Current Article

Mobile Home Financing



My ad read “Mobile Home For Sale-Will Finance” and the phone was ringing off the hook. Some callers didn’t even bother to ask what the selling price was or the interest rate. Most of them only wanted to know two things: “How much down and how much a month?”

These are the type of people that will make you rich if you understand notes and seller financing. The financing alone will make you rich. But if you understand how to buy a product for wholesale, sell that product retail, and finance the sale, you will get rich much quicker and much easier. For the past 18 years I’ve been creating “Mobile Home Money Machines” by using this concept.

There are over nine million mobile homes in this country. It’s the fastest growing type of housing today. And because this business is so unrecognized by most entrepreneurs and investors, those of us who do understand this business are making a fortune with little or no competition. When you can buy a used mobile home for $3,000, sell it for $6,000, finance it and have the buyer send you a check for two to three years, my calculator says that’s GOOD ENOUGH.

Mobile homes are the only affordable housing left for many people in this country. But even so, the new mobile homes are priced way out of the range of many people who need to buy a home. High prices, and the lack of financing are creating a tremendous demand for used mobile homes with seller financing.

There’s a world of people who want to buy things. But, as many of them don’t have any financial discipline, the only way they can buy what they want is to find someone who is willing to offer financing. And this is especially true for housing. Some people will never save $1,000, but, if you set them up on a monthly payment plan, they can make you a payment for life. Let me illustrate by sharing one of my actual deals.

A 96% Yield

This couple owned and lived in a 14 x 64 single-wide mobile home that was 16 years old. They were moving out of the area and needed a quick cash sale for their home. After being assured by the park manager that the home could stay on the lot, I bought that home for $3,350. I spent $132 for advertising, so I now had a total of $3,482 invested. The home sold in 17 days for $7,900. My buyer paid $790 down and signed a note for $7,110, payable $228.39 monthly, for 38 months, 12.75% interest.

So, with a few hours of work, I’ve used a mobile home to create a high yielding note, which has obligated somebody to send me $228.39 for 38 months. The face amount of the note is $7,110, but I only have $2,692 left in the note. Run the numbers and see if that’s not a 96% yield. The 38 payments, plus the down payment equal $9,468. Subtracting my original investment of $3,482 leaves a profit of $5,986. And this all took place in 38 months.

Do A Little Work One Time And Get Paid For 38 Months

And here’s the part you have to really love about these mobile home deals. Once I sold the home, my work was done. But the buyer has to go to work every day, to earn the money, to send me a check. And he gets to do it for 38 months while I can go fishing, or take a nap. This is an excellent example of how to make your money work for you, instead of you working for your money. If you will learn and apply this concept, you won’t ever feel the same about working a “job” again.

This is just one of many notes I’ve been able to create over the past 18 years with used mobile homes. There was a time when I could get excited about buying notes paying 15%-18%, but no more.

My typical “Lonnie Deal” starts at 50% and goes up. And this is real world stuff, not fiction or pipe dreams. There might be something better, but so far I haven’t found it. Mobile homes really are “Money Machines.”

My financial tip: If you don’t learn how to make money work for you, you will spend your life working for people who do. And, I leave you with this friendly reminder: Never let the mail carrier pass your house without leaving a check. Happy investing.


Publisher’s note:

I first tried Lonnie’s ideas in 1990 and have been using them ever since. They do work!

Caution: Before you blast off, consult with a knowledgeable CPA. You should know how you will handle dealer status (no capital gains; all ordinary income), what type of entity you will use to hold title (S Corp, C Corp, LLC, sole proprietorship). And, remember Richard Reno’s idea: No property has a problem. Its owner may. GR

LONNIE SCRUGGS is the author of the best sellers, Deals On Wheels, and Making Money In Mobile Homes, both available at

Reach Lonnie at (757) 436-2197

“My typical Lonnie deal starts at 50% and goes up. And this is real world stuff…”

Trackback URL

Post a Comment