Something to consider before changing your investing strategy
Mobile home investing has great potential ROI but there are nuances that requires an investor to do his/her research before jumping in.
Want a quick overview of the biggest legal differences of mobile home investing? Check out our quick list of things to think about:
- Manufactured homes (mobile homes) are personal property — they have different ownership qualities and are treated like a car, boat or RV. This means the title is administered by the Department of Motor Vehicles.
- If the owner of the mobile home is unable to make their payments they’re not foreclosed on — instead the property is open to repossession (just like a car). This process is called a replevin and is filed with the court system so as to not “breach the peace” during the removal of the personal property.
- If you rent a lot or slab for a mobile home, you are evicting an entire home not people — therefore, you would issue a 5 day notice rather than 3 day (like in an apartment or single family home) because the tenants need more time to move the home.
- You don’t have a typical lease agreement — your lease and park charter (think HOA) need to abide by the Mobile Home Park act that outlines the rights and regulations associated with this type of investing.
- You have a different socio-economic demographic as your customer — this means loans tend to be of poorer quality with higher interest rates. You also have to consider higher default rates AND the potential for more evictions.
Word of advice: this isn’t the strategy for a passive investor. Be prepared for some labor intensive work, not only legally but the day-to-day management of these properties.
February Meeting Agenda & Logistics:
6:00-7:00pm: The Investor Lab — Join us for one or all of the following:
Food Served from 6:00-7:00pm
- Workshop Troubleshooting Forum
- "Hot Seat" featuring an expert in deal finding, marketing, financing
- Team & Resource Building
- Haves & Wants and Sharing Success
7:00-8:30pm: Main Meeting — Mobile Home Investing … is it a strategy you should consider? with the Rocky Mountain Home Association
8:30pm: Continued Open Networking
Tuesday, January 13th
Colorado Springs Monthly Meeting - Mobile Home Investing
Wednesday, January 14th
Thursday, January 15th
Northern Colorado Monthly Meeting - Mobile Home Investing