high-dollar calamities, or the current economic crisis.  Often those credit scores are not an accurate reflection of the customer’s ability to pay.
  • Having a job, and needing a place to live, are often the two deciding factors in a customer getting the bill paid.

What the Affordable Housing Consumer Wants

Mobile HOme
  • First and foremost... they need FINANCING - otherwise they could just go to the dealer or bank and buy the home themselves.
  • A total monthly price, including lot rent, of about $495 per month (of course this will be higher in some areas but in about 80% of America this is a good number to work from). This is not a number pulled out of the air, but actually what they can afford based on normal underwriting guidelines.
  • At least two bedrooms with one large bedroom (master bedroom).
  • A house that is free of any extreme aesthetic blemishes or smells.
  • They want to be treated with respect. They know that they do not earn high incomes, but there’s more to life than money. They want to be given the same treatment as someone buying a $500,000 custom home. They want to be shown the house properly, be given a reasonable criminal and credit screening, and exchange their funds for the key.
  • The important point is that you need to supply what the customer wants – and that’s a decent house at about $495 per month.

What Is the Investment Opportunity?

  • Investing in mobile homes has a lower entry point than investing in standard housing.  In addition, if one is not only providing the home but carrying the financing it typically yields higher returns on investments than investing in standard housing

How Do I Get Involved?

  • Mobile HOmeYou first need to decide how involved in the process you want to be. For example, do you want to find the home, negotiate to buy it, move it in, rehab it, and then sell it and collect the monthly payments? Or would you rather purchase with a mobile home park owner that has the experience and resources to do all of this for you?

    At Desert Harbor Financial we are able to locate available homes either in our park or in the local area, arrange for moving and rehabilitation of the home, prepare the lot site, conduct marketing and sales of the home, conduct credit and background checks on potential tenants, write up the sales contract and provide titling services.

  • Work with the park owner to offer incentives, and other assistance to make sure that you have the highest chances of success in meeting the returns on investments that you are requiring.

    At Desert Harbor Financial we can provide a variety of incentives such as:  rent lot credit until the home is sold, discounted lot rent should the tenant vacate, collect tenant payments and deposits and disburse revenue to the investor as well as having on site management to watch over your investments.

Need More Information?

Please contact Desert Harbor Financial Services
DesertHarborLLC@gmail.com
(714) 276-9044

© 2011 Desert Harbor Properties