Colli Real Estate

Trailer Cash

How would you like to help Americans, young and old, to realize their dream of homeownership, and make a great investment for yourself in the process? How would you get returns at low risk, 18 to 72% of your IRA or savings to supplement their retirement years, or your regular monthly budget? And if you could do with $ 5000 or less, or one million dollars or more, if you wanted? In this brief article we will show an investment technique known as BB, or the Bank, a bank cautious. It requires little time, however, produces large rewards.

To take advantage of this technique, you must understand that there is a huge demand for affordable housing. Some of you also to free up preconceived attitudes about prefabricated houses, which are also the most affordable homes there.

There are nine million homes built in this country residence of ten, however, this investment is virtually hidden to most investors. It is not even on his radar screen. About three million are located in communities where people of your own home, but rent the land underneath. They are them that concern us, because they have lower prices and higher yields.

Because of this investment is so hidden? The result is a mistaken belief. Homemade, and based in a factory as a car, also have a title, like a car. For this reason, people believe that the houses trunking is spent as a car. However, if someone is responsible for a mobile home in the same way of looking at your site built home can last as long as a site built home – I personally own Prefabricated houses that are forty years of age or older, and continue to provide safe, shelter, safe and healthy for families.

Because of this mistaken belief, many banks refuse to provide the "biggest" manufactured homes, homes built before, say, 1990. And that's where the opportunities are. It is There you will be the bank, and are provided in the older but still in good condition, prefabricated houses. You can select the homes they wanted on lending in the communities you want to give the type of borrowers who wish to provide a. There are more than 50,000 manufactured home communities the United States, an average of 1000 in each state, so that many comfortable places for you to invest.

When it comes investment, is a three step process:

1 – You buy an old house manufacturing, which is still in good shape for the money at a discount of 50% or more of their retail value

2 – You are going to sell the manufactured home to a new owner at its retail value, with financing from a bank, and styled the house as collateral to ensure you are paid

3 – You will receive monthly payments until what the house is paid

Let now each step so that they understand and feel comfortable with the process.

The first step is easy. You find manufactured home communities or in the parks, you feel comfortable, as the left. You can lookup in the yellow pages classified in homes built to be sold, or online at sites such as Global Network Manufactured Housing (Mfdhousing.com) or Realtor.com. In most communities, ten per cent of houses are for sale at any time. This means that in a community of say 100 homes, there should be about 10 to sell.

The next step is to inspect the homes built for sale to find the best deal at the lowest price from a seller who wants to sell for cash. The maximum you will pay is 50% retail. How will you know what selling price is it? The easiest way is to look at home in the NADA guide (or on their website.) You can also ask the manager of the community last Comparable sales value of the indicator. You will make offers until you find a buyer who is willing to give the side you want the price you want, in exchange for a quick, efficient.

The next step is to find a new buyer, and there is strong demand for housing affordable, with funding expected to have a buyer lined up before the closing of the purchase. The best way to find buyers is an advertisement which reads: Manufactured Home For Sale, owner finance, banks do not, and your phone number. After your first BB Instead, you must have a waiting list of qualified buyers to another.

When someone calls the announcement, calling their employment, income, credit and the size of your family and / or animals. You will explain the loan terms that provide a focus on quantity below and at most a month, because that is the main concern of a buyer. We do our deposits in multiples of $ 1,000, and our monthly payments multiples of $ 100 per month.

The last step is the most fun – to complete the sale of the manufactured home to the new buyer. The process is simple. You lose the Department of Motor Vehicles after receiving the initial payment for the new buyer and the insurance policy and transfer of ownership. You hold the title DMV collateral – the house can not sell without paying You Off in advance.

Something unexpected can happen during the final step – be love in your mailbox, it has become an ATM. Each month there will be envelopes with checks your name. Most of BB you do, the more checks you receive.

This is one of the easiest ways to make money in real estate, because you do not lift the "heavy". While buying a home that require little or nothing to fix (just a cleaning at most), and you are collecting monthly payments without any maintenance or repair. You're the Bank and the Bank only collects mortgage payments. The Bank is not someone's house and unclog toilets and fix the stove – it is the responsibility of the owner.

Let me give you an example of how this works.

First step: it is easier Days Manufactured Home Community, a retirement community for over 55 years that appealed to you. There were 10 houses for sale in the community, much like the one pictured on the left. One owner wanted a quick cash sale. Seeking home in the NADA book and is worth $ 15,000. The manager of the community have confirmed other sales took place in this price. The owner agreed to sell to you for $ 7500 cash for a quick sale. You've written agreement.

Step Two: You've posted an ad and met a retired couple from Michigan who agreed to Nice purchased for $ 15,000. There was only $ 2,000 to put down, and had no problems making a payment of $ 300 per month mortgage for 54 months. (The interest rate on the mortgage than 9.9%)

Step Three: You sell the pair of Michigan and for the 54 months that are coming to your mailbox and picked up an audit $ 300 monthly, each time smiling.

When you consider what you invested $ 7,500 for the purchase, less the $ 2,000 initial payment you collected, the total initial investment was only $ 5,500. Then received 54 payments of $ 300 for a total of $ 16,200. You had net income of $ 16.200 minus $ 5,500 or $ 10,700. Dividing net income of 54 a month profit, and multiply by 12 you get a $ 2.375 annual return for a simple annual return of 43%.

Yes, 43%. If you put your money in the bank at 4%, would receive $ 220 per year in interest, or 1 / 10 the amount thereof BB. In other words, the bank given 10 times the income to put their money in a bank, and you are guaranteed twice what you invested.

The first objection we get when we explain the process BB: "And if the new buyer does not pay the bill? "Our answer may surprise you. It is:" It's even better. "

If the new buyer does not pay, we return home, or "repo" she said. The process of reverse repo in most states is simple and fast, like a car repo, but without the pain and confusion, because a manufactured home is usually too costly and too great for anyone to move and hide like a car. Almost always sitting right where it is sold. You take the title at the DMV, sign a declaration under oath that the new buyer has not made payments as agreed, and immediately turned the property in his name.

Then you can sell again for a second advantage. You do not have the misfortune of someone, and we want everyone to pay their bills, to appropriate your home, and achieve the American Dream, but if new owners can not meet the grade, usually make more money.

Throughout this article I use the term manufactured home, because they create an emotional reaction in some people, as two other similar terms – mobile homes and trailers. When I use these words, what comes to mind of some people is a picture of the road Tobacco, another misconception. Most mobile homes or mobile home parks, namely manufactured home communities containing peace to respectable retirement or enjoy working with home buyers for the first time, many of which are the pride of ownership, and how that care home is shown.

We have created a slogan of humor to this end, it is easy to remember:

This is not trailer trash, trailer is effective.

About the Author

If you want to learn more about manufactured homes, get the forms you need for BB’s, along with a more in depth look at investing, read “Mobile Home Wealth,” by Zalman Velvel (the pen name of Stu Silver). It’s available on www.MobileHome.com along with his other books and training materials.

Stu Silver is a real estate investor, writer, speaker and trainer who deals with the lucrative, but often overlooked, subject of Mobile Home and Mobile Home Park investment.  Mr. Silver and his family have real estate holdings that include 500 rental units, comprised of 11 mobile home parks, warehouses, mini-warehouses, offices, single family homes, duplexes, and motels.  Under the pen-name of Zalman Velvel, he has written  two well-received books:
Mobile Home Wealth

and
Mobile Home Wealth Part 2: Mobile Home Parks
.

Mr. Silver has been a full time investor for more than 28 years.  He holds the coveted CCIM designation, and is licensed as a real estate broker, mortgage broker, auctioneer, mobile home dealer, and former real estate appraiser. As a licensed real estate trainer, Mr. Silver has trained more than 5,000 people in real estate investing, in 3-day bootcamps and live on the internet.

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