So Whats the Deal with MH (Ok, I will change the QUESTION)

Ok, obviously my last query was no good because I didn’t get any responses!!! ;D So lets try another…Could someone please share a deal they did on a mobile home to show me how easy they are to make money with? I would just like to hear a real-life example of someone who is doing these deals. Thank you very much.

Successful Investing,


Here is one example of making money with a mobile home.

Scenario - Singlewide (SW) MH on deeded property (not in a MH park). Two professionally built additions on SW. SWMH is a 1974 model. There are NO lenders who will do a standard mortgage on a SWMH built prior to 1976 and frankly there are few if any lenders who do standard mortgages on SWMH’s at all. Asking price is $26,000. Tax rolls carry property at $19,000. Independent Appraisal gives value of $46,000.

Couple wants to buy property but is unable to obtain financing. I have investor client lokking for lease-option suitable properties. Investor client purchases property for $24,500 cash (took loan out against 401-k to come up with cash). Investor client lease options property to couple for $7500 lease option fee, lease payments of $575 per month of which $100 per month are applied towards down payment/purchase price, and purchase price of $36,000.

Couple paid $17,500 more than they would have by purchasing directly - but they did not have the cash or the resources to buy outright. Investor client will owner finance the property for the couple. Here then is the breakdown of the numbers

Couple -
Purchase Price - $36,000
Option Fee - $7,500
Monthly Lease Payment - $575
Allowance to Purchase - $100
Term of Lease - 24 months
Term of Seller Financing - 10% Down, 30 year amotization @ 6.75% Due in 5 years

Purchase Price - $24,500
Amount Borrowed - $20,000
Monthly Payment - $129.72
Cash Outlay - $4,500

The investor put out $4500 of their own money but got $7500 from the leasing option
The investor gets $575 per month rent.
The investor pays $130 per month for loan payment, thus realizing $345 per month positive cash flow ($100 per month is credited towards down payment/purchase price).
Couple will finance $32,400 from investor at $210 per month, saving them $365 per month once they take ownership of property.
Couple will pay to investor $1,200 to investor to be added to the $2,400 credit as down payment for the investor financing.

In two years the investors has received $7500 option fee + $3600 down payment + $8280 net rent proceeds for a total of $19,380 ---- less the $4500 out of pocket for purchase. In two years, then, the investor has made $14,880 on a $20,000 investment. PLUS - the couple has to pay off the entire note in 5 years. WIN-WIN-WIN.

The couple is happy - they love the home and the lot it is on. The investor is happy, they have made about a 75% return on their money. I am happy - I have an investor who is happy and who is looking for more deals for me to put together financing on.

This is but one of any number of stories I could tell you about people I work with who are investing in MH’s. As I told my investor client(s) when I first showed them the property - do not look at this through your normal eyes, because you will not like what you see. Look at this as a purchase of $350 per month postive cash flow and $7500 option fee that goes straight to the bottom line.


My wife and I have bought and sold many and still hold the note on 6. You need to seek out Lonnie Scruggs and get his book “deals on Wheels”. It costs a whole 29 bucks. You’ve got to buy em right though. No $70,000 double wides. Read the book, it’ll make you $thousands!

Mark heres a deal i just done , Bought a 96 D/W only have $8000 sold for $24500 $1500 down and I financed to my tennant/buyer $23000 at 14.75% for 108 payments of $385 plus lot rent of $165 because its in my park.