Home : Modular Homes

Modular Homes

Posted by Tina Merritt on 2/1/2010 at 11:56 AM
Posted in Real Estate Investing

Blog Image A couple of years ago, I was asked by a lender to help them sell a new construction home. The home was quite large (3,600 sq ft) and sat on 3 acres of land. In performing my due diligence, I checked the title and permits at the courthouse. I was incredibly surprised to read "modular home" on the initial building permit for the home. By all accounts, the home looked like any other recently constructed home in the area.

Not to be confused with mobile or manufactured homes, a modular home is built in a controlled environment and then shipped in pieces to the construction site. The popularity of this type of construction has more than doubled in the the past decade. Modular homes can offer a faster building time as well as construction cost savings of up to 30%.

Modular homes are built and packed using computer generated technology, which allows for very precise measurements and very little waste. Many homeowners are choosing to order their homes with steel studs - these homes aren't attractive to termites in tropical climates like their stick-built cousins.

Investors who are looking to profit from vacant land or a tear-down structure, may benefit from considering the modular home option. Holding costs, market time and construction costs may be surprisingly less than taking the traditional building route.

Tina Merritt is an 11 year veteran Real Estate Agent and Trainer based out of Virginia Beach, Virginia. She holds a degree in economics from Virginia Tech and post-baccalaureate from Virginia Commonwealth in real estate and land development. As an avid social networker and internet marketer, Tina helps real estate agents, loan officers and affiliated industries embrace technology. As a real estate agent, Tina primarily deals with marketing and selling properties deemed "hard to sell" and also works with real estate investors helping them build and/or liquidate their portfolios for maximum profit.

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4 Comments

Posted by member1982261 on 02/01/2010 3:37 PM

This sounds very interesting, however is the quality of the modular homes comparable to the quality of regular built house? If that's the case then this is an interesting option for buying a tear-down property and rebuilding with a modular home.

John,
http://www.canadabanks.net/Loans.aspx

Posted by member11069270 on 02/01/2010 6:01 PM

It seems that many buyers are turned off to hear the term modular home, but in many cases, the quality of the home is much higher than a home that was stick built on site. The quality control in these factories is outstanding and there are a few builders that are building custom modular homes. I wouldn't be ashamed to purchase a modular home. It's becoming more popular here in Charlotte! As always if you need any help with real estate in the Charlotte, NC area, feel free to contact me. My website is http://www.timsellscharlotte.com

Posted by Rachael Sutton #1253595 on 02/14/2010 10:06 PM

Growing up in an area where RV, trailer, and modular home factories abound, I can say quality varies depending on the manufacturer selected and the particular line and product purchased. For quick, short-term housing, these are a great choice, but if you are expecting them to appreciate, you may be disappointed - that is the biggest difference between traditional homes and prefab.

Posted by member11000083 on 02/24/2010 5:57 AM

Interesting post. In an environment of increased savings sensitivity, I wonder if landlords or prospective landlords can't benefit from this approach to new assets. Right now cash is king and this is a good way to consider preserving cash.

Blake Ratcliff
The International Residential Real Estate Investors Association
www.irreia.org

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