Rachel Hernandez specializes in mobile home investing within parks, targeting the homes as personal property separate from the land, a distinct approach from traditional real estate investments.
Mastering Mobile Home Investments
In the world of mobile home parks, the land is owned by the park community, while the mobile home is owned by the individual. Owners pay a monthly lot rent for the space their home occupies, similar to a leasing fee, establishing a landlord-tenant relationship with the park. This arrangement allows for a clear separation between the land and the home.
Rachel's investment model involves purchasing these mobile homes and then selling them through owner financing, a concept popularised by Lonnie Scruggs, known as the godfather of mobile home investing. This approach enables her to create a stream of income from the monthly payments made by the residents, who also pay the lot rent directly to the park.
What sets mobile home investing apart, according to Rachel, is the lower competition. Success in this niche requires building strong relationships with park managers and owners, as their approval is essential for conducting business within the park. Rachel's background in sales and formal corporate training has been instrumental in her ability to network effectively and build the necessary rapport.
Mobile home investing, as Rachel demonstrates, is not just about buying and selling properties. It's about understanding the dynamics of mobile home parks, leveraging personal property, and fostering relationships that enable sustainable business operations. Her success story is a testament to the potential of specialised real estate investing strategies that focus on niche markets.
