Help- MH not Selling!(long) - Posted by JennyJ

Posted by Anne_ND on July 08, 2003 at 17:02:34:

Hi JennyJ,

I ran into this with my first few houses. I paid too much, put too much into fixing the home up and then couldn’t find anyone to buy who had at least $1K down and $300/month. I was holding several houses (and paying full lot rent) for 2 or 3 months. I was looking for buyers who would pay up to $11,900 with financing.

I lowered my expectation of down payment to $750 and the monthly to $200 and started to get many more interested parties. I do have a few houses in the most expensive park in town, but it’s the best-run park as well, so I didn’t listen to the complaints about lot rent. I figured if someone wanted the house they’d pay the lot rent. And I did find people.

I suggest that if you can work with the park manager, don’t sweat the higher lot rent. My PM is also pretty tough on qualifying people, but everybody who’s in my houses now has very good credit, which is worth the peace of mind.

I’m now doing deals where I buy cheap and I sell cheap. The last two deals were sold before I took title, in one case I brought the buyer and seller together, and walked away with $500 profit without ever signing a thing.

It works! Keep at it.

Good luck,

Help- MH not Selling!(long) - Posted by JennyJ

Posted by JennyJ on July 08, 2003 at 10:34:47:

Hi Everyone,

I’ve been reading on here for a few weeks. Read both of Lonnine’s books and bought my first MH June 29. It’s a 1988 2/1 ($450), made a bunch of repairs and cleaned it up. With lot rent, utilities, purchase, repairs, and ads I have about $4200 in it.

I have had it over a month, thought I had it sold for $6,000 cash before all repairs done, but he backed out. Thought I had it sold again for $6500 after repairs done but they backed out. Very few calls.

One problem I have is the rent is higher at this park than some others with not as many ammenities, so I decided I should adjust my monthly payments down to compensate. I won’t make the mistake of buying here again.

I’d like to get on with some other deals I’ve seen but I’m reluctant to get over my head even though I can lay my hands on the cash to buy others. Maybe I should just buy another one and see if it works faster on a different home.

Does this stuff really work? What am I doing wrong? Thanks for any help you can give me.


Re: Help- MH not Selling!(long) - Posted by Lin

Posted by Lin on July 10, 2003 at 15:56:13:

Hang in there! My first deal took almost 3 months to sell, and lot rent was $400/mo. I paid too much for the MH, and spent too much on fix up. I showed it only three times in three months! My third prospect paid me $7750 in cash, so I made about $2500. Jeez, I can live with that! It was enough to send me to the CREonline Convention, where I got to thank Lonnie Scruggs personally.

It works, and it’ll happen for you, just be patient, re-word your ads, get creative about placing flyers (laundromats, the local senior center, college housing bulletin boards) and you’ll soon see for yourself.

I’d suggest you just see this first sale through before you acquire any more, unless the deal is just TOO tasty.

Good luck!
P.S. I just purchased my second MH this morning and I worked a much better deal on the purchase this time. It needs absolutely nothing done to it. In fact, it’s been completely remodelled with tile countertops in the kitchen and bath, granite double sink, new cabinetry, new vinyl windows, textured and painted! Nicer than my own house! I bought for it for $3,500, and it will easily sell for $12,000 with financing. The guy I bought it from paid $9000 cash in December. Gotta love it.

Re: Help- MH not Selling!(long) - Posted by ned - il/mo

Posted by ned - il/mo on July 09, 2003 at 07:00:24:

I feel your pain. I posted this a while back about my first deal (you might relate):

Well, I bought a 1988 14x70 bank repo for $1000 and paid $880 in back lot rent in March (2-3 br (was 3br converted to 2 very large br?s), 2ba). The sale went smoothly. I fixed a ?few? things and cleaned a lot. I had some water leak issues which were not too bad and I had fixed by a local handyman. When it was all said and done I was in this home around $2500. I figured I could sell around $8000 on a note.

Now the pain (215 lot rent a month), I started advertising and got tons of calls (around 100 in the on and off 4 months). I showed it numerous times and went to many no-shows. I finally got a lockbox set up so shoppers could go themselves. I also got many interested buyers but time and time again they were rejected. This park is very very picky ? which doesn?t make a lot of sense to me. Also, after I bought I have learned that this park doesn?t exactly have the best reputation.

Finally in mid-July I got a young couple whose parents co-signed and they got in. Well this month (June) they left. They did mess some things up including a bathroom which now has missing carpet and the toilet apart (this was all working when I sold it.) I did get $300 down from them which I kept.

With the above said and done I was in the home for about $3500. Of course there were the things I didn?t even think about - power, gas, grass cutting which I have done some but got extremely busy at my day job and couldn?t handle anymore, time to check on it a few times a week, a gas leak (someone turned on the exposed gas line for the stove and when they shut it off the valve was loose), advertising becomes a biggie when holding this long, etc?.

I now got another guy to pass (we close end of this week). This guy seemed great at first. He said he thought he would have $500 down. But now that he paid the 220 deposit for the lot, 215 for first months rent, and got his required insurance. He only has $100 down for me. I am going to give him a try at around 200 a month at $7400 (7500-100 down) (I Knocked off 500 and he will be handling the repairs) at 10% interest. I hope this guy sticks it out at least till I recoup some of my investment.

Is this for me? I?m not sure. It has been extremely frustrating and I?ve had some worries. I have had my highs and lows. I have certainly learned a ton and overall am glad I?ve went down the path. If this guy does pay my return seems to be ?good enuff?. I have a lot on my mind: Should I attempt this again? (I think I will) Why didn?t the sale side go smoothly? Should I try another park? Do I need to negotiate with the current park on lot rent since it seems to take a long time to sell? Should I buy newer and nicer (maybe it would sell better)? Should I change the way I advertise? Ect??. (these are questions only I can answer but just want to share my thinking).

Re: Help- MH not Selling!(long) - Posted by Lyal

Posted by Lyal on July 08, 2003 at 18:01:41:

Give us the verbiage of your ads so we can critique it. Are you offering “owner finacing” or looking for a cash deal (much harder). Also talk to the neighbors and see if they have someone in the family they’d like to live closer to them (grandma the built-in baby-sitter??). Tell EVERYONE you pay finder’s fees if they refer someone who ultimately buys it. Make sure the payment combined with lot rent is a little less than a comparable apartment.
Give us details and we’ll try to help.
All the best, Lyal