I answer a lot of real estate questions on different real estate forums.  The other day some one posted this question, “What would you do if you had $1,000 to invest?”

I was amazed at the response from the readers. They ranged from “do nothing”, to “put it in a savings account and save more money”.

Although the question originated in a real estate forum and was answered by “real estate people,” it’s a good reminder to constantly ask yourself, “Who am I getting my investment advice from.
In my Financially Fine in 2009 podcast (you can find them on iTunes) I remind the listener that anyone can invest in real estate no matter what their current economics are.

So let me answer the question based upon what I know.  If I had $1,000 to invest, I would buy myself an older wobbly box.  A wobble box is a mobile home.

Investing in mobile homes isn’t sexy but it is very profitable.  Back in 2001 a partner and I were buying reposed vacant mobile homes for $500.00.  We would then turn around and sell them for $2,000.  We took a down payment of $500.00 and financed the $1,500.00 balance over 18 months at 15%.

The Purchase numbers
Mobile home     $500.00
Title work         $  75.00
Total Investment    $575.00

The Selling Numbers
Mobile Home     $2,000.00
Title work        $     75.00
Total Selling Price     $2,075.00

Investment out = $575.00
Investment In    =$575.00 in cash
Note for 18 months = $93.58

Return on investment =  ?

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twitty

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