I’ll chime in here - Posted by Lin (NC)
Posted by Lin (NC) on March 07, 2006 at 21:17:03:
I haven’t done many Lonnie deals, but two of them were in a nice 55+ park. There’s lots of discussion in the archives that’s worth digging up.
Here are some things I noticed as an inexperienced Lonnie dealer selling those homes:
The buyers were very particular about the quality and condition. I’m certain a “handyman special” would not fly in the park I did my deals in. Picky, picky buyers!
None of my buyers were in a particular hurry to make a decision or get moved in. There were lots of tire kickers.
The homes sat for a very long time. Lot rent was $425/mo and one of my homes sat for 6 months - that’s $2550! The other sat for 3 months.
There were many other, nicer homes in the park that were for sale.
5.) When they did sell, they sold for cash, which was nice. I did make a pretty good profit on both of them, but the holding costs were horrible, and I didn’t sleep well at night.
6.) The fact that they were cash sales told me I wasn’t offering a unique and valuable product (owner financing) and explained why my homes sat so long. They were competing head-to-head with every other home in the park.
Those are just a few of the things I can think of right now. Again, I suggest you read the archives. All my other homes were easier and quicker to sell than those two, so my advice to someone just starting out is to skip the senior parks - especially while you’re getting your feet wet. You’re much better off putting effort into building relationships with parks you know you can work in day in and day out.