Posted by Doug (OK) on March 25, 2001 at 24:54:00:
I was wondering where you bought the 23 homes from if you did not buy them through PM’s or individuals? Also, how do you deal with leaving them on the lots?
Thanks, Doug
Just received Lonnies book…a few questions - Posted by Ralph Malph
Posted by Ralph Malph on March 24, 2001 at 12:17:05:
I just got a chance to read a few pages so far and along with reading this forum I have few questions I need clearing up. If mobile home investing is such a good idea and there are so many people here at this site that are doing it and just so many mobile home parks in various communities in the US, investors will if not already will be bumping into each other and stepping on each others feet trying to get at the good deals. For instance you might have 10 MH communities in a particular popular town or city and 10 or 20 investors all trying to milk the same communities, which will if not already cause competition thereby saturating the market whereas the only winner will be the buyer. Am I right or am I wrong? Explain.
Also how long can someone expect a MH to last before it is none other than a peice of junk? I mean how much money does someone need to keep pumping into a MH before it no longer becomes worth the effort like an old car. Or are MH different whereas they can can last forever and hold some sort of value as long as periodic maintenance is done? Lets say the MH has leaks everywhere in the roof, do you just keep patching the roof or replace it and is the MH actually worth the cost of replacing a roof?
Look for the positives (kinda long) - Posted by Blane (MI)
Posted by Blane (MI) on March 24, 2001 at 18:34:32:
Just because it’s a good idea doesn’t mean everyone is going to do it. Lots of people may post here, but how many actually go out and do it? And of those, how many will actually keep going after the first couple roadblocks, and out of those how many will persevere through the myriad other problems that can and do occur? Not many I’d bet.
There may be “just so many” parks in a few areas of the U.S., but this is a big country with thousands and thousands of communities. As an example, I have on my wall a map from a newspaper showing the location of approximately 200 MH parks in 6 counties around the Detroit area. Many parks won’t be workable either because they’re too new or too run down. Trust me, that will still leave dozens of parks to do business in. Thane, who posts here on occasion, has done some Lonnie deals in the northern Detroit suburbs. I currently do business in the southern and western suburbs and south towards Ohio. Eventually Thane and I will cross paths, but you can rest assured there’s enough business for the two of us. Plus I hear of someone here and there who does something similar. As I expand my area of efforts toward Toledo, Ohio, I’ll cross paths with John Hyre, who also posts here and has done some business in Toledo already. Again, there’s more than enough in Toledo to go around.
If you follow the guidelines in Lonnie’s books, it won’t matter how long MH’s last because you will be long gone from it way before it goes to MH heaven. As Tony says, you can sell as is or put some cash into them. Sorta depends on what you buy them for. My recent purchases have been such that I can put money in them and still get a nice yield. It helps that I have a repair guy who’s really reasonable. And nearly all of my notes (1 exception) are 5 years or less. Again, as Tony said, MH’s are pretty cheap to fix. So if the roof leaks, seal it!
As I’ve said before and I’m sure I will again, it’s ridiculous how much money you can make from a couple of $30 books. If you can get past those first hurdles, you’ll see what we’re talking about. But for now, read those books, then act! Good luck.
Blane
Re: Just received Lonnies book…a few questions - Posted by Tony-VA
Posted by Tony-VA on March 24, 2001 at 13:23:30:
Many of your questions will be answered in the books.
I believe Lonnie or David Butler’s material explains that these homes have a life expectancy of 59 years or so. Quite honestly, these homes are very inexpensive to repair, remodel and remarket. I have seen some homes that are 10 years old that looked like 100. I have seen homes 30 years old that looked 5. Like anything, it is how they are treated.
Some people buy them, put $2k into fixing them up and sell them at a huge profit. Others, like most of my deals, are buy them and sell the “As Is”. I have begun to fix and pretty them up a bit but by no means show room quality. As Dirk says, “White and Bright”.
As for competition. If you check www.bigbooks.com and run mobile home parks within a 50 mile radius of your home, you will likely be amazed at the number of parks.
Keep in mind, Lonnie teaches this material right in his own backyard. In his books and tapes, he lets you know that business is about abundance, not scarcity. There are deals enough for everyone, even people doing “Lonnie Deals” in Lonnie’s favorite parks. Sure, less competition helps but a little competition makes you sharper and forces you to do better business. Don’t fear competition. It only takes one park to get this business started. Just start doing deals while others are analysing.
Best Wishes,
Tony-VA
Re: Just received Lonnies book…a few questions - Posted by WindyCityRuss
Posted by WindyCityRuss on March 26, 2001 at 13:04:10:
I’m trying to get to the site you mentioned (www.bigbooks.com) and it’s returning an error. I’m wondering did you type the addy correctly? If you did then the site may just be down temporarily.
Re: Just received Lonnies book…a few questions - Posted by bama
Posted by bama on March 24, 2001 at 22:15:29:
Don’t worry about where to find homes. I have bought and sold 23 so far and have purchased 0 from individuals or parks. My only complaint is that only 6 of the deals have been owner financed. 13 were cash buyers. 4 are up for sale now. When you put a good home in front of people at a good price, they get very resourceful.
There are numerous ways to find homes. Park managers are only one. And, in my opinion, not the most desireable.
Sam
Re: Just received Lonnies book…a few questions - Posted by Tony-VA
Posted by Tony-VA on March 26, 2001 at 16:06:57:
my typo. try www.bigbook.com
Sorry.