Mobilizing and Manufacturing Money Through Mobile and Manufactured Homes
The Real Deal Tour of this manufactured home is an example of how it benefits the Renatus Community, especially for newcomers to real estate investing. Students who are entering into this high stakes industry can realistically invest their cash in these homes without assuming massive risk. Single family residences require tens of thousands of dollars and potentially involves risk factors that may be too difficult to financially overcome. Minimal risk is involved in manufactured homes since the dollar amounts of these deals are significantly lower.
This home was purchased for $1000. It required about $5000 in repairs. It is now on the market for $14,999. Potential net profit is $9000.
Alberto Vargas is a longtime real estate investor and business owner. He has been involved in the mobile and manufactured home industry since the mid-90’s and has been extremely successful investing in this space.
Paul Fredericks is a longtime real estate investor. He has also spent many years in the health care industry and plans to leverage his knowledge and experience in that field for future projects in mobile and manufactured homes.
Alberto Vargas and Paul Fredericks are real estate investors who specialize in mobilizing and manufacturing cash.
These guys are going to explain exactly how they are do that. Alberto says they have a very specialized niche that is extremely undervalued. Most people think there is no money to be made, but that is further from the truth. He says there are plenty of Americans looking for low-income housing and value is being created for them through mobile and manufactured homes.
Alberto points out that repairs on mobile homes can be completed more quickly compared to single family residences. Estimated rehab time on average for a mobile home is about three-to-four weeks. A fix-and-flip on a regular home could take as long as two months. In terms of investing, Alberto says there really isn’t a lot of difference other than affordability for residents, especially senior citizens.
Paul says these homes are often times used as second homes for winter visitors in Arizona and other warm weathered climates. People from Iowa, Nebraska, or some other state are not looking for a property that is as elaborate as what they might own back home. They are looking for something simple because they are spending most of their time enjoying nice weather during winter months.
Alberto says there has never been a time in our history where affordable housing has been more in demand. Most people nowadays need to pay a couple hundred thousand dollars to get into a home and will need to qualify for a loan. One of these mobile home deals is much easier to get into and is much better than an apartment due to amenities — such as nearby parking, barbecues, and other things.
Paul says security is also a big factor. You can make a mobile home as secure as needed. If you are living at an apartment complex, security or lack of security is always in question. Often times, these mobile homes are located in secure gated communities. Overall, it provides safe and secure quality housing for younger and older people. From a real estate investor perspective, Paul makes reference to Billionaire Warren Buffet who calls mobile homes, “metal boxes that spit out cash.”
Alberto says beginners looking to get into investing in mobile or manufactured homes should make sure they are completely educated in this industry before jumping into it. He says the best part thing about this niche is the risk factors are low, so it won’t be as nearly as costly if a mistake is made along the way.