Is there anyone investing in used mobile homes and using Lonnie Scruggs “Deal On Wheels” method of investing? If so can you tell me how are you getting around The Texas Manufactured Homes Act that will only allow you to sell one mobile home a year without obtaining a Dealer’s or Broker’s License?
Arnold,
I was hoping someone would give you an answer. I have both Lonnie’s books, but haven’t attempted to purchase any wobblies.
You might have better success with your question here…
http://www.creonline.com/mobilehomes/wwwboard4/index.html
hope that helps…
404
STACY, Thanks for the interest. The link for “The Manufactured Housing Standards Act” is as follows: http://www.tdhca.state.tx.us/pdf/mh/mhlaw.pdf The section that deals with the sale of mobile homes is Section 7(b) and (c). I have received one reply from the cre board and they advised me to sell a couple of homes first and then decide if that’s what I want and it’s profitable to me they recommend then that I obtain the license. Thanks once again.
404
What does it cost to get a mobile home license in Texas?
Hello,
We have purchased repo mobiles from lenders for our MHP in Tyler Texas, with great results. Paid $8500 each for 4 homes 1996 and 1998 models, then sold them in our park on contract for $22,000 each with 10% interest. Excellent cash on cash returns!
The dealer permit in Okla. is only a couple hundred bucks. You should make that back including home cost, marketing, fees and PM grease in the first year on the first home you sell. Good luck!
Do you guys recommend Lonnie Scruggs’ info. I was thinking of buying it. Also, I am in AZ. Have you heard anything about investing in MHs here? Please drop a line. Thanks!
Mark
Mark -
I have worked with several investors and investor groups who purchase mobile homes individually as well as those who purchase entire mobile home parks.
The Lonnie Scruggs book was referenced by several of my investor clients as being a valuable resource. Purchasing mobile homes, either individually or small mobile home parks, is an investment area that is not as saturated as some other areas.
As a previous poster mentioned, you can buy used mobile homes for very reasonable prices. The keys are (a) having a place to put them, (b) amount of restoration that needs to be done - no different than a stick-built home, (c) pool of ready tenants. The potential cash flow in this investment area is well worth the time to get more details - Lonnie Scruggs is one of the sources of good information.
Thank you for th info. I think I will make the investment and get his materials. Thanks again!
Mark