Attention: Mr. Scruggs - Posted by David Goodwin

Posted by Lonnie on May 08, 2000 at 09:08:07:

Hi David,

Unless you already have some experience in the business, I don’t recommend you start off moving and re-setting the homes. It can be very frustrating, expensive and you will have to deal with city inspectors. And in most every case, it will cost more than you thought, and take longer. But if you do, there are several things you must be sure of before you commit to buying the home.

First. Make sure you have a park that will accept the home. Some parks have age and size restrictions.

Second. Make sure your purchase price allows you to make a good profit. This means that you must know what it will cost you for the move and re-set. Normally the mover only blocks, ties down, and connects the water/sewer lines. That leaves the electric hook-up, installing the skirting (if it’s good, if not, you will need new skirting) extra for moving the deck/shed etc. If you get an estimate, have the mover spell out exactly what they will do, and what the price is. Also, who gets the required permits.

Third. You can always sell the note, providing you can find someone willing to buy. I recommend selling only enough of the note to recover your cost. That will make it easier to sell, and you still have an interest in the note.

I think you can accomplish the same thing with far less work and frustration by simply buying and selling a home that’s already on a lot, and can stay on the lot.

Hope this helps,

Lonnie
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Attention: Mr. Scruggs - Posted by David Goodwin

Posted by David Goodwin on May 07, 2000 at 14:04:06:

Mr. Scruggs,

I thought about buying repo MH’s from dealers with cash, offering seller financing to my buyers, and then selling the note to investors such as you. Is this done?

Wouldn’t I be able to move the homes,recover my profit and investment much quicker? I understand that I’m giving up some of the profits but 50% interest over 5-8 years gives me nothing to turn the deals now.

Does this make sense?

Respectfully,

David
Tucson, AZ