Posted by Annmarie on November 14, 2000 at 12:21:18:
Hi Chris!
Well, I understand your reasoning and believe me, it’s tempting to consider moving out of the area when the house across the street just sold last week for $865,000. (No kidding!)
But I do not own the house I live in, (my boyfriend does), and I have not made my millions yet! (Just starting out and hoping to get into some Lonnie deals or SOMETHING so I can become financially free in time). So my market research in my area tells me that other areas of the country may be more “investor friendly” than this one.
And I hate to say this, but the Santa Clara Valley, where I live, has the best weather in the world! That and computer chips have made the real estate so valuable here.
I’m starting to look a little further afield-to areas that are growing around us, maybe one hundred miles away. It’s either that or move to another state. Or try to long distance invest, which I hear is not such a good idea.
Posted by Daniel on November 08, 2000 at 04:24:38:
I called the state (FL) today to inquire as to a Dealer’s license. He told me that if I sell more than two mobile homes in a 12 month period, I HAVE to have a Dealer’s license. Now, I have two problems with this:
(1) He said I have to have a commercially zoned office that the state has to approve,
(2) a surety bond of at least $25,000, among other requirements.
I just received Deals on Wheels and am getting excited about this new business, but does anyone know how to find affordable commercially zoned office space that I will never use (as I plan to operate out of my home)? Also, maybe there is a way to avoid this Dealer License requirement?? Thanks all.
For some reason, the State considers anyone a dealer if they buy and/or sell one or more MHs in 12 months. Are they serious? I know every person out there who sells their MH or the person buying it doesn’t have a Dealer license. I’m hoping to do my first before I have to attend a training seminar, pay fees required by the state, etc. I’m calling tomorrow to inquire as to this rule. Great book Lonnie!!
Posted by Annmarie on November 08, 2000 at 12:26:55:
Hi, I live in California and just received my “dealer packet”. California requires not only an approved dealer office location, a 10,000 surety bond, but also minimum 2 years experience as a salesperson working for a MH dealer (or a real estate license). You cannot become a dealer without the experience and education requirements.
I then checked Oregon. They are not as bad but do require a 20,000 surety bond, an approved office, and a supplemental licence costing 90.00 for each park you do business in. And you must get the supplemental licence before doing business in any park. Kind of makes it hard to go into a new park to buy a MH when you are not legally allowed to do business there until you get the license. I also got the dealer package for Arizona. Much easier but still red tape.
I have an interesting market in Santa Clara CA, where I live. The “junker” mobile homes in my area go for about $70,000. I kid you not! Might not be the best place to to “Lonnie Deals”. Will not give up though. There’s a niche for me somewhere!
Does anyone have any experience with these challanges in CA or OR? Would appreciate some feedback.
Posted by Mark Henderson on November 09, 2000 at 21:30:06:
Junkers for $70K?? I do believe I would be moving some in from a few hundred miles away that you can buy for 5K. Are there any empty lots in parks there?
Posted by Annmarie on November 10, 2000 at 14:15:29:
Hi Mark,
Yes, the strategy you suggested of bringing in homes from out of the area did occur to me, however, there is not an empty space to be found in this entire valley. Those spaces that do come available are heavily bid on and snatched up by a very competive group of MH dealers who are willing to pay those high prices for junkers just to get the lot and move the 200,000-300,000 dollar new Mhomes in. The parks can easily upgrade their parks by working with the dealers.
You have to understand that this area is the highest priced real estate in the nation right now (Silicon Valley), and tract houses are going for minimum 450,000 to 850,000. The space rents range from 450-1100. I talked to a guy who lives in an early 70’s MH and his space rent is 650.00 and his mortgage payment is 750.00 or so. That’s quite a bit less than renting an apartment around here so it’s still a good deal for him.
Basically, this area is so crazy right now with this “bubble” real estate market that the typical “Lonnie Deal” is not really feasible. But I’m sure there are areas surrounding this Valley that are alot easier to invest in. I am researching this. Hope to come up with an idea or niche soon.
Posted by Annmarie on November 12, 2000 at 20:12:56:
Actually, the Cardboard boxes here are FREE! It’s the most affordable housing available!
The “dot com” companies are importing foreign computer experts like mad here to fill the open jobs. These mostly asian and indian people will come in, buy a house for 400,000-500,000, demolish it, and build a brand new house on the same lot! We ask ourselves, “How can they afford to do that? Is the exchange rate that favorable to foreigners?” Anyway, the lack of inventory has shot up property values here WAY beyond reason.
I think as the “dot com” companies start failing, the housing market may return to normal. But for now, the furious bidding wars and houses being sold on the first day of listing is the norm! I live in La-La land!
You would think that the real estate agents here are making a killing and a few of them are-BUT, there’s such a scacity of inventory, that most realtors are having a rough time of it. Interesting times.
