Posted by Tony Colella on March 07, 2006 at 20:59:40:
I would recommend you run an archive search on 55 plus parks (try different search phrases). There is much discussion on that topic. I have not worked in that type of park so I will defer. There are considerations to keep in mind.
Also, whenever we read or talk to someone who has tried to buy property from heirs, there is always a long, painful story included. Patience, patience, patience will be key. Good deals can be had. Solving problems will be important. But be willing to let them know you will walk away. Too many heirs see dollar signs instead of reality.
I have left messages with seven different FSBO in this one park I have been casing and only 2 people have called me back-both of those people were buried in their MHs and said they just want what they owe(unfortunately they both owe over $20,000 each)ouch!!! But my question is, how many times do you call a FSBO before deciding that they just might not be motivated and move on? I am looking at this from two sides. One side is that they obviously could care less if they sell it or not, or they are not quit ready to move and will call back whenever they feel like it(unmotivated). The other side, is that maybe this is the reasoin that they haven’t sold, because no one can get a hold of them, because they work crazy hours, second shift, don’t check messages, kids erase their messages, etc… you get the point. This could mean that they actually are motivated and the competition is limited, because interested buyers just move to the next MH. There are 7 FSBO in this park and 2 bank owned properties. Let me know what you do and your experience with callbacks. Thanks
Posted by Tony Colella on March 07, 2006 at 15:28:01:
One simple question.
What did the park manager tell you about the sellers?
There is no call backs, there is not leaving multiple messages. I only wanted to speak with sellers who need to sell today and CAN sell today. The park managers cut through the majority of the leg work for you.
I bought very few mobile homes that had been listed FSBO or even had a sign in the window. Most were never advertised, just park manager referrals.
This is a new park that I’m looking at and the PM was not in this weekend when I stopped, but I drove through the park and wrote down some FSBOs to get an idea of going rates in this park and see if any possible deals were there. If just trying to get #s on the MHs, I guess it doesn’t hurt to keep trying, but in the case were I want to buy a MH, I’m guessing that I should just make the call and if no call back, move on. This looks like a decent park and I am going to try and meet this PM one more time before calling him/her. I prefer face to face so I can get an idea of what kind of person I’m dealing with. Thanks for your help on this matter and all your posts that are helping me get started. I’m trying to get a deal done before my wife delivers my 5th child on 4/04/2006…just a short term goal to keep me motivated. Talk to you soon.
-Dan C.
Posted by Tony Colella on March 07, 2006 at 17:13:32:
WOW. Congrats and then some Dan.
As for the for sale signs in the windows. The parks I worked had them but in most cases I did not find a deal there either. Those signs often faded by the sunlight before the every sold.
I never had much luck window shopping either. I cannot stress how important the park manager was in my finding truly motivated sellers.
I signed deals literally with the seller going out the back door and the Sheriff coming in the front. Now that’s a motivated seller!
Congrats again on the new pregnancy. I bet 5 is a record here. Anyone have that many or more kids?
Thanks Tony, I think I took the old saying,“my kids are a handfull” literally. My family and I are very excited. I have another question, let me know if you think I should make a new post or not. I just happened to call on 2 MHs were both the owners died and the niece of one and the daughter of the other are the sellers. They both seem very motivated, but I have never been to the park and it is a 55+ park. I called the park manager and the park owner(both very nice) and they said as long as I don’t live there, they would be more than happy to work with me and help me in any way they can. It seems most of the people on this site do not like 55+ parks, is it something you stay away from as well and if so why? Thanks again and again and again…
-Dan C.
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.