In this episode of EZ University, we talk about some of the biggest challenges when it comes to mobile home investing. Plus we tackle how to overcome them.
What are some of the myths that keep people from investing?
How can you get past hearing “no”?
What does it look like to come out on top with a little cash in your pocket?
Learn the answers to these questions and more in this episode on why you should start investing in mobile homes.
In case you don’t have time to watch the video, here’s a quick summary of our top five tips.
#1 Debunking the myths of mobile homes
So many people have bad opinions about mobile homes. They’re often called “trailers” with some distaste. But no matter what you call them, it’s hard for people to wrap their minds around the idea: why would you invest in something that depreciates so much? Mobile homes are low-investment housing. Why bother?
The truth is, investing in this area is one of the world’s best-kept secrets. There aren’t a lot of people in the business, because the myths are keeping them from looking at the advantages. That’s where you come in. We want you to overcome that. There are businesses out there – including our own – that have made millions of dollars buying and selling mobile homes.
#2 How to avoid overpaying for a mobile home
Buying a mobile home is the first step in starting your business. And it’s the scariest part by far. If you don’t get the return on investment that you wanted you’ll end up regretting the deal. That’s why it’s important to remember a few key strategies about overpaying, such as not being afraid to make embarrassingly low offers. Remember that you’re shopping for good deals, just like in a store.
Better yet, let others name their numbers first. If the suggestion is too high, there are a few ways to help them see it through your eyes. But you may be surprised – they may only want $2,000 when you were about to offer $3,000. Which brings up another good tip: look for motivated sellers who want to get their mobile homes off their hands. That’s where you’ll make the most profit, and they won’t have to go to bed with a headache again. It’s a win-win situation for everyone involved.
#3 Look at the best-case and the worst-case scenario
Being realistic is another key element in any investment. A good way to train yourself to think realistically is to imagine the worst-case scenario versus the best-case scenario. If the worst is still doable, you know you’ve got yourself a deal. Of course, there’s always the unforeseen. Sometimes the best that can happen is you end up with just a little more than you started with and live to fight another day.
#4 Be willing to hear “no”
Hearing “no” the first time you offer to buy from a homeowner or a park owner shouldn’t phase you. “No” can be a good thing, believe it or not. You still have taken the time to forge some sort of relationship with the seller through your conversation. And guess what? A few weeks or months later, when they’re desperate, they’ll think of you.
An important way to make that happen, however, is by being memorable. Being courteous, professional, and understanding is a great way to create positive relationships. If you’re rude or angry, there’s little chance they’ll come back a second time.
#5 Know your market
There are differences in markets, just like there are differences in climates. In fact, your climate can even be a big factor in your market. A mobile home in Maryland, right on the beach, is going to sell for more than a home in midland North Carolina. So consider your market. Know it inside and out. The price points are going to be different in any given area.
We’ve compiled all of our investment information and created a program to help us make easier decisions on future purchases. One of our biggest goals here at EZ University is helping you make educated decisions based on these same experiences. We’re here to coach you through the process.
Overcoming the challenges
We’re still learning. We’ve sold around 1,400 mobile homes, and we still run into problems and are constantly gaining valuable knowledge from customers and park owners. We’re hoping to share that knowledge with you and help you navigate the biggest challenges of investing in mobile homes with less stress and more confidence.
0:24: Debunking the myths of mobile homes
2:50: How to avoid overpaying for a mobile home
7:50: Look at the best-case and the worst-case scenario
9:30: Be willing to hear “no”
11:00: Know your market
15:46: An example of an investment gone wrong