Posted by Anne_ND on September 16, 2003 at 11:54:33:
So true!
Now I have no fears about showing MHs that need new carpet/paint, etc. I usually do make sure that the mechanicals are working though.
What a great business!
Anne
How much did you pay for first mobile home? - Posted by Kristi Patrice Carter
Posted by Kristi Patrice Carter on September 15, 2003 at 13:39:47:
Hello there everyone:
My name is Kristi and I would like to thank all of you for taking the time to share your knowledge and expertise with me. Since I am new to the “mobile home investing scene”, I really appreciate the advise that you have given me so far. I love reading and learning about your past and present experiences and of course, your successes (there are many of them). From your posts, I have learned a lot and can’t wait to receive Lonnie’s books and really and truly get started. While I’m waiting though, I have some questions for you experiencd investors out there (heck anyone who has made 1 deal is experienced in my book).
Can you please tell me how you obtained the financing to get started on your very first deal? How much did your first purchase cost? How long did it take to sell? Did you rent it or do lease with option to buy/Lonnie Deal? What size home did you purchase? How did you know that it was a "good deal or was it a not so good deal but still made you money. Lastly, how much are lot rentals? Do you factor this into the equation while looking for deals.
Its’ just that there are so many range of prices and styles of mobile homes out there that it is hard to figure out what is a good price. Today for instance, I came across ones ranging from 5,000-18,000 for 2 bedrooms with motivated and not so motivated owners. The lot rentals ranged from 250-450 and some included water and some not. With this in mind, any assurances that you could provide me would be very much appreciated. Thanks a ton and bye for now.
Your newbie buddy
Kristi
Re: How much did you pay for first mobile home? - Posted by Rikki
Posted by Rikki on September 16, 2003 at 19:28:21:
$3000- 1993 28X70 doublewide. Minor flood damage. Gutted it and rehabbed it (lots of help from brother in-law). $5000 for the acre of land and $4,000 materials. $2,000 setup. $3,000 brick foundation. Total of about $17,000 in it. Wife and I currently live in it. Appraised at $70,000 here in eastern NC (of course we all know that a Lonnie investor would never pay that much for it, but my bank will loan me $56,000 on something I only have $17,000 in.)
Deal # 2. Found a 1987 SW 3/2 with electric heat only. Took about 2 weeks (3 hours total phone time) to track down correct bank branch). Talked them into selling it for $1000. Brother wanted it to fix and rent out. He paid the $1000 plus moving cost. Gave me $1000. I could have sold it for more money, but for nothing out of my pocket and $333 hour for 3 hours work, I’m sure that’s good 'nuff.
Current deal. Cousin recently given a 1982 2/2 if he moved it. Needs carpet and tile and nothing else. He paid $285 to have it moved. Going to try to offer him $400 for it and Lonnie deal it.
$2000 cash… - Posted by Briton (IN)
Posted by Briton (IN) on September 16, 2003 at 15:52:18:
My first home i bought for 2000 Cash put 500 into it, and sold it for $500 down 150 month/ 36 months. All together i will get like 7500$ for a 2500$ investment. My first deal was also my second best deal i have ever done. But they all have been good. Thanks Lonnie 
Briton (IN)
Thank you so much for all the advice - Posted by Kristi Patrice Carter
Posted by Kristi Patrice Carter on September 16, 2003 at 15:35:03:
Thanks guys:
Your posts were so helpful. They really and truly were. I can’t wait for Lonnie’s book to get here so that I can get reading. In the meantime, I’ll just keep learning from you guys, visiting sites, meeting PMs and so on and so forth. I’ll let you know when I decide to join the ranks with my first actual purchase. Thanks again and bye for now.
Kristi : )
Re: How much did you pay for first mobile home? - Posted by Steve-WA
Posted by Steve-WA on September 15, 2003 at 21:59:04:
84 doublewide, saggy ceilings, messy mess. Paid nothing - out of state owner, buyer skipped out and left all his stuff.
1200 back rent
200 taxes
400 dumpster
200 pay and feed cleaning crew (friends & relatives)
Total = $2K
Sold cash for 8300 to first guy to show up - he wheedled me down from 8500
Big screen Sony that was left behind - priceless
$500 to save PM’s sore eyes. - Posted by Dr B (OH)
Posted by Dr B (OH) on September 15, 2003 at 20:46:54:
Kristi,
My first deal was a 1972 12 X 60 2br wreck that was right next to the PM’s office. I was dying to just get going in the business and show I could help the PM.
4 mos lot rent = $860
materials = $3840 (from home equity line)
rehab time = 120hrs
sold for = $8900 w $1000 down
education = PRICELESS
7th deal:
'88 14 X 70 2br
purchase = $300
repairs = $379
time = 10 hrs
sold = $5600 w $600 down, they finish the work.
Education = better than graduate (gradual) school.
Happy Trail(er)s,
Steve
$2,500.00 for a '94 model… - Posted by Philip
Posted by Philip on September 15, 2003 at 20:06:27:
and didn’t have to touch it. I was able to sell before I bought by running an ad and telling the callers I was still tying up the deal on my end.
It will work,
Philip
$0 plus… - Posted by Anne_ND
Posted by Anne_ND on September 15, 2003 at 16:54:33:
back taxes $200
title transfer $20
referral fee $100
4 months of reduced lot rent $400
new furnace, hot water heater, plumbing, toilet, two doors, new carpet & lino, entryway, windows caulked $7000
used frig $300
experience gained… priceless
did I still make money? Yes, I sold it (with no kitchen cabinets, sink or counters) for $12,000 on a note. Skinny, but still made money
Anne
Re: How much did you pay for first mobile home? - Posted by Joe C. (AR)
Posted by Joe C. (AR) on September 15, 2003 at 14:00:00:
Kristi,
I can understand your confusion about prices and lot rentals. As far a lots go, the situation can vary greatly from state to state/locality to locality. You just have to do the research in your local area to find out what’s typical and what’s abnormal. As far as mobile home prices go, those asking prices vary from seller to seller. Many sellers feel their home is worth much more than it actually is. Many are over financed and don’t realize that they owe far more than they can get from a knowlegeable buyer. Lonnie’s books will answer many of your questions much better than a short post can, so be patient. His method is more about recognizing situations you can effectively work with, both with buyers and sellers. As far as getting the money to work with, most sources of cash will work, ie. credit cards, personal and equity loans, IRA’s etc. Just don’t expect to go to a bank and borrow on the mobile. This type of financing is usually not readily available and that’s what makes this business so profitable.
Joe C. (AR
Re: How much did you pay for first mobile home? - Posted by Rikki
Posted by Rikki on September 16, 2003 at 19:30:04:
Forgot one
1 year ago I bought 1 acre land with well and septic tank for $12,000. 1992 SW 3/2 that was abandoned on it. Bought it from Conseco for $3200. Currently rents for $350/month. Keeping this one as a rental
Re: $0 plus… - Posted by Lyal
Posted by Lyal on September 16, 2003 at 08:09:35:
Anne,
That’s the great thing about investing in this niche, even if you do it wrong (as in fix it up like you were going to live there yourself) you can still make a few bucks.
All the best, Lyal