Posted by John Merchant on August 11, 2005 at 04:39:25:
Suggest you might offer on these, one at a time, offering your $50-100,000 deal for total buyout…with seller paying all costs.
You can’t know sellers motivations or urgency to sell until you make an offer and get their responses.
Answers to your specific questions:
A. MHs on their own land are appraised & tax assessed as RE, so RE comps will show you what similar property is selling and listing for.
B. This MH is still personalty and hasn’t been converted to RE if its title as MH is still current and is being renewed…your state & county will have a procedure for surrendering the title and making it part of the RE; however you might not want to do that because you could prefer to sell the MH on terms, but keep and rent the land. Many MH/Lonnie dealers do this.
C. Loans for MHs w land are iffy, spotty and must be shopped for. Some banks around my home do it, on newer MHs, most won’t…the land has value but not every bank will do land loans either.
D. MHs can last a long time if they survvive their occupants’ “care”. I’ve seen a 40’s trailer still being lived in.
As far as really looking at MHs as good lendable collateral, on their own, I’d say forget it…I know no lenders who’d even glance at this deal…just like old cars. What lender would loan on 80’s cars today?
It’s a different story, of course, if you own and are selling on your note & terms.
Remember, we buy trailers and sell homes.