ANOTHER MOBILE HOME QUESTION!! - Posted by Jason

Posted by Dirk Roach on March 13, 2000 at 22:48:53:

Follow Tony’s good advice here.
These upside down deals are feasible, if you know what your doing…i.e. Tony’s above post.
Last week alone I personally received 52 offers of these types of deals. They are all over.
Anyhow Personally I don’t mess at all with these types of situations. I do however earmark the deal and then look for the home on the repo’ lists a month or two down the road.
But you know really I make a ton of more money just doing the classic Lonnie deal.
Personally my mobile home biz is only part of my over-all business structure. So like they say time is money. I have found that asking myself a simple question has made me a lot of money (and saved me a lot of time):
"Is this deal an efficient use of my time?"
If it is, and will make me money…then cool, I play.
If it’s not, and if it costs me money (remember time is money, so if I waste time doing something that doesn’t put money into my pocket) then I don’t play.
Anyhow that is what works for me.
Dirk

ANOTHER MOBILE HOME QUESTION!! - Posted by Jason

Posted by Jason on March 13, 2000 at 18:04:25:

I recently talked to a seller who answered one of my ads. He has a '98 16x80 mobile home. That he desperately wants to get out of. I asked him what he wanted for it, and he said he just wants somebody to take over the payments, which run $330.00 a month. I know this isn’t a typicall lonnie deal, but I was wondering if there was anything here I could do. For example: could I take over his payments, and then turn around and sell to someone else on a wrap loan. Has anybody had any experience with deals like this? Thanks

Jason

Re: ANOTHER MOBILE HOME QUESTION!! - Posted by Tony-VA

Posted by Tony-VA on March 13, 2000 at 18:31:00:

Jason,

Hmmmm, How do I say this politely? Ummmm.

Well, Jason, just stop beating around the darn bush and go out and try a lonnie deal already!!! Get one under your belt just like it says in the book. The book will guide you all the way through it and you will gain a great deal of experience without subjecting yourself to greater financial risk.

Do some people make money doing the MH wraps? Yes. A few have posted saying that they do. I suspect they are pretty seasoned investors who understand their market, leverage, and have good finance contacts. What you are doing is tying yourself to an alligator that has already outgrown it’s cage. The buyer is typically upside down (owes more than the house is worth). Even if you could find some equity in a 1998 home, how much equity do you think they really have in it? These suckers depreciate. They are typically overfinanced to begin with. (at least in my opinion). So why put your name on this loan so that you can try and market it and pay off a loan that is likely as high as the mortgage on my house (including lot rent)? If your buyer is slow in paying or defaults, you have to come out of pocket to cover the loan and lot rent. A couple months of this and you could have bought a lonnie deal for cash! If they buyer beats up the home, you are going to have to put more money into it to get it to sell at a high enough price to get your original investment out.

Why not do yourself a favor and just try one lonnie deal. If you hate it, I will personally call you and apologize. Your post below and this post lead me to believe that your mind is working overtime trying to be creative and put every deal together that you hear about. That is good energy that needs just a bit of focus right now. Get some more experience, at less risk first is the best advice I can give you.

As Always, Best Wishes,

Tony-VA

ps. Please stop with the CAPITALS!!! They denote shouting. Thanks.