L/O on mobile home? (Lonnie, Ernest, others...) - Posted by JOHNMAN

Posted by johnman on March 10, 1999 at 21:10:19:

Phil,
Thank you sir. I appreciate it. I’m not familiar with the rent on mobile homes. I guess I need to treat it like a regular house to some extent then I probably would have seen the light.
Thanks again. See yah.
Johnman

L/O on mobile home? (Lonnie, Ernest, others…) - Posted by JOHNMAN

Posted by JOHNMAN on March 10, 1999 at 17:06:18:

Hi folks,

I received a phone call about an hour ago and this lady has a problem (opportunity for me). They want out of their mobile home. They bought it in Sept 97. It is a 16 X 80 single wide according to them. Here are the numbers:

$372 monthly payments
$150 lot rent
$486 insurance per year
$486 taxes
$39,600 approximate loan balance

The question is “Is there money to be made on a lease/option deal”? This is my first mobile home call and I’m not familiar with the ins and outs of dealing with mobiles.
Please let me know what do you folks think. I hope to give her a response by this week.

Thanks a bunch.

Johnman

Re: L/O on mobile home? (Lonnie, Ernest, others…) - Posted by Sandor

Posted by Sandor on March 13, 1999 at 24:35:51:

Hello,
I wouldn’t completely abandon this project of yours. Some folks out there don’t know any better than to live in mobile homes! You could do a cooperative l/o with the owners and assign the contract. The owners want a solution and you can offer them one. Negotiate a little to make the terms attractive to the potential tenant/buyers. The owners may have to take a little negative cash flow to sell it. It would be better to have someone in there that would take care of the place who eventually wants to own it! You can possibly negotiate terms for 2-3 yrs where the rent would be raised annually and the home would be sold for the remaining balance. Solve these people’s problems and make a little money to boot! Give it a try!
Go for it - Sandor

Re: L/O on mobile home? (Newbie naive’ Q ) - Posted by greg

Posted by greg on March 11, 1999 at 11:14:02:

I have a bit of a naive question. Couldn’t you go to the lender and try to buy the paper at a discount? That way you could generate some positive cash flow between your payments on the note and the rental or purchase payments made by your new buyer. Just wondering.

Re: L/O on mobile home? (Lonnie, Ernest, others…) - Posted by David Alexander

Posted by David Alexander on March 10, 1999 at 19:26:53:

I don’t see it either, you would be at 600/month with everything, you might be able to get a few bucks up front, 1000-2500, but how time would you have to waste.

What do 2-3 bedroom apts go for in your area, that might be about the determining factor

David Alexander

Re: L/O on mobile home? (Lonnie, Ernest, others…) - Posted by phil fernandez

Posted by phil fernandez on March 10, 1999 at 18:52:52:

Hey Johnman,

I never like to say never and I don’t know your market however the total note payment plus lot rent equals $522 per month. With low interest rates on houses these days it seems that someone could buy a house for that price. Again, I underline, I don’t know your local market.

The balance of $39,600 puts this mobile way out of the range that would be a Lonnie deal. And the mobile is too new.

I’d pass.

Re: L/O on mobile home? (Newbie naive’ Q ) - Posted by David Alexander

Posted by David Alexander on March 11, 1999 at 12:49:16:

You can, but in my experience (limited to a few times) of trying to do this they’re very unnegotiable. I think you have to get to them when it’s already an REO on their books.

David Alexander

Re: L/O on mobile home? (Lonnie, Ernest, others…) - Posted by Johnman

Posted by Johnman on March 10, 1999 at 21:13:09:

David,
I agree with both you and Phil. Apt rents vary quite a bit here in Savannah. A few bucks won’t cut it. Thank you for your input. Time to move on.
See yah.
Johnman