Join Date: Mar 2005
Location: Washington, DC
Bikes: Redline Conquest, Cannonday, Specialized, RANS
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I'm sure you can buy a used trailer for less than it would cost to build one, but here goes:
You want to attach it so that the pivot point is over the rear tire contact patch, as low as possible. Normally this means attaching to the rear skewer or the rear triangle. You want the attachment to move in three dimensions, so the bike can go up-down, left-right, and lean independently of the trailer. You want to have a safety strap so that if your hitch fails you don't lose the trailer.
Wike and the Burley "Alternative" hitch are a similar design -- a u-shaped piece of aluminum. The bottom of the "U" has a hole drilled in it, and the skewer goes through it. The sides of the "U" have holes, the hitch goes between the sides, and a pin goes through the holes and the hitch. Look a the manufacturers' websites for details.
Wike sells a kit consisting of a hitch, 2 wheels and an axle for $65.