By Home Nation Published April 28th, 2025
Wholesaling mobile homes can be a lucrative investment strategy, especially for those looking to enter the real estate market with a lower initial cost. It’s different from traditional real estate wholesaling because mobile homes are often more affordable and are a unique type of investment. If you're looking to get started in this market, understanding the right steps and legalities is crucial to success.
Key Takeaways
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Wholesaling mobile homes requires understanding the legalities and regulations surrounding the sale of mobile homes.
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Start by finding motivated sellers who need to offload mobile homes quickly.
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Analyze the property’s value using the After Repair Value (ARV) and Maximum Allowable Offer (MAO).
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Network with park managers and local investors to find deals.
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Use a legally enforceable contract to secure your "right to buy" the mobile home.
What Is Wholesaling Mobile Homes?
Wholesaling mobile homes is a real estate investment strategy where you secure the right to purchase a mobile home at a below-market price and then sell that right to another investor or buyer for a profit.
You don’t actually buy the property outright; instead, you enter into a contract with the seller and assign that contract to a buyer willing to purchase at a higher price. Before finalizing the deal, it's a good idea to consider a mobile home inspection to ensure the property is in good condition.
The secret to successful wholesaling lies in identifying sellers who need to offload their properties fast and at a low price. These individuals may be dealing with financial struggles, heading into foreclosure, or just eager to get rid of a property they no longer want. Your role as a wholesaler is to spot these opportunities and lock them down with a contract, which you can then pass along to another investor.
It’s also important to understand the difference between mobile homes and manufactured homes. Technically, mobile homes are often referred to as "manufactured homes" after a change in terminology in 1976. Understanding this distinction can affect how the homes are valued and sold, so it’s crucial to be clear on the terminology.
Related: How To Winterize Your Mobile Home
Finding the Right Mobile Homes to Wholesale
One of the first steps in wholesaling mobile homes is finding the right properties. This involves scouting out mobile homes that are undervalued, often because the owners need to sell quickly. Motivated sellers are key to successful wholesaling because they are more likely to accept a low offer.
You can find these sellers by searching through online listings, checking out foreclosures, or contacting mobile home park managers. You can also drive around looking for "For Sale" signs in mobile home parks.
Some mobile home parks even have bulletin boards where owners post information about homes they are trying to sell. For more insights on wholesaling mobile homes, you can explore additional resources and strategies to find the best deals.
Wholesalers also often use direct mail campaigns, such as sending postcards or letters to mobile homeowners who may want to sell. Networking with real estate agents or local investors can also be a great way to find leads.
Evaluating the Property: ARV and MAO
Once you’ve found a potential deal, you’ll need to evaluate the mobile home’s value. The two main methods for evaluating the value of a mobile home are the After Repair Value (ARV) and the Maximum Allowable Offer (MAO).
The ARV is the estimated market value of the home after any repairs and renovations have been completed. To calculate the ARV, you should compare the mobile home to similar homes in the area, known as comps, and consider the local market trends.
The MAO is the highest price you should pay for the mobile home to make a profitable deal. It’s typically calculated by using the 70% rule, which says that a wholesaler should aim to pay no more than 70% of the ARV, minus the repair costs. For example, if a mobile home has an ARV of $30,000 and will cost $5,000 to repair, the maximum price you should pay is $17,500 (30,000 * 70% - 5,000).
Understanding the Legalities of Wholesaling Mobile Homes
Before getting started, it’s essential to understand the legalities around wholesaling mobile homes. In many states, wholesaling mobile homes is governed by strict rules, and in some places, you may be required to hold a real estate license to wholesale homes.
Wholesalers should never directly sell mobile homes without a license. Instead, you are legally marketing the right to buy a mobile home, not the property itself. This is known as an “equitable interest,” and it allows you to assign the contract to another buyer for a profit.
Make sure you’re working with a legally enforceable contract that clearly outlines the terms of the agreement. You’ll also need to be familiar with state and local regulations regarding the transfer of ownership of mobile homes, including any additional documentation or requirements for title transfer.
If you're unsure about the legal details, it’s a good idea to consult with an attorney or real estate expert who can guide you through the process.
Related: Financing Your Mobile Home Investment
Negotiating the Deal
Negotiation is a crucial part of wholesaling mobile homes. Once you've found a motivated seller, you’ll need to negotiate a purchase price that is low enough to allow you to sell the property at a higher price. Be transparent with the seller about your intentions, and always approach the negotiation with respect.
It’s also essential to be aware of the repair costs. If the home needs significant work, you should factor these costs into your negotiation strategy. Be realistic with the seller about the state of the home and the costs you’ll incur to bring it up to market value.
Once you’ve agreed on a price, you’ll need to draw up the appropriate contracts. The most common option for wholesalers is the Assignment of Contract, where you transfer your rights under the purchase agreement to another buyer. The difference between the contract price and the assigned price is your profit.
Building a Network of Buyers
After securing a manufactured home deal, the next step is to find a buyer. Wholesalers typically sell to investors, home flippers, or even other wholesalers. It’s crucial to have a solid network of buyers who are actively looking for mobile home deals.
You can find buyers through online investor groups, at local real estate meetups, or by networking with other wholesalers. Developing strong relationships with cash buyers is essential, as these buyers often prefer quick deals without the need for financing.
Additionally, reaching out to local mobile home parks and managers can open doors to buyers interested in homes located within their communities. A good network of buyers will ensure you can sell the properties quickly, maximizing your profits.
How to Finance a Mobile Home Deal
Financing for mobile homes can be more challenging than for traditional homes, but it’s not impossible. Many investors use cash to purchase mobile homes, but there are also options for those who need financing.
One option is an FHA loan for mobile home, which is backed by the federal government and can help buyers with lower credit scores. Other types of financing include conventional loans for mobile homes, though these are typically harder to secure than traditional home loans.
Exit Strategies: Assigning the Contract or Double Closing
Two primary exit strategies exist for wholesalers. One approach is to assign the contract before closing. In this method, the wholesaler signs a purchase agreement but doesn't take ownership of the property. Instead, they transfer their right to purchase (equitable interest) to another buyer for a higher price.
The second option is the double close, where the wholesaler actually buys the mobile home, takes title (even if only for a short period), and then sells it to another buyer. The double close involves higher costs because it requires two separate transactions, but it offers a little more protection for the wholesaler.
Both strategies have their pros and cons, but either way, they can lead to a profitable transaction for the wholesaler.
Conclusion
Wholesaling mobile homes can be a profitable venture with the right knowledge and strategy. From finding motivated sellers to negotiating deals and understanding the legalities involved, there are many moving parts in this investment strategy. It’s important to research thoroughly, network with other professionals, and stay informed on the legal requirements to ensure a smooth and successful process.
Ready to get started with mobile home wholesaling? Check out our mobile homes to explore investment opportunities in your area and take the first step toward maximizing your profits.
