Can i go wrong with a land deal? - Posted by Debo1977

Real Estate Investing Mobile Homes & Mobile Home Parks
#1

Posted by Ruben (KCKS) on May 23, 2007 at 17:04:24:

If you buy for the right price any deal is a winner. The problem knowing what the right price is for your area and what you can do with the lot. Will the city or county allow a home to be put in? What costs are associated for putting a home in? What will it rent for or what can you sell it for? If you sell it what lenders in your area will finance the deal?

I will let you know that I have not done a Land Home deal yet. I have looked at a couple and even had one under contract but if fell out during the due diligence process. I have done Lonnie Deals for almost 2 years now and have spent a pretty penny on my education during that time period attending different events. I would suggest that you:

1 Read all three of Lonnies books at least twice (The information he provides is priceless)

2 Read, listen to and watch Tony and Scotts Materials on Land Homes and Small Parks (Once again a very good deal for the information you get and the DVD is cool to watch).

3 Do a couple of Lonnie deals.

4 Continue posting and reading posts here on CRE.

No matter what you do good luck.

Ruben D. Flores

816 918-9041

#2

Can i go wrong with a land deal? - Posted by Debo1977

Posted by Debo1977 on May 23, 2007 at 15:45:40:

Let me start by saying that i am totally facinated with mobile home deals…Haven’t done any, but it excites the heck out of me.

So, i go out looking at these homes the other day and come across one that has burned down. There is a sign to call about details. So i call and the lot is going to auction Friday 25th opening bid $10K. Land is 1.23 acres great spot and the area is mobile homes on acre lots, newer homes rangeing 65K to 95K.

So, i look into the tax records, the county has the land value of the home @ 25K. If i was to buy this land for 10-13K, can I really go wrong???

If i find a nice home for 25K, total investment 38K. Sell for 65-70, will net nice little profit. Or, do i keep the land and rent the home???

Any thoughts would be great!!

#3

Re: Can i go wrong with a land deal? - Posted by Gene

Posted by Gene on May 23, 2007 at 20:06:09:

(((((((total investment 38K))))))

You are forgetting sooooooo many other expenses.

I got a great deal on a lot in my are for 22k (comps 35k), A year later I got a 1999 1400sf double wide for 13k…do you think my project totals were $35k???

Not even close. The total came in at around 60k. This included sewer/electric/water services; Teardown; moving; set up; Permit fees and holding costs.

I am not saying that there isn’t money to be made (the example above appraised at $130k and now rents for $775/m) but there is much more to it than your post suggests.