Help on First Mobile Home Deal !!! - Posted by PJ

import · August 11, 2005, 11:34am

Posted by JT on August 12, 2005 at 14:10:52:

Don’t get discouraged. There is probably a deal here but “I” think you are making the same mistakes that many of us have(whether we admit it or not). Keep talking to the owner and let them know that you like the home but honestly it is an old trailer. If they counter with the home value ask them if they can support that number with facts. I can list homes all over the place w/ or without realtors for 30k but that don’t make it reality. Keep your head up and remember that there are deals all over in your neck of the woods and you are not married to this deal. ALWAYS BE READY TO WALK AWAY Good Luck!

import · August 11, 2005, 11:34am

Posted by PJ on August 11, 2005 at 11:34:40:

I’ve got 2 leads now with people wanting to sell mobile homes.

3br/2ba - Built in '86 - needs new HAVC system
Lot rent = 365/mo

Asking: $15,000

Old lady living there, she is moving to nursing home and needs some cash. Her son called me to sell it.

He said the mobile home is worth around 20-25k, how do you verify this?

What should be my next step?

import · August 12, 2005, 10:07pm

Re: Help !!! Read Lonnies Articles - Posted by Mark Haugsten

Posted by Mark Haugsten on August 12, 2005 at 22:07:37:

PJ

DOW can be had for $19.95, and arrive immediately online, just as I recieved it. Stop ‘working’ on a $19.95 book purchase, and do it. You are already ‘working’ with a $10,000 frame of mind for a MH!! The $20 is 1/5th of 1% of that, but it will save your adz!!

In the abscence of DOW, and extensive talking to PM’s, and sellers with NO INTENTION of so much as making an offer, I suggest you read every word of the MH articles here on CREONLINE.

Let me guide you to a specific quote from Lonnies aritcle…“How to Make Money While You Sleep” … the new ones are too expensive for many who want to buy. That’s why there is such a huge demand for inexpensive, used mobile homes with seller financing. If you want to create a “money machine” and make money while you sleep, learn this business.

I look for mobile homes that I can buy for $2,000 to $3,000 and can sell for $4,000 to $6,000. These homes are ten to twenty years old, single wide, already set up in a park and can stay on the lot. I simply buy the home for a cash wholesale price, resell it at a retail price, and offer to finance the sale with a reasonable down payment.

My selling price is at least double what I have in the home. My average monthly payment is $200, and the average term of the note is 36 months. Here’s one of my recent deals I’ll share with you. …

I think this is helpful, but the most, MOST, important thing about LD’s is MOTIVATED sellers, NOT the sellers motivation.

You have told us you have a mh, that is not first. You have told us you found the sellers motiva…tion, THAT is not first. Until you see motiva…TED sellers, you have no LD. Belive me, one day soon, you will be shocked at the antics of Mr. and Mrs. Motiva…TED!!! Literally pushing the keys into your hands!!

This deal requires some numbers like Steve-WA posts. Read his posts near this one, “Closed this deal last week” You see he had sales priced in the near $20k range, but got into it for TWO WHOLE THOUSAND dollars, he is fast becoming another champion of mine.

Lastly, I think another important qualifier for LD status as minimum 50% annual return. In its’ present shape, do you see this deal returning to you 50+% on your $10k. I don’t see how.

Let time build more motivation, so the son gets more motivated. At $15k he has less market than you think, so he is going to have to waste some time with other ‘buyers’ and hopers before he starts to get the picture, and expresses his frustration in dollars lowered on that price.

What Would Lonnie Do?

import · August 11, 2005, 2:34pm

Re: Help on First Mobile Home Deal !!! - Posted by Ray (MO)

Posted by Ray (MO) on August 11, 2005 at 14:34:05:

Where are you? I can buy that house in MO for under $4,000.

import · August 11, 2005, 11:38am

Re: Help on First Mobile Home Deal !!! - Posted by JeffB (MI)

Posted by JeffB (MI) on August 11, 2005 at 11:38:54:

$15k seems quite high for a 20 year old home, but that depends on your area, which you didn’t mention. The local market determines the value of the home, not the seller. Ask him where he arrived at his figure of $25k.

import · August 11, 2005, 3:59pm

OK — went to see it… - Posted by PJ

Posted by PJ on August 11, 2005 at 15:59:43:

This is in a very large mobile home community created by ARC. This is in a suburb near metro Atlanta, GA.

The mobile home is approx 1,000 sq. ft and has 2 bathrooms and 3 bedrooms. Good condition.

Seller wants $15k. I belive the place is worth about 30k or so. I will have to call the other FSBO signs in the mobile homes to be sure…

However, if it is worth 30k, I’d like to buy for $10k.

I spoke to the park mananger and she said they do not allow 3rd parties to get involved. Specifically, they do not allow investors to buy a mobile home and RENT it out to someone else.

I asked if I could simply purchase a mobile home and re-sell to owner occupant - she said well that ‘might’ be possible BUT she will need bill of sale and it has to be approved by her corporate manager.

I’m just learning about these Mobile Home deals, so, it seems like maybe I am looking in the wrong community OR I need to find a community that allows rentals/re-sells ?

import · August 11, 2005, 12:13pm

Re: Help on First Mobile Home Deal !!! - Posted by PJ

Posted by PJ on August 11, 2005 at 12:13:39:

Im goin to go see this house now…

I’ve done tons of regular house deals before, this is my first potential mobile home deal - so I want to just get out there and see what all the fuss is about

import · August 12, 2005, 11:14am

Re: OK — went to see it… - Posted by osupsycho (OK)

Posted by osupsycho (OK) on August 12, 2005 at 11:14:48:

As a couple of others have stated you can do Lonnie deals in ARC parks. I have been doing business in them and am cleared to work in every one of their parks in OK and AR. You may need to tweek your approach to them. Check in the archives about approaching PM’s and use the “finance company” approach at first. Hope this helps.

import · August 11, 2005, 8:56pm

yup… ARC allows - Posted by JD (IL)

Posted by JD (IL) on August 11, 2005 at 20:56:10:

ARC allows, and I think you’re way high. It doesn’t matter what people are asking, it matters what you can get the same place for, and I’m going with $4000 or less. I’ve got a similar one around here that’ll run around $2800.

import · August 11, 2005, 6:06pm

Re: OK — went to see it… - Posted by Anne_ND

Posted by Anne_ND on August 11, 2005 at 18:06:18:

PJ-

ARC does allow Lonnie deals in their parks, at least I’ve been doing them in two ARC parks in ND.

Is this one of the parks that got flooded so badly about 6 weeks ago in Austell? Be careful- some of the mobile homes there will have mold issues.

Anne

import · August 11, 2005, 4:41pm

Re: OK — went to see it… - Posted by Steve-WA

Posted by Steve-WA on August 11, 2005 at 16:41:11:

coupla points:

a) you think it’s worth 30K - - - based on what?

b) have you read Deals On Wheels?

c) there is a method to presenting the financing situation. You need to do a little more research - read DOW (again twice, if you already have), check this board’s archives - this has been covered a lot.

Your last statement: “I’m just learning about these Mobile Home deals . . .” leaping before looking is NOT the way to learn. Oh, you’ll learn, alright - - - the HARD way.

You are about to step into deeeeeep kimchee

import · August 12, 2005, 11:59am

JD… - Posted by PJ

Posted by PJ on August 12, 2005 at 11:59:48:

You’ve got one around here for $2800?

The PM at ARC told me they have new ones they will be selling for around 30-40k that are 3 br/ 2ba.

I’m not sure which area you got yours in…but this is near Snellville, GA.

import · August 12, 2005, 12:00pm

working on getting the book…but… - Posted by PJ

Posted by PJ on August 12, 2005 at 12:00:22:

what do you mean by they allow “lonnie deal”?

import · August 12, 2005, 12:05pm

Re: OK — went to see it… - Posted by PJ

Posted by PJ on August 12, 2005 at 12:05:32:

again, I didn’t run thorough comps but asking the PM, she said new ones sell for 30k. Also, I’m gonna call around and see what other MHs in that park are selling for to get an idea.

30k is an approximation at this point… b4 I buy, you bet I’m going to get an exact value.

working on buying deals on wheels and making money with MH
Yes, I realize I have a lot to learn. That’s exactly why I posted here & you’ve all done a great job of pointing me in the right direction

thanks

import · August 12, 2005, 9:37pm

not in GA - Posted by JD (IL)

Posted by JD (IL) on August 12, 2005 at 21:37:25:

Hi PJ,
I don’t have anything in your area. If you were to go to the ARC mgrs in my area they would tell you the same thing. They are selling new places for 30 - 40K. In the same park, I’ve bought used places for anywhere from $800 up to $5000 (first deal, same mistake I’m trying to help you avoid). That first deal for $5000 tied up way too much capital. I bought from somebody that wasn’t motivated enough. Now I won’t go up to $3000 unless it’s a mint 3/2, no work required.

I know markets vary, but I think you’ll find after you’ve been on the MH’s for some time that you can find these deals, then you’ll be dissappointed you tied up so much of your capital.

Get Lonnie’s books fed exed to you before you do the deal and read them front to back. You’ll be extremely happy you did.

What the park manager needs to know is follows:
you will be financing the home (acting as the bank) because they know it’s difficult to finance mobile homes
any person buying the home needs to first be approved by the park. They know this, you know this, but the park managers love to know that you know they have final say on any deal. They rule the park.
You will be responsible for lot rent if the resident skips. This happens more then any of us hope, but if you give this guarantee to the manager it’s one less lot they have for a potential headache.
Offer an incentive for buyers or sellers they send your way ($50 / $100) whatever your comfortable with.

After you’ve established rapport with the PM, ask them if there are any that are behind on lot rent, abandoned, or for sale but not living there. These are your first targets. You’ll be able to get some for back taxes, and maybe a little more. The ones for sale by people that aren’t living there are paying lot rent for a place they don’t want. Huge leverage in negotiations with these people.

In the end, you’ll make money on the deal you’re looking at, but you’ll make more faster on other deals with less risk.

Get lonnie’s books quick and read.

Best of luck!!

Jody

import · August 12, 2005, 12:34pm

Re: working on getting the book…but… - Posted by MariettaMike

Posted by MariettaMike on August 12, 2005 at 12:34:02:

ouch…shot to the heart!!!