Posted by Kevin on December 17, 2007 at 14:37:20:
Hello my name is Kevin and I was reading your post and it seems that we are in the same situation. I live in Sacramento and have had a hard time finding those lonnie deals locally. However I did find some good deals out of state. I would love to speak with you being that we are both two newbies in the same situation. Any suggestions you may have or feedback would be greatly appreciated -
look forward to speaking with you
Arizona newbie needs encouragement! - Posted by Patrick-AZ
Posted by Patrick-AZ on August 23, 2005 at 16:23:37:
I?m hoping to gain some insight and encouragement through responses to this, my first post. I?m a long time reader of this site and a ?DOW alumnus.? I?m impressed with the knowledge on this board and I am confident that I can eventually make ?a go? of this high potential business, I just need a little jump start.
The end of June, I finally GOTC and acquired my first MH (1966 12x60 2/1) in an adult community in the Phoenix, AZ area. While the home is older and smaller than recommended in DOW, it has a number of upgrades that I thought would make it more marketable (e.g. newer a/c, roof, copper plumbing, carpet). I spent most of July working on the home (re-building a couple of interior walls, painting, installing vinyl tiles on kitchen floor, cleaning, etc.) Other than a ?For Sale? sign on the home, I didn?t actively try to sell the home until the end of July (a mistake, I know).
I currently have just under $2,300 in the unit, the majority of which went towards a new awning (a previous owner removed the old one). The unit itself was a ?freebie? from the community (they acquired the title in a ?distress? situation). I am asking $7,000 which is in line with actual sales prices of comparable units in this community. According to management, the majority of transactions in this community are cash so there is very little demand for financing. Consequently, I was hoping to do a quick cash flip and move on to the next opportunity.
Unfortunately, I?m having a difficult time moving this unit. I have been advertising in print and in a couple of on-line resources; the ads are brief, to the point and only accentuate the positive. While I?ve been getting some calls and e-mails, I?ve only shown the unit three times! I just can?t seem to generate interest. Additionally, I had an open house a couple of Saturdays ago and no one showed up, pretty discouraging! I?ve even offered management a referral fee but the owners will not allow them to accept.
I know this is a viable business, I just need to find my niche and exploit it. The Phoenix metro area is growing rapidly and the ?site built? housing prices are soaring; hopefully these factors indicate a strong market for affordable quality mobile homes!
I would appreciate hearing from anyone who has some suggestions as to how I can better market this product. I?d particularly be curious to hear from other Arizona investors about their experiences.
Thank you!
Re: Arizona newbie needs encouragement! - Posted by tom
Posted by tom on September 07, 2005 at 19:49:58:
I’m also a newbie. The best response I got on my first deal and how I got it quickly sold was with a for sale sign in the trailer. My sign said
WILL FINANCE
$450 down. $175 per month.
I had $1800 in the trailer so adjust your numbers.
Re: Arizona newbie needs encouragement! - Posted by Mark Haugsten
Posted by Mark Haugsten on August 24, 2005 at 03:12:41:
I am not there.
This occurs to me;
1} The park has some indicators of northern affiliations. To whit, out of state plates, and school symbology on the cars or in the windows, or stuck in yards. Do those in your park who have these affiliations know about your referal program? Many of them will have family and friends who may be in the market when they get there? They surely are good members of the demographic you are looking for, so door-to-door your flier advertising the house, and your referal program.
2} Your local Home Depot is getting more and more white haired nice older gentlmen and women who know a thing or two about construction, and customer service. Paper the employee break room there, at Lowe’s, at Walmart, Walgreens, and the other boxes. With older Americans working more for the money and to keep busy, this can only help generate interest and contact with your market. Then again, they are there, and know people as per #1 to refer.
3)Keep fliers with you, and paper the occasional windshield with out of state plates, how can it hurt?
Re: Arizona newbie needs encouragement! - Posted by Steve Enlow
Posted by Steve Enlow on August 23, 2005 at 18:16:41:
Hello Patrick,
I’m also in the Phx area. East valley, AJ to be specific. I haven’t done any Lonnie deals yet, still reading the books.
In my area the parks are about 95% senior, so I will be dealing with Snowbirds. I like the idea of a cash sale vs financing.
Your asking price doesn’t seem to be out of line. I don’t think that price is the reason your “mobile home” hasn’t sold.
If you’ve rode the speedbumps this summer you already know the senior parks are like ghost towns right now.
In my part of the desert, the first wave of snowbirds start arriving just before Halloween. Once our winter visitors start flocking back in, you shouldn’t have a problem selling anything you have, with just a sign and phone # in the window.
My suggestion for marketing in the summer would be to advertise in small midwestern newspapers. This is what I will be doing next summer.
I did a google for wisconsin newspaper and here’s what I came up with.
http://www.usnpl.com/winews.html
I think you get the idea.
The Phx area is a goldmine for mobile flippers and it’s just going to get better over the next few years.
Money magazine said that Phx area homes are going to rise in price at about 18% per year for the next five years.
Most snowbirds don’t want to pay $250,000 plus for a second home in AZ. So they look for a park model or a single as a second home. These are the people we need to reach with our advertising.
What area of the valley are you working? East or West?
If you would like to talk, give me a call.
Regards,
Steve
480-474-2484
Re: Arizona newbie needs encouragement! - Posted by The55+Guy
Posted by The55+Guy on August 23, 2005 at 17:39:00:
12x60… 2/1… pre-hud… $2,300… phoenix… july… 115 degrees… $7,000… quick cash flip… hummm…
yea… that about covers it…
Re: Arizona newbie needs encouragement! - Posted by Patrick-AZ
Posted by Patrick-AZ on August 24, 2005 at 12:55:16:
Mark,
You?re correct about the ?northern affiliation.? About half the residents in this community are seasonal visitors from the mid-western US and Canada. A lot of our 55+ communities cater to this group. Out here in the desert, we know its Fall when the license plates change color rather the leaves!
Very good suggestion about working the other residents in the park and making them aware of a referral fee. I hadn?t thought about ?papering ? break rooms at Home Depot, Lowes, Wal-Mart, etc. but that also is a great suggestion.
Thank you for your response!
Re: Arizona newbie needs encouragement! - Posted by Patrick-AZ
Posted by Patrick-AZ on August 24, 2005 at 12:52:54:
Steve,
Thanks for the feedback! Good idea about advertising up north. Most of the residents in this particular community are ?snowbirds? from the mid-west and Canada and I?m anxiously waiting for their return!
Interesting you Googled Wisconsin, are you a fellow cheese head? That?s where I?m originally from and I sure miss it this time of year (of course come December when it?s below zero back there it will be a different story!)
I?m also in the east valley although quite a bit west of you: I?m in the west Mesa / Tempe area. You?re correct about the housing market here, particularly in the east valley. I spoke to a realtor last week who said this area?s home prices have increased 47% since the beginning of the year! Obviously the ?typical? housing market is increasingly out of reach for our target customer and should push them our way. Let?s hope so!
West Mesa/Tempe - Posted by Steve-AZ
Posted by Steve-AZ on September 04, 2005 at 10:19:19:
Hey Patrick,
Thanks for the email.
You told me you work Mesa
& Tempe. Does either town
have the no pre HUD law?
No Mobiles can be moved
into city limits if they
were built prior to July 1976.
I know some people who move
pre hud mobiles, storage sheds,
take down awnings.
My point to this post is to let you
know I might be able to hook
you up this winter if you can sell
pre hud mobiles.
Give me a call if you want
480-4742484
Regards,
Steve
Question about investing in MHs out of state - Posted by optimistic
Posted by optimistic on September 11, 2005 at 17:47:47:
I am interested in buying used mobile homes out of state and reselling them for a profit, but obviously see the hurdle of traveling costs/distance as perhaps too limiting to the profitability of this venture.
I live in the very expensive real estate market of Northern California so it just such a lower cost investment in Arizona, for example.
Any advice from experts on out of state mobile home investing?
Thanks.
Re: Arizona newbie needs encouragement! - Posted by The55+Guy
Posted by The55+Guy on August 24, 2005 at 13:46:20:
I don’t know anyone in Wisconsin… but I spent one sub-zero nite at the Minni-St Paul airport on a missed connection… (close enough)… and I can absolutely guarantee you… that if I was looking for a home in a warmer climate, I would NOT be looking in my local newspaper for it.