Post: #1

I just picked up Deals on Wheels by Lonnie Scruggs and I'm learning some good shit. I haven't finished it yet but I was wondering if anyone has done it.

Post: #2

(12-10-2013 12:19 PM)Edmund Dantes Wrote:  I just picked up Deals on Wheels by Lonnie Scruggs and I'm learning some good shit. I haven't finished it yet but I was wondering if anyone has done it.

Yes, I have done a few, but its not quite as easy as Lonnie makes it sound. I had some success at it back in the early 2000s, but the legal landscape has changed significantly since then thanks to Dodd-Frank.

I haven't kept up, but I hear there are pretty severe penalties for originating home mortgages if you're not a licensed Mortgage Loan Originator (MLO).

Even though mobile homes are more like used cars than Real Estate, the law treats mobile homes the same with regard to Dodd-Frank.

Do a Google search and you'll find many threads discussing the perils. That's not to say you can't fly under the radar, but be sure you know the potential risks.

Bone

Post: #3

I know some people that's done well on trailers park over the years. We call them aluminum mansions.


   


The key to making money is to own the trailer and the land. A chick tried to get me in on it, and I trust her, but it still was a costly investment. She had one started, and was slowly catching deals on repo'd homes and renting out to unregistered citizens. They pay cash on the barrel head, don't call the cops, and fix anything they break. Very different than Section 8 guaranteed money, but that is another story.

Still, renting brings liability, and I didn't see the profits outweighing the risks on so many units.

Post: #4

Thanks for the quick replies fellas. I'm gonna eat this book then ask some questions tonight.

Post: #5

(12-10-2013 12:47 PM)Edmund Dantes Wrote:  Thanks for the quick replies fellas. I'm gonna eat this book then ask some questions tonight.

You might want to go have a look at the CREOnline forum. Lonnie used to hang out over there and it was at one time very active. It became a ghost town after all the DF legislation, but there's still a wealth of information to be found, although much of it is outdated and doesn't deal with the new laws.

This topic comes up from time to time over at http://www.biggerpockets.com/ There are a few good threads on post Dodd-Frank Mobile Home investing, but most of it isn't very encouraging.

Post: #6

I just finished reading this book, Trailer Cash, by Jamie Smith. It appears to be a decent overview of buying and operating trailer parks as real estate investments. I'm interested in this type of investing.

From reading some of the forums on biggerpockets.com, I do think the legality Lonnie Deals is now questionable. However, I have not researched this topic. In her book, Smith argues that the easiest way to profit from the trailer park business is to simply own the land and rent out the parcels. If there are any trailer park owners on here, I would like to here more about your experiences in this business. Particularly, how it compares to single family or multifamily rentals.