L/H repo from Greenpoint - Posted by Dave Fl.

Posted by patsears on January 23, 2005 at 09:47:28:

Thanks Tony! nt

L/H repo from Greenpoint - Posted by Dave Fl.

Posted by Dave Fl. on January 20, 2005 at 15:56:31:

Am lookin at an acre with a 96?? 3/2 DW in west central Florida. A repo from Greenpoint. I have no idea what to offer but I can tell you the county appraiser’s office says the just value is around 70g’s. Thats in retail,saleable condition I ass-u-me. I’m thinking I should buy at around 40-45g’s. Ready to sell at retail with owner financing should be around 100g’s. Its sat empty for at least 2 years and we all know what that does to a MH. I see a chance for some good profit here if I don’t overpay. Taxes are unpaid since 2001 and a app. for a tax deed has been recorded. I can’t afford to screw up so advice on how to proceed would be greatly appreciated.
Thanks
Dave Fl.

Re: L/H repo from Greenpoint - Posted by Tony Colella

Posted by Tony Colella on January 20, 2005 at 17:13:16:

Value is unique. What a property might be worth to me, might not be worth to you, etc. …

Look at the property with your end (exits) in mind. Focus not only on fix up costs but holding costs. Build your profit in when you buy and use that number as your max purchase price.

Because you are buying from a foreclosing lender, owner carry finance is pretty much out. You can still get a ballpark idea of your mortgage payments based upon what 3rd party financing is willing to provide.

My one word of caution is to suggest that you not buy based upon a cash out sales price. Selling for all cash is great but it may include longer holding periods and more competition. Yes, there are many folks in Florida selling for cash without a problem. Hopefully your property will do the same, just build in other plans and funds in case it does not.

Remember, when making offers to foreclosing lenders, do not be afraid to go low. There is no one to insult here. We have bought properties from GreenTree recently for $35k that they were asking $69k. I am sure others have done even better. We don’t get them all but we do a get a response and can negotiate to the max purchase price factor. Walking away at that point is easy. No regrets if we don’t buy it right.

Tony

Re: L/H repo from Greenpoint - Posted by PatP

Posted by PatP on January 20, 2005 at 16:06:22:

Can you buy it for the taxes via a tax lien?

Re: L/H repo from Greenpoint - Posted by ScottM (NC)

Posted by ScottM (NC) on January 20, 2005 at 17:33:29:

Tony,

When buying from Greentree, Vanderbilt and other finance companies, is it done over the phone or are the offers to purchase more formal with standard RE forms.

Scott

Re: L/H repo from Greenpoint - Posted by Tony Colella

Posted by Tony Colella on January 20, 2005 at 17:43:08:

Funny you should ask.

I have to admit that bar none, buying foreclosed land/home deals from GreenTree was the easiest. They were very informal.

The negotiations were done on the phone and took about 4 phone calls, each lasting about 3 minutes. We called, they said what they were asking, we made an offer. David (the contact point) said, “I will take it to the boss.” He called back a few hours later, and dropped his price about $10 grand but still not enough. We went up a grand or two and said it was the final offer. He called back and said ok.

He then faxed us a one page purchase agreement (probably the same one they use for repo mobiles only). I hand wrote in a 10 day inspection grace period (which he had agreed to) and faxed it back.

I called back a few days later, told him my inspection was done, I had the lender lined up and gave GreenTree the contact information for my closing attorney. They actually sent the signed deed to that attorney a few day later. We closed about 10 days or so after that.

I wish they were all that easy.

DO NOT FORGET TO ASK THE MAGIC QUESTION TO THESE LENDERS!!!

The magic question is…Do you have any more in this area?

Tony

Re: L/H repo from Greenpoint - Posted by ricky d wilson

Posted by ricky d wilson on March 10, 2005 at 04:42:46:

Like to make a offer on a property. Lois A Bennett-2633 Mcmahan RD Utica Ky 42376-NTA 741639

Re: L/H repo from Greenpoint - Posted by patsears

Posted by patsears on January 22, 2005 at 17:52:33:

Tony,

Maybe you cover this in your book (I can’t wait to get it!), but I have a question regarding the GreenTree L/H repo’s. I get their lists every month, mainly for the trailer park repos, but I have noticed they have a fair amount of LH deals available also. The problem is, they are all located in the rural areas of the state (Virginia), anywhere from 1.5 to 5 hours away by car. How do you go about appraising these homes in an area you’re not familiar with? Should I consider working with a real estate agent in the area I’m thinking of (expensive!)? Checking tax records? What do you do in these situations? There are routinely GreeTree L/H repos listed in the $50K’s that would easily be affordable for me, but not if they are only worth $40K due to their “backwoods” location!

Any thoughts?

patsears
psears123@yahoo.com

p.s. If I had a total of say, $50K into a L/H repo (purchase, fix-up (hiring people-not me), as well as my carrying costs, etc…) I would expect to sell for not a penny less than $70K (maybe a liitle more if I had to use an agent), for a minimum pre-tax profit of $20K. I don’t think I could justify the risk/time for anything less. Is this a reasonable expectation?

Re: L/H repo from Greenpoint - Posted by Rikki

Posted by Rikki on January 20, 2005 at 19:27:45:

I just recently reached an agreement with Vanderbilt on a 1995 3/2 singlewide that needs minor work (mobile kote the roof, replace front door jamb, clean the carpet). The asking price was $9500. I spoke with the representative by phone, then inspected the property and submitted an offer via e-mail. I offered $4600 AS IS. I was called this morning and informed that they had accepted my offer. I was pretty thrilled until I reinspected again and realized I over-looked something. The home has central heat, but did not come with central air. The conversion over to central heat and air will run me $1200. So, be sure to inspect, take notes, and reinspect before submitting an offer. Vanderbilt never counter-offered. Just accepted my first offer. I must say, however, that the owner of the lot that the mobile home sat on placed a no trespassing sign in the window and a note that said “Contractor must contact land owner before moving home.” I made sure to mention this in the e-mail. In hindsight, I should have offered $4000, but I still managed to get a little more than 50% off the asking price.

Re: L/H repo from Greenpoint - Posted by robin hunter

Posted by robin hunter on October 16, 2005 at 14:37:07:

i am looking for a repossessed manufacted home in california. i would like it to be fairly new 2001-2005 3-4 bedrooms/ open floorplan ,living room/dining room/kitchen./ tile floors in kitchen, entry and utility room square footage 1700 plus or minus a few square feet. I would like the home to have lots of upgrades.

Re: L/H repo from Greenpoint - Posted by Jonathan Bass

Posted by Jonathan Bass on September 07, 2005 at 17:04:16:

Im going to buy a repo mobile home, please send me your listings via email…

Re: L/H repo from Greenpoint - Posted by sonya wade

Posted by sonya wade on July 19, 2005 at 21:42:13:

im looking for a small used mobile home in georgia. one bedroom.

Re: L/H repo from Greenpoint - Posted by Jim Hunt

Posted by Jim Hunt on February 19, 2005 at 10:17:15:

This may be a little off the subject, but you mentioned the montly GreenTree repo list. I am just starting in Real Estate and wonder how I get on the list to receive the monthly GreenTree list for Utah. Any Ideas/help?

Thank you.
Jim

Re: L/H repo from Greenpoint - Posted by Tony Colella

Posted by Tony Colella on January 22, 2005 at 18:23:09:

The land/home packages I buy are typically located on the same side of town and somewhat near one another. This makes my life a lot easier. I do have some that are located outside of the group but even then they are within a 10 - 15 minute drive.

Personally, I would not be interested in a land/home deal that is as far away as you describe.

Flipping land/home deals can be tougher than one might imagine. There are seasoning restriction for first time home buyer programs that your buyer might use. The markets here at least do not seem to move land/home packages very quickly. I have seen several land/home deals that have been turned into doll houses and are still on the market here after over a year. The one I am thinking of is now asking in the mid $60’s which is below market.

Other markets vary quit a bit. Several posters here from the Florida areas have written about flipping quite a few land/home deals without much of a problem.

If your homes are as far out as you describe, it may be difficult for you to determine what is a good wholesale price for a rural neighborhood you have no experience with. Yes, there are ways to ball park these prices but to just buy it and hand it to and agent that far away would not provide me the confidence or control I prefer.

Everyone is different and as such there are probably others who would feel more comfortable with such a deal. There is no right or wrong so long as it works for you.

Tony

repos - Posted by CARRIE CALLIER

Posted by CARRIE CALLIER on October 24, 2005 at 09:58:28:

I would like a list of repo’s please. Thank You Carrie

Re: L/H repo from Greenpoint - Posted by natalie

Posted by natalie on April 04, 2005 at 08:32:10:

please fax me a list of repos t my fax number 7405332528 i am purchasing a hme fr myself and my tw children thank u fr yur time

Re: L/H repo from Greenpoint - Posted by patsears

Posted by patsears on January 22, 2005 at 18:53:41:

Tony,
Wow! Thanks for the fast follow up. I was thinking that is what you would probably say, about the homes being too far away. Where I am located is on the outskirts of the “hot residential market” section of Metropolitan Southeastern Virginia. But I am fairly close to the beginning of the rural areas. If I see one come up that is within 30 minutes or so, maybe I will check it out.

From what I could make of your reply to my post, you seem to lean towards buying, then renting out the property, whereas I was coming from the angle of a developer of “for sale” properties. They both have their benefits, but for your gig, I worry about the renters trashing the place (and mobile homes aren’t exactly built “Ford Tough” if you know what I mean.) How do you deal with it?
Personally, I like the idea of holding and renting, especially if you are using the mobile home income to make the payments on a huge piece of acreage that in 20 years may be the town center! But my wife hates it when I talk “rental” instead of “sale” because she does’nt want to be "awakened at 2:00am with tenant phone calls, etc…"
Any Thoughts?

Thanks!
patsears

Re: L/H repo from Greenpoint - Posted by jerry corbett

Posted by jerry corbett on August 04, 2005 at 13:37:35:

I WOULD LIKE A REPO LIST FOR FLORDIA FAX TO ME AT
1-386-330-5329 PLEASE AND THANK YOU.

Renting Land/Home Packages - Posted by Tony Colella

Posted by Tony Colella on January 22, 2005 at 20:46:45:

Like your wife, I too had the prejudice belief that landlords got calls in the middle of the night to fix …of all things…toilets.

Do landlords get calls in the middle of the night? Probably. Do we rush out and do something about it. Nope.

There is literally nothing that you have to fix at night that can’t wait until tomorrow.

Broken water line… turn off the main water to the house Mr. tenant and I will have it fixed tomorrow. Go back to sleep.

Fire. Call the fire department, I will be out tomorrow.

Crime. Call the police, I will be out tomorrow.

Toilet not working, … go back to sleep, I will be out tomorrow.

Tenants trashing homes is the other overblown concern. Think about it. How many millions of regular people own rental property? All we ever hear is some horror story. Usually the other side of the story is just as bad… landlords did not follow state laws properly that could have ended the problem months ago.

Honestly, my Lonnie deal buyers did more damage to the homes than my tenants ever have. But ask yourself this. How much did it cost you to fix up a Lonnie deal you bought that needed work? Can a tenant do more damage than that?

Most of the times I might find a hole in the wall or some carpet that has been ruined. Oh yeah, and a lot of trash.

A $15 piece of paneling, a carpet remnant for $100 or less and some trash bags and we are back in business.

If they really trash the place, then it looks like a Lonnie deal and I start over again. I buy it one time and fix as necessary until I reach a point of financial independence where I no longer value this income and simply sell off the home and rent the land or sell off the entire property.

Ask yourself this. How did Lonnie get started in investing? Remember that part about being a burned out landlord after 20 years?

If you have not rented property yet then there is no reason to become a burned out landlord. Rental real estate made Lonnie financially independent of his job. Many, many others are just like him.

The gurus who teach and invest in flips etc. reach a point where the taxes kill them and they finally realize that they are little more than high paid house salesman. To keep income coming in, they must go out and flip another house. If they die or become ill tomorrow, the income stops tomorrow. Their children or spouses can’t always jump in and take over for them but they can cash rent checks and hire a property manager if necessary.

Yes, the house flippers get paid very well but they still have to do more deals. Eventually they too buy rental properties for the tax benefits as well as the income stream, access to equity for more deals (tax free) and net worth growth.

Are rental properties work? Yes, but it sure beats working for someone else, making them rich while we collect whatever they agree to pay us.

Tony