I need advice on a possible MH purchase - Posted by chris

Posted by Dirk Roach on June 19, 1999 at 01:04:43:

Opps sometimes my head works quicker than my fingers when I post. The couple of grand down payment you keep for your time and trouble. You simply raise the price by whatever the downpayment is.

I need advice on a possible MH purchase - Posted by chris

Posted by chris on June 18, 1999 at 23:23:53:

I am new to RE and would appreciate any advice or suggestions on a possible transaction. I have zero experience, but plan on purchasing a course in the near future.
Here’s the deal…A 92 MH 14x52, 2b/2b. They owe 19k, with an assumable loan with payments of 296.00 a mo. They need to get out from under it before the months out and they want someone to just take over the loan.
Here’s the dilema, I have minimal RE knowledge at this time and don’t even know if this is worth pursuing. I also have no cash or credit to work with. Is this even worth pursuing and if so what questions should I be asking and what steps should I take from here.
Any input would be greatly appreciated!!!

Thanks to everyone that replies
Chris Houser

Also, I would probably live in the MH for the next year or so unless it would be better to flip it.

Sorry Chris - Posted by Dirk Roach

Posted by Dirk Roach on June 19, 1999 at 09:32:38:

Hi guys, you know after reading David A and Freddy’s posts, I realized that this is a trap in thinking which comes up a lot.
When people are reading all these posts and listening to folks at conventions, seminars, investor meetings etc. They see and hear some pretty big numbers.
Yes I realize that 19k isn’t the end all, be all ,of the world, but hey if I found it in a bag on the street I would pick it up.
Okay the thing about these upside down mobile homes are that new folk’s ears perk up, when they hear some big numbers. Unfortunately this is not what MH Investing AKA “Lonnie Deals” are about.
What they are about is ROI (return on investment), yield, monthly cashflow, turning small investments into larger investments, quickly and without of headaches.
I think that a lot of new folks don’t understand this. And I myself am guilty of applying my experience level to everyone else.
Chris I apologize for that. Guess I have sort of turned into that annoying calc teacher I had in High school who just assumed everyone knew what he was talking about.
For a first deal, pass on this one. There are many more, better, less aggravating deals out there.
And hey, pick up and read Lonnie Scruggs books, or Earnst Tew’s material before trying to do any of these deals.

P.S. Thanks David and Freddy for waking me up a little with your posts.

Re: I need advice on a possible MH purchase - Posted by Freddy Wells

Posted by Freddy Wells on June 19, 1999 at 09:12:07:

I would pass on this deal unless you have someone in mind that would qualify for the note, and could turn it quick. If you don’t turn it quick you have an alligator on your hands that loves to eat your money. I think if you will read the articles on this web site pertaining to mobile homes, you will see there are a lot better deals out there than this one.

Just my thoughts.

Re: I need advice on a possible MH purchase - Posted by David Alexander

Posted by David Alexander on June 19, 1999 at 08:53:02:

A 296 payment would make it at the top of the market around here, when you include that with lot rent, taxes, insurance, water etc. Like dirk said on the sell side the only Advantages are picking up some cash on the front end, and I would say a max of 1500, probably more like a 1000 for a quick sale. Depends on if it is worth it to you. As you get into other Lonnie typ deals and more RE, this stuff just won’t look attractive at all, unless you can get someone else to do all the work and you collect the check, maybe split it with them for doing the paperwork.

David Alexander

depends on what you want to do. - Posted by Dirk Roach

Posted by Dirk Roach on June 19, 1999 at 01:02:13:

Hi Chris,
What are your needs right now? If you are looking to get into investing using Mobile Homes as a vehicle this is not usually the best scenario. However a quick couple of grand can be made if you do it right. You could tie up the mobile with an option, find a buyer who has a couple of grand to put down as a down payment and then have them assume the buyers loan. Most loans that are “assumable” are qualifying assumable, which means that whomever assumes it has to qualify with the lender. Of course there are various around this. Check out the how to articles and what not to get into that.
Oh and of course if the Mobile is in a park whomever moves into the park will most likely have to get park approved.
If you are going to use this home as your residence, I personally would be a little wary about taking on a note for 19k when most likely your not going to be able to get that, or at least have a hard time getting it when you want to sell in a year. But hey that is me.
Good luck to you

Re: Sorry Chris - Posted by Freddy Wells

Posted by Freddy Wells on June 20, 1999 at 24:13:48:

It is so nice and refreshing to see your posts on this board. I know that you have been riding those speedbumps out there in California where you hear so many say a Lonnie deal doesn’t exist out there in California. Keep up the good work. Hope to see you at a seminar soon.