Posted by JC on March 23, 2006 at 24:09:59:
Gary,
I am now looking to do some investment in 4plex or small commercial property in San Antonio, and Austin. Any advise of what part of cities to focus on, and what to look out for? Thanks
First Deal - Posted by Mike D
Posted by Mike D on March 21, 2006 at 20:27:01:
Hey all, I have found a mobile home in a senior park that is for sale as part of an estate. Have any of you had success in lonnie-ing in senior parks (55+)? The home is in good condition, but is pretty old (circa '73). I can get it for around 1000. Most of the older homes in this park are selling for about 5K, but I am concerned about being a smaller park (45 lots) and three units are for sale.
I know some of you have faced some of these issues before, please bear with me as this is my first deal and I just bought DOW last week.
my experience - Posted by Nathan-WA
Posted by Nathan-WA on March 22, 2006 at 15:41:59:
I posted not that long ago about doing a deal in a 55+ park, ultimately I passed on it, although I am keeping tabs on the home.
My bottom line problem with it was that I was not finding any buyers. I could speculate as to why (marketing methods, home to old, singlewide instead of double, etc) but regardless, I decided my time and efforts were better spent in family parks.
My advice to you is that although this might be a profitable deal, there are far easier and less questionable opportunities out there.
Nathan
Re: First Deal - Posted by Ryan (NC)
Posted by Ryan (NC) on March 22, 2006 at 07:56:49:
Taking a ready-aim-fire approach to investing is almost as bad as doing nothing at all, if you don?t know about what you can resale a unit for and what the stipulations surround the land the unit is on you can get yourself in a pickle and end your new career with one bad experience. Before you pull the trigger you need to know IF the home is marketable, (run a test ad or try an option if unsure) what can you resale the unit for, and approximately what your total cost will be including purchase, back lot rent, taxes, repair cost, holding cost, ect. If the numbers work and you?re getting calls than put the deal together, I?m not familiar with 55+ parks but my first instinct would be to try to sell before I bought using an option if everything checks out?
I?m with Steve that you?ve gota get off the couch to make money, but doing it half cocked ain?t the right way to start. Read and re-read DOW till you?ve got most of the little book memorized and follow Lonnie?s advice as close as possible and you?ll do fine. Reasonably priced bread and butter 3/2?s in family parks are the easiest to sell and will give you the broadest coverage in selling a home, this is where your main focus should be and where you?ll find the most money IMHO.
Best wishes,
Ryan Needler
Re: First Deal - Posted by Lin (NC)
Posted by Lin (NC) on March 22, 2006 at 07:12:45:
I have limited experience with Lonnie deals - I’ve done 6, but my first one was in a senior park. I’d recommend against it until you’ve done a few of them, and even then it’s a bigger hassle than necessary. It’s just all-around harder for a variety of reasons I’m sure you’ve read about in the archives by now.
Pass on this one and go find a 3/2 in a reasonably clean family park and you’ll see what a slam dunk these Lonnie deals can be. My first 3/2 was given to me (she handed me the title and keys with tears in her eyes, she was so relieved) with about $1200 in back lot rent owing. I immediately found a buyer (3/2’s are SO easy to sell!) and was only out of pocket $8 (yes, a five and three ones) by the time my buyer moved in. I sold it WAY too cheaply but worse things have happened. My buyer asked about payoff a few weeks ago and said she’ll send me a big chunk of it when she gets her tax refund. We’ll see. I made $8k.
Make getting started as easy as possible. You’ll still make mistakes, but they’ll be easier to recover from.
Best of luck to you.
Lin
Re: First Deal - Posted by Mike (Seattle WA)
Posted by Mike (Seattle WA) on March 21, 2006 at 22:10:48:
Pros:
It’s fairly cheap.
Little competition.
Cons:
1 in 10 or less people can buy it from you.
Lot Rent tends to be higher.
Granny patrol can be a pain (What are YOU doing in our 55+ park)
Buyers tend to be pickier, but pay cash.
PLEASE! Talk the to PM before going further, or enjoy my pain from a lower thread.
Re: First Deal - Posted by Gary Klos
Posted by Gary Klos on March 21, 2006 at 21:25:55:
Buy it! Where can you go wrong for $1ooo.00 You can rent it out, and get your money back in three months. If it is in good shape BUY. Are sale for 1k down and cary a note for a year for $250.00/Month. BUY from Gary
Re: First Deal - Posted by JeffB (MI)
Posted by JeffB (MI) on March 21, 2006 at 20:58:11:
This was before my time, but I’ve seen this question come up in the past and it has been suggested to search the archives for “chuck” and “55+” to see some useful posts from a guy who works senior parks extensively. I’ve only been around a year though so I have not read any of his posts personally.
Re: First Deal - Posted by gary klos
Posted by gary klos on March 22, 2006 at 08:31:08:
good advice for those who don’t know the market. My only problem with options is the peoble letting you show the home. I love options and try to use them at all times. But some times the people don’t alway cooperate like they should. Make sure you are there if you show the property. If not the deal is dead.
Bad Advice from Gary - Posted by Steve-WA
Posted by Steve-WA on March 21, 2006 at 21:54:42:
what can go wrong for $1ooo.00? Uh, the park may not allow rentals - that could go wrong. The thing doesnt sell for three months, and lot rent is $45o.00 - that could go wrong. Sale for 1k down? What if nobody has 1k - that could go wrong.
Please don’t misunderstand - I am Mister Get Off The Couch, but not half-cocked! There are VERY easy lessons to be learned without making the mistakes oneself, but to storm into a situation (wont call this a “deal” yet - not enough info) uneducated is, well, stupid.
kgkgkgkgkgkgkg
;-)3
Re: Bad Advice from Gary - Posted by Gary klos
Posted by Gary klos on March 21, 2006 at 22:23:07:
It doesn’t sound like you have purchased very many homes. I have purchased more homes than I can count Mobil and real property and parks, motels etc… Sure you need to check out if you could rent the unit out. Even if it sits for three months, so what? you can sale the unit to any one for 2k where else can you double your money like that. For the pad fees any one that buys Mobil homes knows it rent plus pad fees and in some cases water. Remember he said it was a good unit. I am in TX I would buy in a heart beat if it is east or south tx.
Re: Bad Advice from Gary - Posted by JeffB (MI)
Posted by JeffB (MI) on March 22, 2006 at 05:00:53:
It’s quite obvious you have no idea what you’re talking about. Let it sit for three months? What about lot rent? Surely that would eat into your supposed $1k profit on a cash flip.
Steve is in this biz full time, you can learn a lot from him (I have). One thing I have learned is that people who always think and speak in absolutes as you have, generally are not very successful. Investing requires an open mind and creativity. Not “Texas-sized balls” as you so eloquently put it.
Sorry to jump all over you, but posts like this do a service to nobody and as we all know, bad advice is worse than no advice at all.
Re: Bad Advice from Gary - Posted by Steve-WA
Posted by Steve-WA on March 21, 2006 at 22:52:05:
well, then maybe he ought to sell it to you for a quick wholesale buck!
wink
Re: Bad Advice from Gary - Posted by Gary klos
Posted by Gary klos on March 22, 2006 at 08:18:29:
if you would have read some of my previous info to regarding this matter would have seen I mentioned some of your concerns. I have had many many many properties. for little or nothing down financed and owner financed, cash and trade, partners and other. I don’t know steve but if you have to spend more than two hours on a 1k deal your in the wrong business. Or don’t have the money in that case I can understand the concern. In regards to my lack of knowledge, I have been involed with deals from 10.00 to 10,000,000. Bought and sold both. I guess I am not quite as qualified as you so sorry for my lack of knowledge.
Re: Bad Advice from Gary - Posted by Gary Klos
Posted by Gary Klos on March 21, 2006 at 22:58:19:
in east or south tx I would buy it and have it sold in 6 weeks. some time you just have to have Texas size balls. do the deal and move on to the next. you can not make money if you’re not buying and selling.