Being an investor for over a decade, the number one question I get from folks all the time is how can they find the money for their mobile home deals.

With that being said, I’ll go over some of the top methods you can use to fund your mobile home deals. Here they are:

Where to Find the Money For Your Mobile Home Deals

• Save Up Your Own Money

Ever heard the phrase, “Pay yourself first?” (Thank you George Samuel Clason!)

(Note: If you missed the reference, be sure to read this book!)

If you can save enough money on your own, you’ll have the funds to buy and hold your first deal in no time. This is what I did to get started as explained here.

After being a landlord for some time, I cashed out on my entire real estate portfolio. And decided to put my money into mobile home investing. This is where my journey began.

When folks ask about doing their first deal, I tell them to start out small. See if it works for them. If yes, then do another deal. Though if not, at least you get out on a small deal (rather than a large one).

(Note: One of the reasons I don’t advocate folks buying a mobile home park without experience. Read more here!)

• Find Mobile Home Deals For Other Real Estate Investors

When you come across opportunities to buy mobile homes, refer these leads to other real estate investors. Bird dog or wholesale them.

This is a great way to get experience without taking much risk. Plus, you’ll learn how to develop relationships since you’ll be working as a team. If you can learn to find good deals as a mobile home investor, you’ll have an unlimited supply of real estate investors wanting to work with you.

Once you have enough money saved up, then you’ll be ready to buy and hold your own mobile home deals. And have the experience to go along with it!

• Find a Private Lender (Investor) to Work With

Notice I said “a private lender” (instead of “private lenders”). Too many people think quantity is better than quality. But it’s not.

When it comes down to it, quality wins over quantity. Hands down. Every time.

If you can find someone who understands what you’re doing but just does not want to do the work, then you create a win-win situation. But the tricky part is finding someone who works well with your personality.

(Note: I talk more about how to find others who work well with your personality here. Thanks for reading!)

Personally, I’ve known others who borrow money from real estate investors who understand what they’re doing. One mobile home investor comes to mind. He worked exclusively with one private lender.

Each deal was a small deal (below 5k). He made money on the spread of what he owed the private investor and the monthly fee he charged each resident. As for the move-in fee, he got to keep that. He did over 40 deals with that one investor.

As long as he kept performing and paying back what he owed, this private lender kept funding his deals. Talk about quality!

• Find a Partner to Work With

“If you can’t beat them, join them!”

Sound familiar? Sometimes you find others who want to work with you and have similar goals.

As mentioned above with a private lender, you form a relationship with someone who wants a return on their money but does not want to do all the work. Essentially, a partnership.

Now there are other partnerships you can form. Depending on the types of people you know and meet.

One partnership comes to mind where a mobile home investor partnered up with his contractor. The contractor funded his deals but also did the fix-up work on the homes he bought.

Additionally, the contractor also moved homes into the parks where the mobile home investor had formed relationships. Since the contractor was in the business, they both saved money on fix up and moving costs.

(Note: If you’re interested in learning more, I talk about how to work with contractors here. Thanks for reading!)

Regarding payment, the investor and the contractor split the monthly payments and move-in fees received from the residents on their deals. Both the investor and the contractor had the same goal: to receive a steady stream of monthly cash flow.

If you can find the right partner to work with, you’ll be able to get the funds needed to do your deals. Just be sure the person you choose works well with your personality. And has similar goals. Make it a win-win situation for everyone.

• Find Other Lenders to Work With

Though I have not personally gone this route, I’ve known others to do so.

If you’re buying mobile homes as personal property (without the land attached), there are several lenders out there who issue both non-secured and secured types of personal loans. I’ve heard of others who have received title loans, personal loans from banks, and even some who have purchased homes using credit cards.

(Note: In the beginning, I bought a few mobile homes borrowing money on my credit card. Though, I had money coming in from the sale of some of my real estate properties. Once I received the money, I paid it all back immediately.)

Regarding working with other lenders, I caution about using your home as collateral by receiving a home equity loan for your mobile home deals. Once I knew an investor (who actually ended up selling me one of their mobile homes!) who did this with their home as well as other investment property. Let’s just say it didn’t end well.

Personally, I don’t think you should borrow against your own home to invest in real estate. It’s just not a good idea. Though, that’s just my own personal opinion.

If you can find other lenders to work with who can offer you favorable terms, it can help to fund your deals. Just be sure you’ve read all the fine print. And know what you’re getting into. Leverage can be a double-edged sword.

• Use Seller Financing

Though some advocate asking the seller to finance their deals when it comes to mobile home investing, I’ve never done this personally. Though I have when I was a landlord buying single-family homes.

Yes, you can always ask the seller if they’re willing to finance. Though, most of the time they’ll want cash when it comes to selling their mobile home.

If you work out a seller-financing deal, be clear on the terms. No matter what, honor your agreement. Don’t leave the seller holding the bag if things go sour when you turn around and resell the home or rent it out. And that’s all I’m going to say about that.

Seller financing is another route to fund your mobile home deals. Though just be aware, most sellers want to get out of their home completely. Cash is king.

Conclusion

As you can see, there are many ways to fund your deals when it comes to mobile home investing. Find a route that works for you. And stick with it.

By doing small deals first (versus larger ones), you’ll gain confidence (as well as the confidence of others such as your private lender, partner, etc.) to do more deals. You’ll also gain the experience needed on a smaller scale (versus a larger one) to see if mobile home investing is right for you.

Hope you enjoyed this article. Feel free to let me know if you have any questions about funding. Or want to share your experience when it comes to finding the money for your mobile home deals.

Happy investing!