Hubby says,"What if you can't sell it?" - Posted by Sonia

Posted by Philip on August 25, 2003 at 18:25:53:

Dealing with an individual you would have to make an agreement with the buyer. They would understand that YOU have the cash…the other person probably won’t. And you will get some better details from other more experienced investor who post.

I was dealing with an empty repo from an eastern state. They wanted rid of it and the park had a key…so I showed it. I still didn’t have the bill of sale when my buyer agreed to buy. I made the sale “subject to” my ability to purchase on the terms I wanted.
Let some others give you even better advice.

Hubby says,“What if you can’t sell it?” - Posted by Sonia

Posted by Sonia on August 24, 2003 at 11:56:42:

Okay, what are your best answers? I know what Lonnie says in DOW, but hubby’s not convinced. He’s afraid I’ll get stuck with a trailer I can’t sell. I’m sure this is the biggest fear that most people have when starting in this business. Would you all contribute your best answers/stories, or tell me if this could be a real problem. Thanks!


Thanks everyone for the great stories and advice! - Posted by Sonia (ID)

Posted by Sonia (ID) on August 26, 2003 at 01:32:53:

I will try what you all have suggested. I’ve read all your posts to my husband who still says, “Hmm, but in our area … I don’t know.” But, he’s not the type to say “No I won’t let you.” He’s a skeptic to the core, and I’ll lay odds he won’t change his tune till after the 3rd successfull deal, at least.

I estimate having enough funds to start around January, so meanwhile I’m studying the archives, getting details figured out, and lurking around here. This board is a treasure trove.


Sell it before you buy it, if possible. - Posted by Philip

Posted by Philip on August 25, 2003 at 13:34:10:

I did on my first one. While I was still hagling to purchase it I ran an ad. I had it sold before it was “technically” mine. I closed with my buyer a few days after I received the bill of sale from the previous owner.
Make sure everything is Kosher with the PM.

Re: Hubby says - Posted by Rick (OH)

Posted by Rick (OH) on August 25, 2003 at 07:14:35:

My first one sold four days after ‘Handyman Special - Will Finance’ sign was put in window. They wanted me to go ahead and fix it up. I don’t think they would have even asked ‘how much?’ or ‘what interest rate?’ if I hadn’t told them. I’m scrambling to get it ready for them.

I am signing purchase agreements on two more this week and one of them, maybe both are already sold. The $100 referal fee works too(from DOW), park manager and first buyer haved refferred new buyers and MHs to me.

I guess there are no guarantees, but I think you’ll be surprised.

Good Luck, Rick(OH)

Figure in some expenses! - Posted by Doug (Alabama)

Posted by Doug (Alabama) on August 25, 2003 at 06:25:07:

I am not as smooth as some of the other investors, I still have to use my money to buy and sell with. I always figure I will have to put at least a months worth of ground rent into a MH deal. Sometimes it sells within a week and you get it back and sometimes it takes a month to clean and repair. One MHP gives me a month free rent when I move one in, which helps. But listen to the posts that tell you that the MH will sell faster than you realize when you do it as seller financed. Tell hubby to keep the faith and watch his reaction when the check comes in each month.
Best of luck,

Re: Hubby says,“What if you can’t sell” - Posted by Lyal

Posted by Lyal on August 25, 2003 at 06:16:47:

Maybe you should run a test in the local ad paper (Pennysaver, Shopper, Buyer’s Guide, whatever you have in your area).
Something like: OWNER WILL FINANCE, 3BR, 14x70, yadda…yadda and see what the response is. When they call, just say that one is unavailable now but “Is that something you’re looking for because we should have another one in a couple weeks”.
Pretty certain you’ll be surprised at the response.
All the best, Lyal

Re: Hubby says, - Posted by Dan - GA

Posted by Dan - GA on August 24, 2003 at 18:31:34:

If your following the DOW formula, and you’re willing to provide financing, people will beat a path to your door. You can rasie the sales price, the interest rate and strech the duration of the loan. As long as the payment is cheaper than another alternative someone will buy.

I own a MHP park and wanted newer homes compared to the typical Lonnie deal, but the concept is the same. I got two through a Repo Wholesaler. I advertised the 1st and had a deposit on the L/O in a week. I left the sign up while the tenants read the contracts and while I fixed the floor and did carpet and tile. Each time someone called, I said that one is sold, but I have another one coming next month. When the second one arrived, I had people calling me back saying they wanted to see it. The day after the trailer was set in the park, one of the people came by to look at it. In 5 minutes she said “can I go get the deposit money right now”. Later that afternoon another lady who asked me to call her back called and said “I saw the trailer moving in yesterday, can I come and see it?” When I told her I had already accepted a deposit on the trailer from the 1st person who came and looked at it she got very upset that I didn’t call her first. That’s a good problem to have.

When you do the math to figure your return on your actual invested capital, the # will astound you.

My problem is I have more potential buyers than I have capital to fund deals.

Re: Thanks everyone for the great stories - Posted by Anne_ND

Posted by Anne_ND on August 26, 2003 at 13:50:15:


Don’t set yourself up for failure in the eyes of your husband or other potential investors. Depending on the time of year and a bunch of other variables that I’m only now figuring out, you can end up holding a MH for much longer than 4 days.

For your first few deals I suggest you build in holding times of three months (that includes lot rent, yardcare, utilities, etc.). My first home sold quickly, but it took the park three months to give me back my security deposit! That was $300 they held on to. I didn’t want to make them mad at me, so I just gently reminded them every few weeks that the owners (who were 1800 miles away) hadn’t sent the check yet. It all worked out, but that was another expense I hadn’t counted on.

If these various holding costs and expenses are built into your business model you will be fine. Be prepared to tweak it depending on your market. Lonnie deals are a great way to financial freedom, just be prepared and never discount the concerns of your supporters- getting good answers for them will help you to build a better business.

good luck!


Re: Thanks everyone… - Posted by Dave-WA

Posted by Dave-WA on August 26, 2003 at 01:50:59:

I believe that in Lonnie’s book, Making Money With Mobile Homes, he tells the story about his daughter buying a MH park.

At first her husband was not real excited about “her” MHP. After a month or two it changed from “her” MHP or “our” MHP.

If you have the book let him read that chapter or if possbile the whole book. How can you not get excited about this business after reading Lonnie’s books?

Re: Sell it before you buy it, if possible. - Posted by Jon

Posted by Jon on August 25, 2003 at 18:18:56:


Did you show the home to your buyers while still haggling with the owners? I’m curious because I wanted to do that on a trailer recently, but didn’t trust the owners not to try and cut me outta the deal somehow. Jon